3. Devotchka Co. uses special journals and a general journal. The following tran

Question

3. Devotchka Co. uses special journals and a general journal. The following transactions occurred during May 2016. May 1 Z. Devotchka invested $25,000 cash in the business. 2 Sold merchandise to A. A. Bondy for $5,600 cash. The cost of the merchandis was $3,500. 3 Purchased merchandise for $4,300 from Y. Vandyver using check no. 101. 14 Paid salary to D. Dilego $1,200 by issuing check no. 102. 16 Sold merchandise on account to S. Stevens for $840, terms n/30. The cost of merchandise sold was $500. 22 A check of $7,200 is received from S. Sufjan in full for invoice 101; no discou given. Instructions (a) Prepare a multiple-column cash receipts journal and a multiple-column cash payments journal. (Use page I for each journal.) (b) journal and cash payments journal. Record the transaction(s) for May that should be journalized in the cash receipts

Explanation / Answer

(a) Cash receipt journal Date Account credited Ref. Debit Credit COGS Dr Inventory Cr. Cash Sales Discounts Accounts Receivable Sales Revenue Other Accounts May 1. Owner's capital 25000 25000 May 2. Sales 5600 5600 3500 May 22. S.Sufijan 7200 7200 37800 0 7200 5600 25000 3500 Cash payment journal Date Account debited Ref. Debit Credit Accounts Payable Other accounts Cash May 3. Inventory 101 4300 4300 May 14. Salary expense 102 1200 1200 0 5500 5500 (b) Journal entries: Date Account titles ad explanation Debit Credit May 1. Cash 25000 Owner's capital 25000 (Cash invested in business) May 2. Cash 5600 Sales 5600 (Cash sales ) Cost of goods sold 3500 Inventory 3500 (Recorded cost of goods sold) May 3. Inventory 4300 Cash 4300 (Purchased merchndise inventory) May 14. Salary expense 1200 Cash 1200 (Salary paid) May 22. Cash 7200 S.Sufijan 7200 (Cash received from customer)

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.