APPLY CHAPTER 7 REVIEW, PRACTICE, AND Learning Objectives 2, 3, 4, 5, 6,7 Problem 7-5A Objective: To record purchases, returns, and cash payments, and prepar Check Figure Schedule of accounts payable schedule of accounts payable Diamond Jewelers, owned by Linda McCallough, has been in business for On July 1, 20XI, the firm's accounts payable ledger contains the followine erale and balances: Account Best Diamond Co. Carter's Supplies Modem Equipment Co Nash Jewelers Wison's Gems Balance $1,540.00 720.15 2,675.00 1.355.00 725.60 The following transactions were completed during July. (Note: Read all direction before journalizing and posting the July transactions.) 20X1 Jul. 1 Issued Check No. 796 for July rent, $1,100. 5 Issued Check No. 797 to Wilson's Gems for the balance of the acou, e 7 Purchased merchandise from Best Diamond Co, $2,650; terms, 2/10n/50 8 Returned merchandise to Best Diamond Co., receiving a $75 credi 9 Issued Check No. 798 to Carter's Supplies for the balance of the account 12 2% discount. Invoice No. 621 Learning Check Fig Three ent ourmal with no discount. Purchased $2,100 worth of merchandise from Wilson's Gems by issuing Check No. 799 for $700, with the balance of $1,400 owed on account, Invoice No. 622. (Hint: You need to use two journals to record this entry.) 15 Purchased display cases from Modern Equipment Co. $875.50; terms, /30 17 Issued Check No. 800 to Best Diamond Co. for the purchase of July 7 less 18 Issued Check No. 801 for a three-year insurance premium, $ Invoice No. 623. the credit of July 8. (Hint: No discount is allowed on returned merchandisec) 2,220. 25 27 28 Purchased office supplies, $675, and store supplies, $920, from Carter's Supplies; terms, n/30; Invoice No. 624. Returned damaged office supplies to and received credit from Carter's Issued Check No. 802 to Nash Jewelers as a payment on account, $200 Issued Check No. 803 to Modern Equipment Co. for the July 1 balancr the account, with no discount. Issued Check No. 804 to Carter's Supplies for a cash purchase of store supplies, $95 29 30 30 Issued Check No. 805 to Wall Company for the purchase of a ew 30 31 register, $3,782. hsued Check No. 806 to Beal Supply Co. for a cash purchase of merchande Lean $3,900. Issued Check No. 807 to Northern Transport Co. for freight charges on July 30 delivery of merchandisc, $210. the (P Directions: 1. Open an account in the accounts payable ledger for cach creditor listed at the beginning of the problem. Enter balances as of July 1. 2. Open general ledger accounts, and enter the July i balances 322 PART ?1 Accounting fr Cash and the Merchandising Business APPLY CHAPTER 7 REVIEW, PRACTICE, AND Learning Objectives 2, 3, 4, 5, 6,7 Problem 7-5A Objective: To record purchases, returns, and cash payments, and prepar Check Figure Schedule of accounts payable schedule of accounts payable Diamond Jewelers, owned by Linda McCallough, has been in business for On July 1, 20XI, the firm's accounts payable ledger contains the followine erale and balances: Account Best Diamond Co. Carter's Supplies Modem Equipment Co Nash Jewelers Wison's Gems Balance $1,540.00 720.15 2,675.00 1.355.00 725.60 The following transactions were completed during July. (Note: Read all direction before journalizing and posting the July transactions.) 20X1 Jul. 1 Issued Check No. 796 for July rent, $1,100. 5 Issued Check No. 797 to Wilson's Gems for the balance of the acou, e 7 Purchased merchandise from Best Diamond Co, $2,650; terms, 2/10n/50 8 Returned merchandise to Best Diamond Co., receiving a $75 credi 9 Issued Check No. 798 to Carter's Supplies for the balance of the account 12 2% discount. Invoice No. 621 Learning Check Fig Three ent ourmal with no discount. Purchased $2,100 worth of merchandise from Wilson's Gems by issuing Check No. 799 for $700, with the balance of $1,400 owed on account, Invoice No. 622. (Hint: You need to use two journals to record this entry.) 15 Purchased display cases from Modern Equipment Co. $875.50; terms, /30 17 Issued Check No. 800 to Best Diamond Co. for the purchase of July 7 less 18 Issued Check No. 801 for a three-year insurance premium, $ Invoice No. 623. the credit of July 8. (Hint: No discount is allowed on returned merchandisec) 2,220. 25 27 28 Purchased office supplies, $675, and store supplies, $920, from Carter's Supplies; terms, n/30; Invoice No. 624. Returned damaged office supplies to and received credit from Carter's Issued Check No. 802 to Nash Jewelers as a payment on account, $200 Issued Check No. 803 to Modern Equipment Co. for the July 1 balancr the account, with no discount. Issued Check No. 804 to Carter's Supplies for a cash purchase of store supplies, $95 29 30 30 Issued Check No. 805 to Wall Company for the purchase of a ew 30 31 register, $3,782. hsued Check No. 806 to Beal Supply Co. for a cash purchase of merchande Lean $3,900. Issued Check No. 807 to Northern Transport Co. for freight charges on July 30 delivery of merchandisc, $210. the (P Directions: 1. Open an account in the accounts payable ledger for cach creditor listed at the beginning of the problem. Enter balances as of July 1. 2. Open general ledger accounts, and enter the July i balances 322 PART ?1 Accounting fr Cash and the Merchandising Business