Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

instructions are at the bottom of the excel sheet. P7-3A Journalize transactions in multi-column purchases journal and sales journal; post to the general and subsidiary

instructions are at the bottom of the excel sheet.

image text in transcribed P7-3A Journalize transactions in multi-column purchases journal and sales journal; post to the general and subsidiary ledgers. (LO 2, 3) The chart of accounts of LR Company includes the following selected accounts. 112 Accounts Receivable 401 Sales Revenue 120 Inventory 412 Sales Returns and Allowances 126 Supplies 505 Cost of Goods Sold 157 Equipment 610 Advertising Expense 201 Accounts Payable In July, the following transactions were completed. All purchases and sales were on account. The cost of all merchandise sold was 70% of the sales price. July1 Purchased merchandise from Eby Company $8,000. 2 Received freight bill from Shaw Shipping on Eby purchase $400. 3 Made sales to Fort Company $1,300 and to Hefner Bros. $1,500. 5 Purchased merchandise from Getz Company $3,200. 8 Received credit on merchandise returned to Getz Company $300. 13 Purchased store supplies from Dayne Supply $720. 15 Purchased merchandise from Eby Company $3,600 and from Bosco Company $4,300. 16 Made sales to Aybar Company $3,450 and to Hefner Bros. $1,870. 18 Received bill for advertising from Welton Advertisements $600. 21 Sales were made to Fort Company $310 and to Duncan Company $2,800. 22 Granted allowance to Fort Company for merchandise damaged in shipment $40. 24 Purchased merchandise from Getz Company $3,000. 26 Purchased equipment from Dayne Supply $900. 28 Received freight bill from Shaw Shipping on Getz purchase of July 24, $380. 30 Sales were made to Aybar Company $5,600. Instructions (a) Journalize the transactions above in a purchases journal, a sales journal, and a general journal. The purchases journal should have the following column headings: Date, Account Credited (Debited), Ref., Accounts Payable Cr., Inventory Dr., and Other Accounts Dr. Purchases journalAccounts Payable $25,100 Sales journalSales Revenue total $16,830 (b) Post to both the general and subsidiary ledger accounts. (Assume that all accounts have zero beginning balances.) (c) Prove the agreement of the control and subsidiary accounts. Accounts Receivable $16,790 Accounts Payable $24,800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operational Risk Management

Authors: Mark D Abkowitz

1st Edition

0470256982, 9780470256985

More Books

Students also viewed these Accounting questions