Question

1) If a two-column (all purpose) general journal, a purchases journal, and a cash payments journal are used, indicate the journal in which each of the following transactions should be recorded: a. Payment of rent b. Purchase of supplies on account C. Purchase of computer on account d. Purchase of supplies for cash e. Advance payment of a one-year fire insurance policey on the office f. Adjustment to record accrued salaries at the end of the period g. Adjustment to record depreciation at the end of the month h. Payment of an account payable

Answer 1

Answer-1-

Particulars	Journal
a.Payment of rent	Cash payment journal
b.Purchase of supplies on account	Purchases journal
c.Purchase of computer on account	Purchases journal
d.Purchase of supplies for cash	Cash payment journal
e.Advance payment of a one year fire insurance policy on the office	Cash payment journal
f.Adjustment to record accrued salaries at the end of the period	General Journal
g.Adjustment to record depreciation at the end of the month	General journal
h.Payment of an account payable	Cash payment journal

2-The gross profit= Selling price (Cash +Credit )-Cost of merchandise sold

=$72,400+$229,200-$136,600

=$165,000

3-a-Merchandise inventory 6,200

Accounts Payable 6,200

b-Accounts Payable 6,200

Cash (6,200-124) 6,076

Merchandise Inventory 124 (6,200*2%)

4-a-Accounts Receivable 17,200

Merchandise Inventory 17,200

b-Cost of goods sold 12,100

Merchandise inventory 12,100