Question
During February, PanAm Imports had the following cash payment transactions: Feb. 3 Paid $392 on account to Marquis Corporation net of an $8 discount for
During February, PanAm Imports had the following cash payment transactions: Feb. 3 Paid $392 on account to Marquis Corporation net of an $8 discount for an earlier $400 purchase of inventory. 6 Purchased inventory for cash, $1,267. 11 Paid $375 for supplies. 15 Purchased inventory on credit from Monroe Corporation, $774. 16 Paid $4,062 on account to LaGrange Associates; there was no discount. 21 Purchased furniture for cash, $960. 26 Paid $3,910 on account to Graff Software for an earlier purchase of $4000 inventory. The discount was $90. 27 Made a semiannual interest payment of $800 on a long-term note payable. The entire payment was for interest. (a) Design a Cash Payment Journal with a summary of debits and credits, and record the transactions in the journal. PanAm Imports uses a periodic inventory system. Post references are not needed. (b) Explain any transactions that do not belong in the Cash Payment Journal and specify the journal it does belong. (c) Prepare a Doughnut chart showing the dollar amount and percentages of cash paid on account to the vendors with the vendors? names in the legend and provide a descriptive title. A data table is not required but suggested. *An example of Cash Payments Journal on PDF is attached. Requirements on Excel: ? Worksheet CPJ with Cash Payments Journal transactions February 3?27 (Item (a) above) ? I will check your formulas for the Cash Payments Journal, you do not have to do a separate worksheet for these. ? Explanations (Item (b) above) ? Doughnut chart (Item (c) above)
Cash Payments Journal 1 Designing a Cash Payments Journal Date Column - Record the date of the cash payment transaction Check Number Column - List checks in consecutive order, even void checks Account Debited or Other Description Column - If cash is paid on account, specify the vendor name such as \"Graff Software\" - If a cash purchase, use the description Cash Purchase - If cash is paid for other reasons, specify the account to be debited such as \"supplies\Step by Step Solution
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