During May, the last month of the fiscal year, the following transactions were c
ID: 2468642 • Letter: D
Question
During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on page 20 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
May 1 Paid rent for May, $5,000.
3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
4 Paid freight on purchase of May 3, $600.
6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.
7 Received $22,300 cash from Halstad Co. on account.
10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.
13 Paid for merchandise purchased on May 3.
15 Paid advertising expense for last half of May, $11,000.
16 Received cash from sale of May 6.
19 Purchased merchandise for cash, $18,700.
19 Paid $33,450 to Buttons Co. on account.
20 Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000. Record the following transactions on page 21 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
May 20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000.
21 For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.
21 Received $42,900 cash from Gee Co. on account. 21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.
24 Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. 26 Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. 28 Paid sales salaries of $56,000 and office salaries of $29,000.
29 Purchased store supplies for cash, $2,400. 30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000. 30 Received cash from sale of May 20 plus freight paid on May 21. 31 Paid for purchase of May 21, less return of May 24.
Explanation / Answer
Journal Entry Date Particulars Dr. Amt Cr. Amt May-01 Rent exp. Dr. 5,000 To Cash 5,000 (Record the rent paid for May) May-03 Merchandise Inventory Dr. 36,000 To Accounts Payable 36,000 (Record the purchase of inventory from Martin Co.) May-04 Freight Inwards Dr. 600 To Cash 600 (Record the freight paid on inventory purchased on May-3) May-06 Accounts Receivables Dr. 68,500 To Sales 68,500 (Record the merchandise sold to Korman Co. on credit) May-06 Cost of goods Sold Dr. 41,000 To Merchandise Inventory 41,000 (Record the cost of goods sold to Korman Co.) May-07 Cash Dr. 22,300 To Accounts Receivables 22,300 (Record the cash recd from Halstad Co.) May-10 Cash Dr. 54,000 To Sales 54,000 (Record the merchandise inventory sold in cash) May-10 Cost of goods Sold Dr. 32,000 To Merchandise Inventory 32,000 (Record the cost of goods sold in cash) May-13 Accounts Payable Dr. 36,000 To Cash (36000 - 720) 35,280 To Purchase Discounts ($36000 X 2%) 720 (Record the payment made to Martin Co.) May-15 Advertising Exp. Dr. 11,000 To Cash 11,000 (Record the advt. exp.paid) May-16 Cash (68500-1370) Dr. 67,130 Sales Discount (68500 X 2%) Dr. 1,370 To Accounts Receivables 68,500 (Record the cash received from sales made to Korman Co.) May-19 Merchandise Inventory Dr. 18,700 To Cash 18,700 (Record the purchase of inventory in cash) May-19 Accounts Payable Dr. 33,450 To Cash 33,450 (Record the cash paid to Buttons Co.) May-20 Sales Return Dr. 13,500 To Cash 13,230 To Sales Discount 270 (Record the amount refunded to Korman Co. for sales return) May-20 Merchandise Inventory Dr. 8,000 To Cost of Goods Sold 8,000 (Record the cost of goods returned from Korman Co.) May-20 Accounts Receivables Dr. 110,000 To Sales 110,000 (Record the merchandise sold to Crescent Co. on credit) May-20 Cost of goods Sold Dr. 70,000 To Merchandise Inventory 70,000 (Record the cost of goods sold to Crescent Co.) May-21 Accounts Receivables Dr. 2,300 To Cash 2,300 (Record the freight charges paid for the sale to cresent co. on his behalf) May-21 Cash Dr. 42,900 To Accounts Receivables 42,900 (Record the cash recd from Gee Co.) May-21 Merchandise Inventory Dr. 88,000 To Accounts Payable 88,000 (Record the purchase of inventory from Osterman Co.) May-24 Accounts Payable Dr. 5,000 To Merchandise Inventory 5,000 (record the goods returned to Osterman Co) May-26 Sales Return Dr. 7,500 To Cash 7,500 (Record the cash sales return refunded in cash) May-26 Merchandise Inventory Dr. 4,800 To Cost of Goods Sold 4,800 (Record the cost of merchandise return) May-28 Salaries Exp - Sales Dr. 56,000 Salaries Exp - Office Dr. 29,000 To cash 85,000 (Record the salaries paid) May-29 Store Supplies Dr. 2,400 To Cash 2,400 (Record the purchase the supplies inventory in cash) May-30 Accounts Receivables Dr. 78,750 To Sales 78,750 (Record the merchandise sold to Turner Co. on credit) May-30 Cost of goods Sold Dr. 47,000 To Merchandise Inventory 47,000 (Record the cost of goods sold to Turner Co.) May-30 Account Receivable Dr. 112,300 To Cash (110,000 - 1100 + 2300) 111,200 To Sales Discount ($110000 X 1%) 1,100 (Record the cash recd. From Crescent Co.) May-31 Accounts Payable Dr. 83,000 To Cash (83000 - 830) 82,170 To Purchase Discounts ($83000 X 1%) 830 (Record the payment made to Osterman Co.)
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