The general ledger of Commerce One includes the following accounts: Equipment. Cash Inventory. Prepaid Insurance. Supplies. 111
Question:
The general ledger of Commerce One includes the following accounts: Equipment. Cash Inventory. Prepaid Insurance. Supplies. 111 131 Accounts Payable. 161 Rent Expense. 171 Utilities Expense. 189 211 562 Transactions in January that affected purchases and cash payments were as follows: Jan. 4 Paid monthly rent, debiting Rent Expense for $1,350. 5 6 7 10 11 12 12 14 15 17 19 20 21 26 565 Purchased inventory on credit from Sylvania Co., $5,000. Terms were 2/15 n/45. Purchased supplies on credit terms of 2/10 n/30 from Harmon Sales. $800. Paid gas and water utility bills, $406. Purchased equipment on account from Lancer Co.. $1,050. Payment terms were 2/10 n/30. Returned the equipment to Lancer Co. It was defective. Paid Sylvania Co. the amount owed on the purchase of January 5. Purchased inventory on account from Lancer Co., $1,100. Terms were 2/10 n/30. Purchased inventory for cash, $1.585. Paid an insurance premium, debiting Prepaid Insurance, $2.416. Paid electricity utility bill, $165. Paid our account payable to Harmon Sales, from January 6. Paid account payable to Lancer Co., from January 12. Purchased supplies on account from Master Supply, $754. Terms were net 30. 22 Purchased inventory on credit terms of 1/10 n/30 from Linz Brothers, $3.400. Returned inventory purchased for $500 on January 22, to Linz Brothers. Paid Linz Brothers the net amount owed from January 22, less the return on January 26. 31 Required 1. Use the appropriate journal to record the preceding transactions in a purchases journal, a cash payments journal (omit the Check No. column), and a general journal. Commerce One records purchase returns in the general journal. 2. Total each column of the special journals. Show that total debits equal total credits in each special journal. 3. Show how postings would be made from the journals by writing the account numbers and check marks in the appropriate places in the journals.
Step by Step Answer:
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones