the chart of accounts of renteria company includes the following selected accounts 543532 | Homework Solutions
The chart of accounts of Renteria Company includes the following selected accounts.
|
112 Accounts Receivable Don't use plagiarized sources. Get Your Custom Essay on
the chart of accounts of renteria company includes the following selected accounts 543532 | Homework Solutions
This is a Snippet Preview Access a Complete Custom Written Paper Done by Our Expert Writers
|
401 Sales |
|
120 Merchandise Inventory |
412 Sales Returns and Allowances |
|
126 Supplies |
505 Cost of Goods Sold |
|
157 Equipment |
610 Advertising Expense |
|
201 Accounts Payable |
In July the following selected transactions were completed. All purchases and sales were on account. The cost of all merchandise sold was 70% of the sales price.
July 1 Purchased merchandise from Carlin Company $7,000.
2 Received freight bill from Johnson Shipping on Carlin purchase $400.
3 Made sales to Nance Company $1,300, and to Franklin Bros. $1,900.
5 Purchased merchandise from Flynn Company $3,200.
8 Received credit on merchandise returned to Flynn Company $300.
13 Purchased store supplies from Beran Supply $720.
15 Purchased merchandise from Carlin Company $3,600 and from Ruiz Company $2,900.
16 Made sales to Martin Company $3,450 and to Franklin Bros. $1,570.
18 Received bill for advertising from Marlin Advertisements $600.
21 Made sales to Nance Company $310 and to Randee Company $2,300.
22 Granted allowance to Nance Company for merchandise damaged in shipment $40.
24 Purchased merchandise from Flynn Company $3,000.
26 Purchased equipment from Beran Supply $600.
28 Received freight bill from Johnson Shipping on Flynn purchase of July 24, $380.
30 Made sales to Martin Company $4,900.
Instructions
(a) Journalize the transactions above in a purchases journal, a sales journal, and a general journal. The purchases journal should have the following column headings: Date, Account Credited (Debited), Ref., Other Accounts Dr., and Merchandise Inventory Dr., Accounts Payable Cr. (b) Post to both the general and subsidiary ledger accounts. (Assume that all accounts have zero beginning balances.) (c) Prove the agreement of the control and subsidiary accounts.
