The following selected transactions were completed during August between Summit Company and Beartooth Co Aug 1 Summit Company sold merchandise on account to Beartooth Co , $48,000, terms FOB destination, 2 15, n eom The cost of the merchandise sold was $28,800 2 Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co on August 1 5 Summit Company sold merchandise on account to Beartooth Co , $66,000, terms FOB shipping point, n 45 The cost of the merchandise sold was $40,000 9 Beartooth Co paid freight of $2,300 on August 5 purchase from Summit Company 15 Summit Company sold merchandise on account to Beartooth Co , $58,700, terms FOB shipping point, 1 10, n 30 Summit Company paid freight of $1,675, which was added to the invoice The cost of the merchandise sold was $35,000 16 Beartooth Co paid Summit Company for purchase of August 1 20 Summit Company paid Beartooth Co a refund of $1,800 for defective merchandise in the August 1 purchase Beartooth Co agreed to keep the merchandise 25 Beartooth Co paid Summit Company on account for purchase of August 15 Required Journalize the August transactions for (1) Summit Company and (2) Beartooth Co Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations Every line on a journal page is used for debit or credit entries CNOW journals will automatically indent a credit entry when a credit amount is entered Chart of Accounts Summit Company CHART OF ACCOUNTS Summit Company General Ledger ASSETS 110 Cash 121 Accounts Receivable Beartooth Co 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns 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 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense Store Equipment 525 Depreciation Expense Office Equipment 526 Salaries Expense 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 Beartooth Co CHART OF ACCOUNTS Beartooth Co General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns 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 Summit Company 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing REVENUE 410 Sales 610 Interest Revenue (1) Journalize the August transactions for Summit Company Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations Every line on a journal page is used for debit or credit entries CNOW journals will automatically indent a credit entry when a credit amount is entered (2) Journalize the August transactions for Beartooth Co Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations Every line on a journal page is used for debit or credit entries CNOW journals will automatically indent a credit entry when a credit amount is entered DATE POST REF CREDIT ASSETS LIABILITIES EQUITY DEBIT 48,000 00 1 1 2 43,000 00 1 3 28,800 00 DESCRIPTION Aug 1Cost of Merchandise Sold Merchandise Inventory Aug 2 Delivery Expense Cash Aug 5 Cost of Merchandise Sold Merchandise Inventory Aug 15 Accounts Receivable Beartooth Co Cash 28,800 00 5 40,000 00 6 40,000 00 7 60,375 00 1 8 1,675 00 9 Sales 58,700 00 30 20 1 Aug 16 Cash Miscellaneous Expense 47,040 00 960 00 Accounts Receivable Beartooth Co 43,000 00 1,800 00 4 Aug 20 Miscellaneous Expense Cash 1,800 00 15 Aug 25 Cash 59,788 00 587 00 Miscellaneous Expense Accounts Receivable Beartooth 60,375 00 1 is 48,000 00 1 Aug 1 Accounts Receivable Beartooth Co Sales Aug 5 Accounts Receivable Beartooth Co 48,000 00 20 66,000 00 21 Sales 66,000 00 22 Cash 1,800 00 1 PAGE 15 JOURNAL Score 149 176 ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 4,800 00 2 4,800 00 1 3 66,000 00 Aug 1 Merchandise Inventory Accounts Payable Summit Company Aug 5 Merchandise Inventory Accounts Payable Summit Company Aug 9 Merchandise Inventory Cash 66,000 00 5 2,300 00 6 2,300 00 1 7 60,375 00 8 60,375 00 1 Aug 15 Merchandise Inventory Accounts Payable Summit Company Aug 16 Accounts Payable Summit Company Miscellaneous Expense 9 48,000 00 1 10 960 00 11 Cash 47,040 00 12 Aug 20 Cash 1,800 00 1 13 1,800 00 Merchandise Inventory Aug 25 Accounts Payable Summit Company 14 60,375 00 1

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The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1 Summit Company sold merchandise on account to Beartooth Co.,

The following selected transactions were completed during August between Summit Company and Beartooth Co.:

Aug.	1	Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $28,800.
	2	Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1.
	5	Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/45. The cost of the merchandise sold was $40,000.
	9	Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company.
	15	Summit Company sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,675, which was added to the invoice. The cost of the merchandise sold was $35,000.
	16	Beartooth Co. paid Summit Company for purchase of August 1.
	20	Summit Company paid Beartooth Co. a refund of $1,800 for defective merchandise in the August 1 purchase. Beartooth Co. agreed to keep the merchandise.
	25	Beartooth Co. paid Summit Company on account for purchase of August 15.

Required:

Journalize the August transactions for (1) Summit Company and (2) Beartooth Co. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Chart of Accounts-Summit Company

CHART OF ACCOUNTS

Summit Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable-Beartooth Co.
125	Notes Receivable
130	Merchandise Inventory
131	Estimated Returns 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
216	Salaries Payable
218	Sales Tax Payable
219	Customer Refunds Payable
221	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
526	Salaries Expense
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-Beartooth Co.

CHART OF ACCOUNTS

Beartooth Co.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Merchandise Inventory
131	Estimated Returns 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-Summit Company
216	Salaries Payable
218	Sales Tax Payable
219	Customer Refunds Payable
221	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing

	REVENUE
410	Sales
610	Interest Revenue

(1) Journalize the August transactions for Summit Company. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

(2) Journalize the August transactions for Beartooth Co. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

DATE POST. REF. CREDIT ASSETS LIABILITIES EQUITY DEBIT 48,000.00 1 1 2 43,000.00 1 3 28,800.00 DESCRIPTION Aug. 1Cost of Merchandise Sold Merchandise Inventory Aug. 2 Delivery Expense Cash Aug. 5 Cost of Merchandise Sold Merchandise Inventory Aug. 15 Accounts Receivable-Beartooth Co. Cash 28,800.00 5 40,000.00 6 40,000.00 7 60,375.00 1 8 1,675.00 9 Sales 58,700.00 30 20 1 Aug. 16 Cash Miscellaneous Expense 47,040.00 960.00 Accounts Receivable-Beartooth Co. 43,000.00 1,800.00 : 4 Aug. 20 Miscellaneous Expense Cash 1,800.00 15 Aug 25 Cash 59,788.00 587.00 Miscellaneous Expense Accounts Receivable-Beartooth 60,375.00 1 is 48,000.00 1 Aug. 1 Accounts Receivable-Beartooth Co. Sales Aug. 5 Accounts Receivable-Beartooth Co. 48,000.00 20 66,000.00 21 Sales 66,000.00 22 Cash 1,800.00 1 PAGE 15 JOURNAL Score: 149/176 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 4,800.00 2 4,800.00 1 3 66,000.00 Aug. 1 Merchandise Inventory Accounts Payable-Summit Company Aug. 5 Merchandise Inventory Accounts Payable-Summit Company Aug. 9 Merchandise Inventory Cash 66,000.00 5 2,300.00 6 2,300.00 1 7 60,375.00 8 60,375.00 1 Aug. 15 Merchandise Inventory Accounts Payable-Summit Company Aug. 16 Accounts Payable-Summit Company Miscellaneous Expense 9 48,000.00 1 10 960.00 11 Cash 47,040.00 12 Aug. 20 Cash 1,800.00 1 13 1,800.00 + Merchandise Inventory Aug. 25 Accounts Payable-Summit Company 14 60,375.00 1