Question

Problem 7-4A Selected accounts from the chart of accounts of Mercer Company are shown below 101 Cash 112 Accounts Receivable 412 Sales Returns and Allowances 120 Inventory 126 Supplies 157 Equipment 201 Accounts Payable 401 Sales Revenue 414 Sales Discounts 505 Cost of Goods Sold 726 Salaries and Wages Expense The cost of all merchandise sold was 60% of the sales price. During January, Mercer completed the following transactions Jan. 3 Purchased merchandise on account from Gallagher Co. $9,000 4 Purchased supplies for cash $80 4 Sold merchandise on account to Wheeler $5,250, invoice no. 371, terms 1/10, n/30 5 Returned $300 worth of damaged goods purchased on account from Gallagher Co.on January 3 6 Made cash sales for the week totaling $3,150 8 Purchased merchandise on account from Phegley Co. $4,500 9 Sold merchandise on account to Linton Corp. $5,400, invoice no. 372, terms 1/10, n/30 11 Purchased merchandise on account from Cora Co. $3,700 13 Paid in full Gallagher Co. on account less a 2% discount. 13 Made cash sales for the week totaling $6,260 15 Received payment from Linton Corp. for invoice no. 372 15 Paid semi-monthly salaries of $14,300 to employees. 17 Received payment from Wheeler for invoice no. 371 17 Sold merchandise on account to Delaney Co. $1,200, invoice no. 373, terms 1/10, n/30 19 Purchased equipment on account from Dozier Corp. $5,500 20 Cash sales for the week totaled $3,200 20 Paid in full Phegley Co. on account less a 2% discount. 23 Purchased merchandise on account from Gallagher Co. $7,800 24 Purchased merchandise on account from Atchison Corp. $5,100 27 Made cash sales for the week totaling $4,230 30 Received payment from Delaney Co. for invoice no. 373 31 Paid semi-monthly salaries of $13,200 to employees. 31 Sold merchandise on account to Wheeler $9,330, invoice no. 374, terms 1/10, n/30

Answer 1

Sales Journal Accounts Receivable Dr. Cost of Goods Sold Dr Date Account Debited Invoice No Sales Revenue Cr Inventory Cr Wheeler Linton Corp Delaney Co Wheeler 371 372 373 374 (112) (401) 2,550 5,400 1,200 9,330 21,180 (505) (120) 3,150 3,240 720 5,598 12,708 Jan-04 PURCHASE JOURNAL General Journal Inventory Dr Date Account re Date Account Credited Accounts Payable Cr 300 Jan-05 Accounts Payable Inventory 300 Jan-03 Gallagher Co Jan-08 Phegley Co Jan-11Cora Co Jan-23 Gallagher Co Jan-24 Atchison Corp 9000 4500 3700 7800 5100 Jan-19 Equipment 5,500 Accounts Payable 5,500 Receipts Journal Cash Payments Journal Date Account Debited Ref. Other Accounts Dr. Accounts Payable Inventory Cash Dr. Goods Sold Dr Accounts Jan. 4 Supplies 126 80 80 8526 14300 Revenue Accounts Credited Ref Dr Dr. Jan. Gallagher Co. Cr 8700 174 3150 3150 1890 an. Salaries and Wages 726 14300 15 Expense 6260 6260 3756 Co 4500 90 4410 13 an. Linton V 5346 54 Jan. Salaries and Wages 5400 726 13200 13200 15 31 Expense Jan: wheeler 5250 13200 5250 27580 264 40516 (201) (120) 3200 3200 1920 4230 4230 2538 Jan. Delaney 1200 1200 30 Co 10104 (505)(120) 28636 54 11850 16840 (112) (401)