In: Accounting
On March 1, Sather Co. sold merchandise to Boone Co. on account, $29,800, terms 2/15, n/30. The cost of the merchandise sold is $18,300. The merchandise was paid for on March 14.
Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Refer to the appropriate company’s Chart of Accounts for exact wording of account titles.
Chart of Accounts-Sather Co.
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sather Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Chart of Accounts-Boone Co.
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Boone Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Journal-Sather Co.
Journalize the entries for Sather Co. for the sale on March 1 and payment of the amount due on March 14. Refer to the appropriate company’s Chart of Accounts for exact wording of account titles.
PAGE 10
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
---|---|---|---|---|---|
1 |
|||||
2 |
|||||
3 |
|||||
4 |
|||||
5 |
|||||
6 |
Journal-Boone Co.
Journalize the entries for Boone Co. for the purchase on March 1 and payment of the amount due on March 14. Refer to the appropriate company’s Chart of Accounts for exact wording of account titles.
PAGE 20
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
---|---|---|---|---|---|
1 |
|||||
2 |
|||||
3 |
|||||
4 |
Books of Sather Co. | ||||
Date | Description | Debit | Credit | |
1-Mar | Accounts Receivable - Boone Co. | 29800 | ||
Sales | 29800 | |||
Goods sold to Boone Co. on account | ||||
1-Mar | Cost of Merchandise Sold | 18300 | ||
Merchandise Inventory | 18300 | |||
Transfer of cost to Cost of Merchandise sold | ||||
14-Mar | Cash | 29204 | ||
Sales Discount | 596 | |||
Accounts Receivable - Boone Co. | 29800 | |||
Payment terms were 2/15 that is if paid in15 days discount of 2 % will be allowed | ||||
Sales discount is used in this case but it is not mentioned in charts of account | ||||
Books of Boone Co. | ||||
1-Mar | Merchandise Inventory | 29800 | ||
Accounts Payable - Sather Co. | 29800 | |||
Merchandise Inventory purchased on account | ||||
14-Mar | Accounts Payable - Sather Co. | 29800 | ||
Merchandise Inventory | 596 | |||
Cash | 29204 | |||
Cash Paid to Sather after adjusting for discount on purchase | ||||
being payment made within time allowed for discount | ||||