Pherigo Co. uses special journals and a general journal. Thefollowing transactio
ID: 2433921 • Letter: P
Question
Pherigo Co. uses special journals and a general journal. Thefollowing transactions occurred during May 2010.
May 1 I. Pherigoinvested $50,000 cash in the business.
3 Purchased merchandise for $7,200from J. DeLeon using check no. 101.
14 Paid salary to H. Potter $700 byissuing check no. 102.
16 Sold merchandise on accountto K. Kimbell for $900, terms n/30. The cost of
the merchandise sold was $630.
22 A check of $9,000 is received fromM. Moody in full for invoice 101; no
discount given.
Explanation / Answer
Cash Receipt Journal
Date Account Ref Cash(Dr.) Sales Discount(Dr.) Accounts Receivable(Cr.) Sales(Cr.) Others(Cr.)
May
1 Investing 50,000 50,000
2 Sales 6,300 6,300
22 M.Moody 9,000 9,000
Total 65,300 9,000 6,300 50,000
Cash Payment Journal
Date Account Ref Cash(Cr.) Purchase Discount(Cr.) Accounts Payable(Dr.) Others(Dr.)
May
3 Purchase 7,200 7,200
14 Salaries 700 700
Total 7,900 7,900
Cash
Date Ref Debits Credits Balance
May31 65,300 65,300
May31 7,900 57,400
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