Selected accounts from the chart of accounts of Malone Company are shown below 101 Cash 201 Accounts Payable 112 Accounts Receivable 401 Sales Revenue 120 Inventory 414 Sales Discounts 126 Supplies 505 Cost of Goods Sold 140 Land 610 Advertising Expense 145 Buildings The cost of all merchandise sol...

a b c Date Account Debited Oct 4 Howard Co 17 BJs Warehouse 25 3 ...

Selected accounts from the chart of accounts of Malone Company are shown below. 101 Cash 201 Accounts

Question:

Selected accounts from the chart of accounts of Malone Company are shown below.
101 Cash 201 401 Sales Revenue
120 Inventory 414 Sales Discounts
126 Supplies 505 Cost of Goods Sold
140 Land 610 Advertising Expense
145 Buildings
The cost of all merchandise sold was 65% of the sales price. During October, Malone Company completed the following transactions.
Oct. 2 Purchased merchandise on account from Ryan Company $12,000.
4 Sold merchandise on account to Howard Co. $5,600. Invoice no. 204, terms 2/10, n/30.
5 Purchased supplies for cash $60.
7 Made cash sales for the week totaling $6,700.
9 Paid in full the amount owed Ryan Company less a 2% discount.
10 Purchased merchandise on account from Arduino Corp. $2,600.
12 Received payment from Howard Co. for invoice no. 204.
13 Returned $150 worth of damaged goods purchased on account from Arduino Corp. on
October 10.
14 Made cash sales for the week totaling $6,000.
16 Sold a parcel of land for $20,000 cash, the land’s original cost.
17 Sold merchandise on account to BJ’s Warehouse $3,900, invoice no. 205, terms 2/10, n/30.
18 Purchased merchandise for cash $1,600.
21 Made cash sales for the week totaling $6,000.
23 Paid in full the amount owed Arduino Corp. for the goods kept (no discount).
25 Purchased supplies on account from Paul Martin Co. $190.
25 Sold merchandise on account to David Corp. $3,800, invoice no. 206, terms 2/10, n/30.
25 Received payment from BJ’s Warehouse for invoice no. 205.
26 Purchased for cash a small parcel of land and a building on the land to use as a storage facility. The total cost of $26,000 was allocated $16,000 to the land and $10,000 to the building.
27 Purchased merchandise on account from Novak Co. $6,200.
28 Made cash sales for the week totaling $5,500.
30 Purchased merchandise on account from Ryan Company $10,000.
30 Paid advertising bill for the month from the Gazette, $290.
30 Sold merchandise on account to BJ’s Warehouse $3,400, invoice no. 207, terms 2/10, n/30.
Malone Company uses the following journals.
1. Sales journal.
2. Single-column purchases journal.
3. Cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Cr., Sales Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr.
4. Cash payments journal with columns for Other Accounts Dr., Dr., Inventory Cr., and Cash Cr.
5. General journal.
Instructions
Using the selected accounts provided:
(a) Record the October transactions in the appropriate journals.
(b) Foot and cross-foot all special journals.
(c) Show how postings would be made by placing ledger account numbers and check marks as needed in the journals. (Actual posting to ledger accounts is not required.)

Accounts Payable
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