Home / Questions / Renton Co uses special journals to record its transactions
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. |
|
|
Jan 28 2020 View more View Less
Discuss strategic considerations that Amazon and NYC politicians had. Analyze why the deal between Amazon and NYC did not work out and propose how the deal should have be...
Apr 09 2020A tension member is to consist of two C10 channels and two PL 1/2 times 11, arranged as shown in Fig. P4-23 to support the service loads, PD = 200 k and PL = 320 k. The m...
May 24 2020Why is the government sometimes a part of the problem of coordination failure rather than the solution? Does this make the problem hopeless? What could be done in this case?
Apr 29 2020What name is given to the bond between water molecules? HydrophobicHydrogenIonicSingle (non-polar) covalentPolar Covalent
May 17 2021You are looking to save for retirement. You are currently 21 years old and plan to save for the next 25 years (you will start saving on your 22nd birthday and make your l...
May 24 2018An 8%, 30-year bond has a yield to maturity of 10% and a modified duration of 8 years. If the market yield drops by 15 basis points, there will be a ___ in the bond's pri...
Apr 17 2020If the direct exchange rate on the Euro is trading at $1.40 / 1 EUR, how much would it cost to buy a widget from Germany for 60 Euros?
Aug 13 2021what is the formula for tin(ii) nitride?
Jun 18 2021On May 1, 2010, Ziek Corp.declared and issued a 10% common stock dividend. Prior to thisdividend, Ziek had 100,000 shares of $1 par value common stockissued and outstandi...
Mar 24 2020Evaluate s .dx x Х 2x е e
May 11 2021