Problem 1. The following are some typical transactions incurred by Ricketts Company. 1. Payment of creditors on account. 2. Return of merchandise sold for credit. 3. Collection on account from customers. 4. Sale of land for cash. 5. Sale of merchandise on account. 6. Sale of merchandise for cash. 7. Received credit for merchandise purchased on credit. 8. Sales discount taken on goods sold. 9. Payment of employee wages. 10. Income summary closed to owner's capital. 11. Depreciation on building. 12. Purchase of office supplies for cash. 13. Purchase of merchandise on account. Instructions For each transaction, indicate whether it would normally be recorded in a cash receipts journal, cash payments journal, sales journal, single column purchases journal, or general journal. Problem 2. The chart of accounts of LR Company includes the following selected accounts. 112 Accounts Receivable 401 Sales Revenue 120 Inventory 412 Sales Returns and Allowances 126 Supplies 505 Cost of Goods Sold 157 Equipment 610 Advertising Expense 201 Accounts Payable In July, the following transactions were completed. All purchases and sales were on account. The cost of all merchandise sold was 70% of the sales price. July 1 Purchased merchandise from Eby Company $8,000. 2 Received freight bill from Shaw Shipping on Eby purchase $400. 3 Made sales to Fort Company $1,300 and to Hefner Bros. $1,500. 5 Purchased merchandise from Getz Company $3,200. 8 Received credit on merchandise returned to Getz Company $300. 13 Purchased store supplies from Dayne Supply $720. 15 Purchased merchandise from Eby Company $3,600 and from Bosco Company $4,300. 16 Made sales to Aybar Company $3,450 and to Hefner Bros. $1,870. 18 Received bill for advertising from Welton Advertisements $600. 21 Sales were made to Fort Company $310 and to Duncan Company $2,800. 22 Granted allowance to Fort Company for merchandise damaged in shipment $40. 24 Purchased merchandise from Getz Company $3,000. 26 Purchased equipment from Dayne Supply $900. 28 Received freight bill from Shaw Shipping on Getz purchase of July 24, $380. 30 Sales were made to Aybar Company $5,600. Instructions a. Journalize the transactions above in a purchases journal, a sales journal, and a general journal. The purchases journal should have the following column headings: Date, Account Credited (Debited), Ref., Accounts Payable Cr., Inventory Dr., and Other Accounts Dr. b. Post to both the general and subsidiary ledger accounts. (Assume that all accounts have zero beginning balances.) c. Prove the agreement of the control and subsidiary accounts. 16 Made sales to Aybar Company $3,450 and to Hefner Bros. $1,870. 18 Received bill for advertising from Welton Advertisements $600. 21 Sales were made to Fort Company $310 and to Duncan Company $2,800. 22 Granted allowance to Fort Company for merchandise damaged in shipment $40. 24 Purchased merchandise from Getz Company $3,000. 26 Purchased equipment from Dayne Supply $900. 28 Received freight bill from Shaw Shipping on Getz purchase of July 24, $380. 30 Sales were made to Aybar Company $5,600. Instructions a. Journalize the transactions above in a purchases journal, a sales journal, and a general journal. The purchases journal should have the following column headings: Date, Account Credited (Debited), Ref., Accounts Payable Cr., Inventory Dr., and Other Accounts Dr. b. Post to both the general and subsidiary ledger accounts. (Assume that all accounts have zero beginning balances.) c. Prove the agreement of the control and subsidiary accounts. Critical Thinking Prepare a summary of the articles: A playbook to manage cash in a crisis by Andy Gifford. Financial Management 1/june/2020 The Boots are coming... To Intro Accounting by Wendy Tiets, Jennifer M Cainas, Tracie L. Miller-Nobles. Strategic Finance August 1, 2020