Question : Question During May, the last month of the fiscal year, the : 1161389

Question

During May, the last month of the fiscal year, the following transactions were completed:

Record the following transactions on page 20 of the journal. Refer to the Chart of Accounts for exact wording of account titles.

May

1

Paid rent for May, $5,000.

3

Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.

4

Paid freight on purchase of May 3, $600.

6

Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.

7

Received $22,300 cash from Halstad Co. on account.

10

Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.

13

Paid for merchandise purchased on May 3.

15

Paid advertising expense for last half of May, $11,000.

16

Received cash from sale of May 6.

19

Purchased merchandise for cash, $18,700.

19

Paid $33,450 to Buttons Co. on account.

20

Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500, and the cost of the returned merchandise was $8,000.

CHART OF ACCOUNTSPalisade Creek Co.General Ledger

ASSETS

110

Cash

112

Accounts Receivable

115

Merchandise Inventory

116

Estimated Returns Inventory

117

Prepaid Insurance

118

Store Supplies

123

Store Equipment

124

Accumulated Depreciation-Store Equipment

LIABILITIES

210

Accounts Payable

211

Customers Refunds Payable

212

Salaries Payable

EQUITY

310

Lynn Tolley, Capital

311

Lynn Tolley, Drawing

REVENUE

410

Sales

EXPENSES

510

Cost of Merchandise Sold

520

Sales Salaries Expense

521

Advertising Expense

522

Depreciation Expense

523

Store Supplies Expense

529

Miscellaneous Selling Expense

530

Office Salaries Expense

531

Rent Expense

532

Insurance Expense

539

Miscellaneous Administrative Expense

May

1

Paid rent for May, $5,000.

 

3

Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.

 

4

Paid freight on purchase of May 3, $600.

 

6

Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.

 

7

Received $22,300 cash from Halstad Co. on account.

 

10

Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.

 

13

Paid for merchandise purchased on May 3.

 

15

Paid advertising expense for last half of May, $11,000.

 

16

Received cash from sale of May 6.

 

19

Purchased merchandise for cash, $18,700.

 

19

Paid $33,450 to Buttons Co. on account.

 

20

Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500, and the cost of the returned merchandise was $8,000.