Number Account Number Account 111 Cash 181 131 Merchandise Inventory 211 Equipment Accounts Payable Rent Expense Utilities Expense 161 Prepaid Insurance 564 171 Office Supplies 583 Dec. 2 Dec. 3 Dec. 5 Dec. 8 Dec. 9 Dec. 10 Dec. 11 Dec. 12 Purchased merchandise inventory on credit from Troy, $4,900. Terms were 1/10 n/30. Paid monthly rent, debiting Rent Expense for $2,600. Purchased office supplies on credit terms of 1/10 n/30 from Ross Supply, $420. Received and paid electricity utility bill, $550. Purchased equipment on account from Avery Equipment, $6,300. Payment terms were n/30. Returned the equipment to Avery Equipment. It was damaged. Paid Troy the amount owed on the purchase of December 2. Purchased merchandise inventory on account from Cyrstal Golf, $4,100. Terms were 2/10 n/30. Purchased merchandise inventory for cash, $630. Paid a semiannual insurance premium, debiting Prepaid Insurance, $1,200. Paid its account payable to Ross Supply, from December 5. Received and paid gas and water utility bills, $400. Purchased merchandise inventory on credit terms of 1/10, n/45 from Darling, Inc., $4,000. Paid its account payable to Cyrstal Golf from December 12 Dec. 13 Dec. 14 Dec. 16 Dec. 18 Dec. 21 Dec. 21 Dec. 13 Dec. 14 Dec. 16 Dec. 18 Dec. 21 Purchased merchandise inventory for cash, $630. Paid a semiannual insurance premium, debiting Prepaid Insurance, $1,200. Paid its account payable to Ross Supply, from December 5. Received and paid gas and water utility bills, $400. Purchased merchandise inventory on credit terms of 1/10, n/45 from Darling, Inc., $4,000. Paid its account payable to Cyrstal Golf from December 12. Purchased office supplies on account from Office Place, Inc., $100. Terms were n/30. Returned to Darling, Inc. $1,100 of the merchandise inventory purchased on December 21. Paid Darling, Inc. the net amount owed from December 21, less the return on December 26. Dec. 21 Dec. 22 Dec. 26 Dec. 31 Requirements 1, 2, 3. Circus Lake Golf Shop records purchase returns in the general journal. Use the appropriate joumal to record the transactions in a purchases journal, a cash payments journal (omit the Check No. column), and a general journal. The company uses the perpetual inventory system. Total each column of the special journals. Show that total debits equal total credits in each special journal. Show how postings would be made from the journals by writing the account numbers and check marks in the appropriate places in the journals. Begin with the purchases journal. Enter the transactions and total the journal. (If a box is not used in the journal leave the box empty, do not select information und do not enter a zero. Enter "X" if the column total is not posted. Abbreviation used: Supp. = Supplies Assume all postings are made to the applicable ledgers) Purchases Journal Pago 1 Other Accounts DR Vendor Post. Ref. Accounts Merchandise Office Payable CR Inventory DR Supp. DR Account Post. Title Ret, Date Account Credited Terms Amount Dec DAR Vendor Account Post. Date Post. Accounts Merchandise Office Ref. Payable CR Inventory DR Supp. DR Account Credited Terms Title Ref. Amount Dec Dec. 31 Totals Show how total debits equal total credits. Total debits Total credits Purchases journal - Now comnlete the cash navments iournal Enter the transaction Now complete the cash payments journal. Enter the transactions and total the journal. (If a box is not used in the journal leave the box emply, do not select information and do not enter a zero. Enter "x" if the column total is not posted.) Cash Payments Journal Page 1 Ck. Post. Other Accounts Merchandise Date No Account Debited Ref. Accounts DR Payable DR Inventory CR Cash CR Dec Cash Payments Journal Page Ck. Post Other Accounts Merchandise Date No. Account Debited Ref. Accounts DR Payable DR Inventory CR Cash CR Dec. Dec. 31 Totals Show how total debits equal total credits. Total debits = Total credits Cash payments journal = Dec. 10: Returned the equipment to Avery Equipment. It was damaged. Date Accounts and Explanation Post. Ref. Debit Credit Dec. 10 Dec. 26: Returned to Darling, Inc. $1,100 of the merchandise inventory purchased on December 21. Date Accounts and Explanation Post. Ref. Debit Credit Dec. 26
