Question

The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers:

Record on page 10 of the journal

Mar.	2	Sold merchandise on account to Equinox Co., $19,200, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $14,260.
	3	Sold merchandise for $11,450 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $6,930.
	4	Sold merchandise on account to Empire Co., $52,890, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,880.
	5	Sold merchandise for $30,850 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,430.
	12	Received check for amount due from Equinox Co. for sale on March 2.
	14	Sold merchandise to customers who used American Express cards, $15,060. The cost of merchandise sold was $9,150.
	16	Sold merchandise on account to Targhee Co., $26,800, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $15,500.
	18	Issued credit memo for $1,400 to Targhee Co. for damaged merchandise from sale on March 16

Record on page 11 of the journal

	19	Sold merchandise on account to Vista Co., $7,950, terms FOB shipping point, 2/10, n/30. Added $100 to the invoice for prepaid freight. The cost of merchandise sold was $4,670.
	26	Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
	28	Received check for amount due from Vista Co. for sale of March 19.
	31	Received check for amount due from Empire Co. for sale of March 4.
	31	Paid Fleetwood Delivery Service $6,040 for delivery of merchandise in March to customers under shipping terms of FOB destination.
Apr.	3	Paid City Bank $880 for service fees for handling MasterCard and American Express sales during March.
	15	Paid $6,020 to state sales tax division for taxes owed on sales.

Required:

Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Chart of Accounts

CHART OF ACCOUNTS
Amsterdam Supply Co.
General Ledger
ASSETS 110 Cash 121 Accounts Receivable-Empire Co. 122 Accounts Receivable-Equinox Co. 123 Accounts Receivable-Targhee Co. 124 Accounts Receivable-Vista Co. 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense

Journal

Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Scroll down for page 11 of the journal.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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2
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Answer 1

Journal Entry:

Ans- Journal Entries

Date	Description	Debit ($)	Credit ($)
Mar.2	Accounts receivable- Equinox Co.	19,200
	Sales		19,200
	(To record the merchandise sold to Equinox Co.)
Mar.2	Cost of merchandise sold	14,260
	Merchandise inventory		14,260
	(To record the cost of merchandise sold)
Mar.3	Cash	12,137
	Sales		11,450
	Sales tax payable ($11,450*6%)		687
	(To record the merchandise sold to a customer)
Mar.3	Cost of merchandise sold	6,930
	Merchandise inventory		6,930
	(To record the cost of merchandise sold)
Mar.4	Accounts receivable-Empire company	52,890
	Sales		52,890
	(To record the merchandise sold to Empire company)
Mar.4	Cost of merchandise sold	33,880
	Merchandise inventory		33,880
	(To record the cost of merchandise sold)
Mar.5	Cash	32,701
	Sales		30,850
	Sales tax payable ($30,850*6%)		1,851
	(To record the merchandise sold to retail customer)
Mar.5	Cost of merchandise sold	19,430
	Merchandise Inventory		19,430
	(To record the cost of merchandise sold)
Mar.12	Cash	19,008
	Sales discount( 19,200 *1%)	192
	Accounts receivable-Equinox Co.		19,200
	(To record the check received from Equinox company)
Mar.14	Cash	15,060
	Sales		15,060
	(To record the merchandise sold)
Mar.14	Cost of merchandise sold	9,150
	Merchandise inventory		9,150
	(To record the cost of merchandise sold)
Mar.16	Accounts receivable- Targhee company	26,800
	Sales		26,800
	(To record the merchandise sold to Targhee company)
Mar.16	Cost of merchandise sold	15,500
	Merchandise inventory		15,500
	(To record the cost of merchandise sold)
Mar.18	Sales returns	1,400
	Accounts receivable- Targhee company		1,400
	(To record the issue of credit memo)
Mar.18	Merchandise inventory( not given)
	Cost of goods sold
	(To record the cost of merchandise returned)
Mar.19	Accounts receivable - Vista company	7,950
	Sales		7,950
	(To record the merchandise sold)
Mar.19	Cost of merchandise sold	4,679
	Merchandise inventory		4,670
	(To record the cost of merchandise sold)
Mar.19	Accounts receivable- Vista company	100
	Cash		100
	(To record the freight cost paid and to be collected from vista company)
Mar.26	Cash	25,146
	Sales discount ($25400 *1%)	254
	Accounts Receivable- Targhee company(26,800-1400)		25,400
	(To record the check received from targhee company)
Mar.28	Cash	7,791
	Sales discount ($7,950*2%)	159
	Accounts receivable-Vista company		7,950
	(To record the check received from Vista company)
Mar.31	Cash	52,890
	Accounts receivable- Empire company		52,890
	(To record the check received from Empire company)
Mar.31	Deliver expense	6,040
	Cash		6,040
	(To record the delivery expense paid)
Apr.3	Credit card expense	880
	Cash		880
	(To record the service fee paid)
Apr.15	Sales tax payable	6,020
	Cash		6,020
	(To record the sales tax paid)