On April 25, Foreman Electric installs wiring in a new home for $3,500 on account. However, on April 27, Foreman’s electrical work does not pass inspection, and Foreman grants the customer an allowance of $600 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30. Required: 1. Record the credit sale on April 25. 2. Record the sales allowance on April 27. 3. Record the cash collection on April 30. 4. Calculate net sales associated with these transactions.
Q: For each of the following situations, indicate whether you agree or disagree with the financial…
A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…
Q: Safe Home provides house-sitting for people while they are away on vacation. Some of its customers…
A: Accrual basis: Accrual basis is a method of accounting. In this method recording of revenues are…
Q: On January 15, Ross Furniture, Inc., accepts a $5,000, 180-day, 10 percent note from a customer at…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: In January 2021, Summit Department Store sells a gift card for $50 and receives cash. In February,…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Review the following transactions: A. On July 16, Arrow Corp. purchases 280 computers (Equipment) at…
A: For making journal entries, rules of debit and credit needs to be followed. These rules are…
Q: Hitzu Co. sold a copier (that costs $5,500) for $11,000 cash with a two-year parts warranty to a…
A: Warranty Expenses is expense on repair or replacement expected during the warranty period on goods…
Q: Party Warehouse Inc. rents a wide variety of products (e.g., tables, chairs, tents) for special…
A: Date Account Debit Credit Apr 5 Cash $ 10,000 Deposit from Customer $…
Q: ubin Enterprises had the following sales-related transactions on a recent day: a. Billed customer…
A: What is Journal Entries? A journal entries are generally used to record a business transaction in…
Q: During November, Florist Grump, Inc. performed $26,000 of services on account and sent bills to its…
A: As per the accrual concept of accounting Revenue is to recognized when the firm has completed its…
Q: Danielle Battle has trouble keeping her debits and credits equal. During a recent month, Danielle…
A: 1. a. In the provided situation, the notes payable of $5,800 are not recorded in the trial due to…
Q: Take me to the text YardWorks sells landscaping materials. During the month of July 2019, the…
A: a) Purchase journal and cash payment journal is prepared as follows:
Q: An auto repair shop makes a repair for $1,800 on November 30. The customer is sent a statement on…
A: Revenue recognition principle implies that the recognition of revenue by the entity should be made…
Q: On the last day of the fiscal year, a co-worker asks you to cut a check for $2,000 as a…
A: Matching Principle is the principle of accounting which states that all the costs relating to the…
Q: On the last day of the fiscal year, a co-worker asks you to cut a check for $2,000 as a…
A: 1) In this case, check should no be written today and the expense must be recorded or check written…
Q: 2 March Dana paid $750 into the business 16 March Purchased supplies for $300 24 March Paid…
A: Journal- Journal is the primary books of accounts, in which transactions are first recorded in…
Q: On April 2, Jennifer Elston uses her Target RedCard to purchase merchandise from a Target store for…
A: Answer to (A) Books of Target Store Journal Entries Date Particulars Amount (Dr) Amount (Cr)…
Q: On april foreman electric installs wiring in a new home for 2300 on account however on april 27…
A: The net revenue is calculated after adjusting for allowance and discounts from gross revenue.
Q: Presented below are two independent situations. (a) On April 2, Jennifer Elston uses her JCPenney…
A: Transaction: A business event that has a monetary effect on an entity's financial statements and is…
Q: Merry Maidens Cleaning generally charges $300 for a detailed cleaning of a normal-size home.…
A: Trade discount: Seller of a product or service offers a reduction in the listed price of the…
Q: ou are required to enter the following transactic n the books of Mo Ryan: - Aug Started in business…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Enchanted Forest, a large campground in South Carolina, adjusts its accounts monthly. Mostguests of…
A: Definition: Journal entries are the transactions that are recorded in the primary book. They are…
Q: A local Sports Authority ordered 40 pairs of tennis shoes from Nike Corporation. The shoes were…
A: Lets understand the basics here. Sellers for the attracting early payment from the buyers gives the…
Q: Requirement 1. Use the direct write-off method to jounalize Valley's write-off of the uncollectible…
A: Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from…
Q: The following are two independent situations. (a) On April 2, Julia Elston uses her JCPenney…
A: Balance amount receivable on June 1 = Total accounts receivable - amount received = $1,300 - $500 =…
Q: Sweet Shop Co. is a chain of candy stores that has been in operation for the past ten years.…
A: Given transactions are: a. Ordered and received $12,000 worth of cotton candy machines from Candy…
Q: On April 2, Jennifer Elston uses her JCPenney Company credit card to purchase merchandise from a…
A: Merchandise inventory refers to the cost of goods that are readily available for sale at some random…
Q: On May 5, Johnson Plumbing receives a phone call from a customer needing a new water heater and…
A: As per the revenue recognition principle, revenue is recognized on completion of service to the…
Q: On February 14, Foster Associates Co. paid $2,100 to repair the transmission on one of its delivery…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: Following are some transactions and events of Business Solutions. Feb. 26 The company paid…
A: Payroll refers to the sum of money received as a form of payment to the employees which is paid by…
Q: On November 1st, Ben owes $800 on his credit card. On November 5th, Ben pays $60 towards the…
A: For calculating average daily balance of card , we need to calculate the daily cash balance and then…
Q: Ms. Noor is an Account Assistant of a Merchandise business in Oman. The business paid monthly…
A: Rectification entry means where some error has been done in past and we need to rectify that errors.
Q: Creative Catering receives a $50,000 cash deposit from a customer on October 15, but will not…
A: DATE ACCOUNTS DEBIT CREDIT Oct 15 Cash $50,000 Deferred revenue $50,000
Q: Eric Sherm began working as a part-time waiter on April 1, 20--, at Yardville Restaurant. The cash…
A: OASDI refers to Old-Age, Survivors, and Disability Insurance and HI refers to Hospital Insurance and…
Q: On January 10, Molly Amise uses her Concord Corporation credit card to purchase merchandise from…
A: The entries on Concord corporation's books related to the transactions that occurred on January 10,…
Q: On October 3, Ken steele, a carpenter, received a cash payment for services previously billed to a…
A: Journal entry is a set of economic events which can be measured in monetary terms. These are…
Q: 2 March Dana paid $750 into the business 16 March Purchased supplies for $300 24 March Paid…
A: Recording journal entries is the first and basic step in the accounting process. It follows the…
Q: The year end for ABC is July 20X2 and in that month a company car was stolen. The net book value of…
A: We have the following information: Net book value of the car: $8,000 Expected amount from insurance…
Q: For the accounts receive and interest revenue I for march 20, I got 13, however its wrong, can you…
A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…
Q: Rubin Enterprises had the following sales-related transactions on a recent day: a. Billed customer…
A: Journal entry is the activity of making summary of transactions both economic and non-economic.…
Q: When you looked at the Accounts Receivable Aging report at the end of the month, you noticed that…
A: Given: To explain the wrong explanation of the transaction as,
Q: Sun shine inc. bills a costumer for $ 500 in service revenue o April 1. On April 15, Sun Shine…
A: The journal entries are prepared to record day to day transactions of the business.
Q: Sellane Appliances received an invoice dated October 11 with terms 4/10 E.O.M. for the items listed…
A: (a) The term of cash discount is 4/10, end of the month. It means the cash discount is 4% if the due…
Q: On August 1, 20x1, your company provided lawn service to Duke's Basketball Camp for $35.99. Mr.…
A: Account Receivables means those accounts on which business has made credit sales on account. At the…
Q: The following are two independent situations. (a) On April 2, Pearl Elston uses her JCPenney Company…
A: Journal Entries for (a): Date Account title Debit Credit April 2 Account receivables $1,400…
Q: A man received an invoice for washing machine for $455 dated April 17, with a sales term of 2/10…
A: Sales on terms like 2/10 EOM means that if payment is made within 10 days of transaction of…
Q: Scan House, a large campground in southern Florida, adjusts its accounts monthly. Most guests of the…
A: Adjusting entries are the entries recorded at the end of the accounting period, mainly on the last…
Q: Hitzu Co. sold a copier (that costs $4,800) for $6,000 cash with a two-year parts warranty to a…
A: STEP 1 Journal is the part of the book keeping
Q: On January 15, Ross Furniture, Inc., accepts a $5,000, 180-day. 10 percent note from a customer at…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
On April 25, Foreman Electric installs wiring in a new home for $3,500 on account. However, on April 27, Foreman’s electrical work does not pass inspection, and Foreman grants the customer an allowance of $600 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30.
Required:
1. Record the credit sale on April 25.
2. Record the sales allowance on April 27.
3. Record the cash collection on April 30.
4. Calculate net sales associated with these transactions.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?
- Hartman Company, which uses a voucher system, has the following unpaid vouchers on July 1. The firm follows the practice of recording vouchers at the gross amount. The company completed the following transactions during July: July 1Issued voucher no. 4800 in favor of Mortenson Insurance Company for a premium on a 12-month fire insurance policy, 890. 2Paid voucher no. 4789 by issuing Ck. No. 8219, 4,996. 2Issued Ck. No. 8220 in payment of voucher no. 4800, 890. 3Issued voucher no. 4801 in favor of Quinn Quick Freight for transportation charges on merchandise purchases, 223. 5Paid voucher no. 4801 by issuing Ck. No. 8221, 223. 7Issued Ck. No. 8222 in payment of voucher no. 4795, 8,485.29 (8,571 less 1 percent cash discount). 8Issued Ck. No. 8223 in payment of voucher no. 4797, 10,602.90 (10,710 less 1 percent cash discount). 11Established a petty cash fund of 250. Issued voucher no. 4802. 11Paid voucher no. 4802 by issuing Ck. No. 8224, 250. 13Issued voucher no. 4803 in favor of Mohammad Company for merchandise, 14,708; terms 2/10, n/30; FOB shipping point; freight prepaid and added to the invoice, 384 (total, 15,092). 15Received bill for advertising in the Weekly Ads. Issued voucher no. 4804 in the amount of 410. 17Received a credit memo for 764 from Mohammad Company for merchandise returned to it, credit memo no. 540 (pertaining to voucher no. 4803). 20Issued voucher no. 4805 in favor of Vinson County for six months property tax (Prepaid Property Taxes), 2,272. 20Paid voucher no. 4805 by issuing Ck. No. 8225, 2,272. 21Issued Ck. No. 8226 in payment of voucher no. 4803, 14,049.12 (14,708 less 764 return, less cash discount, plus freight). 23Bought merchandise on account from Summers and Company, 6,039; terms 1/10, n/30; FOB destination. Issued voucher no. 4806. 27Received a credit memo for 984 from Summers and Company for damaged merchandise, credit memo no. 437 (pertaining to voucher no. 4806). 31Issued voucher no. 4807 to reimburse petty cash fund. The charges were: July 31Issued Ck. No. 8227 in payment of voucher no. 4807, 225.10. 31Issued voucher no. 4808 for wages payable, 8,448, in favor of the payroll bank account. (Assume that the payroll entry was recorded previously in the general journal.) 31Paid voucher no. 4808 by issuing Ck. No. 8228, payable to Payroll Bank Account. Required 1. Using the voucher issue date, enter the unpaid invoices in the voucher register (page 75) beginning with voucher no. 4789. Then draw double lines across all columns to separate the vouchers of June from those of July. 2. Enter the transactions for July in the voucher register at the gross amount. Also record the appropriate transactions in the check register (page 86) and the general journal (page 41). 3. Total and rule the voucher register and the check register for the transactions recorded during July. 4. Prove the equality of the debits and credits on the voucher register and the check register.On March 24, MS Companys Accounts Receivable consisted of the following customer balances: S. Burton 310 A. Tangier 240 J. Holmes 504 F. Fullman 110 P. Molty 90 During the following week, MS made a sale of 104 to Molty and collected cash on account of 207 from Burton and 360 from Holmes. Prepare a schedule of accounts receivable for MS at March 31, 20--.Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5. B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18. C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%. D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.
- Window World extended credit to customer Nile Jenkins in the amount of $130,900 for his purchase of window treatments on April 2. Terms of the sale are 2/60, n/150. The cost of the purchase to Window World is $56,200. On September 4, Window World determined that Nile Jenkinss account was uncollectible and wrote off the debt. On December 3, Mr. Jenkins unexpectedly paid in full on his account. Record each Window World transaction with Nile Jenkins. In order to demonstrate the write-off and then subsequent collection of an account receivable, assume in this example that Window World rarely extends credit directly, so this transaction is permitted to use the direct write-off method. Remember, however, that in most cases the direct write-off method is not allowed.Record the journal entry for each of the following transactions. Glow Industries purchases 750 strobe lights at $23 per light from a manufacturer on April 20. The terms of purchase are 10/15, n/40, invoice dated April 20. On April 22, Glow discovers 100 of the lights are the wrong model and is granted an allowance of $8 per light for the error. On April 30, Glow pays for the lights, less the allowance.Review the following transactions, and prepare any necessary journal entries. A. On July 16, Arrow Corp. purchases 200 computers (Equipment) at $500 per computer from a supplier, on credit. Terms of the purchase are 4/10, n/50 from the invoice date of July 16. B. On August 10, Hondo Inc. receives advance cash payment from a client for legal services in the amount of $9,000. Hondo had yet to provide legal services as of August 10. C. On September 22, Jack Pies sells thirty pies for $25 cash per pie. The sales tax rate is 8%. D. On November 8, More Supplies paid a portion of their noncurrent note in the amount of $3,250 cash.
- The following transactions were completed by Yang Restaurant Equipment during January, the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Yang Restaurant Equipment does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to Tri-County Management Company for monthly rent, 850. 2L. Yang, the owner, invested an additional 4,500 in the business. 4Bought merchandise on account from Valentine and Company, invoice no. A694, 2,830; terms 2/10, n/30; dated January 2. 4Received check from Velez Appliance for 980 in payment of invoice for 1,000 less discount. 4Sold merchandise on account to L. Parrish, invoice no. 6483, 755. 6Received check from Peck, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Frost and Son, in payment of invoice no. C127 for 600 less discount. 7Bought supplies on account from Dudley Office Supply, invoice no. 190B, 93.54; terms net 30 days. 7Sold merchandise on account to Ewing and Charles, invoice no. 6484, 1,115. 9Issued credit memo no. 43 to L. Parrish, 47, for merchandise returned. 11Cash sales for January 1 through January 10, 4,454.87. 11Issued Ck. No. 6983, 2,773.40, to Valentine and Company, in payment of 2,830 invoice less discount. 14Sold merchandise on account to Velez Appliance, invoice no. 6485, 2,100. 14Received check from L. Parrish, 693.84, in payment of 755 invoice, less return of 47 and less discount. Jan. 19Bought merchandise on account from Crawford Products, invoice no. 7281, 3,700; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to invoice, 142 (total 3,842). 21Issued Ck. No. 6984, 245, to A. Bautista for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 3,689. 23Received credit memo no. 163, 87, from Crawford Products for merchandise returned. 29Sold merchandise on account to Bradford Supply, invoice no. 6486, 1,697.20. 29Issued Ck. No. 6985 to Western Freight, 64, for freight charges on merchandise purchased January 4. 31Cash sales for January 21 through January 31, 3,862. 31Issued Ck. No. 6986, 65, to M. Pineda for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 5,899.95; employees federal income tax withheld, 795; FICA Social Security tax withheld, 365.80, FICA Medicare tax withheld, 85.50. 31Recorded the payroll taxes: FICA Social Security tax, 365.80; FICA Medicare tax, 85.50; state unemployment tax, 318.60; federal unemployment tax, 35.40. 31Issued Ck. No. 6987, 4,653.65, for salaries for the month. 31L. Yang, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Yang Restaurant Equipment during January, the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Yang Restaurant Equipment does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to Tri-County Management Company for monthly rent, 850. 2L. Yang, the owner, invested an additional 4,500 in the business. 4Bought merchandise on account from Valentine and Company, invoice no. A694, 2,830; terms 2/10, n/30; dated January 2. 4Received check from Velez Appliance for 980 in payment of invoice for 1,000 less discount. 4Sold merchandise on account to L. Parrish, invoice no. 6483, 755. 6Received check from Peck, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Frost and Son, in payment of invoice no. C127 for 600 less discount. 7Bought supplies on account from Dudley Office Supply, invoice no. 190B, 93.54; terms net 30 days. 7Sold merchandise on account to Ewing and Charles, invoice no. 6484, 1,115. 9Issued credit memo no. 43 to L. Parrish, 47, for merchandise returned. 11Cash sales for January 1 through January 10, 4,454.87. 11Issued Ck. No. 6983, 2,773.40, to Valentine and Company, in payment of 2,830 invoice less discount. 14Sold merchandise on account to Velez Appliance, invoice no. 6485, 2,100. 14Received check from L. Parrish, 693.84, in payment of 755 invoice, less return of 47 and less discount. Jan. 19Bought merchandise on account from Crawford Products, invoice no. 7281, 3,700; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to invoice, 142 (total 3,842). 21Issued Ck. No. 6984, 245, to A. Bautista for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 3,689. 23Received credit memo no. 163, 87, from Crawford Products for merchandise returned. 29Sold merchandise on account to Bradford Supply, invoice no. 6486, 1,697.20. 29Issued Ck. No. 6985 to Western Freight, 64, for freight charges on merchandise purchased January 4. 31Cash sales for January 21 through January 31, 3,862. 31Issued Ck. No. 6986, 65, to M. Pineda for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 5,899.95; employees federal income tax withheld, 795; FICA Social Security tax withheld, 365.80, FICA Medicare tax withheld, 85.50. 31Recorded the payroll taxes: FICA Social Security tax, 365.80; FICA Medicare tax, 85.50; state unemployment tax, 318.60; federal unemployment tax, 35.40. 31Issued Ck. No. 6987, 4,653.65, for salaries for the month. 31L. Yang, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 91; a purchases journal, page 74; a cash receipts journal, page 56; a cash payments journal, page 63; and a general journal, page 119. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
