Assignment $3$

April $15,2024$

Below are the transactions for July $2023,$ for Sarasota Company. Owner, Scott Irwin

has asked you the office manager to record the transactions into the correct journal.

Transactions:

$6$ Owner made a cash investment into the company $$26,000$

$7$ Purchased merchandise on account from Racks $$Co$.,$ invoice No$.743.$ Terms $2/10,$ n$/30,$ $$700.$

$8$ Paid this months' rent, $$920$ to the landlord Shifty Rentals Inc., cheque $202$

$9$ Sold $$2,500$ of merchandise on account to H$.$ Holand, sales invoice No$.1,$ terms $1/10,$ n$/30.$ Cost of goods sold $$1,400$

$10$ Sold $$1,200$ of merchandise on account to T$.$ Traer, sales invoice No$.2,$ terms $1/10,$ n$/30.$ Cost of Goods Sold $$550.$

$13$ Issued debit memorandum No$.101$ to Racks Co$.$ for damaged goods$$ re: invoice No$.743,$ $ $300.$

$14$ Bought supplies on account from Staples for $$100,$ Invoice # $325,$ term n$/30.$

$15$ Paid salaries, $$700,$ cheque $203$

$17$ Sent cheque No$.204$ to Racks Co$.$ for invoice No$.743$ less the damaged goods returned earlier in the month and less any applicable early payment discount.

$18$ Received cash from H$.$ Holand in payment for transaction earlier this month less any applicable early payment discount.

$22$ Issued credit memo No$.1$ to T$.$ Traer for $$100$ for merchandise returned from Mar $5$ sale on account. Cost of goods returned $$25.$

$29$ Sold $$500$ merchandise for cash to Jones Co$.,$ sales invoice No$.3.$ Cost of goods sold $$250.$

Chart of Accounts

Assets Revenue

$101$ Cash $400$ Sales

$104$ Accounts Receivable $402$ Sales Discounts

$110$ Inventory $404$ Sales Returns and Allowances

$120$ Computer Equipment

$125$ Vehicle Expenses

Liabilities $500$ Advertising Expense

$505$ Rent Expense

$204$ Accounts Payable $510$ Salaries Expense

$515$ Supplies Expense

Owner's Equity $518$ Cost of Goods Sold

$525$ Telephone Expense

$300$ Scott Irwin, Withdrawals

$301$ Scott Irwin, Capital

Required:

$($a$)$ Journalize the transactions for the month of July in the correct journal.

$-$ The journals required are found on the following worksheets, General Journal,

Sales Journal, Cash Receipts Journal, Purchases Journal

and Cash Payments Journal

$-$ Explanations are required only for each entry in the General Journal

$($b$)$ Total each column of each journal as required, except the General Journal.

$($c$)$ Provide Posting references as if each entry had been posted. The Chart

of Accounts will assist with this part.

$-$ Use an X if the amount should not be posted and a P $($instead of a check mark or a T$)$

if the amount should be posted to subledger account.