The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Record on page 10 of the journal Mar. 2 Sold merchandise on account to Equinox Co., $20,000, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,150. 3 Sold merchandise for $10,950 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,100. 4 Sold merchandise on account to Empire Co., $51,450, terms FOB shipping point, n/eom. The cost of merchandise sold was $35,420. 5 Sold merchandise for $27,900 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $18,470. 12 Received check for amount due from Equinox Co. for sale on March 2. 14 Sold merchandise to customers who used American Express cards, $12,380. The cost of merchandise sold was $9,120. 16 Sold merchandise on account to Targhee Co., $28,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $14,690. 18 Issued credit memo for $1,200 to Targhee Co. for damaged merchandise from sale on March 16 Record on page 11 of the journal 19 Sold merchandise on account to Vista Co., $8,500, terms FOB shipping point, 2/10, n/30. Added $55 to the invoice for prepaid freight. The cost of merchandise sold was $4,620. 26 Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. 28 Received check for amount due from Vista Co. for sale of March 19. 31 Received check for amount due from Empire Co. for sale of March 4. 31 Paid Fleetwood Delivery Service $6,040 for delivery of merchandise in March to customers under shipping terms of FOB destination. Apr. 3 Paid City Bank $860 for service fees for handling MasterCard and American Express sales during March. 15 Paid $6,385 to state sales tax division for taxes owed on sales CHART OF ACCOUNTS Amsterdam Supply Co. General Ledger ASSETS 110 Cash 121 Accounts Receivable-Empire Co. 122 Accounts Receivable-Equinox Co. 123 Accounts Receivable-Targhee Co. 124 Accounts Receivable-Vista Co. 125 Notes Receivable 130 Merchandise 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 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing REVENUE 410 Sales 610 Interest Revenue

The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Record on page 10 of the journal Mar. 2 Sold merchandise on account to Equinox Co., $20,000, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,150. 3 Sold merchandise for $10,950 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,100. 4 Sold merchandise on account to Empire Co., $51,450, terms FOB shipping point, n/eom. The cost of merchandise sold was $35,420. 5 Sold merchandise for $27,900 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $18,470. 12 Received check for amount due from Equinox Co. for sale on March 2. 14 Sold merchandise to customers who used American Express cards, $12,380. The cost of merchandise sold was $9,120. 16 Sold merchandise on account to Targhee Co., $28,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $14,690. 18 Issued credit memo for $1,200 to Targhee Co. for damaged merchandise from sale on March 16 Record on page 11 of the journal 19 Sold merchandise on account to Vista Co., $8,500, terms FOB shipping point, 2/10, n/30. Added $55 to the invoice for prepaid freight. The cost of merchandise sold was $4,620. 26 Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. 28 Received check for amount due from Vista Co. for sale of March 19. 31 Received check for amount due from Empire Co. for sale of March 4. 31 Paid Fleetwood Delivery Service $6,040 for delivery of merchandise in March to customers under shipping terms of FOB destination. Apr. 3 Paid City Bank $860 for service fees for handling MasterCard and American Express sales during March. 15 Paid $6,385 to state sales tax division for taxes owed on sales CHART OF ACCOUNTS Amsterdam Supply Co. General Ledger ASSETS 110 Cash 121 Accounts Receivable-Empire Co. 122 Accounts Receivable-Equinox Co. 123 Accounts Receivable-Targhee Co. 124 Accounts Receivable-Vista Co. 125 Notes Receivable 130 Merchandise 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 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing REVENUE 410 Sales 610 Interest Revenue

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 7E: The revenue journal for Sapling Consulting Inc. follows. The accounts receivable controlling account...

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The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers:

Record on page 10 of the journal

Mar.	2	Sold merchandise on account to Equinox Co., $20,000, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,150.
	3	Sold merchandise for $10,950 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,100.
	4	Sold merchandise on account to Empire Co., $51,450, terms FOB shipping point, n/eom. The cost of merchandise sold was $35,420.
	5	Sold merchandise for $27,900 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $18,470.
	12	Received check for amount due from Equinox Co. for sale on March 2.
	14	Sold merchandise to customers who used American Express cards, $12,380. The cost of merchandise sold was $9,120.
	16	Sold merchandise on account to Targhee Co., $28,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $14,690.
	18	Issued credit memo for $1,200 to Targhee Co. for damaged merchandise from sale on March 16

Record on page 11 of the journal

	19	Sold merchandise on account to Vista Co., $8,500, terms FOB shipping point, 2/10, n/30. Added $55 to the invoice for prepaid freight. The cost of merchandise sold was $4,620.
	26	Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
	28	Received check for amount due from Vista Co. for sale of March 19.
	31	Received check for amount due from Empire Co. for sale of March 4.
	31	Paid Fleetwood Delivery Service $6,040 for delivery of merchandise in March to customers under shipping terms of FOB destination.
Apr.	3	Paid City Bank $860 for service fees for handling MasterCard and American Express sales during March.
	15	Paid $6,385 to state sales tax division for taxes owed on sales

CHART OF ACCOUNTS

Amsterdam Supply Co.

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable-Empire Co.
122	Accounts Receivable-Equinox Co.
123	Accounts Receivable-Targhee Co.
124	Accounts Receivable-Vista Co.
125	Notes Receivable
130	Merchandise 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
221	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise 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
710	Interest Expense

Question not attempted.
PAGE 11
JOURNAL
3 ACCOUNTING EQUATION
POST.
REF.
CREDIT
ASSETS LIABILITIESQUITY
DATE
DESCRIPTION
DEBIT
1
4
7
8
6.
10
11
12
13
14
15
16
17
18

Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines fa
journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Scroll
down for page 11 of the journal.
Shaded cells have
feedback
JOURNAL
PAGE 10
- ACCOUNTING EQUATION
DATE
DESCRIPTION
POST.
REF.
Mar. 2 Accounts Receivable-Equinox Co.
DEBIT
CREDIT
ASSETS LIABILITIESQUITY
1
20,000.00
Sales
20,000.00
4.
13,150.00
6.
Mar. 2 Cost of Merchandise Sold
13,150.00
Merchandise Inventory
8
6.
10
Mar. 3 Cash
10,950.00
11
Sales
12
Sales Tax Payable
13
14
15
Mar. 3 Cost of Merchandise Sold
7,100.00
16
Merchandise Inventory
7,100.00
17
18
19
Mar. 4 Accounts Receivable-Empire Co.
51,450.00
20
Sales
51,450.00
21
22
23
24
25
Mar. 4 Cost of Merchandise Sold
35,420.00
26
Merchandise Inventory
35,420.00
27
28
29
Mar. 5 Cash
27,900.00
30
Sales
美

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