125. A company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. A perpetual inventory system is used. The following transactions were completed by the company during the current month of October:
Oct.
3
Sold merchandise for $6,000 to the South Corp. on credit, invoice no. 1122. Cost of the goods sold is $3,900.
6
Sold a piece of land for $30,000 cash. The land was originally purchased for $30,000.
11
Purchased supplies from Office Helpers for $420 cash. Check no. 2795.
15
Issued a credit memo for $550 to West Corp. for returned merchandise. Cost of the goods returned is $369.
21
Returned $330 of merchandise purchased from Min Corp. for credit on account.
24
Paid cash to Management Inc. for monthly rent of $5,400. Check no. 2796.
31
Recorded depreciation on equipment of $12,000.
Record these transactions in the appropriate journal shown below:
Sales Journal
Date
Account Debited
Invoice Number
PR
Accounts Receivable Dr. Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
Purchases Journal
Date
Account
Date of Invoice
Terms
PR
Accounts Payable Cr.
Inventory Dr.
Office Supplies Dr.
Other Accounts Dr
Cash Receipts Journal
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.
Cash Disbursements Journal
Date
Ck. No.
Payee
Account Debited
PR
Cash Cr.
Inventory Cr.
Other Accounts Dr.
Accounts Payable Dr.
General Journal
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