Question

Part 1
Journalize the following transactions for the month of June for Quixote Company
using the following list of Accounts and Account numbers.
Record all entries to the nearest cent.				(26 points)
	Accounts
	Cash		#110
	Accounts Receivable		#112
	Merchandise Inventory		#115
	Estimated Returns Inventory		#116
	Store Supplies		#117
	Prepaid Insurance		#119
	Store Equipment		#120
	Accumulated Depreciation - Store Equipment		#121
	Accounts Payable		#210
	Salaries Payable		#211
	Customer Refunds Payable		#212
	Larkin, Capital		#310
	Larkin, Drawing		#311
	Sales		#410
	Cost of Merchandise Sold		#510
	Office Salaries Expense		#511
	Sales Salaries Expense		#512
	Rent Expense		#513
	Depreciation Expense		#514
	Insurance Expense		#515
	Delivery Expense		#516
	Misc. Selling Expense		#517
	Misc. Administrative Expense		#518
1-Jun	Paid rent for June, $4000	1 pt.
3-Jun	Purchased merchandise on account from ABC Company for $10000
	Terms 2/10, n/30, FOB shipping point.
	We were billed $150 for shipping which was added to our invoice.			3 pts.
4-Jun	Returned $2000 of the merchandise purchased on June 3 from ABC Company.
				2 pts
6-Jun	Sold $15000 of Merchandise on account to EFG Company, terms 1/20, n/30,
	FOB shipping point.The cost of merchandise sold was $5000 and we
	paid $250 for shipping which was billed and added to the customer's invoice.
				3 pts.
7-Jun	EFG company returned $1500 of the merchandise purchased on June 6.
	The cost of merchandise sold was $1000		2 pts.
8-Jun	Paid Misc. Selling Expense of $500 and Misc. Administrative Expense of $100
				2 pts.
9-Jun	Purchased on account $350 of Store Supplies.		2 pts.
13-Jun	Paid ABC Company for the purchase made on June 3rd, less the return of June 4th
		3 pts.
16-Jun	Purchased store supplies for $100 cash.		2 pts.
17-Jun	Received cash from EFG Company for the sale of June 6,
	less the return of June 7th.			3 pts.
25-Jun	Paid Sales Salaries Expense of $650 and Office Salaries Expense of $750
				2 pts.
30-Jun	Owner withdrew $500		1 pt.
		Post		Page 1
Date	Journal Entries	Ref.	Debit	Credit
1-Jun	Rent Expense		4,000.00
	Cash			4,000.00
3-Jun
				Post your Journal entries to the ledgers. Be sure to balance the ledger after each entry. Ledgers Cash #110 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 40,000.00 Check Answer Cash = 38,775.00 Accounts Receivable #112 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 3,500.00 Merchandise Inventory #115 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 6,000.00 Estimated Returns Inventory #116 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 4,300.00 Store Supplies #117 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 500.00 Prepaid Insurance #119 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 300.00 Store Equipment #120 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 2,000.00 Accumulated Depreciation - Store Equipment #121 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 200.00 Accounts Payable #210 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 1,700.00 Salaries Payable #211 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. Customer Refunds Payable #212 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. 1-Jun Balance 9,000.00 Larkin, Capital #310 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 40,400.00 Larkin, Drawing #311 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 2,000.00 Sales #410 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 15,700.00 Cost of Merchandise Sold #510 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 5,000.00 Office Salaries Expense #511 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 2,000.00 Sales Salaries Expense #512 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 1,000.00 Rent Expense #513 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. Depreciation Expense #514 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 100.00 Insurance Expense #515 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. Delivery Expense #516 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. Misc. Selling Expense #517 Balance Date Item Post Ref. Dr. Cr. Dr.   Cr. June 1 Balance 200     Misc. Administrative Expense #518 Balance Date Item Post Ref. Dr. Cr. Dr.   Cr. June 1 Balance 100

Answer 1

Ledger Balance:Cash Account

Date	Particular	Amount	Date	Particular	Amount
17.06.	Accounts Receivable	12150	01.06.	Rent Expense	4000
	Balance b/d	1450	06.06	Accounts Receivable	250
			08.06.	Misc Exp Selling	500
			08.06.	Misc Admin Exp	100
			09.06.	Store Supplies	350
			13.06	Accounts Payable	6400
			16.06	Store Supplies	100
			25.06.	Sales Salary Exp	650
			25.06	Office Salary	750
			30.06.	Lurkin Drawing	500
			03.06.	Accounts payable	150

Date	Journal Entries		Debit	Credit
1-Jun	Rent Expense		4,000.00
	Cash			4,000.00
3-Jun	Merchandise Inventory		10000
	Delivery Expense		150
	To Accounts Payable (ABC)			10150
3-Jun	Accounts Payable		150
	Cash			150
4 June	Accounts Payable (ABC)		2000
	Merchandise Inventory			2000
6June	Accounts Receivable		15250
	Sales			15000
	Cash			250
	Profit and Loss			10000
7 June	Merchandise Inventory		1000
	Profit and Loss		500
	Accounts Receivable			1500
8th June	Misc. Selling Expense		500
	Misc Admin Expense		100
	Cash			600
9th June	Store Supplies		350
	Cash			350
13 June	Accounts Payable		8000
	Profit and Loss (Discount of 2 Percent as payment made in 10 days)			1600
	Cash			6400
16 June	Store Supplies		100
	Cash			100
17 June	Cash		12150
	Discount on Sales		1350
	Accounts Receivable			13500
25 June	Sales Salaries Expense		650
	Office Salaries expense		750
	Cash			1400
30 June	Larkin Drawing		500
	Cash			500