Chapter 6 Work Q- 5 Ex.6-7.Algo

Instructions

Journalize entries for the following related transactions of South Coast Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles.

Mar.	1	Purchased $51,300 of merchandise from Atlas Co. on account, terms 1/10, n/30.
	9	Paid the amount owed on the invoice within the discount period.
	11	Discovered that $7,300 of the merchandise purchases on Mar. 1 was defective and returned items, receiving credit.
	18	Purchased $6,200 of merchandise from Atlas Co. on account, terms n/30.
	20	Received a refund from Atlas Co. for return on Mar. 11 less the purchase on Mar. 18.

Journalize entries for the following related transactions of South Coast Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

General Ledger

ASSETS

110 Cash

120 Accounts Receivable

125 Notes Receivable

130 Merchandise Inventory

131 Estimated Returns Inventory

140 Office Supplies

141 Store Supplies

142 Prepaid Insurance

180 Land

192 Store Equipment

193 Accumulated Depreciation-Store Equipment

194 Office Equipment

195 Accumulated Depreciation-Office Equipment

LIABILITIES

210 Accounts Payable

216 Salaries Payable

218 Sales Tax Payable

219 Customers Refunds Payable

220 Unearned Rent

221 Notes Payable

EQUITY

310 Owner, Capital

311 Owner, Drawing

312 Income Summary

REVENUE

410 Sales

610 Rent Revenue

EXPENSES

510 Cost of Merchandise Sold

521 Delivery Expense

522 Advertising Expense

524 Depreciation Expense-Store Equipment

525 Depreciation Expense-Office Equipment

526 Salaries Expense

531 Rent Expense

533 Insurance Expense

534 Store Supplies Expense

535 Office Supplies Expense

536 Credit Card Expense

539 Miscellaneous Expense

710 Interest Expense

Journalize the entries for the March transactions. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

	DATE	DESCRIPTION	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18