Week 1 Date Transaction description 1 Purchased 5 Tony ZIO MLP Projectors from B
ID: 2467046 • Letter: W
Question
Week 1 Date Transaction description
1 Purchased 5 Tony ZIO MLP Projectors from Big Telco for $110 each, terms net 30.
1 Obtained a loan of $48,000 from Earth Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2016 and the principal of the loan is to be repaid on June 1, 2020.
2 Paid the full amount owing to Mega Tech, Check No. 603. Payment fell within discount period.
3 Made cash sales of $4,707 during the first 3 days of the month.
5 Paid the full amount owing to JCN Electrical, Check No. 604. Payment fell within discount period.
6 Purchased 6 Zii Game Consoles from Moon Megasystems for $90 each, terms 2/10, n/30.
6 Sold 2 DK800 Desktop Computers to Jerry Technology for $610 each, Invoice No. 201.
6 Purchased 4 NR759 Video Recorders with cash for $190 each, Check No. 605.
Record transactions that occurred during the first week of June into the company's journals and post the appropriate entries to the ledger accounts (special journals, general journal, subsidiary ledger, general ledger)
Explanation / Answer
Journal Entries:
Date
Account titles / Explanations
Debit
Credit
1
Tony ZIO MLP Projectors (110*5)
$ 550.00
Accounts Payable- Big Telco
$ 550.00
Purchased 5 Tony ZIO MLP Projectors from Big Telco for $110 each, terms net 30.
1
Cash
$48,000.00
Earth Bank loan
$48,000.00
(Being loan taken)
2
Accounts Payable- Mega Tech
Discount
Cash
(Being payment made and discount received)
*Amounts are not given
3
Cash
$ 4,707.00
Sales
$ 4,707.00
(Being sales made for cash)
5
Accounts Payable- JCN Electicals
Discount
Cash
(Being payment made and discount received)
*Amounts are not given
6
Zii Game Consoles (6*90)
$ 540.00
Accounts Payable- Moon Megasystems
$ 540.00
Purchased 6 Zii Game Consoles from Moon Megasystems for $90 each, terms 2/10, n/30.
6
Cash (2*610)
$ 1,220.00
Sales
$ 1,220.00
(Being sales made for cash)
6
NR759 Video Recorders (4*190)
$ 760.00
Cash
$ 760.00
Purchased 4 NR759 Video Recorders with cash for $190 each, Check No. 605.
Journal Entries:
Date
Account titles / Explanations
Debit
Credit
1
Tony ZIO MLP Projectors (110*5)
$ 550.00
Accounts Payable- Big Telco
$ 550.00
Purchased 5 Tony ZIO MLP Projectors from Big Telco for $110 each, terms net 30.
1
Cash
$48,000.00
Earth Bank loan
$48,000.00
(Being loan taken)
2
Accounts Payable- Mega Tech
Discount
Cash
(Being payment made and discount received)
*Amounts are not given
3
Cash
$ 4,707.00
Sales
$ 4,707.00
(Being sales made for cash)
5
Accounts Payable- JCN Electicals
Discount
Cash
(Being payment made and discount received)
*Amounts are not given
6
Zii Game Consoles (6*90)
$ 540.00
Accounts Payable- Moon Megasystems
$ 540.00
Purchased 6 Zii Game Consoles from Moon Megasystems for $90 each, terms 2/10, n/30.
6
Cash (2*610)
$ 1,220.00
Sales
$ 1,220.00
(Being sales made for cash)
6
NR759 Video Recorders (4*190)
$ 760.00
Cash
$ 760.00
Purchased 4 NR759 Video Recorders with cash for $190 each, Check No. 605.
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