Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
Instructions 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 $93,000, trade discount 30%, terms FOB destination, 2/10, nl30. 4 Sold merchandise for cash, $35,370. The Mgm was $23,670. 5 Purchased merchandise on account from Papoose Creek Co., $44,400, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice. 6 Returned $13,300 ($19,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co. 8 Sold merchandise on account to Quinn Co., $17,080 with terms n/15. The cost of the goods sold was $10,010. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14 Sold merchandise on VISA, $246,980. The cost of the goods sold was $152,530. 15 Paid Papoose Creek Co. on account for purchase of November 5. 23 Received cash on account from sale of November 8 to Quinn Co. 24 Sold merchandise on account to Rabel Co., $52,400, terms 1/10, n130. The cost of the goods sold was $31,410. 28 Paid VISA service fee of $3,220. 30 Paid Quinn Co. a cash refund of $6,020 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,390. 110 121 122 125 130 131 140 141 142 180 192 193 194 195 211 212 216 218 219 221 310 311 312 CHART OF ACCOUNTS Babcock Company General Ledger ASSETS Cash Accounts Receivable-Quinn Co. Accounts Receivable-Rain! Co. Notes Receivable Inventory Estimated Returns Inventory Ofce Supplies Store Supplies Prepaid Insurance Land Store Equipment Accumulated Depreciation-Store Equipment Ofce Equipment Accumulated Depreciation-Office Equipment LIABILITIES Accounts Payable-Moonlight Co. Accounts Payable-Papoose Creek Co. Salaries Payable Sales Tax Payable Customer Refunds Payable Notes Payable EQUITY Common Stock Retained Earnings Dividends 410 610 510 521 522 524 525 526 531 533 534 535 536 539 710 REVENUE Sales Interest Revenue EXPENSES Cost of Goods Sold Delivery Expense Advertising Expense Depreciation Expense-Store Equipment Depreciation Expense-Ofce Equipment Salaries Expense Rent Expense Insurance Expense Store Supplies Expense Office Supplies Expense Credit Card Expense Miscellaneous Expense Interest Expense Journal Shaded cells have feedback. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted. PAGE 10 JOURNAL Score: 0/426 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11
