1.Gadget Palace is a retailer selling unique hardware. Gadget Palace uses perpetual inventory. Use a General Journal to journalize the following four transactions during the month of August: (a) On July 5th, Gadget Palace purchases inventory for sale from Turbo Tools for $11,400.00 with terms 2/10, n/30. (b) On July 6th, Gadget Palace pays Fast Truck Transport $75 for freight-in on the July 5th order. (c) Gadget Palace gets a credit memo from Turbo Tools for $215.00 for damaged merchandise on July 8th. (d) On July 15th, Gadget Palace pays Turbo Tools the balance due.

2. Journalize the following transactions for both Abbott Co. (seller) and Dalton Co. (buyer). Assume both the companies use the perpetual inventory system.

July 3 Abbott Co.sold merchandise on account to Dalton Co., $7,500, terms FOB shipping point, net/eom. The cost of the merchandise sold was $4,400.

July 5 Dalton Co. paid $275 freight charges on purchase from Abbott Co.

July 9 Abbott Co. issued Dalton Co. a credit memo for merchandise returned, $2,250.

The cost of the merchandise returned was $1,325.

July 11 Abbott Co. received payment from Dalton Co. for purchase of July 3.

3.Journalize the following transactions for the Evans Company. Assume the company uses a perpetual inventory system.

1. Sells merchandise for $645. Cost of merchandise sold $375. 2. Sells merchandise for $432 and accepts VISA as the form of payment. Cost of merchandise sold $195. 3. Sells merchandise on account for $670. Cost of merchandise sold $438. 4. Credit card fees paid for the month is $85.

4.The cash account for Santiago Co. on May 31, 2014 indicated a balance of $20,915. The March bank statement indicated an ending balance of $25,645. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $5,975 b. A deposit of $3,796 had been made too late to appear on the bank statement. c. A check for $1,482 returned with the statement had been incorrectly recorded as $482. The check was originally issued to pay on account. d. The bank collected $4,515 on a note left for collection. e. Bank service charges for May amounted to $70. f. A check for $894 was returned by the bank because of insufficient funds. Prepare a bank reconciliation as of May 31, 2014. Journalize the necessary entries.

General Journal Account Title Date: Debit: Credit