Journalize entries for the following related transactions of
Lilly Heating & Air Company. Refer to the Chart of Accounts for
exact wording of account titles.
| A. |
Purchased $48,400 of merchandise
from Schell Co. on account, terms 1/10, n/30. |
| B. |
Paid the amount owed on the invoice
within the discount period. |
| C. |
Discovered that $7,600 of the
merchandise purchased in (A) was defective and returned items,
receiving credit. |
| D. |
Purchased $5,900 of merchandise
from Schell Co. on account, terms n/30. |
| E. |
Received a refund from Schell Co.
for return in (C) less the purchase in (D).
| CHART
OF ACCOUNTS |
| Lilly
Heating & Air Company |
|
General Ledger |
|
ASSETS |
| 110 |
Cash |
| 120 |
Accounts Receivable |
| 125 |
Notes Receivable |
| 130 |
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 |
| 211 |
Accounts Payable-Schell Co. |
| 218 |
Sales Tax Payable |
| 219 |
Customer Refunds Payable |
| 220 |
Unearned Rent |
| 221 |
Notes Payable |
|
EQUITY |
| 310 |
Common Stock |
| 311 |
Retained Earnings |
| 312 |
Dividends |
| 313 |
Income Summary |
|
|
REVENUE |
| 410 |
Sales |
| 610 |
Rent Revenue |
|
EXPENSES |
| 501 |
Cost of Goods Sold |
| 521 |
Delivery Expense |
| 522 |
Advertising Expense |
| 524 |
Depreciation Expense-Store
Equipment |
| 525 |
Depreciation Expense-Office
Equipment |
| 531 |
Rent Expense |
| 533 |
Insurance Expense |
| 534 |
Store Supplies Expense |
| 535 |
Office Supplies Expense |
| 536 |
Credit Card Expense |
| 539 |
Miscellaneous Expense |
| 710 |
Interest Expense |
|
|