Chapter 7 (1)

Chapter 7 Question 1 TransactionSpecial JournalSubsidiary Ledger Paid utility billCash disbursements journalAccounts payable Sold inventory on accountSales journalAccounts Receivable Received but did not pay phone billCash disbursements journalAccounts payable Bought inventory on accountPurchases journalAccounts Payable Borrowed money from a bankCash receipts journalNeither Sold old office furniture for cashCash receipts journalAccounts receivable Recorded depreciationCash payment journalAccounts payable Accrued payroll at the end of the accounting periodCash disbursements journalAccounts payable Sold inventory for cashCash receipts journalAccounts receivable Paid interest on bank loanCash disbursements journalAccounts payable Question 2 A.Jan. 15 Invoice # 325, sold goods on credit for $2,400, to Maroon 4, account # 4501 B.Jan. 22 Invoice #326, sold goods on credit for $3,500 to BTS, account # 5032 SALES JOURNALPage # DateAccountAddressAcct. No.TermsSales Invoice No.Ref. DR A/R CR Sales Jan. 15Maroon 4_4501_325$2,400 Jan. 22BTS_5032_326$3,500 Jan. 27Imagine Fireflies_3896_327$1,250 C.Jan. 27 Invoice #327, sold goods on credit for $1,250 to Imagine Fireflies, account #39 Question 3 - Recording in Cash Receipts Journal A.Jun. 12: Your Company received payment in full from Jolie Inc. in the amount of $1,225 for merchandise purchased on June 4 for $1,250, invoice number #1032. Jolie Inc. was offered terms of 2/10, n/30. Record the payment. B.Jun. 15:Portman Inc. mailed you a check for $2500. The company paid for invoice #1027, dated June 1, in the amount of $2,500, terms offered 3/10, n/30. C.Jun. 17: Your Company received a refund check (its check #12440) from the State Power Company because you overpaid your electric bill. The check was in the amount of $72. The Utility Expense account number is #450. Record receipt of the refund.