Billy Bob Supply Company uses four special journals: purchases, sales, cash rece
ID: 2567023 • Letter: B
Question
Billy Bob Supply Company uses four special journals: purchases, sales, cash receipts, and cash disbursements, along with a general journal. The following transactions were ineurred during August Aug. 1 Purchased merchandise from Able Co. for $6,0o0, terms 2/10, n/30 Received c heck from Fox Co. (full balance outstanding for July sale (less the 2% discount). Sent t cheek No.757 for $4,900 to Able Co. in full payment of outstanding balance from the prior month. Sold merchandise on credit to Coe Co. for $5,000, terms 2/10, n/30, Invoice No. 245 Cost of the goods sold is $2,500 Purchased me Purchased office rchandise from Baker Co. for $6,000, terms 1/15, n/30 supplies on credit from Echo Co. for $500, terms n/30. Paid Able Co. for the A Received ugust 1 purchase, (less discount) Check No. 758. cash payment from Coe Co. for August 4 sale (less discount). 15 Paid August rent of $1,000, Check No. 759. 15 Sold merchandise on credit to Fox Co.t or $5,000, terms 2/10, n/30, Invoice No. 246. 18 Sold merchandise on C 18 19 Cost of the goods sold is $2,400. Cost of the goods sold is $2,200. Sold merchandise on credit to Thomas Co.for $6,000, terms 2/10, n/30, credit to Coe Co. for $4,000, terms 2/10, n/30, Invoice No. 247, Received $2,400 cash for the $2,000 note receivable from Fox Corp. (included $400 Interest). Invoice No. 248. Cost of the goods sold was $3,700. 20 Made cash payment in full to Baker Co. for the August 5 purchase, Check No 760. 20 Sold merchandise on credit to Fox Co. for $4,000, terms 2/10, n/30, Invoice No. 249 Cost of the goods sold was $2,400mCo for $4,000, terms 2/10, n/30, Invoice No.250. Cost of the goods sold is $2,200 Received full payment less discount from Fox Co. for Aug.15 sale. Recorded cash sales for the month $7,000. The cost of the goods sold was $3,000. Paid Telephone Bill for August of $800, Check No. 761 Paid Salaries of $500 each to 3 employees Checks 762, 763, 764. Issued Check # 765 for $5,300 ($5,000 note payable and $300 interest expense) 25 28 29 30 Record trial balances. the above transactions in the appropriate special journals below. Post to ledgers and prepare th GENERAL JOURNAL Debit Credit Date Account Title 41 4 Sales R 30Explanation / Answer
1. Purchase 6000
To Able co. 6000
3. Able 5000
To bank 4900
To discount on purchase 100
4. Coe co.5000
To sales 5000
5. Purchases 6000
To Baker co.6000
8. Purchase 500
To Eco co. 500
9. Able Co. 300
To purchase return 300
11. Able co. 5700
To discount on purchase 114
To cash 5586
(6000-300)-2% = 5586
13. Cash 4900
Discount on sale 100
To Coe co. 5000
(5000-2%) = 4900
15. Rent 1000
To bank 1000
15.Fox co. 5000
To sale 5000
18. Coe co. 4000
To sale 4000
18. Cash 2400
To note receivable 2000
To interest 400
19. Thomas co 6000
To sale 6000
20. Baker co. 6000
To Bank 5940
To discount on purchase 60
(6000-1%)= 5940
20. Fox 4000
To sales 4000
22. Thomas 4000
To sales 4000
25. Cash 4900
Discount on sale 100
To fox co. 5000
(5000-2%) = 4900
28. Cash 7000
To sales 7000
29. Telephone bill 800
Salary 1500
To cash 2300
30. Note payable 5000
Interest 300
To bank 5300
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