Journalize entries for the following related transactions of Lilly Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles.

A.

Purchased $54,200 of merchandise from Schell Co. on account, terms 1/10, n/30.

B.

Paid the amount owed on the invoice within the discount period.

C.

Discovered that $7,000 of the merchandise purchased in (A) was defective and returned items, receiving credit.

D.

Purchased $6,000 of merchandise from Schell Co. on account, terms n/30.

E.

Received a refund from Schell Co. for return in (C) less the purchase in (D).

CHART OF ACCOUNTS

Lilly Heating & Air Company

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Inventory
140	Office Supplies
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-Schell Co.
218	Sales Tax Payable
219	Customer Refunds Payable
220	Unearned Rent
221	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

EXPENSES

501Cost of Goods Sold

521Delivery Expense

522Advertising Expense

524Depreciation Expense-Store Equipment

525Depreciation Expense-Office Equipment

531Rent Expense

533Insurance Expense

534Store Supplies Expense

535Office Supplies Expense

536Credit Card Expense

539Miscellaneous Expense

710Interest Expense

Journalize entries for the transactions of Lilly Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles. For grading purposes use December 31 as the date for all transactions.

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9
10