Question

 

*Robinson Corporation maintains a perpetual inventory system.

*All sales on account are subject to terms of 2/10, n/30. Discounts are taken and granted only when the terms are met.

*The cost of all inventory sold in December was 80% of the sales price.

3	Received a check from Swanson Brothers Construction in full payment of invoice dated November 26. The invoice amount was $24,050.
3	Sold sewer and drainage pipe to Beverly’s Building Products on account for $13,150.
3	Purchased copper tubing and fittings from Edward’s Plumbing Supplies Inc. on account for $24,320, terms n/60.
3	Issued check for $26,400 to Oxenford Copperworks in settlement of the balance owed on account, no discount taken.
3	Issued check for $810 to Standard Oil Co. in payment of gas, oil, and truck repair.
6	Sold cast pipe to Trudy's Plumbing on account for $29,300
6	Received a check in the amount of $27,800 form Coconino Contractors, Inc. in full payment of invoice dated October 20
6	Purchased bathroom fixtures from Phoenix Plastics, on account for $52,700, terms 1/10, n/30
12	Received a check from Trudy's Plumbing in payment of invoice from December 6.
13	Issued check for $399 in payment of November telephone bill
14	Issued check to Phoenix Plastics, Inc in payment of invoice from December 6
20	Purchased supplies in the amount of $1,360. (Note: Debit the asset account)
24	A half-acre parcel of land adjacent to the building is acquired in exchange for 600 share of common stock. The land has a fair value of $54,000 and will be used immediately.
26	Board of directors declared a total dividend of $8,740 payable on January 14 to stockholders of record on December 26
27	An invoice in the amount of $2,650 is received from a lawyer for legal services involved in the acquisition of the land purchased on Dec. 24
31	Sold a piece of equipment for $2,500 cash. The original cost was $7,000, a life of 10 years, and accumulated depreciation recorded through 12/31/17 of $4,550. The straight-line method is used. (Note: the company follows the practice of recording a half year's depreciation in the year of acquisition and a half year in the year of disposal.) First, bring the depreciation expense up to date, then record the sale
31	Cash sales for December totalled $52,272

Answer 1

Date	journal	Dr.	Cr.
3	Bank	24050
	To Swanson brothers		24050
3	beverly's building product	13150
	To sale		13150
3	purchase	24320
	To Edward plumbing supplies		24320
3	Oxenford coppereorks	26400
	To Bank		26400
3	standard oil co.	810
	To bank		810
6	Turdy's plumbing	29300
	To sale		29300
6	Bank	27800
	To Coconio contractors		27800
6	Fixtures A/c	52700
	To pbneix plastics		52700
12	Bank A/c	28714
	Cash discount A/c		586
	To Turdy plumbing		29300
13	telephone bill A/c	399
	To bank		399
14	phoneix plastics	52700
	to bank		51646
	To discount received		1054
20	Assets A/c	1360
	To Cash		1360
24	Land A/c	54000
	To Comon stock		54000
26	Retained earnings	8740
	To dividend payable		8740
27	Land A/c	2650
	To lawyer fees payable		2650
31	Cash	2500
	Dep.	4550
	To equipment		7000
	To profit on sale of equipment		50
31	Cash A/c	52272
	To sale		52272