E7-4 Presented below are three independent situations: 1. On March 15, 44 customers used debit cards to purchase merchandise for a total of $5,814 from Hockey Town. Hockey Town pays a $0.25 debit card fee for each transaction. 2. On June 21, Circle Creations Gallery sells a painting to Constance Furrow for $2,400. Constance uses her Visa bank credit card to pay for the purchase. The bank charges Circle Creations a 2.75% fee for all credit card transactions. On July 17, Constance receives her Visa bill and pays for this purchase. 3. On October 7, A. Ramos uses his store credit card to purchase merchandise from The Bay for $595. On November 10, Ramos receives his credit card bill from The Bay and pays for this purchase. Instructions (a) Prepare Hockey Town's journal entries for the transactions in part (1). (b) Prepare Circle Creations' journal entries for the transactions in part (2). (c) Prepare The Bay's journal entries for the transactions in part (3).

E7-4 Presented below are three independent situations: 1. On March 15, 44 customers used debit cards to purchase merchandise for a total of $5,814 from Hockey Town. Hockey Town pays a $0.25 debit card fee for each transaction. 2. On June 21, Circle Creations Gallery sells a painting to Constance Furrow for $2,400. Constance uses her Visa bank credit card to pay for the purchase. The bank charges Circle Creations a 2.75% fee for all credit card transactions. On July 17, Constance receives her Visa bill and pays for this purchase. 3. On October 7, A. Ramos uses his store credit card to purchase merchandise from The Bay for $595. On November 10, Ramos receives his credit card bill from The Bay and pays for this purchase. Instructions (a) Prepare Hockey Town's journal entries for the transactions in part (1). (b) Prepare Circle Creations' journal entries for the transactions in part (2). (c) Prepare The Bay's journal entries for the transactions in part (3).

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter12: Special Journals

Section: Chapter Questions

Problem 1CP: Screpcap Co. had the following transactions during the first week of June: June 1Purchased...

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Screpcap Co. had the following transactions during the first week of June: June 1Purchased merchandise on account from Acme Supply, 2,700, plus freight charges of 160. 1Issued Check No. 219 to Denver Wholesalers for merchandise purchased on account, 720, less 1% discount. 1Sold merchandise on account to F. Colby, 246, plus 5% state sales tax plus 2% city sales tax. June 2Received cash on account from N. Dunlop, 315. 2Made cash sale of 413 plus 5% state sales tax plus 2% city sales tax. 2Purchased merchandise on account from Permon Co., 3,200, plus freight charges of 190. 3Sold merchandise on account to F. Ayres, 211, plus 5% state sales tax plus 2% city sales tax. 3Issued Check No. 220 to Ellis Co. for merchandise purchased on account, 847, less 1% discount. 3Received cash on account from F. Graves, 463. 4Issued Check No. 221 to Penguin Warehouse for merchandise purchased on account, 950, less 1% discount. 4Sold merchandise on account to K. Stanga, 318, plus 5% state sales tax plus 2% city sales tax. 4Purchased merchandise on account from Mason Milling, 1,630, plus freight charges of 90. 4Received cash on account from O. Alston, 381. 5Made cash sale of 319 plus 5% state sales tax plus 2% city sales tax. 5Issued Check No. 222 to Acme Supply for merchandise purchased on account, 980, less 1% discount. Required 1. Record the transactions in a general journal. 2. Assuming these are the types of transactions Screpcap Co. experiences on a regular basis, design the following special journals for Screpcap: (a) Sales journal (b) Cash receipts journal (c) Purchases journal (d) Cash payments journal
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