General Journal Note that all entries are rounded to the nearest dollar

GENERAL JOURNAL

Date Account Titles and Explanation Debit Credit

May $1$ Rent Expense$-$ Selling Space $2,968\mathrm{.}00$

Rent Expense$-$ Office Space $742\mathrm{.}00$

Cash $3,710\mathrm{.}00$

Paid May's rent

$2$ Accounts Receivable$-$ Cole $6,100\mathrm{.}00$

Sales Revenue $6,100\mathrm{.}00$

Cost of Goods Sold $4,100\mathrm{.}00$

Merchandise Inventory $4,100\mathrm{.}00$

Merchandise Sales on credit

$2$ Sales Revenue $175\mathrm{.}00$

Accounts ReceivableMercer Co$.175\mathrm{.}00$

Goods returned from April $28$

$3$ Accounts Payable$-$Preston $798\mathrm{.}00$

Merchandise Inventory $798\mathrm{.}00$

returned goods purchased April $29$

$4$ Merchandise Inventory $37,072\mathrm{.}00$

Accounts PayableDavis Supply Co$.37,072\mathrm{.}00$

purchased goods invoiced May $4$; terms n$/10,$ EOM

$4$ Store supply Inventory $574$

Accounts Payable$-$Davis Supply $574\mathrm{.}00$

$4$ Office Supply Inventory $83$

Accounts Payable$-$Davis Supply $83$

$5$ Cash $4,550\mathrm{.}00$

Sales Discount $175\mathrm{.}00$

Accounts Receivable$-$Mercer $4,725\mathrm{.}00$

received payment less return and discount

$8$ Accounts Payable$-$Preston $7,098\mathrm{.}00$

Cash $6,959\mathrm{.}04$

Purchase Discounts $138\mathrm{.}96$

paid for goods purchased April $29$ within discount period

$9$ Cash $350\mathrm{.}00$

Store supply Inventory $350\mathrm{.}00$

received cash for store supplies sold to next door merchant

$10$ Office Equipment $4,074\mathrm{.}00$

Accounts Payable$-$Davis Supply $4,074\mathrm{.}00$

purchased goods invoiced May $10$; terms n$/10,$ EOM

$11$ Cash $5,986\mathrm{.}00$

Sales Discount $114\mathrm{.}00$

Accounts Receivable$-$Cole $6,100\mathrm{.}00$

Received payment of May $2$ sale less discount

$11$ Merchandise Inventory $8,800\mathrm{.}00$

Accounts Payable$-$Henley $8,800\mathrm{.}00$

purchased goods, invoiced for May $10$; terms $2/10,$ n$/30$

$12$ Accounts Payable$-$Davis Supply $854\mathrm{.}00$

Office Equipment $854\mathrm{.}00$

Goods returned from May $10$

$15$ Accounts Payable $8,470\mathrm{.}00$

Accounts Payable $8,470\mathrm{.}00$

record employees' salaries

$15$ Cash $71,620\mathrm{.}00$

Sales Revenue $71,620\mathrm{.}00$

Cost of Goods Sold $38,200\mathrm{.}00$

record sales for the first half of the month

Merchandise Inventory $38,200\mathrm{.}00$

record sales for the first half of the month

$16$ Accounts Receivables$-$Cole $3,990\mathrm{.}00$

Sales Revenue $3,990\mathrm{.}00$

Cost of Goods Sold $1,890\mathrm{.}00$

Merchandise Inventory $1,890\mathrm{.}00$

record May $16$ sale; terms $2/10,$ n$/30$

$17$ Merchandise Inventory $13,650\mathrm{.}00$

Accounts Payable$-$Summit $13,650\mathrm{.}00$

purchased goods invoiced May $14$; terms $2/10,$ n$/60$

$19$ Accounts Payable$-$Henley $8,800\mathrm{.}00$

Cash $8,612\mathrm{.}00$

Purchase Discounts $188\mathrm{.}00$

Paid for goods invoiced May $10$ within discount period

$22$ Accounts Receivable$-$Crane $6,850\mathrm{.}00$

Sales Revenue $6,850\mathrm{.}00$

Cost of Goods Sold $4,990\mathrm{.}00$

Merchandise Inventory $4,990\mathrm{.}00$

record May $22$ sale; term $2/10,$ n$/60$

$23$ Accounts Payable$-$Summit $13,650\mathrm{.}00$

Cash $13,317\mathrm{.}00$

Purchase Discounts $333\mathrm{.}00$

paid for goods invoiced May $14$ within discount period

$24$ Merchandise Inventory $8,120\mathrm{.}00$

Store Supplies $630\mathrm{.}00$

Office Supplies $280\mathrm{.}00$

Accounts Payable$-$Davis $9,030\mathrm{.}00$

purchased goods, invoiced May $24$; terms n$/10$ EOM

$25$ Merchandise Inventory $3,080\mathrm{.}00$

Accounts Payable$-$Preston $3,080\mathrm{.}00$

purchased goods, invoiced May $23$; terms $2/10,$ n$/30$

$26$ Accounts Receivable$-$Crank $14,210\mathrm{.}00$

Sales Revenue $14,210\mathrm{.}00$

Cost of Goods Sold $8,230\mathrm{.}00$

Merchandise Inventory $8,230\mathrm{.}00$

record May $26$ sale; terms $2/10,$ n$/30$

$26$ Utilities Expense$-$Electric $1,283\mathrm{.}00$

Cash $1,283\mathrm{.}00$

record payment of May electric bill

$29$ Dividends $7,000\mathrm{.}00$

Cash $7,000\mathrm{.}00$

cash dividends declared and paid same day

$30$ Cash $6,716\mathrm{.}00$

Sales Discount $134\mathrm{.}00$

Accounts Receivable$-$Crane $6,850\mathrm{.}00$

received payment of May $22$ sale less discount

$30$ Accounts Payable $8,470\mathrm{.}00$

Cash $8,470\mathrm{.}00$

record employees' salaries

$31$ Cash $66,052\mathrm{.}00$

Sales Revenue $66,052\mathrm{.}00$

record sales for the last half of the month

Cost of Goods Sold $42,500\mathrm{.}00$

Merchandise Inventory $42,500\mathrm{.}00$

record sales for the last half of the month

$423,428\mathrm{.}00423,428\mathrm{.}00$

May $1$ Issued Check No$.3410$ to Q&R Management Co$.$ in payment of the May rent, $$3,710.($Use two lines to record the transaction. Charge $80\%$ of the rent to Rent Expense$$Selling Space and the balance to Rent Expense$$Office Space.$)$

$2$ Sold merchandise on credit to Cole Company, Invoice No$.8785,$ for $$6,100($cost is $$4,100).$

$2$ Issued a $$175$ credit memorandum to Mercer Co$.$ for defective $($worthless$)$ merchandise sold on April $28$ and returned for credit. The total selling price $($gross$)$ was $$4,725.$ NOTE: The $$175$ is the amount to credit and is the $100\%$ amount of the item returned.

$3$ Received a $$798$ credit memorandum from Preston Products for the return of merchandise purchased on April $29.$

$4$ Purchased the following on credit from Davis Supply Co$.$: merchandise, $$37,072$; store supplies, $$574$; and office supplies, $$83.$ Invoice dated May $4,$ terms n$/10$ EOM.

$5$ Received payment from Mercer Co$.$ for the balance from the April $28$ sale less the May $2$ return and the discount.

$8$ Issued Check No$.3411$ to Preston Products to pay for the $$7,098$ of merchandise purchased on April $29$ less the May $3$ return and a $2\%$ discount.

$9$ Sold store supplies to the merchant next door at their cost of $$350$ cash.

$10$ Purchased $$4,074$ of office equipment on credit from Davis Supply Co$.,$ invoice dated May $10,$ terms n$/10$ EOM.

$11$ Received payment from Cole Company for the May $2$ sale less the discount.

$11$ Purchased $$8,800$ of merchandise from Henley, Inc., invoice dated May $10,$ terms $2/10,$ n$/30.$

$12$ Received an $$854$ credit memorandum from Davis Supply Co$.$ for the return of defective office equipment received on May $10.$

$15$ Issued Check No$.3412,$ payable to Payroll, in payment of sales salaries, $$5,320,$ and office salaries, $$3,150.$ Cashed the check and paid the employees.

$15$ Cash sales for the first half of the month are $$71,620($cost is $$38,200).($Cash sales are recorded daily but are recorded only twice here to reduce repetitive entries.$)$

$16$ Sold merchandise on credit to Cole Company, Invoice No$.8786,$ for $$3,990($cost is $$1,890).$

$17$ Purchased $$13,650$ of merchandise from Summit Corp., invoice dated May $14,$ terms $2/10,$ n$/60.$

$19$ Issued Check No$.3413$ to Henley, Inc., in payment of its May $10$ invoice less the discount.

$22$ Sold merchandise to Crane Services