selected accounts from the chart of accounts of cross company are shown below 543533 | Homework Solutions
Selected accounts from the chart of accounts of Cross Company are shown below.
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selected accounts from the chart of accounts of cross company are shown below 543533 | Homework Solutions
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401 Sales |
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112 Accounts Receivable |
412 Sales Returns and Allowances |
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120 Merchandise Inventory |
414 Sales Discounts |
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126 Supplies |
505 Cost of Goods Sold |
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157 Equipment |
726 Salaries and Wages Expense |
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201 Accounts Payable |
The cost of all merchandise sold was 60% of the sales price. During January, Cross completed the following transactions.
Jan. 3 Purchased merchandise on account from Carr Co. $10,000.
4 Purchased supplies for cash $80.
4 Sold merchandise on account to Hartman $7,250, invoice no. 371, terms 1/10, n/30.
5 Issued a debit memorandum to Carr Co. and returned $300 worth of damaged goods.
6 Made cash sales for the week totaling $3,150.
8 Purchased merchandise on account from Law Co. $4,500.
9 Sold merchandise on account to Mays Corp. $5,800, invoice no. 372, terms 1/10, n/30.
Jan. 11 Purchased merchandise on account from Hoble Co. $3,700.
13 Paid in full Carr Co. on account less a 2% discount.
13 Made cash sales for the week totaling $5,340.
15 Received payment from Mays Corp. for invoice no. 372.
15 Paid semimonthly salaries of $14,300 to employees.
17 Received payment from Hartman for invoice no. 371.
17 Sold merchandise on account to Piper Co. $1,200, invoice no. 373, terms 1/10, n/30.
19 Purchased equipment on account from Johnson Corp. $5,500.
20 Made cash sales for the week totaling $3,200.
20 Paid in full Law Co. on account less a 2% discount.
23 Purchased merchandise on account from Carr Co. $7,800.
24 Purchased merchandise on account from Levine Corp. $4,690.
27 Made cash sales for the week totaling $3,730.
30 Received payment from Piper Co. for invoice no. 373.
31 Paid semimonthly salaries of $13,200 to employees.
31 Sold merchandise on account to Hartman $9,330, invoice no. 374, terms 1/10, n/30.
Clark Company uses the following journals.
1. Sales journal.
2. Single-column purchases journal.
3. Cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Merchandise Inventory Cr.
4. Cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Merchandise Inventory Cr., and Cash Cr.
5. General journal.
Instructions
Using the selected accounts provided:
(a) Record the January transactions in the appropriate journal noted.
(b) Foot and cross-foot all special journals.
(c) Show how postings would be made by placing ledger account numbers and checkmarks as needed in the journals. (Actual posting to ledger accounts is not required.)
