Question

The following selected transactions were completed by Amsterdam Supply Co., which sells office 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 on page 10 of the journal

Mar.	2	Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,300.
	3	Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,000.
	4	Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200.
	5	Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $19,400.
	12	Received check for amount due from Equinox Co. for sale on March 2.
	14	Sold merchandise to customers who used American Express cards, $13,700. The cost of the goods sold was $8,350.
	16	Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $16,000.
	18	Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900.

Record on page 11 of the journal

Mar.	19	Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of the goods sold was $5,000.
	26	Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
	28	Received check for amount due from Vista Co. for sale of March 19.
	31	Received check for amount due from Empire Co. for sale of March 4.
	31	Paid Fleetwood Delivery Service $5,600 for merchandise delivered during March to customers under shipping terms of FOB destination.
Apr.	3	Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March.
	15	Paid $6,544 to state sales tax division for taxes owed on sales.

Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.

Amsterdam Supply Co.
General Ledger
ASSETS 110 Cash 121 Accounts Receivable-Empire Co. 122 Accounts Receivable-Equinox Co. 123 Accounts Receivable-Targhee Co. 124 Accounts Receivable-Vista Co. 125 Notes Receivable 130 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 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles. 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 PAGE 11 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

Answer 1

Answer Page 10

	Date	Desc	Post Ref	Debit	Credit	Asset	Liability	Equity
1	Mar 02	Sale of goods (Wholesale)	122	18900		Accounts Receivable-Equinox Co.
			130		13300	Inventory
			311		5600			Retained earning
2	Mar 03	Sale Of goods (Retail)	110	12031		Cash
			218		681		Sale Tax Payable
			130		7000	Inventory
			311		4350			Retained Earning
3	Mar 04	Sale Of Goods (Whole Sale)	121	55400		Accounts Receivable-Empire Co.
			130		33200	Inventory
			311		22200			Retained Earning
4	Mar 05	Sale Of Goods	110	31800		Cash
			218		1800		Sale Tax Payable
			130		19400		Inventory
			311		10600			Retained Earning
5	Mar 12	Check Received	110	18900		Cash
			122		18900	Accounts Receivable-Equinox Co.
6	Mar 14	Sale of Goods	110	13700		Cash
			130		8350	Inventory
			311		5350			Retained Earning
7	Mar 16	Sale of Goods	123	27500		Accounts Receivable-Targhee Co.
			130		16000	Inventory
			311		11500			Retained Earnings
8	Mar 18	Return Of Goods	130	2900		Inventory
			311	1900				Retained Earnings
			123		4800	Accounts Receivable-Targhee Co.

Answer Page 11

	Date	Description	Post Ref	Debit	Credit	Asset	Liability	Equity
1	Mar 19	Sale Of Goods	124	8250		Accounts Receivable-Vista Co.
			131		5000	Inventory
			311		3250			Retained Earnings
2	Mar 26	Check Received	110	22700		Cash
			123		22700	Accounts Receivable-Targhee Co.
3	Mar 28	Check Received	110	8250		Cash
			124		8250	Accounts Receivable-Vista Co.
4	Mar 31	Check Received	110	55400		Cash
			121		55400	Accounts Receivable-Empire Co.
5	Mar 31	Expense Incurred	141	5600		Store Supplies
			110		5600	Cash
6	Apr 03	Expense Incurred	141	940		Store Supplies
			110		940	Cash
7	Apr 15	Sales Tax Paid	218	6544			Sales Tax Payable
			110		6544	Cash