Question

E6.6 Vanessa Bosnat uses special journals and a general journal. The following transactions occurred during May...

E6.6 Vanessa Bosnat uses special journals and a general journal. The following transactions occurred during May 2016.

May 1. V. Bosnat invested $30 000 cash in the business.

May 2. Sold inventory to J. Simon for $12 000 cash. The cost of the inventory sold was $8400.

May 3. Purchased inventory for $18 000 from L.M. Farr using cheque no. 101.

May 14. Paid salary to S. Little $1400 by issuing cheque no. 102.

May 16. Sold inventory on account to B. Jones for $1800, terms n/30. The cost of the inventory sold was $1260.

May 22. A cheque for $18 000 is received from R. Dusto in full for invoice 101; no discount given.

(a) Draw up a multicolumn cash receipts journal (see gure 6A.4, p. 363) and a multicolumn cash payments journal ). (Use page 1 for each journal.)

(b) Record the transaction(s) for May that should be journalised in the cash receipts journal and cash payments journal.

Homework Answers

Answer #1

(a) Cash journal (Receipts and payments)

Dr. Cr.

date Particular J.F Cash Bank Date Particular J.F Cash Bank

(b) Transactions recorded

Dr. Cr.

Date Particular J.F Cash Bank Date Particular J.F Cash Bank
May 1 To capital 30000 May 3 By purchases 18000
May 2 To sales 12000 May 14 By salary 1400
May 22 To R. Dusto 1800

General journal

Date Particular DEBIT ($) CREDIT ($)
May 2 Cost of goods sold a/c dr. 8400
To sales a/c 8400
(Being goods sold and inventory reduced)
May 16 B. Jones a/c Dr. 1800
To sales 1800
(Being goods sold on account)
Cost of goods sold a/c dr. 1260
To inventory a/c 1260
(Being goods sold and inventory reduced)

Do give your feedback!! Happy Learning :)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Duckstein Ltd uses special journals and a general journal. The following transactions occurred during September 2017....
Duckstein Ltd uses special journals and a general journal. The following transactions occurred during September 2017. Sept. 2. Sold inventory on account to R. Crow, invoice no. 101 for $960, terms n/30. The cost of the inventory sold was $600. Sept 10. Purchased inventory on credit from L. Dayne $1200, terms 2/7, n/30. Sept 12. Purchased of ce equipment on account from B. Piazza $13 000. Sep 21. Sold inventory on account to Buffy Ltd, invoice no. 102 for $1600,...
The following transactions occurred during April for LAW company.  (assume VAT is included at 18%) April 3...
The following transactions occurred during April for LAW company.  (assume VAT is included at 18%) April 3 Purchase of merchandise inventory on account 20.886 TL. April  5 Received an invoice of 708 TL for maintenance of computers to be paid in 2 months. April 8 Collected 3.750 TL of accounts receivable from a customer of a sale from March. April 10 Sold merchandise inventory to a customer for cash 104.430 TL April 12 Purchased  office supplies for  750 TL by paying cash. April 17...
Required information Problem 7-1A Special journals, subsidiary ledgers, trial balance LO P1, P2, P3, P4 [The...
Required information Problem 7-1A Special journals, subsidiary ledgers, trial balance LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 1/10, n/30). Mar. 1 Purchased $33,000 of merchandise from Van Industries, terms 1/15, n/30. 2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $13,200 (cost is $6,600). 3 (a) Purchased $990 of office...
This company uses the perpetual system of inventory. Check for these figures. Cash Receipts Journal, total...
This company uses the perpetual system of inventory. Check for these figures. Cash Receipts Journal, total Cash DR: $68,094 Cash Payments Journal, total Cash CR: $62,185 Net Income: $19,351 Total Assets: $143,246 Total Post Closing Trial Balance: $144,871 Colorado Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidary ledger. Balances related to both the general ledger and the subsidary ledger for Colorado Co. are indicated in the working paper. Below are a series...
Prepare journal entries to record the following transactions for a retail store. The company uses a...
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method.    Apr. 2 Purchased $5,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $370 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $650. 17 Sent a check to Lyon Company...
Prepare journal entries to record the following transactions for a retail store. The company uses a...
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method.    Apr. 2 Purchased $4,100 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $210 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $600. 17 Sent a check to Lyon Company...
Put-A-Wrench-In-It sells tools. During the month of October 2018, the following transactions occurred. Oct 3                        &nb
Put-A-Wrench-In-It sells tools. During the month of October 2018, the following transactions occurred. Oct 3                         Purchased inventory for $6,300 on account from Block and Deck Oct 7                         Paid salaries for $2,100 with Check #256 Oct 10                      Purchased inventory for $4,100 cash from Malida Inc. with Check #257 Oct 17                      Paid the full amount owing to Block and Deck from the Oct 3 transaction with Check #258 Oct 24                      Purchased inventory for $7,700 on account from Debolt Inc. Assume zero opening balances for the subledger and...
Prepare journal entries to record the following transactions for a retail store. The company uses a...
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method.    Apr. 2 Purchased $6,100 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. Apr. 3 Paid $280 cash for shipping charges on the April 2 purchase. Apr. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $650. Apr. 17 Sent a check...
Prepare journal entries to record each of the following merchandising transactions assuming that the buyer uses...
Prepare journal entries to record each of the following merchandising transactions assuming that the buyer uses the periodic inventory system and the gross method.    Apr. 2 Purchased $6,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $370 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $500. 17 Sent a check to Lyon...
The following transactions occurred during January 2021: Jan. 1 Sold merchandise for cash, $2,600. The cost...
The following transactions occurred during January 2021: Jan. 1 Sold merchandise for cash, $2,600. The cost of the merchandise was $1,100. The company uses the perpetual inventory system. 2 Purchased equipment on account for $4,600 from the Strong Company. 4 Received a $200 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2. 8 Sold merchandise on account for $4,100. The cost of the merchandise was $1,900. 10 Purchased merchandise on...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT