Transactions for buyer and seller

Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, n/30. The cost of the goods sold is $67,200. Shore paid freight of $1,800. Shore Co. issued a credit memo for $7,500 to Blue Star Co. for merchandise that was returned. The cost of the merchandise returned was $4,000.

Question Content Area

Journalize Shore Co.'s entry for the sale, credit memo, and payment of amount due. If an amount box does not require an entry, leave it blank.

Transaction	Account	Debit	Credit
Sale	Accounts Payable-Blue Star Co.Accounts Receivable-Blue Star Co.Common StockInventorySalesAccounts Receivable-Blue Star Co.	Accounts Receivable-Blue Star Co.	Accounts Receivable-Blue Star Co.
	Accounts Payable-Blue Star Co.Accounts Receivable-Blue Star Co.Common StockInventorySalesSales	Sales	Sales
blank	Accounts PayableCommon StockCost of Goods SoldInventorySales Returns and AllowancesCost of Goods Sold	Cost of Goods Sold	Cost of Goods Sold
	Accounts PayableCommon StockCost of Goods SoldInventorySales Returns and AllowancesInventory	Inventory	Inventory
Credit Memo	Accounts Payable-Blue Star Co.Accounts Receivable-Blue Star Co.CashSales Returns and AllowancesTransportation OutAccounts Receivable-Blue Star Co.	Accounts Receivable-Blue Star Co.	Accounts Receivable-Blue Star Co.
	Accounts Payable-Blue Star Co.Accounts Receivable-Blue Star Co.CashSales Returns and AllowancesTransportation OutCash	Cash	Cash
blank	Accounts Payable-Blue Star Co.Accounts Receivable-Blue Star Co.Customer Refunds PayableSales Returns and AllowancesTransportation OutAccounts Payable-Blue Star Co.	Accounts Payable-Blue Star Co.	Accounts Payable-Blue Star Co.
	Accounts Payable-Blue Star Co.Accounts Receivable-Blue Star Co.Customer Refunds PayableSales Returns and AllowancesTransportation OutSales Returns and Allowances	Sales Returns and Allowances	Sales Returns and Allowances
Payment	Accounts ReceivableCashEstimated Returns InventoryInventoryPurchases Returns and AllowancesCash	Cash	Cash
	Accounts ReceivableCashEstimated Returns InventoryInventoryPurchases Returns and AllowancesPurchases Returns and Allowances	Purchases Returns and Allowances	Purchases Returns and Allowances
blank	Accounts Payable-Blue Star Co.Accounts Receivable-Blue Star Co.CashSales Returns and AllowancesTransportation OutCash	Cash	Cash
	Accounts Payable-Blue Star Co.Accounts Receivable-Blue Star Co.CashSales Returns and AllowancesTransportation OutAccounts Receivable-Blue Star Co.	Accounts Receivable-Blue Star Co.	Accounts Receivable-Blue Star Co.

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Feedback

Note who is the buyer and who is the seller. The payment is less returns and discounts, and discounts are not taken on returns. If applicable, determine whether the buyer or seller is to pay any freight.

Question Content Area

Journalize Blue Star Co.'s entry for the purchase, credit memo, and payment of amount due. If an amount box does not require an entry, leave it blank.

Transaction	Account	Debit	Credit
Purchase	Accounts Payable-Shore Co.Accounts Receivable-Shore Co.Cost of Merchandise SoldInventorySalesInventory	Inventory	Inventory
	Accounts Payable-Shore Co.Accounts Receivable-Shore Co.Cost of Merchandise SoldInventorySalesAccounts Payable-Shore Co.	Accounts Payable-Shore Co.	Accounts Payable-Shore Co.
Credit Memo	Accounts Payable-Shore Co.Accounts Receivable-Shore Co.CashInventorySalesAccounts Payable-Shore Co.	Accounts Payable-Shore Co.	Accounts Payable-Shore Co.
	Accounts Payable-Shore Co.Accounts Receivable-Shore Co.CashInventorySalesInventory	Inventory	Inventory
Payment	Accounts Payable-Shore Co.Accounts Receivable-Shore Co.CashInventorySalesAccounts Payable-Shore Co.	Accounts Payable-Shore Co.	Accounts Payable-Shore Co.
	Accounts Payable-Shore Co.Accounts Receivable-Shore Co.CashInventorySalesCash	Cash	Cash

Continuing Problem Chapter 4 - Instruction #1

The adjusted trial balance of PS Music as of July 31, 20Y5 is shown below:

Account	Account No.	Debit Balances	Credit Balances
Cash	11	9,945
Accounts Receivable	12	4,150
Supplies	14	275
Prepaid Insurance	15	2,475
Office Equipment	17	7,500
Accumulated Depreciation-Office Equipment	18		50
Accounts Payable	21		8,350
Wages Payable	22		140
Unearned Revenue	23		3,600
Common Stock	31		9,000
Dividends	33	1,750
Fees Earned	41		21,200
Music Expense	54	3,610
Wages Expense	50	2,940
Office Rent Expense	51	2,550
Advertising Expense	55	1,500
Equipment Rent Expense	52	1,375
Utilities Expense	53	1,215
Supplies Expense	56	925
Insurance Expense	57	225
Depreciation Expense	58	50
Miscellaneous Expense	59	1,855
Total		42,340	42,340

1. Print Item

   Question Content Area

   Continuing Problem Chapter 4 - Instruction #2

   Journalize the closing entries. Include Posting References, using the account numbers in your spreadsheet. The retained earnings account is #32 in the ledger of PS Music. Refer to your answers from Chapter 4, Part 1 to complete this part.

   If an amount box does not require an entry, leave it blank.

   DATE	ACCOUNT	POST. REF.	DEBIT	CREDIT
   20Y5	Closing Entries
   July 1July 5July 14July 24July 31July 31	Advertising ExpenseDepreciation ExpenseEquipment Rent ExpenseFees EarnedMusic ExpenseFees Earned	fill in the blank 3	fill in the blank 4	fill in the blank 5
   	CashFees EarnedLandWages ExpenseWages PayableWages Expense	fill in the blank 7	fill in the blank 8	fill in the blank 9
   	Accounts ReceivableCashDividendsOffice EquipmentOffice Rent ExpenseOffice Rent Expense	fill in the blank 11	fill in the blank 12	fill in the blank 13
   	Accounts ReceivableCashEquipment Rent ExpenseOffice EquipmentRetained EarningsEquipment Rent Expense	fill in the blank 15	fill in the blank 16	fill in the blank 17
   	Accounts PayableDividendsFees EarnedUnearned RevenueUtilities ExpenseUtilities Expense	fill in the blank 19	fill in the blank 20	fill in the blank 21
   	Accounts PayableMusic ExpenseOffice EquipmentPrepaid InsuranceRetained EarningsMusic Expense	fill in the blank 23	fill in the blank 24	fill in the blank 25
   	Accounts ReceivableAdvertising ExpenseCashDividendsSuppliesAdvertising Expense	fill in the blank 27	fill in the blank 28	fill in the blank 29
   	Fees EarnedLandRetained EarningsSuppliesSupplies ExpenseSupplies Expense	fill in the blank 31	fill in the blank 32	fill in the blank 33
   	CashDividendsInsurance ExpenseOffice RentPrepaid InsuranceInsurance Expense	fill in the blank 35	fill in the blank 36	fill in the blank 37
   	Accumulated DepreciationDepreciation ExpenseOffice EquipmentRetained EarningsUnearned RevenueDepreciation Expense	fill in the blank 39	fill in the blank 40	fill in the blank 41
   	Accounts ReceivableCashFees EarnedMiscellaneous ExpenseWages PayableMiscellaneous Expense	fill in the blank 43	fill in the blank 44	fill in the blank 45
   	Accounts PayableDividendsFees EarnedRetained EarningsUnearned RevenueRetained Earnings	fill in the blank 47	fill in the blank 48	fill in the blank 49

   DATE	ACCOUNT	POST. REF.	DEBIT	CREDIT
   July 1July 5July 14July 24July 31July 31	Depreciation ExpenseDividendsEquipment Rent ExpenseInsurance ExpenseRetained EarningsRetained Earnings	fill in the blank 52	fill in the blank 53	fill in the blank 54
   	Depreciation ExpenseDividendsEquipment Rent ExpenseInsurance ExpenseRetained EarningsDividends	fill in the blank 56	fill in the blank 57	fill in the blank 58