Journalize the entries for the following transactions. Refer to the Chart of Acc
ID: 2554809 • 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. )
Received and paid an invoice from National Clearing House Credit Co. for $7,700, representing a service fee paid for processing MasterCard, VISA, and American Express sales.
Journalize the entries for the transactions on December 31. Refer to the Chart of Accounts for exact wording of account titles.
Interest Expense
A. Sold merchandise for cash, $30,500. The cost of the goods sold was $12,200. B. Sold merchandise on account, $246,100. The cost of the merchandise sold was $98,440. C. Sold merchandise to customers who used MasterCard and VISA, $158,300. The cost of the merchandise sold was $63,320. D. Sold merchandise to customers who used American Express, $66,900. The cost of the merchandise sold was $26,760. E.Received and paid an invoice from National Clearing House Credit Co. for $7,700, representing a service fee paid for processing MasterCard, VISA, and American Express sales.
CHART OF ACCOUNTS General 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 SummaryJournalize the entries for the transactions on December 31. Refer to the Chart of Accounts for exact wording of account titles.
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 710Interest Expense
Explanation / Answer
A Cash 30500 Sales 30500 Cost of Goods Sold 12200 Inventory 12200 B Accounts Receivable 246100 Sales 246100 Cost of Goods Sold 98440 Inventory 98440 C Cash 158300 Sales 158300 Cost of Goods Sold 63320 Inventory 63320 D Cash 66900 Sales 66900 Cost of Goods Sold 26760 Inventory 26760 E Credit Card Expense 7700 Cash 7700
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