Question

1. Sales-Related Transactions Using Perpetual Inventory System

   The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:

   July 1.	Sold merchandise on account to Landscapes Co., $13,900, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,300.
   2.	Sold merchandise for $21,200 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $13,800.
   5.	Sold merchandise on account to Peacock Company, $30,900, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $20,100.
   8.	Sold merchandise for $12,500 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $7,500.
   13.	Sold merchandise to customers who used MasterCard cards, $9,500. The cost of merchandise sold was $6,000.
   14.	Sold merchandise on account to Loeb Co., $14,200, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,400.
   15.	Received check for amount due from Peacock Company for sale on July 5.
   16.	Issued credit memo for $2,100 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,200.
   18.	Sold merchandise on account to Jennings Company, $6,000, terms FOB shipping point, 2/10, n/30. Paid $210 for freight and added it to the invoice. The cost of merchandise sold was $3,600.
   24.	Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16.
   28.	Received check for amount due from Jennings Company for sale of July 18.
   31.	Paid Black Lab Delivery Service $2,200 for merchandise delivered during July to customers under shipping terms of FOB destination.
   31.	Received check for amount due from Landscapes Co. for sale of July 1.
   Aug. 3.	Paid Hays Federal Bank $1,050 for service fees for handling MasterCard and VISA sales during July
   10.	Paid $2,610 to state sales tax division for taxes owed on sales.

   Required:

   Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.

   Date	Account	Debit	Credit
   July 1-sale

   Date	Account	Debit	Credit
   July 1-cost

   Date	Account	Debit	Credit
   July 2-sale

   Date	Account	Debit	Credit
   July 2-cost

   Date	Account	Debit	Credit
   July 5-sale

   Date	Account	Debit	Credit
   July 5-cost

   Date	Account	Debit	Credit
   July 8-sale

   Date	Account	Debit	Credit
   July 8-cost

   Date	Account	Debit	Credit
   July 13-sale

   Date	Account	Debit	Credit
   July 13-cost

   Date	Account	Debit	Credit
   July 14-sale

   Date	Account	Debit	Credit
   July 14-cost

   Date	Account	Debit	Credit
   July 15

   Date	Account	Debit	Credit
   July 16-return

   Date	Account	Debit	Credit
   July 16-cost

   Date	Account	Debit	Credit
   July 18-sale

   Date	Account	Debit	Credit
   July 18-freight

   Date	Account	Debit	Credit
   July 18-cost

   Date	Account	Debit	Credit
   July 24

   Date	Account	Debit	Credit
   July 28

   Date	Account	Debit	Credit
   July 31-freight

   Date	Account	Debit	Credit
   July 31-collection

   Date	Account	Debit	Credit
   Aug. 3

   Date	Account	Debit	Credit
   Aug. 10

Answer 1

We have given the transactions of Green Lawn Supplies Co.

According to the question we have to Journalize the transactions.Before that we need to know what is Journal.

Journal: A journal is a subsidiay book in which the transactions are recorded in a chronological order as and when they take place. It contains one debit and one credit. It has a column called L.F which is page number of ledger the other subsidiary book in which transactions are summarised.

Now, move on the the journalizing the transactions.

Date	Particulars	L.F.	Debit Amount($)	Credit Amount($)
July1	Account Receivable a/c (Landscapes Co) To sales a/c ( sale of merchandise recorded)		13,900	13,900
July 1	Cost of goods sold a/c To Inventory a/c (Cost of goods sold recorded)		8,300	8,300
July 2	Cash a/c To sales a/c To sales tax payable a/c (sales tax calculated: 21200*6%= 1272)		22472	21200 1272
July 2	Cost of goods sold a/c To Inventory a/c (Cost of goods sold recorded)		13,800	13,800
July 5	Account Receivable a/c (Peacock Company) To sales a/c ( sale of merchandise recorded)		30,900	30,900
July 5	Cost of goods sold a/c To Inventory a/c (Cost of goods sold recorded)		20,100	20,100
July 8	Cash a/c To sales a/c To sales tax payable a/c ( sales tax calculated: 12500* 8%= 1000)		13500	12,500 1000
July 8	Cost of goods sold a/c To Inventory a/c (Cost of goods sold recorded)		7,500	7,500
July 13	Cash a/c To sales a/c (cash sales recorded)		9,500	9,500
July 13	Cost of goods sold a/c To Inventory a/c (Cost of goods sold recorded)		6000	6000
July 14	Account Receivable a/c (Loeb Co.) To sales a/c ( sale of merchandise recorded)		14,200	14,200
July 14	Cost of goods sold a/c To Inventory a/c (Cost of goods sold recorded)		8,400	8,400
July 15	Cash a/c Discount allowed a/c (30,900*2%) To account receivable a/c (Cash received from Peacock Company)		30282 618	30900
July 16	Sales return a/c To account receivable a/c ( merchandise sold was returned from Loeb Co)		2100	2100
July 16	Inventory a/c To cost of godds sold a/c (The cost of the merchandise returned )		1200	1200
July 18	Freight charges a/c To cash a/c ( Freight charges paid)		210	210
July 18	Account receivable a/c(Jennings Company) To sales a/c To freight charges a/c ( Freight charges paid and added to invoice)		6210	6000 210
July 18	Cost of goods sold a/c To Inventory a/c (Cost of goods sold recorded)		3600	3600
July 24	Cash a/c Discount allowed a/c (12100*1%) To account receivable a/c (Cash received from Loeb Co.=14200-2100=12100)		11979 121	12100
July 28	Cash a/c Discount allowed a/c (6000*2%) To account receivable a/c ( Cash received from Jennings company)		5880 120	6000
July 31	Delivery charges a/c To cash a/c (Paid Black Lab Delivery Service)		2200	2200
July 31	Cash a/c To account receivable a/c ( Cash received from Landscapes Co.)		13,900	13,900
Aug 3	Federal bank service charges a/c To cash a/c (Paid Hays Federal Bank service charges)		1050	1050
Aug 10	Sales tax payable a/c To cash a/c (Paid to state sales tax division)		2160	2160