Question

3. Describe how the following transactions should be recorded, indicating only the journals to be used. Assume the four special journals: Sales, Single Column Purchases, Cash Receipts , Cash Disbursements, are available, together with a general journal.

(a) Purchased merchandise for $1,000, terms n/30.
(b) Returned $100 of merchandise that had been purchased in (a).
(c) Owner contributed $900 in cash and $4,500 in delivery equipment to the business.
(d) The business sold the delivery equipment in (c) for $4,500.  
(e) Sent check for $40 to a customer, T. Baker, who had overpaid his account by this
amount.
(f) Sold merchandise to T. Kriquet, $500, term 2/10, n/30.
(g) Purchased equipment on account for $1,800.

Hint: Simply tell me which one of the listed Special Journals or General Journal would receive the entry.

Answer 1

Transaction	Type of Journals
(a) Purchased merchandise for $1,000, terms n/30.	Single Column Purchases
(b) Returned $100 of merchandise that had been purchased in (a).	General Journal
(c) Owner contributed $900 in cash and $4,500 in delivery equipment to the business	Cash contributed will be shown in Cash Receipt journal and delivery equipment in general Journal
(d) The business sold the delivery equipment in (c) for $4,500.	Sale price will be shown in Cash Receipt journal
(e) Sent check for $40 to a customer, T. Baker, who had overpaid his account by this amount.	Cash Disbursements
(f) Sold merchandise to T. Kriquet, $500, term 2/10, n/30.	Sales Journal
(g) Purchased equipment on account for $1,800.	General Journal