Question : 126. Renton Co. uses special journals to record its transactions. They : 1256298

 

126. Renton Co. uses special journals to record its transactions. They use the perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for current month of May: 

May

1

Purchased merchandise for cash from Zillah Co. $5,400, check no. 1133.

 

2

Purchased office equipment from Echo Co. on credit, $7,200, terms n/60. Invoice dated May 1.

 

6

Paid Fox, Inc., $4,900 cash for previous purchases on account, which is net of a $100 discount, check no. 1134.

 

9

Purchased merchandise from Inca, Inc. on credit, terms 1/15, n/30, $24,600. Invoice dated May 8.

 

10

Paid Echo Co. cash for May 2 purchase, Check No. 1135.

 

18

Purchased office supplies on credit $230, terms net EOM from Howe, Inc., invoice dated May 18

Record these transactions in the following journals: 

Purchases Journal

 

 

Date

 

 

Account

 

Date of Invoice

 

 

Terms

 

 

PR

Accounts Payable Cr.

 

Inventory Dr.

Office Supplies Dr.

Other Accounts Dr

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Disbursements Journal

 

 

Date

 

Ck. No.

 

 

Payee

 

Account Debited

 

 

PR

 

Cash Cr.

 

Inventory Cr.

Other Accounts Dr.

Accounts Payable Dr.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

127. The following special journal is taken from a merchandising company that uses the perpetual inventory system: 

 

 

 

 

Date

 

 

 

Account  Credited

 

 

 

 

Explanation

 

 

 

 

PR

 

 

 

Cash Dr.

 

 

Sales Discount Dr.

 

 

Accounts Receivable Cr.

 

 

 

Sales Cr.

 

 

Other Accounts Cr.

Cost of Goods Sold Dr. Inventory Cr.

1/31

Balance

 

 

51,739

1,023

13,265

5,567

33,930

3,000

2/2

H. Jones

Inv. 452

x

637

13

650

 

 

 

2/14

Notes Payable

Note to bank

351

1,300

 

 

 

1,300

 

2/17

Sales

Cash sales

x

1,248

 

 

1,248

 

680

2/22

Equipment

 

181

651

 

 

 

651

 

2/28

M. Sims

Inv. 403

x

156

 

156

 

 

 

 

 

 

 

55,731

1,036

14,071

6,815

35,881

3,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(101)

(413)

(112)

(411)

(X)

(511/113)

a. What is the name of the journal shown above?b. Write an explanation for each entry in this journal.c. What do the numbers in parentheses at the bottom of the journal indicate?

 

 

 

128. A company records its transactions and events in four special journals and a general journal (perpetual inventory method). The columns of these journals are numbered as follows: 

Sales Journal

Purchases Journal

1. Accounts Receivable / Sales

3. Accounts Payable

2. Cost of goods sold / Inventory

4. Inventory

 

5. Office Supplies

 

6. Other Accounts

 

 

Cash Receipts Journal

Cash Disbursements Journal

7. Cash

13. Cash

8. Sales Discounts

14. Inventory

9. Accounts Receivable

15. Other Accounts

10. Sales

16. Accounts Payable

11. Other Accounts

 

12. Cost of goods Sold / Inventory

 

 

 

General Journal

 

17. Miscellaneous Dr.

 

18. Miscellaneous Cr.

 

Show how each of the following transactions would be recorded in the above set of accounting journals by inserting the number(s) of the columns in which the debit(s) would appear in the column labeled “Debits” below and by inserting the number(s) of the columns in which the credits would appear in the column labeled “Credits” below. 

 

 

 

Debits

 

Credits

a.

Sold merchandise on account, $1,200; the cost of the goods sold is $750.

 

 

b.

Collected a customer’s account, $800 cash, less a 2% discount.

 

 

c.

Received and paid the monthly electric bill, $250 cash.

 

 

d.

Purchased office supplies on credit, $100.

 

 

e.

Sold merchandise for cash, $500.

 

 

f.

Paid a creditor for merchandise within the Discount period, $1,000 cash, credit terms of 2/10, n/30.

 

 

g.

Customer returned merchandise, $150; the cost of the goods returned is $95.

 

 

h.

Purchased merchandise on account, $2,000.