Instructions The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system Aug 1 2 5 Summit Company told merchandise on account to Beartooth Co., $49,050, terms FOB destination 2/15, neom. The cost of the goods sold was $28,370. Summit Company paid freight of $1,160 for delivery of merchandise sold to Beartooth Co. on August 1. Summit Company sold merchandise on account to Beartooth Co.,868,500, terms FOB shipping point nieom. The cost of the goods sold was $43,250. Beartooth Co. paid freight of 2,440 on August 5 purchase from Summit Company Summit Company sold merchandise on account to Beartooth Co. 59,500, terms Fop shipping point, n/45. Summit paid freight of S1,765, which was added to the involon. The cost of the goods sold was 9 15 $31.720 3. Beartooth Co. pald Summit Company for purchase of August 1. Summit Company paid Beartooth Co, a cash rotund of S1,100 for detective merchandise purchased on August 1. Beartooth Co kept the merchandise Beartooth Co. pald Summit Company on account for purchase of August 6. Summit Company issued Beartooth Co a credit memo for merchandise with an invoice amount of $3,500 that was retumed from tho August 15 side. The cost of the merchandise returned was $2,500. -31 31 Jourrure the August transactions for (1) Sur Company and (2) Bartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of accountries Chart of Accounts-Summit Company CHART OF ACCOUNTS Summit Company General Ledger REVENUE 410 Sales 610 Interest Revenue ASSETS 110 Cash 121 Accounts Receivable-Beartooth Co. 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 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 180 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment Office Equipment 195 Accumulated Depreciation Office Equipment 535 Office Supplies Expanse S ir Chart of Accounts-Summit Company 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 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 LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY *310 Common Stock 311 Retained Earnings 312 Dividends Chart of Accounts-Beartooth Co. CHART OF ACCOUNTS Beartooth Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 120 Accounts Receivable 610 Interest Revenue 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 531 Rent Expense 533 Insurance Expense 195 Accumulated Depreciation Office Equipment 534 Store Supplies Expense 535 Office Supplies Expense LIABILITIES 536 Credit Card Expense LIABILITIES 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense 211 Accounts Payable-Summit Company 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Journal-Summit Company (1) Journalize the August transactions for Surtumit Company. Roter to the Chart of Accounts of the appropriate company for exact wording of account ttles, PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POSTAR DEBIT CREDIT ASSETS LABILITIES EQUITY 1 2 5 5 7 50 11 11 Journal-Beartooth Co. (2) Jourmalize the August transactions for Beartooth Ca. Refer to the Chart of Accounts or the appropriate company for exact wording of account titles PAGE 15 JOURNAL ACCOUNTING EQUATION DATE DESCRUPTION POST. REF: DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 1 5 . 1 11 11 11 34