Question

Fit & Fashionable 800 Coco Drive, Coconut Grove, FL 33133 NARRATIVE OF TRANSACTIONS Record the following transactions in the appropriate journals. April 1 Purchased merchandise on account from Alexus Fitness Connection, $13,865.00. Terms are n/30. 1 Sold merchandise on account, Invoice No. 301, to Miami Health Club for the net amount of $5,301.60. The Cost of Goods Sold is $3,864.00. Credit terms for all sales on account are 2/10, n/30. Credit sales are recorded net of the 2% discount assuming customers will take the discount. Fit & Fashionable uses a perpetual inventory system and therefore records the cost of goods sold as well as the sale. 1 Issued Check No. 2201 for $14,268.80 to Alexus Fitness Connection in payment of its invoice of March 6. 2 Received a check for $14,406.00 from Body Excellence Fitness Club in payment of our invoice of March 27 for $14,700.00, less discount. 2 Issued Check No. 2202 for $5,700.00 to Harvey Insurance Company as a prepayment of insurance month policy. for a 12-3 Issued Check No. 2203 for $46,480.00 to Fizzy-Cal Network in payment of its invoice of March 7 (no discount). 3 Sold merchandise on account, Invoice No. 302, to All Access Fitness Center for the net amount of $9,364.29. The Cost of Goods Sold is $6,825.00. 3 Received a check from Cory’s Gym in the Grove for $12,348.00 in payment of our invoice of March 27. 65 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. April 4 Issued Check No. 2204 for $14,000.00 to HeartFit Enterprises in payment of its invoice of March 28. 4 Received a check for $6,174.00 from The Sun Set Recreation Center in payment of our invoice of March 8. 5 Sold merchandise on account, Invoice No. 303, to Westwood Boxing Gym for the net amount of $27,306.48. The Cost of Goods Sold is $19,903.68. 5 Purchased merchandise from 6 Cash on $49,519.75. Terms are n/30.6 Cash on $49,519.75. Terms are n/30. sales for April account Sports Magic Warehouse, 1–6 were $26,600.00. The Cost of Goods Sold is $18,024.00. Reminder: Record the following separate deposits in the register: the $26,600.00 of cash sales and the total of the checks received as payments on account this week. 8 Received a check for $8,232.00 from Westwood Boxing Gym in payment of our invoice of March 29 for $8,400.00, less discount. 8 Purchased merchandise on account from Fit & Fab Health Products, $5,230.00, terms 2/10, n/30. Record this purchase net of the discount. 8 Sold merchandise on account, Invoice No. 304, to The Sun Set Recreation Center for the net $21,756.88. The Cost of Goods Sold is $15,858.00.April 8 Received a check for $10,976.00 from Pine Bay Fitness Club in payment of our invoice of March 30. 9 Purchased the following on account from Fizzy-Cal Network: display (charge to Store Supplies), $1,800.00; merchandise, $9,600.00. $11,400.00. Terms are n/30. Total: 9 Issued Credit Memorandum No. 107 to The Sun Set Recreation Center for merchandise returned on Invoice No. 304 of April 8 for the discounted price of $823.20. The Cost of Goods Sold is $600.00. 10 Issued Check No. 2205 for $175.00 to Marty Chavez for customer entertain-ment (charge to Miscellaneous Selling Expense). 10 Sold merchandise on account, Invoice No. 305, to Rockdale Gym for the net amount of $13,373.86. The Cost of Goods Sold is $9,412.00. 11 Received Credit Memorandum No. 432 from Fit & Fab Health Products for merchandise returned, $875.00. Record this return net of the discount, $857.50.11 Received a check for $300.00 from SupplyMax for return of store supplies that were originally purchased for cash. 11 Received a check for $5,301.60 from Miami Health Club in payment of Invoice No. 301. 12 Received a check for $9,364.29 from All Access Fitness Center in payment of Invoice No. 302. 13 Issued Check No. 2206 for $13,000.00 to Payroll for biweekly salaries: sales salaries, $8,000.00; office salaries, $5,000.00. 13 Cash sales for April 8–13 were $36,120.00. The Cost of Goods Sold is $24,910.80.April 15 Received a check for $27,306.48 from Westwood Boxing Gym in payment of Invoice No. 303.

Answer 1

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Sales Journal
Date	Account Debited	Invoice no				Cost of Goods Sold Dr
			Sales cr	Sales Discount Debit	Accounts Receivable Dr	Inventory Cr
Apr 1	Miami Health Club	301	$                          5,409.80	$                             108.20	$                        5,301.60	$                     3,864.00
Apr 3	All access Fitness centre	302	$                          9,555.40	$                             191.11	$                        9,364.29	$                     6,825.00
Apr 5	Westwood Boxing Gym	303	$                        27,863.76	$                             557.28	$                      27,306.48	$                   19,903.68
Apr 8	The Sun Set Recreation	304	$                        22,200.90	$                             444.02	$                      21,756.88	$                   15,858.00
Apr 10	Rockdale Gym	305	$                        13,646.80	$                             272.94	$                      13,373.86	$                     9,412.00
Total			$                        78,676.64	$                          1,573.53	$                      77,103.11	$                   55,862.68
Purchase Journal
Date	Account	Date of Invoice	Terms	Accounts Payable Cr	Inventory Dr	Store Supplies Dr	Other Account Dr
Apr 1	Alexus Fitness Connection		n/30	$                        13,865.00	$                      13,865.00
Apr 5	6 Cash on		n/30	$                        49,519.75	$                      49,519.75
Apr 8	Fit & Fab		2/10,n/30	$                          5,125.40	$                        5,125.40
Apr 9	Fizzy-cal Network		n/30	$                        11,400.00	$                        9,600.00	$                     1,800.00
Mar 16	Gabel Company	Mar 16	n/10 EOM	$                          1,480.00			$                     1,480.00
Total				$                        81,390.15	$                      78,110.15	$                     1,800.00	$                    1,480.00
Cash Receipt Journal
Date	Account Credit	Cash Dr		Accounts Receivable Cr	Sales Cr	Other Account Cr	COGS Dr, Inv Cr
Apr 2	Body Excellence Fitness Club	$                         14,406.00		$                        14,406.00
Apr 3	Corry's Gym	$                         12,348.00		$                        12,348.00
Apr 4	The Sun Set Recreation	$                           6,174.00		$                          6,174.00
Apr 6	Sales	$                         26,600.00			$                      26,600.00		$                  18,024.00
Apr 8	Westwood Boxing Gym	$                           8,232.00		$                          8,232.00
Apr 8	Pine Bay Fitness	$                         10,976.00		$                        10,976.00
Apr 11	Miami Health Club	$                           5,301.60		$                          5,301.60
Apr 12	All access Fitness centre	$                           9,364.29		$                          9,364.29
Apr 13	Sales	$                         36,120.00			$                      36,120.00		$                  24,910.80
Apr 15	Westwood Boxing Gym	$                         27,306.48		$                        27,306.48
Total		$                       156,828.37	$                                      -	$                        94,108.37	$                      62,720.00	$                                 -	$                  42,934.80
Cash Disbursment Journal
Date	Ck NO	Payee	Accounts Debited	Cash Cr	Inventory Cr	Other Account Dr	Accounts Payble Dr
Apr 1	2,201	Alexus Fitness Connection	Alexus Fitness Connection	$                        14,268.80			$                  14,268.80
Apr 2	2,202	Harvey Insurance Co	Prepaid Insurance	$                          5,700.00		$                     5,700.00
Apr 3	2,203	Fizzy-cal Network	Fizzy-cal Network	$                        46,480.00			$                  46,480.00
Apr 4	2,204	HeartFit Enterprise	HeartFit Enterprise	$                        14,000.00			$                  14,000.00
Apr 10	2,205	Marty Chavez	Miscellaneous Expense	$                             175.00		$                        175.00
Apr 13	2,206		Salaries Expense	$                        13,000.00		$                   13,000.00
Total				$                        93,623.80	$                                    -	$                   18,875.00	$                  74,748.80
General Journal
Date	Account	Debit	Credit
Apr 9	Sales return and Allowanace	$                              823.20
	Accounts Receivable		$                              823.20	Sun creation
Apr 9	Inventory	$                              600.00
	Cost of goods Sold		$                              600.00
Apr 11	Accounts Payable	$                              857.50		Fit and Fab
	Inventory		$                              857.50
Apr 11	Accounts Payable	$                              300.00		Supply Max
	Store Supplies		$                              300.00