Question

The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.

Record the following transactions on page 10 of the journal:

July	1	Sold merchandise on account to Landscapes Co., $33,450, terms FOB shipping point, n/eom. The cost of merchandise sold was $20,000.
	2	Sold merchandise for $86,000 plus 8% sales tax to retail cash customers. The cost of merchandise sold was $51,600.
	5	Sold merchandise on account to Peacock Company, $17,500, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $10,000.
	8	Sold merchandise for $112,000 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $67,200.
	13	Sold merchandise to customers who used MasterCard cards, $96,000. The cost of merchandise sold was $57,600.
	14	Sold merchandise on account to Loeb Co., $16,000, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $9,000.
	15	Received check for amount due from Peacock Company for sale on July 5.
	16	Issued credit memo for $3,000 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,800.

Record the following transactions on page 11 of the journal:

	18	Sold merchandise on account to Jennings Company, $11,350, terms FOB shipping point, 2/10, n/30. Paid $475 for freight and added it to the invoice. The cost of merchandise sold was $6,800.
	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 $8,550 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 $3,770 for service fees for handling MasterCard and VISA sales during July.
	10	Paid $41,260 to state sales tax division for taxes owed on sales.

Journalize the entries to record the transactions of Green Lawn Supplies Co. Refer to the Chart of Accounts for exact wording of account titles.

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Chart of Accounts

CHART OF ACCOUNTS
Green Lawn Supplies Co.
General Ledger
ASSETS 110 Cash 121 Accounts Receivable-Jennings Company 122 Accounts Receivable-Landscapes Co. 123 Accounts Receivable-Loeb Co. 124 Accounts Receivable-Peacock Company 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 312 Income Summary	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

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Journal

Journalize the entries to record the transactions of Green Lawn Supplies Co. Refer to the Chart of Accounts for exact wording of account titles. Scroll down for page 11 of the journal.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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Points:

PAGE 11

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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Answer 1

Date	Particulars	Debit	Credit
1-Jul	Accounts Receivables	33,450
	Sales		33,450
	Cost of Goods Sold	20,000
	Merchandise Inventory		20,000
2-Jul	Accounts Receivables	92,880
	Sales		86,000
	Sales tax payable		6,880
	Cost of Goods Sold	51,600
	Merchandise Inventory		51,600
5-Jul	Accounts Receivables	17,500
	Sales		17,500
	Cost of Goods Sold	10,000
	Merchandise Inventory		10,000
8-Jul	Accounts Receivables	120,960
	Sales		112,000
	Sales tax payable		8,960
	Cost of Goods Sold	67,200
	Merchandise Inventory		67,200
13-Jul	Accounts Receivables	96,000
	Sales		96,000
	Cost of Goods Sold	57,600
	Merchandise Inventory		57,600
14-Jul	Accounts Receivables	16,000
	Sales		16,000
	Cost of Goods Sold	9,000
	Merchandise Inventory		9,000
15-Jul	Cash	17,325
	Sales discounts	175
	Accounts Receivables		17,500
16-Jul	Sales return	3,000
	Accounts Receivables		3,000
	Merchandise Inventory	1,800
	Cost of Goods Sold		1,800
18-Jul	Accounts Receivables	11,350
	Sales		11,350
	Cost of Goods Sold	6,800
	Merchandise Inventory		6,800
24-Jul	Cash	12,870
	Sales Discounts	130
	Accounts Receivables		13,000
28-Jul	Cash	11,123
	Sales Discounts	227
	Merchandise Inventory		11,350
31-Jul	Delivery Expense	8,550
	Cash		8,550
31-Jul	Cash	33,450
	Accounts Receivables		33,450
3-Aug	Service fees	3,770
	Cash		3,770
10-Aug	Sales Tax Payable	41,260
	Cash		41,260