Number Account Number Account 181 Equipment 111 Cash Merchandise Inventory 211 Accounts Payable 131 161 - Prepaid Insurance office Supplies Rent Expense 564 171 583 Utilities Expense Purchased merchandise inventory on credit from Tighe, $4,100. Terms were 3/10, n/30. Dec. 2 3 Paid monthly rent, debiting Rent Expense for $2,200. 5 Purchased office supplies on credit terms of 3/10, n/30 from Rapid Supply, $470. Received and paid electricity utility bill, $510. 9 Purchased equipment on account from A-1 Equipment, $6,900. Payment terms were net 30. 3 Returned the equipment to A-1 Equipment. It was damaged. 10 Paid Tighe the amount owed on the purchase of December 2. Purchased merchandise inventory on account from Crystal Golf, $4,900. Terms were 1/10, n/30. 11 12 Purchased merchandise inventory for cash, $660. 13 Paid a semiannual insurance premium, debiting Prepaid Insurance, $1,200. Paid its account payable to Rapid Supply from December 5. Received and paid gas and water utility bills, $500. 14 16 18 21 Purchased merchandise inventory on credit terms of 1/10, n/45 from Devin, Inc., $3,000. Paid its account payable to Crystal Golf from December 12. Purchased office supplies on account from Office Stuff, Inc., $100. Terms were 22 n/30. 21 Returned to Devin, Inc. $1,000 of the merchandise inventory purchased on 26 December 21. 31 Paid Devin, Inc. the net amount owed from December 21 less the return on December 26.

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter5: Operating Activities: Purchases And Cash Payments

Section: Chapter Questions

Problem 2.15C

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Question

All problems can be completed manually or by using either MyAccountingLab General Ledger or QuickBooks.

Using the purchases, cash payments, and general journals

The general ledger of Finnish Lake Golf Shop includes the following selected accounts, along with their account numbers:

Transactions in December that affected purchases and cash payments were as follows:

Requirements

Use the appropriate journal to record the preceding transactions in a purchases journal, a cash payments journal (omit the Check No. column), and a general journal. Finnish Lake Golf Shop records purchase returns in the general journal. The company uses the perpetual inventory system.
Total each column of the special journals. Show that total debits equal total credits in each special journal.
Show how postings would be made from the journals by writing the account numbers and check marks in the appropriate places in the journals.

Number Account
Number Account
181
Equipment
111 Cash
Merchandise Inventory
211
Accounts Payable
131
161 - Prepaid Insurance
office Supplies
Rent Expense
564
171
583
Utilities Expense

Purchased merchandise inventory on credit from Tighe, $4,100. Terms were
3/10, n/30.
Dec. 2
3 Paid monthly rent, debiting Rent Expense for $2,200.
5 Purchased office supplies on credit terms of 3/10, n/30 from Rapid Supply, $470.
Received and paid electricity utility bill, $510.
9 Purchased equipment on account from A-1 Equipment, $6,900. Payment terms
were net 30.
3
Returned the equipment to A-1 Equipment. It was damaged.
10
Paid Tighe the amount owed on the purchase of December 2.
Purchased merchandise inventory on account from Crystal Golf, $4,900. Terms
were 1/10, n/30.
11
12
Purchased merchandise inventory for cash, $660.
13
Paid a semiannual insurance premium, debiting Prepaid Insurance, $1,200.
Paid its account payable to Rapid Supply from December 5.
Received and paid gas and water utility bills, $500.
14
16
18
21
Purchased merchandise inventory on credit terms of 1/10, n/45 from Devin, Inc.,
$3,000.
Paid its account payable to Crystal Golf from December 12.
Purchased office supplies on account from Office Stuff, Inc., $100. Terms were
22
n/30.
21
Returned to Devin, Inc. $1,000 of the merchandise inventory purchased on
26
December 21.
31
Paid Devin, Inc. the net amount owed from December 21 less the return on
December 26.

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