In: Accounting
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.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 |
||||||||
2 |
||||||||
3 |
||||||||
4 |
||||||||
5 |
||||||||
6 |
||||||||
7 |
||||||||
8 |
||||||||
9 |
||||||||
10 |
||||||||
11 |
||||||||
12 |
||||||||
13 |
||||||||
14 |
||||||||
15 |
||||||||
16 |
||||||||
17 |
||||||||
18 |
||||||||
19 |
||||||||
20 |
||||||||
21 |
||||||||
22 |
||||||||
23 |
||||||||
24 |
||||||||
25 |
||||||||
26 |
||||||||
27 |
||||||||
28 |
||||||||
29 |
||||||||
30 |
||||||||
31 |
||||||||
32 |
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 |