Question

The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:

July 1.	Sold merchandise on account to Landscapes Co., $12,900, terms FOB shipping point, n/eom. The cost of merchandise sold was $7,700.
2.	Sold merchandise for $20,300 plus 5% sales tax to retail cash customers. The cost of merchandise sold was $13,200.
5.	Sold merchandise on account to Peacock Company, $35,600, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $23,100.
8.	Sold merchandise for $10,500 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $6,300.
13.	Sold merchandise to customers who used MasterCard cards, $9,000. The cost of merchandise sold was $5,700.
14.	Sold merchandise on account to Loeb Co., $13,400, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $7,900.
15.	Received check for amount due from Peacock Company for sale on July 5.
16.	Issued credit memo for $2,000 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,100.
18.	Sold merchandise on account to Jennings Company, $5,900, terms FOB shipping point, 2/10, n/30. Paid $270 for freight and added it to the invoice. The cost of merchandise sold was $3,500.
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 $1,810 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 $1,100 for service fees for handling MasterCard and VISA sales during July
10.	Paid $2,130 to state sales tax division for taxes owed on sales.

Required:

Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.

Answer 1

Date	Accounts and Explanation	Debit	Credit
1-Jul	Accounts receivable	$12,900.00
	Cost of goods sold	$ 7,700.00
	Sales		$12,900.00
	inventory		$ 7,700.00
	Good sold on account worth 7700 at $12900
2-Jul	Cash account (2030+1015)	$21,315.00
	Cost of goods sold	$13,200.00
	Sales		$20,300.00
	sales tax payable (20300*5%)		$ 1,015.00
	Inventory		$13,200.00
	Goods sold on cash plus sales tax and sales tax collected at 5%. Cost of goods sold $13200 for $ 20300
5-Jul	Accounts receivable	$35,600.00
	Cost of goods sold	$23,100.00
	Sales		$35,600.00
	inventory		$23,100.00
	Goods sold on account worth 23100 at $35600
8-Jul	Bank account (10500+840)	$11,340.00
	Cost of goods sold	$ 6,300.00
	Sales		$10,500.00
	sales tax payable (10500*8%)		$     840.00
	Inventory		$ 6,300.00
	Goods sold on visa card account worth $6700 at $10500 and sales tax collected @ 8%
13-Jul	Bank account	$ 9,000.00
	Cost of goods sold	$ 5,700.00
	Sales		$ 9,000.00
	Inventory		$ 5,700.00
	Goods sold on master card worth $5700 at $9000
14-Jul	Accounts receivable	$13,400.00
	Cost of goods sold	$ 7,900.00
	Sales		$13,400.00
	inventory		$ 7,900.00
	Goods sold on account worth $13400 at $7900
15-Jul	Bank Account (35600*99%)	$35,244.00
	Cash Discount (35600*1%)	$     356.00
	Accounts receivable		$35,600.00
	received check for goods sold on jones account . Treated check as bank account. Cash discount allowed 1 % as paid within 10 days
16-Jul	Sales Return account	$     900.00
	Inventory	$ 1,100.00
	Account receivable		$ 2,000.00
	Sales returned worth $1100, issued credit note for 2000
18-Jul	Accounts receivable (5900+270)	$ 6,170.00
	Cost of goods sold	$ 3,500.00
	Sales		$ 5,900.00
	Inventory		$ 3,500.00
	Freight charges		$     270.00
	Goods sold on account worth $ 3500 for $5900, paid freight charges and added to account receivables
24-Jul	Bank Account	$11,286.00
	Cash Discount	$     114.00
	Accounts receivable (13400-2000)		$11,400.00
	received check for goods sold on Heynes account less credit note issued for $2000,Discount allowed 1% as per the 10 days term. Treated check as bank account
28-Jul	Bank Account	$ 6,046.60
	Cash Discount	$     123.40
	Accounts receivable		$ 6,170.00
	received check for goods sold on Horton account . Treated check as bank account. Discount allowed of 2% on payment term of 10 days
31-Jul	Freight charges	$ 1,810.00
	Cash account		$ 1,810.00
	paid for freight charges using FOB destination for $1950 for goods supplied in march
31-Jul	Bank Account	$12,900.00
	Accounts receivable		$12,900.00
	received check for goods sold on Green Grass Co for $12900. Treated check as bank account
3-Aug	Bank charges	$ 1,100.00
	Cash		$ 1,100.00
	Paid $1,100 as Service and handling fee for handing visa and master card sales
10-Aug	Sales tax payable account	$ 2,130.00
	Cash		$ 2,130.00
	Paid sales tax payable of 2130 to Sales tax division of tax