Concept explainers
Exercise 7-6 Purchases journal P3
Gomez Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal prepare a purchases journal like the one in Exhibit 7.9. Journalize the following transactions that should be recorded in the purchases journal.
July 1 Purchased $14,500 or merchandise on credit from Hector co., terms n/15.
4 Sold merchandise costing $320 to c. Paul for $430 cash.
8 Purchased $420 of office supplies from Zhang Co. on credit, terms n/30.
15 paid Hector $14,500 cash for the merchandise purchased on July 1.
21 Purchased $885 of store supplies on credit from Staples, terms n/30.
22 Sold merchandise costing $2,000 to MicroTran for $2,500 on credit, terms n/30.
23 Purchased office supplies from Depot for $305 cash.
25 Purchased $3,000 of merchandise on credit from Alfredo Co., terms n/30.
27 Paid employee salaries of $1,650 in cash.
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- Sales-related transactions using perpetual inventory system The following selected transactions were completed by Green Lawn Sup plies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers: July 1. Sold merchandise on account to Landscapes Co., 33,450, terms FOB shipping point, n/eom. The cost of the goods sold was 20,000. 2. Sold merchandise for 86,000 plus 8% sales tax to retail cash customers. The cost of the goods sold was 51,600. 5. Sold merchandise on account to Peacock Company, 17,500, terms FOB destination, 1/10, n/30. The cost of the goods sold was 10,000. 8. Sold merchandise for 112,000 plus 8% sales tax to retail customers who used VISA cards. The cost of the goods sold was 67,200. 13. Sold merchandise to customers who used MasterCard cards, 96,000. The cost of the goods sold was 57,600. 14. Sold merchandise on account to Loeb Co., 16,000, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was 9,000. 15. Received check for amount due from Peacock Company for sale on July 5. 16. Issued credit memo for 3,000 to Loeb Co. for merchandise returned from the sale on July 14, The cost of the merchandise returned was 1,800. 18. Sold merchandise on account to Jennings Company, 11,350, terms FOB shipping point, 2/10, n/30. Paid 475 for freight and added it to the invoice. The cost of the goods sold was 6,800. 24. Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. 28. Received check for amount due from Jennings Company for sale of July 18. 31. Paid Black Lab Delivery Service 8,550 for merchandise delivered during July to customers under shipping terms of FOB destination. 31. Received check for amount due from Landscapes Co. for sale of July 1. Aug. 3. Paid Hays Federal Bank 3,770 for service fees for handling MasterCard and VISA sales during July. 10. Paid 41,260 to state sales tax division for taxes owed on sales. Instructions Journalize the entries to record the transactions of Green Lawn Supplies Co.arrow_forwardPurchases journal The following purchase transactions occurred during October for K-Town Inc.: Oct. 6. Purchased office supplies for 190, on account from U-Save Supply Inc. 14. Purchased office equipment for 2,100, on account from Zell Computer Inc. 26. Purchased office supplies for 5295, on account from U-Save Supply Inc. Record these transactions in the following purchases journal format: PURCHASESJOURNAL Date Account Credited Post. Ref. Accounts Payable Cr. Party Supplies Dr. Other Accounts Dr. Post. Ref. Amountarrow_forward
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