Question : 51) M and N Sporting Goods reports these selected transactions : 1212677

51) M and N Sporting Goods reports these selected transactions for the month of July:

 

July 9Issued invoice No. 159 for a sale on account to Evans Company, $4,600,

terms 1/10 n/30. The cost of the merchandise was $2,700.

 

10Issued invoice No. 160 for a sale on account to Sails and Boats, $5,700,

terms 2/15 n/45. The cost of the merchandise was $2,450.

 

20Issued a credit memo to Sails and Boats for $2,800 for merchandise

returned. The cost of the returned merchandise was $1,200.

 

Record the above transactions in either the sales journal or the general journal. M and N Sporting Goods has a perpetual inventory system.

 

Sales Journal

Date

Account Debited

Acc. Rec. Dr.

Sales Rev. Cr.

Cost of Goods Sold Dr.

Inventory Cr.

 

 

 

 

 

 

 

 

 

 

 

 

 

General Journal

Date

Accounts

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52) Damon Associates reported the following transactions during September:

 

Sept. 8Sold $3,000 of merchandise to Bruce Services for cash. The cost of the merchandise was $1,250

10Owner invested $3,400 into the business.

15Collected $580 from Lucille Adams on account.

16Issued a credit memo for $650 to Susan Wilson for merchandise she

purchased on credit several days ago. The cost of the returned

merchandise was $250.

 

Record the above transactions in either the cash receipts journal or the general journal.  Damon Associates has a perpetual inventory system.

 

Cash Receipts Journal

         |   Debits    |Credits|

Date

 

Cash

 

Sales

Dis.

Acc.

Rec.

Sales

Rev.

Other Acct.

 

Amount

 

CGS Dr.

Inv. Cr.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Journal

Date

Accounts

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

53) Using the information in the following unidentified journals, state how the selected numbers would be posted using the selections below.

 

1) Posted to a general ledger account as a debit

2) Posted to a general ledger account as a credit

3) Posted to a subsidiary ledger account as a debit

4) Posted to a subsidiary ledger account as a credit

5) Posted to the general ledger as a debit and a credit

6) Not posted

 

Date

Account Debited

Acc. Rec. Dr.

Sales Rev. Cr.

Cost of Goods Sold Dr.

Inventory Cr.

Feb. 9

Jones Company

      3,540

      2,300

10

Sails and Boats

     10,900

b)    5,550

26

Davis Enterprises

c)    7,000

g)    3,250

28

Totals

a)  21,440

     11,100

 

|Debits|Credits|

Date

 

Cash

 

Sales

Dis.

Acc.

Rec.

Sales

Rev.

Other Acct.

 

Amount

 

CGS Dr.

Inv. Cr.

Sept. 8

3,000

 

 

3,000

 

 

1,750

10

2,500

 

 

 

Ross, Capital

2,500

 

13

50

 

 

 

Int. Revenue

50

 

15

582

18

600

 

Jane Gibson

 

 

30

e)6,132

d) 18

600

3,000

Totals

f) 2,550

h) 1,750

 

a)21,440________

b) 5,550________

c) 7,000________

d) 18________

e) 6,132________

f) 2,550________

g) 3,250________

h) 1,750________