Question

R. Ivanhoe Co. uses special journals and a general journal. The following transactions occurred during May 2020 May 1 R. Ivanhoe invested $46,400 cash in the business. 2 Sold merchandise to Lawrie Co. for $5,830 cash. The cost of the merchandise sold was $4,050 3 Purchased merchandise for $7,170 from J. Moskos using check no. 101 14 Paid salary to H. Rivera $725 by issuing check no. 102. 16 Sold merchandise on account to K. Stanton for $820, terms n/30. The cost of the merchandise sold was 645 22 A check of $9,240 is received from M. Mangini in full for invoice 101; no discount given. Prepare a multiple-column cash receipts journal and record the transactions for May that should be journalized. (Record entries in the order presented in the problem statement.) R. IVANHOE CO. Cash Receipts Journal CR1 Account Credited Cash Dr Sales Discounts Dr Accounts Receivable Cr Sales Revenue Cr Other Accounts Cr Cost of Goods Sold Dr Inventory Cr Date Ref 2020

Answer 1

Answer

• Requirement 1: Cash receipt Journal

Date	Account Credited	Cash Dr	Sales Discount Dr	Accounts receivables Cr	Sales Revenue Cr	Other Accounts Cr	Cost of Goods Dr; Inventory Cr
01-May	Common Stock/Capital Stock	$            46,400.00				$            46,400.00
02-May	Sales Revenue	$              5,830.00			$             5,830.00		$                        4,050.00
22-May	Accounts receivables	$              9,240.00		$             9,240.00
		$            61,470.00	$                          -	$             9,240.00	$             5,830.00	$            46,400.00	$                        4,050.00

• Requirement 2: Cash Payment journal

Date	CHk no.	Account debited	Other Account Dr	Accounts Payable Dr	Inventory Cr	Cash Cr.
03-May	101	Inventory	$             7,170.00			$              7,170.00
14-May	102	Salary expenses	$                 725.00			$                  725.00
			$             7,895.00	$                          -	$                          -	$              7,895.00