I included the chart of accounts to easily determine what to name the liabilities, assets, and owners equity.
Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected tlansactions were completed during August between Summit Company and Beartooth Co.: Aug. 1. Summit Company sold merchandise on account to Beartooth Co., $44,750, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $31,470. 2. Summit Company paid freight of $1,220 for delivery of merchandise sold to Beartooth Co. on August 1. 5. Summit Company sold merchandise on account to Beartooth Co., $63,620, terms FOB shipping point, n/eom. The cost of the goods sold was $43,050. 9. Beartooth Co. paid freight of $2,180 on August 5 purchase from Summit Company. 15. Summit Company sold merchandise on account to Beartooth Co., $62,300, terms FOB shipping point, 1/10, n/30. Summit paid freight of $1,770, which was added to the invoice. The cost of the goods sold was $33,110. 16. Beartooth Co. paid Summit Company for purchase of August 1. 25. Beartooth Co. paid Summit Company on account for purchase of August 15. 31. Beartooth Co. paid Summit Company on account for purchase of August 5. Required: 1. Journalize the August transactions for Beartooth Co. (the buyer). Accounts Payable-Summit Company I l: X Date Account Debit Credit Aug. 9 Date Account Debit Credit Aug. 15 Date Account Debit Credit Aug. 16 Date Account Debit Credit Aug. 25 Date Account Debit Credit Aug. 31 2. Journalize the August transactions for Summit Company (the seller). Date Account Debit Credit Aug. 12. Journalize the August transactions for Summit Company (the seller). Date Account Debit Credit Aug. 1 Date Account Debit Credit Aug. 1 Date Account Debit Credit Aug. 2 Date Account Debit Credit Aug. 5 Date Account Debit Credit Aug. 5 Date Account Debit Credit Aug. 15Date Account Debit Credit Aug. 15 Date Account Debit Credit Aug. 15 Date Account Debit Credit Aug. 15 Date Account Debit Credit Aug. 16 Date Account Debit Credit Aug. 25 Date Account Debit Credit Aug. 31Chart of Accounts ASSETS REVENUE 110 Cash 410 Sales 120 Accounts Receivable 610 Interest Revenue 125 Notes Receivable 130 Inventory EXPENSES 131 Estimated Returns Inventory 510 Cost of Goods Sold 140 Office Supplies 521 Delivery Expense 141 Store Supplies 522 Advertising Expense 142 Prepaid Insurance 524 Depreciation Expense-Store Equipment 180 Land 525 Depreciation Expense-Ofce Equipment 192 Store Equipment 526 Salaries Expense 193 Accumulated Depreciation-Store Equipment 531 Rent Expense 194 Office Equipment 533 Insurance Expense 195 Accumulated Depreciation-Ofce Equipment 534 Store Supplies Expense 535 Office Supplies Expense LIABILITIES 536 Credit Card Expense 211 Accounts Payable-Caesar Salad Co. 539 Miscellaneous Expense 212 Accounts Payable-Hoagie Co. 710 Interest Expense 213 Accounts Payable-Taco Co. LIABILITIES 211 Accounts Payable-Caesar Salad Co. 212 Accounts Payable-Hoagie Co. 213 Accounts Payable-Taco Co. 214 Accounts Payable-UK Imports Co. 215 Accounts Payable-Veggie Co. 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense
