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Purchases Journal, Cash Payments Journal, and General Journal

Freddy Flint owns a small retail business called Flint's Fantasy. The cash account has a balance of $30,000 on July 1. The following transactions occurred during July:

July 1	Issued Check No. 414 in payment of July rent, $1,690.
1	Purchased merchandise on account from Tang's Toys, Invoice No. 311, $2,900, terms 2/10, n/30.
3	Purchased merchandise on account from Sillas & Company, Invoice No. 812, $3,000, terms 1/10, n/30.
5	Returned merchandise purchased from Tang's Toys, receiving a credit memo on the amount owed, $400.
8	Purchased merchandise on account from Daisy's Dolls, Invoice No. 139, $1,200, terms 2/10, n/30.
11	Issued Check No. 415 to Tang's Toys for merchandise purchased on account, less return of July 5 and less 2% discount.
13	Issued Check No. 416 to Sillas & Company for merchandise purchased on account, less 1% discount.
15	Returned merchandise purchased from Daisy's Dolls, receiving a credit memo on the amount owed, $200.
18	Issued Check No. 417 to Daisy's Dolls for merchandise purchased on account, less return of July 15 and less 2% discount.
25	Purchased merchandise on account from Allied Business, Invoice No. 489, $2,475, terms n/30.
26	Purchased merchandise on account from Tang's Toys, Invoice No. 375, $2,080, terms 2/10, n/30.
29	Purchased merchandise on account from Sillas & Company, Invoice No. 883, $3,420, terms 1/10, n/30.
31	Freddy Flint withdrew cash for personal use, $2,205. Issued Check No. 418.
31	Issued Check No. 419 to Glisan Distributors for a cash purchase of merchandise, $905.

Required:

1. Record the transactions in the purchases journal, cash payments journal, and general journal. Total and rule the purchases and cash payments journals. Prove the cash payments journal.

If an amount box does not require an entry, leave it blank.

Answer 1

1)

Purchase Journal, Cash Payments Journal and General Journal:

Date	Account Titles and Explanations	Debit	Credit
Jul. 1	Rent Expense	$1,690
	Cash		$1,690
	(To record the payment of rent)
Jul. 1	Merchandise Inventory	$2,900
	Accounts Payable - Tang's Toys		$2,900
	(To record the purchase of merchandise inventory on account)
Jul. 3	Merchandise Inventory	$3,000
	Accounts Payable - Sillas & Company		$3,000
	(To record the purchase of merchandise inventory on account)
Jul. 5	Accounts Payable - Tang's Toys	$400
	Merchandise Inventory		$400
	(To record the return of merchandise inventory purchased on account)
Jul. 8	Merchandise Inventory	$1,200
	Accounts Payable - Daisy's Dolls		$1,200
	(To record the purchase of merchandise inventory on account)
Jul. 11	Accounts Payable - Tang's Toys ($2,900 - $400)	$2,500
	Discount Received ($2,500*2/100)		$50
	Cash ($2,500 - $50)		$2,450
	(To record the payment to Tang's Toys with discount)
Jul. 13	Accounts Payable - Sillas & Company	$3,000
	Discount Received ($3,000*1/100)		$30
	Cash ($3,000 - $30)		$2,970
	(To record the payment to Sillas & Company with discount)
Jul. 15	Accounts Payable - Daisy's Dolls	$200
	Merchandise Inventory		$200
	(To record the return of merchandise inventory purchased on account)
Jul. 18	Accounts Payable - Daisy's Dolls ($1,200 - $200)	$1,000
	Discount Received ($1,000*2/100)		$20
	Cash ($1,000 - $20)		$980
	(To record the payment to Daisy's Dolls with discount)
Jul. 25	Merchandise Inventory	$2,475
	Accounts Payable - Allied Business		$2,475
	(To record the purchase of merchandise inventory on account)
Jul. 26	Merchandise Inventory	$2,080
	Accounts Payable - Tang's Toys		$2,080
	(To record the purchase of merchandise inventory on account)
Jul. 29	Merchandise Inventory	$3,420
	Accounts Payable - Sillas & Company		$3,420
	(To record the purchase of merchandise inventory on account)
Jul. 31	Drawings	$2,205
	Cash		$2,205
	(To record the cash withdrawel for personal use)
Jul. 31	Merchandise Inventory	$905
	Cash		$905
	(To record the cash purchase of merchandise inventory)
	Totals	$26,975	$26,975