Chart of Accounts X Instructions The following were selected from among the transactions completed by Babcock Company during November of the current year. Babcock uses the net method under a perpetual inventory system. CHART OF ACCOUNTS Nov. 3 Babcock Company Purchased merchandise on account from Moonlight Co., list price $88,000, trade discount 20%, terms FOB destination, 2/10, n/30. General Ledger 4 5 ASSETS REVENUE 110 Cash 410 Sales 6 121 Accounts Receivable-Quinn Co. 610 Interest Revenue 122 Accounts Receivable-Rabel Co. 125 Notes Receivable 8 EXPENSES 130 Inventory 131 Estimated Returns Inventory 13 Sold merchandise for cash, $41,250. The cost of the goods sold was $22,250. Purchased merchandise on account from Papoose Creek Co., 543,700, terms FOB shipping point, 2/10, n/30, with prepaid freight of $840 added to the invoice Returned $13,500 ($17,000 list price less trade discount of 20%) of merchandise purchased on November 3 from Moonlight Co. Sold merchandise on account to Quinn Co., $16.100 with terms n/15. The cost of the goods sold was S9,440 Paid Moonlight Co. on account for purchase of November 3. less return of November 6. Sold merchandise on VISA, S226. 120. The cost of the goods sold was $135.430 Paid Papoose Creek Co. on account for purchase of November 5. Received cash on account from sale of November 8 to Quinn Co. 8 Sold merchandise on account to Rabel Co., 560,700, terms 1/10, 1/30. The cost of the goods sold was $33,120. Paid VISA service fee of $3.580 Paid Quinn Co. a cash refund of $8,420 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3.010. 14 140 Office Supplies 15 141 Store Supplies 142 Prepaid Insurance 23 24 180 Land 192 Store Equipment 193 Accumulated Depreciation Store 510 Cost of Goods Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 520 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 538 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense 28 30 Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. LIABILITIES 211 Accounts Payable-Moonlight Co. 212 Accounts Payable-Papoose Creek Co. 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 S 6 7 9 9 10 11 12 15 16 17 18 20 22 23 25
