Pherigo Co. uses special journals and a general journal. The following transactions oc- curred during May 2008. 

Instructions

(a) Prepare a multiple-column cash receipts journal (see Illustration 7-9) and a multiple- column cash payments journal (see Illustration 7-16). (Use page 1 for each journal.)

(b) Record the transaction(s) for May that should be journalized in the cash receipts journal and cash payments journal.

Illustration 7-9

Illustration 7-16

Transcribed Image Text:

May 1 I. Pherigo invested $50,000 cash in the business. 2 Sold merchandise to B. Sherrick for $6,300 cash. The cost of the merchandise sold was $4,200. 3 Purchased merchandise for $7,200 from J. DeLeon using check no. 101. 14 Paid salary to H. Potter $700 by issuing check no. 102. 16 Sold merchandise on account to K. Kimbell for $900, terms n/30. The cost of the mer- chandise sold was $630. 22 A check of $9,000 is received from M. Moody in full for invoice 101; no discount given.