W.J. Company uses the gross method of recording purchases of merchandise. It also uses theperpetual inventory system.

Transaction:

On March 3, W.J. Co. purchased goodson accountfrom Cellar Company, $7,000.

Required:

(a)Select the appropriatespecial journalin which the transaction should be entered.

(b)Enter the transaction in that journal.

Journal:

Purchases Journal

Cash Payments Journal

General Journal

Date

Account Payable Credited

Accounts Payable CR

Merchandise Inventory DR

Store Supplies DR

Office Supplies DR

Other Accounts DR

Account

Post.

Ref.

Amount

Mar.

3

(Choose one)

Cellar Company

Equip Mint Company

Osco Office Supplies

Premium Company

Susie Supplies

W.J. Company

(Choose one)

Accounts Payable

Accounts Receivable

Accumulated Depreciation, Buildings

Accumulated Depreciation, Equipment

Advertising Expense

Buildings

Capital

Cash

Cost of Goods Sold

Depreciation Expense, Buildings

Depreciation Expense, Equipment

Drawing

Equipment

Insurance Expense

Land

Merchandise Inventory

Notes Payable

Notes Receivable

Prepaid Advertising

Prepaid Insurance

Prepaid Rent

Rent Expense

Salaries Expense

Salaries Payable

Sales

Sales Discounts

Sales Returns and Allowances

Service Revenue

Supplies

Supplies Expense

Utilities Expense

Utilities Payable

(Choose one)

Cellar Company

Equip Mint Company

Osco Office Supplies

Premium Company

Susie Supplies

W.J. Company

(Choose one)

Accounts Payable

Accounts Receivable

Accumulated Depreciation, Buildings

Accumulated Depreciation, Equipment

Advertising Expense

Buildings

Capital

Cash

Cost of Goods Sold

Depreciation Expense, Buildings

Depreciation Expense, Equipment

Drawing

Equipment

Insurance Expense

Land

Merchandise Inventory

Notes Payable

Notes Receivable

Prepaid Advertising

Prepaid Insurance

Prepaid Rent

Rent Expense

Salaries Expense

Salaries Payable

Sales

Sales Discounts

Sales Returns and Allowances

Service Revenue

Supplies

Supplies Expense

Utilities Expense

Utilities Payable

(Choose one)

Cellar Company

Equip Mint Company

Osco Office Supplies

Premium Company

Susie Supplies

W.J. Company

(Choose one)

Accounts Payable

Accounts Receivable

Accumulated Depreciation, Buildings

Accumulated Depreciation, Equipment

Advertising Expense

Buildings

Capital

Cash

Cost of Goods Sold

Depreciation Expense, Buildings

Depreciation Expense, Equipment

Drawing

Equipment

Insurance Expense

Land

Merchandise Inventory

Notes Payable

Notes Receivable

Prepaid Advertising

Prepaid Insurance

Prepaid Rent

Rent Expense

Salaries Expense

Salaries Payable

Sales

Sales Discounts

Sales Returns and Allowances

Service Revenue

Supplies

Supplies Expense

Utilities Expense

Utilities Payable

(Choose one)

Cellar Company

Equip Mint Company

Osco Office Supplies

Premium Company

Susie Supplies

W.J. Company

(Choose one)

Accounts Payable

Accounts Receivable

Accumulated Depreciation, Buildings

Accumulated Depreciation, Equipment

Advertising Expense

Buildings

Capital

Cash

Cost of Goods Sold

Depreciation Expense, Buildings

Depreciation Expense, Equipment

Drawing

Equipment

Insurance Expense

Land

Merchandise Inventory

Notes Payable

Notes Receivable

Prepaid Advertising

Prepaid Insurance

Prepaid Rent

Rent Expense

Salaries Expense

Salaries Payable

Sales

Sales Discounts

Sales Returns and Allowances

Service Revenue

Supplies

Supplies Expense

Utilities Expense

Utilities Payable