On March 1, Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. Thecost of the merchandise sold is $67,200. Shore Co. paid freight of $1,800 and on March 9 received the amount due.

Journalize the entries for Shore Co. and Blue Star Co. for the sale, purchase, and payment of the amount due. Refer to the appropriate companys Chart of Accounts for exact wording of account titles.

Chart of Accounts-Shore Co.

CHART OF ACCOUNTS

Shore Co.

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable-Blue Star 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

Chart of Accounts-Blue Star Co.

CHART OF ACCOUNTS

Blue Star 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 EquipmentStore Equipment
193	Accumulated Depreciation-Store EquipmentAccumulated Depreciation-Store Equipment
194	Office EquipmentOffice Equipment
195	Accumulated Depreciation-Office EquipmentAccumulated Depreciation-Office Equipment

	LIABILITIES
211	Accounts Payable-Shore 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

Journal-Shore Co.

Journalize the entries for Shore Co. for the sale on March 1 and payment of amount due on March 9. Refer to the appropriate companys Chart of Accounts for exact wording of account titles.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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Journal-Blue Star Co.

Journalize entries for Blue Star Co. for the purchase on March 1 and for the payment of the amount due on March 9. Refer to the appropriate companys Chart of Accounts for exact wording of account titles.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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2
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