Instructions Chart of Accounts CHART OF ACCOUNTS Babcock Company General Ledger ASSETS 110 Cash 121 Accounts Receivable-Quinn Co. 122 Accounts Receivable-Rabel Co. 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 211 Accounts Payable-Moonlight Co. 212 Accounts Payable-Papoose Creek Co. 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Sales-related and purchase-related transactions using perpetual inventory system Instructions Instructions Chart of Accounts Journal 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. Nov. 3 Purchased merchandise on account from Moonlight Co., list price $94,000, trade discount 25%, terms FOB destination, 2/10, n30. 4 B Sold merchandise cash, $35,040. The cost of the goods sold was $20,610. Purchased merchandise on account from Papoose Creek Co., $50,800, terms FOB shipping point 2/10, n/30, with prepaid freight of $850 added to the invoice Returned $12,000 ($16,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. B Sold merchandise 130. account to Quinn Co., $14,030 with terms n/15. The cost of the goods sold was 13 14 Paid Moonlight Co. on account for purchase of November 3, less return of November 6 Sold merchandise VISA, $243,720. The cost of the goods sold was $148,260. Paid Papoose Creek Co. on account purchase of November 5. 23 Received cash on account from sale of November 8 to Quinn Co. 24 Sold merchandise account to Rabel Co., $52,500, terms 1/10, n/30. The cost of the goods sold was $36,660, 28 Paid VISA service fee of $3.750. 30 Paid Quinn Co. a cash refund of $6,510 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3.450. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. ** 12 15 14 16 17 18 20 21 25 24 26 27 29 6 DATE DESCRIPTION JOURNAL POST REF DEBIT CREDIT ASSET