Question

Probiem: The chart of accounts of Lopez Company includes the following selected accounts. 112 Accounts Receivable 401 Sales 120 Merchandise Inventory 412 Sales Returns and Allowances 126 Supplies 505 Cost of Goods Sold 157 Equipment Accounts Payable 610 Advertising Expense 201 In July the following selected transactions were completed. All purchases and sales were on account. The cost of all merchandise sold was 70% of the sales price. Purchased merchandise from Fritz Company $8,000. Received freight bill from Wayward Shipping on Fritz purchase $400. Made sales to Pinick Company $1,300 (Invoice 230), and to Wayne Bros. $1,500 (Inv. 231). July. 1 3 Purchased merchandise from Moon Company $3,200. Received credit on merchandise returned to Moon Company $300. Purchased store supplies from Cress Supply $720. Purchased merchandise from Fritz Company $3,600 and from Anton Company $3,300. Made sales to Sager Company $3,450 (Inv. 232) and to Wayne Bros. $1,570 13 15 16 (Inv. 233). Received bill for advertising from Lynda Advertisements $600. Sales were made to Pinick Company $310 (Inv. 234) and to Haddad 18 21 Company $2,800 (Inv. 235). Granted allowance to Pinick Company for merchandise damaged in shipment 22 $40. 24 Purchased merchandise from Moon Company $3,000. 26 Purchased equipment from Cress Supply $900. Received freight bill from Wayward Shipping on Moon purchase of July 24, 28 $380. Sales were made to Sager Company $5,600 (Inv. 236). 30 Instructions: 1 Lopez Company uses special journals. ~The Purchases Journal is used to record all purchases of merchandise and assets on account. ~The Sales Journal is used to record all sales of merchandise on account. ~The General Journal is used to record all other transactions.

Purchases, sales and general journal. I can do the rest.

Answer 1

Please find below table useful as The Purchases Journal, Sales Journal and General Journal: -

А MN 1 GENERAL JOURNAL Other Accounts Dr Post Ref. Amount Date Jul. 8 PURCHASE JOURNAL Accounts Post Ref. Payable (Cr.) Inventory (Dr.) 8.000 8.000 400 400 3,200 3,200 720 3,600 3.600 3.300 3,000 3,000 900 380 Store Supplies | 720 2 Date Account Credited 3 Jul. 1 Fritz Company 4 Jul. 2 Wayward Shipping 5 Jul. 5 Moon Company 6 Jul. 13 Cress Supply 7 Jul. 15 Fritz Company 8 Jul. 15 Anton Company 9 Jul. 24 Moon Company 10 Jul. 26 Cress Supply 11 Jul. 28 Wayward Shipping Jul. 18 TES Account Titles and Explanations Post ref. Debit($) Credit() Accounts Payable 300 Inventory 300 (Returned Inventory) Advertising Expense 600 Accounts Payable 600 (To record Advertising Expense) Sales Returns and Allowances Accounts Receivable 40 (Granted Allowance for damaged merchandise) 3,300 Jul. 22 Equipment 900 380 14 Date Account Debited 15 Jul. 3 Pinick Company 16 Jul. 3 Wayne Bros. 17 Jul. 16 Sager Company 18 Jul. 16 Wayne Bros. 19 Jul. 21 Pinick Company 20 Jul 21 Haddad Company 21 Jul. 30 Sager Company TOTAL SALES JOURNAL Accounts Cost of Goods Receivable Sold (Dr.)70% Post Ref. Dr.) Sales Revenue (Cr.) of Sales Price 1,300 1,300 910 1,500 1,500 1,050 3,450 3,450 2.415 1,570 1,570 1,099 310 310 217 2.800 2.800 1.960 5,600 5,600 3.920 16,530 16,530 11,571 Inventory (Cr.) 910 1,050 2,415 1,099 217 1.960 3,920 11,571 22