The chart of accounts of Domingo Ltd includes the following selected accounts 112 Accounts Receivable 120 Inventory 126 Supplies 157 Equipment 201 Accounts Payable 401 Sales Revenue 412 Sales Returns and Allowances 505 Cost of Goods Sold 610 Advertising Expense In July, the following selected trans...

a Purchases Journal P1 Date Account Credited Debited Ref Accounts Payable Cr Inventory Dr Other Accounts Dr July 1 2 5 13 15 15 18 24 26 28 Chad Company Pegasus Shipping Kivlin Company Bowe Supply Sup ...

The chart of accounts of Domingo Ltd. includes the following selected accounts. 112 Accounts Receivable 120 Inventory

Question:

The chart of accounts of Domingo Ltd. includes the following selected accounts.
112
120 Inventory
126 Supplies
157 Equipment
201 Sales Revenue
412 Sales Returns and Allowances
505 Cost of Goods Sold
610 Advertising Expense
In July, the following selected 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 Chad Company £7,600.
2 Received freight bill from Pegasus Shipping on Chad purchase £400.
3 Made sales to Effron Company £1,300 and to Pitas Bros. £2,000.
5 Purchased merchandise from Kivlin Company £3,400.
8 Received credit on merchandise returned to Kivlin Company £300.
13 Purchased store supplies from Bowe Supply £910.
15 Purchased merchandise from Chad Company £3,600 and from Goran Company £3,300.
16 Made sales to Felber Company £3,450 and to Pitas Bros. £1,570.
18 Received bill for advertising from Wei Advertisements £640.
21 Made sales to Effron Company £310 and to Musky Company £2,680.
22 Granted allowance to Effron Company for merchandise damaged in shipment £65.
24 Purchased merchandise from Kivlin Company £3,000.
26 Purchased equipment from Bowe Supply £900.
28 Received freight bill from Pegasus Shipping on Kivlin purchase of July 24, £380.
30 Made sales to Felber 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., 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
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...