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In: Accounting

The following were selected from among the transactions completed by Harrison Company during November of the...

The following were selected from among the transactions completed by Harrison Company during November of the current year:

Nov. 3 Purchased merchandise on account from Moonlight Co., list price $120,000, trade discount 25%, terms FOB destination, 2/10, n/30.
4 Sold merchandise for cash, $53,500. The cost of the merchandise sold was $32,100.
5 Purchased merchandise on account from Papoose Creek Co., $67,400, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,150 added to the invoice.
6 Returned $19,200 ($25,600 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
8 Sold merchandise on account to Quinn Co., $22,100 with terms n/15. The cost of the merchandise sold was $13,000.
13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14 Sold merchandise on VISA, $335,000. The cost of the merchandise sold was $198,700.
15 Paid Papoose Creek Co. on account for purchase of November 5.
23 Received cash on account from sale of November 8 to Quinn Co.
24 Sold merchandise on account to Rabel Co., $80,800, terms 1/10, n/30. The cost of the merchandise sold was $48,300.
28 Paid VISA service fee of $5,030.
30 Paid Quinn Co. a cash refund of $1,770 for damaged merchandise from sale of November 8. Quinn Co. kept the merchandise

CHART OF ACCOUNTSHarrison CompanyGeneral Ledger

ASSETS
110 Cash
121 Accounts Receivable-Quinn Co.
122 Accounts Receivable-Rabel 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
211 Accounts Payable-Moonlight Co.
212 Accounts Payable-Papoose Creek Co.
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

Journalize the transactions. 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.

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JOURNAL

ACCOUNTING EQUATION

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Solutions

Expert Solution

Journal Entry:

Date Description Post Ref. Debit Credit
11/3 Merchandise Inventory ($120000 x (1- 25%) 130.00 $90,000
Accounts Payable-Moonlight Co. 211.00 $90,000
11/4 Cash 110.00 $53,500
Sales 410.00 $53,500
11/4 Cost of Merchandise Sold 510.00 $32,100
Merchandise Inventory 130.00 $32,100
11/5 Merchandise Inventory 130.00 $68,550
Accounts Payable-Papoose Creek Co 212.00 $68,550
11/6 Accounts Payable-Moonlight Co 211.00 $19,200
Merchandise Inventory 130.00 $19,200
11/8 Accounts Receivable-Quinn Co 121.00 $22,100
Sales 410.00 $22,100
11/8 Cost of Merchandise Sold 510 $13,000
Merchandise Inventory 130.00 $13,000
11/13 Accounts Payable-Moonlight Co(90,000-19,200) 211.00 $70,800
Cash 110.00 $69,384
Merchandise Inventory ($70,800 x 2%) 130.00 $1416
11/14 Cash 110.00 $335,000
Sales 410.00 $335,000
11/14 Cost of Merchandise Sold 510.00 $198,700
Merchandise Inventory 130.00 $198,700
11/15 Accounts Payable-Papoose Creek Co 212.00 $68,550
Cash 110.00 $67,202
Merchandise Inventory(67,400×2%) 130.00 $1,348
11/23 Cash 110.00 $22,100
Sales Discounts (not given) -
Accounts Receivable-Quinn Co 121.00 $22,100
11/24 Accounts Receivable-Rabel Co 122.00 $80,800
Sales 410.00 $8,800
11/24 Cost of Merchandise Sold 510 $48,300
Merchandise Inventory 130.00 $48,300
11/28 Credit Card Expense 536.00 $5030
Cash 110.00 $5030
11/30 Sales Returns and Allowances $6,420.00
Accounts Receivable-Quinn Co 121.00 $6,420.00
11/30 Estimated Return Inventory 131.00

$17,770

Cash 110.00 $17,770

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