Question

Sunland Company’s chart of accounts includes the following selected accounts.

101		Cash		401		Sales Revenue
112		Accounts Receivable		414		Sales Discounts
120		Inventory		505		Cost of Goods Sold
301		Owner’s Capital

On April 1, the accounts receivable ledger of Sunland Company showed the following balances: Morrow $1,520, Rose $1,240, Jennings Co. $2,910, and Dent $2,200. The April transactions involving the receipt of cash were as follows.

Apr. 1		The owner, T. Sunland, invested additional cash in the business $7,140.
4		Received check for payment of account from Dent less 2% cash discount.
5		Received check for $875 in payment of invoice no. 307 from Jennings Co.
8		Made cash sales of merchandise totaling $7,220. The cost of the merchandise sold was $4,332.00.
10		Received check for $555 in payment of invoice no. 309 from Morrow.
11		Received cash refund from a supplier for damaged merchandise $725.
23		Received check for $1,120 in payment of invoice no. 310 from Jennings Co.
29		Received check for payment of account from Rose (no cash discount allowed). Journalize the transactions above in a six-column cash receipts journal and cross-foot the journal. (Record entries in the order displayed in the problem statement. Round answers to 0 decimal places, e.g. 5,275.)

Answer 1

Date	Account Credited	Ref.	Cash Dr.	Sales Discounts Dr.	Accounts Receivable Cr.	Sales Revenue Cr.	Other Accounts Cr.	Cost of Goods Sold Dr.
								Inventory Cr.
1-Apr	Owner’s Capital	301	$7,140				$7,140
4-Apr	Dent	√	$2,156	$44	-$2,200
5-Apr	Jennings	√	$875		-$875
8-Apr	Sales Revenue	401	$7,220			$7,220		$4,332
10-Apr	Morrow	√	$555		-$555
11-Apr	Inventory	120	$725					-$725
23-Apr	Jennings	√	$1,120		-$1,120
29-Apr	Rose	√	$1,240		-$1,240
Total			$21,031	$44	-$5,990	$7,220	$7,140	$3,607