The following were selected from among the transactions completed by Babcock Com
ID: 3199424 • Letter: T
Question
The following were selected from among the transactions completed by Babcock Company during November of the current year:
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
Nov. 3 Purchased merchandise on account from Moonlight Co., list price $94,000, trade discount 25%, terms FOB destination, 2/10, n/30. 4 Sold merchandise for cash, $35,040. The cost of the merchandise sold was $20,610. 5 Purchased merchandise on account from Papoose Creek Co., $50,800, terms FOB shipping point, 2/10, n/30, with prepaid freight of $850 added to the invoice. 6 Returned $12,000 ($16,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. 8 Sold merchandise on account to Quinn Co., $14,030 with terms n/15. The cost of the merchandise sold was $9,130. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14 Sold merchandise on VISA, $243,720. The cost of the merchandise sold was $148,260. 15 Paid Papoose Creek Co. on account for purchase of November 5. 23 Received cash on account from sale of November 8 to Quinn Co. 24 Sold merchandise on account to Rabel Co., $52,500, terms 1/10, n/30. The cost of the merchandise sold was $36,660. 28 Paid VISA service fee of $3,750. 30 Paid Quinn Co. a cash refund of $6,510 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,450.Explanation / Answer
The journalization of the complete transations were as shown below
Date
Particulars
Debit
Credit
Nov-03
Merchandise Inventory
70500
To Accounts Payable-Moonlight Co.
70500
(Purchase from Moonlight Co. on FOB Destination 2/10,n/30)
Nov-04
Cash
35040
To Sales
35040
(Cash Sales Made)
Nov-04
Cost of Merchandise Sold
20610
To Merchandise Inventory
20610
(Cost of Merchadise sold Realised)
Nov-05
Merchandise Inventory
50800
To Cash
850
To Accounts Payable-Papoose Creek Co.
49950
(Purchase from Papoose Creek Co. on FOB Shipping Point 2/10,n/30,Paid Freight)
Nov-06
Accounts Payable-Moonlight Co.
12000
To Merchandise Inventory
12000
(Being Purchase Returns)
Nov-08
Accounts Receivable-Quinn Co.
14030
To Sales
14030
(Being Credit Sales made to Quinn Co. on Credit Termsn/30)
Nov-08
Cost of Merchandise Sold
9130
To Merchandise Inventory
9130
(Cost of Merchadise sold Realised)
Nov-13
Accounts Payable-Moonlight Co.
55500
To Cash
54390
To Merchandise Inventory
1110
(Being Cash Paid to Moonlight Co. On Account at 2/10)
Nov-14
Cash
243720
To Sales
243720
(Being Sales Made on VISA)
z
Nov-14
Cost of Merchandise Sold
148260
To Merchandise Inventory
148260
(Cost of Merchadise sold Realised)
Nov-15
Accounts Payable-Papoose Creek Co.
49950
To Cash
49950
To Merchandise Inventory
1003
(Being Cash Paid to Papoose Creek Co. On Account at 2/10)
Nov-23
Cash
14030
To Accounts Receivable-Quinn Co.
14030
Nov-24
Accounts Receivable-Rabel Co.
52500
To Sales
52500
(Being Credit Sales made to Rabel Co. on Credit Terms 1/10,n/30)
Nov-24
Cost of Merchandise Sold
36660
To Merchandise Inventory
36660
(Cost of Merchadise sold Realised)
Nov-28
Credit Card Expense
3750
To Cash
3750
(Being Credit Card Expenses Paid)
Nov-30
Sales
6510
To Cash
6510
(Being Cash Refund Paid for Sales Return to Quinn Co.)
Nov-30
Merchandise Inventory
3450
To Cost of Goods Sold
3450
(Being Sale Returns Realised)
Date
Particulars
Debit
Credit
Nov-03
Merchandise Inventory
70500
To Accounts Payable-Moonlight Co.
70500
(Purchase from Moonlight Co. on FOB Destination 2/10,n/30)
Nov-04
Cash
35040
To Sales
35040
(Cash Sales Made)
Nov-04
Cost of Merchandise Sold
20610
To Merchandise Inventory
20610
(Cost of Merchadise sold Realised)
Nov-05
Merchandise Inventory
50800
To Cash
850
To Accounts Payable-Papoose Creek Co.
49950
(Purchase from Papoose Creek Co. on FOB Shipping Point 2/10,n/30,Paid Freight)
Nov-06
Accounts Payable-Moonlight Co.
12000
To Merchandise Inventory
12000
(Being Purchase Returns)
Nov-08
Accounts Receivable-Quinn Co.
14030
To Sales
14030
(Being Credit Sales made to Quinn Co. on Credit Termsn/30)
Nov-08
Cost of Merchandise Sold
9130
To Merchandise Inventory
9130
(Cost of Merchadise sold Realised)
Nov-13
Accounts Payable-Moonlight Co.
55500
To Cash
54390
To Merchandise Inventory
1110
(Being Cash Paid to Moonlight Co. On Account at 2/10)
Nov-14
Cash
243720
To Sales
243720
(Being Sales Made on VISA)
z
Nov-14
Cost of Merchandise Sold
148260
To Merchandise Inventory
148260
(Cost of Merchadise sold Realised)
Nov-15
Accounts Payable-Papoose Creek Co.
49950
To Cash
49950
To Merchandise Inventory
1003
(Being Cash Paid to Papoose Creek Co. On Account at 2/10)
Nov-23
Cash
14030
To Accounts Receivable-Quinn Co.
14030
Nov-24
Accounts Receivable-Rabel Co.
52500
To Sales
52500
(Being Credit Sales made to Rabel Co. on Credit Terms 1/10,n/30)
Nov-24
Cost of Merchandise Sold
36660
To Merchandise Inventory
36660
(Cost of Merchadise sold Realised)
Nov-28
Credit Card Expense
3750
To Cash
3750
(Being Credit Card Expenses Paid)
Nov-30
Sales
6510
To Cash
6510
(Being Cash Refund Paid for Sales Return to Quinn Co.)
Nov-30
Merchandise Inventory
3450
To Cost of Goods Sold
3450
(Being Sale Returns Realised)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.