Janish Supplies completed the transactions listed below during April 2014. All sales are on terms 2/10, n/30.
April 2 Sold merchandise to Tim Bennett for $35,000 on credit; invoice #306 (cost $22,750).
3 Cash sales for the day totaled $15,000; invoices # 307 to # 310 (cost $9,750).
4 Purchased $48,000 of merchandise from Wallace Brothers; terms 1 /10, n/30.
5 Sold merchandise to Brian Kennedy for $42,000 on credit; invoice #311 (cost $27,300).
6 Returned $4,200 of defective merchandise purchased on April 4.
9 Purchased $230 of office supplies; cheque # 620.
11 Purchased $56,000 of merchandise from McKinley & Sons; terms n/30.
12 Received payment from Tim Bennett regarding the sale of April 2.
13 Paid for the merchandise purchased on April 4; cheque # 621.
16 Sold merchandise to Wynne Walsh for $14,000 on credit; invoice #312 (cost $9,100).
19 Issued a credit memo regarding a $3,000 allowance granted to Wynne Walsh to cover defective merchandise sold on April 16.
20 Received payment from Brian Kennedy for the sale of April 5.
23 Purchased $3,800 of equipment from Zardon Company; terms 1/15, n/30.
24 Sold merchandise to Brian Kennedy for $18,000 on credit; invoice #313 (cost $11,700).
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26 Paid for the purchase of April 11; cheque # 622
27 Received payment from Wynne Walsh regarding the sale of April 16.
30 Paid April salaries; $36,000; cheque # 623, For simplicity, we assume one cheque.
Required
1. Prepare a Sales Journal, Cash Receipts Journal, Purchases Journal, Cash Disbursements Journal, and General Journal like the ones illustrated in this chapter.
2. Journalize the April transactions into the appropriate journal (do not post to the sub ledgers or the General Ledger).
SOLUTION
Parts 1 and 2
Parts 1 and 2
Janish Supplies Sales Journal
Janish Supplies Sales Journal
Janish Supplies Sales Journal
Page 1
COGS Dr.
A/R Dr.
Merchandise Inventory
Date
Account Debited
Invoice No.
PR
Sales Cr.
Cr.
2014
Apr. 2
Tim Bennett
306
35,000
22,750
5
Brian Kennedy
311
42,000
27,300
16
Wynne Walsh
312
14,000
9,100
24
Brian Kennedy
313
18,000
11,700
Totals
109,000
70,850
Janish Supplies Cash Receipts Journal
Janish Supplies Cash Receipts Journal
Janish Supplies Cash Receipts Journal
Janish Supplies Cash Receipts Journal
Janish Supplies Cash Receipts Journal
Janish Supplies Cash Receipts Journal
Janish Supplies Cash Receipts Journal
Janish Supplies Cash Receipts Journal
Janish Supplies Cash Receipts Journal
Janish Supplies Cash Receipts Journal
Janish Supplies Cash Receipts Journal
Janish Supplies Cash Receipts Journal
Page: 1
Page: 1
Page: 1
Page: 1
Sales
Other
Other
Other
Other
COGS/Dr.
COGS/Dr.
COGS/Dr.
COGS/Dr.
Disc
Account
Account
Account
Account
Merchandise
Merchandise
Merchandise
Merchandise
Date
Date
Account Credited
PR
Explanation
Explanation
Cash Dr.
Cash Dr.
Cash Dr.
Cash Dr.
Cash Dr.
Dr.
A/R Cr.
A/R Cr.
Sales Cr.
Sales Cr.
Sales Cr.
Sales Cr.
Sales Cr.
s Cr.
s Cr.
s Cr.
s Cr.
Inventory/ Cr.
Inventory/ Cr.
Inventory/ Cr.
Inventory/ Cr.
2014
Apr. 3
Apr. 3
Sales
Cash sales
Cash sales
15,000
15,000
15,000
15,000
15,000
15,000
15,000
9,750
9,750
9,750
9,750
12
Tim Bennett
Inv., Apr. 2
Inv., Apr. 2
34,300
34,300
34,300
700
35,000
35,000
20
Brian Kennedy
Inv., Apr. 5
Inv., Apr. 5
42,000
42,000
42,000
42,000
42,000
27
Wynne Walsh
Inv., Apr. 16
Inv., Apr. 16
11,000
11,000
11,000
11,000
11,000
Totals
102,300
102,300
102,300
700
88,000
88,000
15,000
15,000
15,000
15,000
9,750
9,750
9,750
9,750
Janish Supplies Purchases Journal
Janish Supplies Purchases Journal
Janish Supplies Purchases Journal
Janish Supplies Purchases Journal
Janish Supplies Purchases Journal
Janish Supplies Purchases Journal
Janish Supplies Purchases Journal
Janish Supplies Purchases Journal
Janish Supplies Purchases Journal
Janish Supplies Purchases Journal
Janish Supplies Purchases Journal
Janish Supplies Purchases Journal
Date of
Date of
Merchandise
Merchandise
Merchandise
Office
Office
Office
Office
Other
Other
Date
Account Credited
Invoice
Invoice
Terms
Terms
PR
A/P Cr.
Inventory Dr.
Inventory Dr.
Inventory Dr.
Inventory Dr.
Supplies Dr.
Supplies Dr.
Supplies Dr.
Supplies Dr.
Accounts Dr.
Accounts Dr.
2014
Apr. 4
Wallace Brothers
Apr. 4
Apr. 4
1/10, n/30
1/10, n/30
48,000
48,000
48,000
48,000
48,000
48,000
11
McKinley & Sons
Apr. 11
Apr. 11
n/30
n/30
56,000
56,000
56,000
56,000
56,000
56,000
23
Zardon Co.—Equip.
Apr. 23
Apr. 23
1/15, n/30
1/15, n/30
3,800
3,800
3,800
Totals
107,800
104,000
104,000
104,000
104,000
104,000
3,800
3,800
Janish Supplies Cash
Janish Supplies Cash
Janish Supplies Cash
Janish Supplies Cash
Disbursements Journal
Disbursements Journal
Disbursements Journal
Disbursements Journal
Merchandise
Other Accounts
Date
Ch #
Account Debited
PR
Cash Cr.
Inventory Cr.
Dr.
A/P Dr.
2014
Apr. 9
620
Office Supplies
230
230
13
621
Wallace Brothers
43,3621
438
43,800
26
622
McKinley & Sons
56,000
56,000
30
623
Salaries Expense
36,000
36,000
Totals
135,592
438
36,230
99,800
Calculation:
1. $48,000 – $4,200 = $43,800 Dr. to A/P; $43,800 x 1% = $438 Cr. to Merchandise Inventory; $43,800 – $438 = $43,362 Cr. to Cash.
Calculation:
1. $48,000 – $4,200 = $43,800 Dr. to A/P; $43,800 x 1% = $438 Cr. to Merchandise Inventory; $43,800 – $438 = $43,362 Cr. to Cash.