Question

Purchases and Cash Payments Transactions

Emily Frank owns a small retail business called Frank’s Fantasy. The cash account has a balance of $20,800 on July 1. The following transactions occurred during July:

July 1	Issued Check No. 414 in payment of July rent, $2,300.
1	Purchased merchandise on account from Tilly's Toys, Invoice No. 311, $2,900, terms 2/10, n/30.
3	Purchased merchandise on account from Scheer & Company, Invoice No. 812, $3,700, terms 1/10, n/30.
5	Returned merchandise purchased from Tilly's Toys, receiving a credit memo on the amount owed, $600.
8	Purchased merchandise on account from Donna's Dolls, Invoice No. 139, $2,940, terms 2/10, n/30.
11	Issued Check No. 415 to Tilly's Toys for merchandise purchased on account, less return of July 5 and less 2% discount.
13	Issued Check No. 416 to Scheer & Company for merchandise purchased on account, less 1% discount.
15	Returned merchandise purchased from Donna's Dolls, receiving a credit memo on the amount owed, $450.
18	Issued Check No. 417 to Donna's Dolls for merchandise purchased on account, less return of July 15 and less 2% discount.
25	Purchased merchandise on account from Applied Business, Invoice No. 489, $2,670, terms n/30.
26	Purchased merchandise on account from Tilly's Toys, Invoice No. 375, $2,180, terms 2/10, n/30.
29	Purchased merchandise on account from Scheer & Company, Invoice No. 883, $3,540, terms 1/10, n/30.

Required:

1. Enter the transactions in a general journal (start with page 16). If an amount box does not require an entry, leave it blank. Do not enter the posting references until you complete part 2. If required, round your answers to the nearest cent.

Answer 1

Date	Accounting titles & Explanations				Debit	Credit
1-Jul	Rent expense				2,300
	cash					2,300
1-Jul	purchases				2,900
	Accounts payable-tilly tolly					2,900
3-Jul	purchases				3,700
	Accounts payable-Scheer company					3,700
5-Jul	Accounts payable-tilly tolly				600
	purchase returns & allowances					600
8-Jul	purchases				2,940
	Accounts payable-Donnas dolls					2,940
11-Jul	Accounts payable-tilly tolly				2,300
	purchase discount					46
	cash					2254
13-Jul	Accounts payable-Scheer company				3,700
	purchase discount					37
	cash					3,663
15-Jul	Accounts payable-donna dolls				450
	purchase returns & allowances					450
18-Jul	Accounts payable-Donna dolls				2,490
	purchase discount					49.8
	cash					2440.2
25-Jul	purchases				2,670
	Accounts payable-Applied business					2,670
26-Jul	purchases				2,180
	Accounts payable-tilly tolly					2,180
29-Jul	purchases				3,540
	Accounts payable-Scheer company					3,540