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The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers. Record on page 10 of the journal Mar. 2 3 4 5 Sold merchandise on account to Equinox Co., 519,200, terms FOB destination, 1/10, 1/30. The cost of the merchandise sold was $14,260. Sold merchandise for $11,450 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $6,930. Sold merchandise on account to Empire Co., 552,890, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,880. Sold merchandise for $30,850 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,430. Received check for amount due from Equinox Co. for sale on March 2. Sold merchandise to customers who used American Express cards, $15,060. The cost of merchandise sold was $9,150. Sold merchandise on account to Targhee Co., 526,800, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $15,500. Issued credit memo for $4,600 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was 53,170. 12 14 16 18 Record on page 11 of the journal 26 28 31 19 Sold merchandise on account to Vista Co., $8,450, terms FOB shipping point, 2/10, n/30. Added 585 to the invoice for prepaid freight. The cost of merchandise sold was $4,510. Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. Received check for amount due from Vista Co. for sale of March 19. Received check for amount due from Empire Co. for sale of March 4. Paid Fleetwood Delivery Service $5,120 for delivery of merchandise in March to customers under shipping terms of FOB destination. 3 Paid City Bank $900 for service fees for handling MasterCard and American Express sales during March 31 Apr. 15 Paid $6,016 to state sales tax division for taxes owed on sales. Required: Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS Amsterdam Supply Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable-Empire Co. 610 Interest Revenue 122 Accounts Receivable-Equinox Co. 123 Accounts Receivable-Targhee Co. EXPENSES 124 Accounts Receivable-Vista Co. 510 Cost of Merchandise Sold 125 Notes Receivable 521 Delivery Expense 130 Merchandise Inventory 522 Advertising Expense 131 Estimated Returns Inventory 524 Depreciation Expense-Store Equipment 140 Office Supplies 525 Depreciation Expense-Office Equipment 141 Store Supplies 526 Salaries Expense 142 Prepaid Insurance 531 Rent Expense 180 Land 533 Insurance Expense 192 Store Equipment 193 Accumulated Depreciation Store Equipment 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 194 Office Equipment 195 Accumulated Depreciation Office Equipment 539 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary Journal Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles. Scroll down for page 11 of the journal. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 5 6 7 10 11 12 13 14 15 16 17 18 19 20 21 27 23 24 25 26 27 27 28 29 30 31 32 PAGE 11 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 5 7 8 10 11 12 13 14 15 16 17 18
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