Grassley Company completes these transactions during November of the current yea
ID: 2518521 • Letter: G
Question
Grassley Company completes these transactions during November of the current year (terms for all its credits sales are 2/10, n/30).
Nov.1 Purchased $5,058 of office equipment on credit from Brun supply, invoice dated November 1, terms n/10 EOM.
2 Borrowed $88, 500 cash from Wisconsin Bank by signing a long-term note payable.
4 Purchased $33,500 of merchandise from BLR Industries, invoice dated November 3, terms 2/10, n/30.
5 Purchased $1,040 of store supplies on credit from grebe Company, invoice dated November 5, terms n/10 EOM.
8 Sold merchandise on credit on Cyd Rounder, invoice No. 439, for $6,550 (cost is $3,910).
10 Sold merchandise on credit to Carlos Mantel, Invoice No. 440, for $13,500 (cost is $8,500).
11. Purchased $2,557 of merchandise from Lo company, invoice dated November 10, term 2/10, n/30.
12 Sent BLR Industries CheckNo.633 in payment of its November 3invoive less the discount.
15. Issued check No. 634, payable to payroll, in payment of salaries expense for the first half of the month, $6,585. Cashed the check and paid the employees.
15. Cash sales for the first half of the month are $18,170 (cost is $9,00). (cash sales are recorded daily but are recorded only tice in this problem to reduce repetitive entries.
15. sold merchandise on credit to Tori Tripp, invoice No. 441, for $5,250 (cost is $2,450).
16. Purchased $459 of office supplies on credit from Grebe Company, invoice dated November 16, terms n/10 EOM.
17 Received a $557 credit memorandum from Lo company, for the return of unsatisfactory merchandise purchased on November 11
18 Received payment from Cyd Rounder for the November 8 sale less the discount.
19. Issued Check No 635 to Lo Company in payment of its invoice of November 10, less the return and the discount
22. Sold Merchandise on Credit to Carlos mantel, Invoice No.442, for $3,695 (Cost is $2,060)
24. Sold Merchandise on credit to Tori Tripp, invoice No.443 for $4,280 (cost is $2,130)
25. Received payment from Tori Tripp for the sale of November 15 less the discount.
26. Received a $922 credit memorandum from Brum Supply for the return of office equipment purchased on November 1
30. Issued Check No. 636, payable to payroll, in payment of sales salaries expense for the last half of the month, $6,585. Cashed the check and paid the employees.
30. Cash sales for the last half of the month are $16,703 (cost is $10,200)
Required:
Enter the above transactions in: Sales Journal, Purchases Journal, Cash Receipts Journal, Cash Disbursements Journal or a General Journal
Explanation / Answer
J.E in the books of Grassley Company:
Date Account Name Debit Credit 1 Equipment $5,058 To Brun Supply 5058 2 Bank Accont $88,500 To Long Term Note Payable $88,500 3 Purchases $33,500 To BLR Industries $33,500 4 Store Supplies $1,040 To Grebe Comapny $1,040 5 Cyd Rounder $6,550 To Sales $6,550 6 Carlos Mantel $13,500 To Sales $13,500 7 BLR Industries $33,500 To Discount $670 To Bank $32,830 8 Purchases $2,557 To Lo company $2,557 9 Salaries $6,585 To Salary Payable $6,585 10 Salary Payable $6,585 To Bank $6,585 11 Cash $18,170 To Sales $18,170 12 Tori Tripp $5,250 To sales $5,250 13 Office Supplies $459 To Grebe Company $459 14 Lo company $557 To purchase return $557 15 Bank $6,419 Discount $131 To Cyd Rounder $6,550 To Lo company 16 Lo company $2,000 To Discount $40 To Bank $1,960 17 Carlos mantel $3,695 To Sales $3,695 18 Bank $5,145 Discount $105 Tori Tripp $5,250 19 Brum Supply $922 To Equipment $922 20 Salaries $6,585 To Salary Payable $6,585 21 Salary Payable $6,585 To Bank $6,585 22 Cash $16,703 To Sales $16,703Related Questions
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