On March 1, Sather Co. sold merchandise to Boone Co. on account, $33,800, terms 2/15, n/30. The cost of the merchandise sold is $18,000. The merchandise was paid for on March 14. Assume all discounts are taken.
Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Refer to the appropriate companys Chart of Accounts for exact wording of account titles.
Must Use these terms below
| CHART OF ACCOUNTS |
| Sather Co. |
| General Ledger |
| | ASSETS | | 110 | Cash | | 121 | Accounts Receivable-Boone Co. | | 125 | Notes Receivable | | 130 | Merchandise 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 | | 210 | Accounts Payable | | 218 | Sales Tax Payable | | 219 | Customers Refunds Payable | | 220 | Unearned Rent | | 221 | Notes Payable | | | EQUITY | | 310 | Owner, Capital | | 311 | Owner, Drawing | | 312 | Income Summary | | | | REVENUE | | 410 | Sales | | 610 | Rent Revenue | | | EXPENSES | | 501 | Cost of Merchandise Sold | | 521 | Delivery Expense | | 522 | Advertising Expense | | 524 | Depreciation Expense-Store Equipment | | 525 | Depreciation Expense-Office Equipment | | 531 | Rent Expense | | 533 | Insurance Expense | | 534 | Store Supplies Expense | | 535 | Office Supplies Expense | | 536 | Credit Card Expense | | 539 | Miscellaneous Expense | | 710 | Interest Expense | |
Must Use -
| CHART OF ACCOUNTS |
| Boone Co. |
| General Ledger |
| | ASSETS | | 110 | Cash | | 120 | Accounts Receivable | | 125 | Notes Receivable | | 130 | Merchandise 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-Sather Co. | | 218 | Sales Tax Payable | | 219 | Customers Refunds Payable | | 220 | Unearned Rent | | 221 | Notes Payable | | | EQUITY | | 310 | Owner, Capital | | 311 | Owner, Drawing | | 312 | Income Summary | | | | REVENUE | | 410 | Sales | | 610 | Rent Revenue | | | EXPENSES | | 501 | Cost of Merchandise Sold | | 521 | Delivery Expense | | 522 | Advertising Expense | | 524 | Depreciation Expense-Store Equipment | | 525 | Depreciation Expense-Office Equipment | | 531 | Rent Expense | | 533 | Insurance Expense | | 534 | Store Supplies Expense | | 535 | Office Supplies Expense | | 536 | Credit Card Expense | | 539 | Miscellaneous Expense | | 710 | Interest Expense | |
