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journal entries for May 1 through May 31 Scenario You have just been promoted to the Senior Accountant position for Summit Company, LLC. During your

journal entries for May 1 through May 31 image text in transcribed
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Scenario You have just been promoted to the Senior Accountant position for Summit Company, LLC. During your first month in your new role, you will be completing a full accounting cycle for the month. Your Supervisor, Mr. Smith, requests that he previews your work since you are new to the position. To get you started in your new role, Mr. Smith has asked you to prepare the necessary journal entries (JES) for the following transactions, which occurred in the month just ended. Use a perpetual inventory system. Your debits and credits should equal and the entries should have proper impact on the accounts that are being used. Summit LLC operates with monthly accounting periods. All of the company's accounting work is completed through the end of April, and its ledgers show April 30 balances. Terms for all credit sales are 2/10, 1/30, unless otherwise stated. May! Issued Check No. 3410 to S&P Management Co. in payment of the May rent, 83,710. (Use two lines to record the transaction. Charge 80% of the went to Rent Expense- Selling Space and the balance to Rent Expense-Office Space) 2 Sold merchandise on credit to Hensel Company. Invoice No. 8785 for $6,100 (oostis 54.100) 2 Issued a S175 credit memorandum to Knox Co. for defective (worthless) merchandise sold on April 28 and returned for credit. The total selling price (gross) was $4.725. 3 Received a 5798 credit memorandum from Peyton Products for the retum of merchandise purchased on April 29 + Purchased the following on credit from Gear Supply Co.: merchandise. $37.072 store supplies. $$74, and office supplies. 583. Invoice dated May 4.tems n'IO EOM. 5 Received payment from Knox Co. for the balance from the April 28 sale less the May 2 retum and the discount Issued Check No. 3411 s Peyton 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 crodit from Gear Supply Co. invoice dated May 10, terms w/10 BOM 11 Received payment from Hensel Company for the May 2 sale less the discount. 11 Purchased 58.800 of merchandise from Garcia, Inc., invoice dated May 10 terms 2/10 130 12 Received an $854 credit memorandum from Gear Supply Co. for the retum of defective office equipment received on May 10 15 Issued Check No. 3412. payable to Payroll, in payment of sales salaries 55.320, and office salaries, 83,150 Cashed the check and paid the employees 1S Cash sales for the first half of the month are $59.220 (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 Hemsel Company. Invoice No.8786, for 53,990 (costis $1,890) 17 Purchased $13,650 of merchandise from Fink Corp. invoice dated May 14 terms 2/70, 19 Issued Check No 3413 to Garcia, Inc., in payment of its May 10 invoice less the discount 22 Sold merchandise to Lee Services, Invoice No. 8787, for 56.850 (cost is $4.990), terms 2/10, n. 23 Issued Check No 3414 to Fink Corp. in payment of its May 14 invoice less the discount 24 Purchased the following on credit from Gear Supply Co. meschandise, $8.120; store supplies. 5630, and office supplies, $280. Invoice dated May 24, terms 10 EOM. 25 Purchased 53,080 of merchandise from Peyton Products, invece dated May 23, terms 2/10,n30 26 Sold merchandise on credit to Crane Corp., Invoice No. 8788, for $14.210 (cost is 58.230) 26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, S.283. 29 The owner of Colo Company, Jonny Coloured Check No. 3416 to withdraw 57.000 cash from the business for personal use. 30 Received payment from Lee Services for the May 22 sale less the discount 30 Issued Check No 1417. payable to Payroll, in payment of sales salaries 55.320, and office salaries, 83,150. Cashed the check and paid the employees 31 Cash sales for the last half of the month are $66,052 (cast is $42,500)

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