journalize the entries for the following transactions. Refer to the Chart of Acc
ID: 2554545 • Letter: J
Question
journalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of account titles. (Note: The company uses a clearinghouse to take care of all bank as well as non-bank credit cards used by its customers. )
A.
Sold merchandise for cash, $34,900. The cost of the goods sold was $24,081.
B.
Sold merchandise on account, $267,200. The cost of the merchandise sold was $184,368.
C.
Sold merchandise to customers who used MasterCard and VISA, $166,200. The cost of the merchandise sold was $114,678.
D.
Sold merchandise to customers who used American Express, $68,700. The cost of the merchandise sold was $47,403.
E.
Received and paid an invoice from National Clearing House Credit Co. for $7,840, representing a service fee paid for processing MasterCard, VISA, and American Express sales.
HART OF ACCOUNTSGeneral Ledger
ASSETS
110
Cash
120
Accounts Receivable
125
Notes Receivable
130
Inventory
131
Estimated Returns Inventory
140
Office Supplies
141
Store Supplies
142
Prepaid Insurance
180
Land
192
Store Equipment
193
Accumulated Depreciation-Store Equipment
194
Office Equipment
195
Accumulated Depreciation-Office Equipment
LIABILITIES
210
Accounts Payable
216
Salaries Payable
218
Sales Tax Payable
219
Customer Refunds Payable
220
Unearned Rent
221
Notes Payable
EQUITY
310
Common Stock
311
Retained Earnings
312
Dividends
313
Income Summary
REVENUE
410
Sales
610
Rent Revenue
EXPENSES
510
Cost of Goods Sold
521
Delivery Expense
522
Advertising Expense
524
Depreciation Expense-Store Equipment
525
Depreciation Expense-Office Equipment
526
Salaries Expense
531
Rent Expense
533
Insurance Expense
534
Store Supplies Expense
535
Office Supplies Expense
536
Credit Card Expense
539
Miscellaneous Expense
710
Interest Expense
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Journalize the entries for the transactions on December 31. Refer to the Chart of Accounts for exact wording of account titles.
A.
Sold merchandise for cash, $34,900. The cost of the goods sold was $24,081.
B.
Sold merchandise on account, $267,200. The cost of the merchandise sold was $184,368.
C.
Sold merchandise to customers who used MasterCard and VISA, $166,200. The cost of the merchandise sold was $114,678.
D.
Sold merchandise to customers who used American Express, $68,700. The cost of the merchandise sold was $47,403.
E.
Received and paid an invoice from National Clearing House Credit Co. for $7,840, representing a service fee paid for processing MasterCard, VISA, and American Express sales.
Explanation / Answer
Journal Entries: Date Accounts title and explanations Debit $ Credit $ a. Cash Account Dr. 34900 Sales 34900 Cost of Goods sold Dr. 24081 Inventory 24081 b. Accounts receivable Dr. 267200 sales 267200 Cost of Goods sold Dr. 184368 Inventory 184368 c. Accounts receivable Dr. 166200 sales 166200 Cost of Goods sold Dr. 114678 Inventory 114678 d. Accounts receivable Dr. 68700 sales 68700 Cost of Goods sold Dr. 47403 Inventory 47403 e. Cash Account Dr. 227060 Credit card expense Dr. 7840 Accounts receivable 234900
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