Question

Mar 10             Due to a power surge, all the bulbs in our store had to be replaced. Purchased store supplies from Bells & Bulbs, on account, $650, terms, n/30.

Mar 10             Paid balance due to Barty and Co. for purchase made on March 1.

Mar 12             Purchased some inventory on account from Game Set Match, $4,250, terms 2/10, n/30.

Mar 12             Received payment from S. Williams on account.

Mar 12             Sold some store supplies (at our cost) to the pharmacy next door. They paid us with a check for $125.

Mar 13             Received credit memorandum from Game Set Match for damaged merchandise, $300.

Mar 13             Sold merchandise on account to R. Federer, $3,200. The cost of the merchandise was $1,280.

Mar 14             Recorded the semi-monthly payroll for our only employee, A. Roddick, as follows (record this entry and the next one, as is, in the general journal):

                        Salary Expense                                      $800

                                    Federal Income Tax Payable                              $120

                                    FICA Tax Payable                                                   61

State Income Tax Payable                                      22

Medical Insurance Payable                                      7

Salaries Payable                                                590

Mar 14             Recorded employers payroll taxes as follows:

                        Payroll Tax Expense                               $110

                                    FICA Tax Payable                                               $61

                                    FUI Tax Payable                                                     6

                                    SUI Tax Payable                                                 43      

Mar 14             Recorded cash sales for the week, $8,240. The cost of the merchandise was $3,296.

GENERAL JOURNAL(just do Mar 15- Mar 22)

Journalize the following transactions for March. Entries should be posted daily/immediately. Due to the order of posting, it is possible that an account with a normal debit balance may temporarily have a credit balance

Mar 15             Issued check to our employee, A. Roddick, $590.

Mar 15             Issued a credit memorandum to V. Williams for the return of some merchandise, $400. The merchandise was in good condition. The cost of the returns was in the same proportion as the original sale.

Mar 16             Received a check from A. Agassi on account in payment of his Mar 5 invoice.

Mar 16             Received the following checks from customers on account:

Big Hitters – in payment of their Mar 8 invoice

V. Williams – in payment of their Mar 5 invoice

Mar 17             Purchased some merchandise inventory for resale from each of the following suppliers on account:       

Babolat       $4,150

Wilson        $2,900

Penn          $7,200

Mar 18             Paid Bells & Bulbs the amount due from the Mar 10 purchase.

Mar 19             Paid the amount due to Game Set Match from the Mar 12 purchase.

Mar 20             Mr. Yur-Karte, the owner, took home office supplies for his own personal use, $135. This should be recorded as a dividend.

Mar 21             Recorded cash sales for the week, $7,380. The cost of the merchandise was $2,952.       

Mar 22             We sold merchandise on account to three new clients:

• A. Ashe, protective eye goggles sold for $2,900. The cost of the merchandise was $1,160
• M. Hingis, tennis skirts sold for $750. The cost of the merchandise was $300.
• A. Gibson, hats and visors sold for $2,800. The cost of the merchandise was $1,120

Answer 1

Journal Entries:

Date	Particulars	Debit	Credit
Mar 15	Salaries Expense	590
	Bank		590
	(To record issue of check to employee)
Mar 15	Sales Return	400
	Accounts Receivable - V.Williams		400
	(To record issue of credit memo)
Mar 16	Cash
	Accounts Receivable - A.Agassi
	(Received check from Customer)
Mar 16	Cash
	Accounts Receivable - Big Hitters
	Accounts Receivable - V.Williams
	(Received checks from Customers)
Mar 17	Purchases / Inventory	14,250
	Accounts Payable - Babolat		4,150
	Accounts Payable - Wilson		2,900
	Accounts Payable - Penn		7,200
	(To record purchase of inventory on credit)
Mar 18	Accounts Payable - Bells & Bulbs	650
	Cash		650
	(To record payment made to Bells & Bulbs)
Mar 19	Accounts Payable - Game Set Match (4,250-300)	3,950
	Discount Received (3,950*2%)		79
	Cash (3,950 * 98%)		3,871
	(To record payment made to Game Set Match)
Mar 20	Dividend	135
	Office Supplies		135
	(To record office supplies taken for personal use)
Mar 21	Cash	7,380
	Sales		7,380
	(To record cash sales for the week)
	Cost of Goods Sold	2,952
	Inventory		2,952
	(To record cost of goods sold for the week)
Mar 22	Accounts Receivable - A.Ashe	2,900
	Accounts Receivable - M.Hingis	750
	Accounts Receivable - A.Gibson	2,800
	Sales		6,450
	(To record credit sales)
	Cost of Goods Sold (1,160+300+1,120)	2,580
	Inventory		2,580
	(To record cost of goods sold)

Note: Amount for March 16 Entry is not given because the March 5th transaction has not been posted. The invoice amount is the amount to be entered.

Similarly for Check received from Big Hitters.

For the check received from V.Williams, the amount will be Total Sales less the Sales Returns of $400.