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Purchases and Cash Payments Transactions

Emily Frank owns a small retail business called Franks Fantasy. The cash account has a balance of $20,300 on July 1. The following transactions occurred during July:

July 1	Issued Check No. 414 in payment of July rent, $2,400.
1	Purchased merchandise on account from Tilly's Toys, Invoice No. 311, $2,700, terms 2/10, n/30.
3	Purchased merchandise on account from Scheer & Company, Invoice No. 812, $3,600, terms 1/10, n/30.
5	Returned merchandise purchased from Tilly's Toys, receiving a credit memo on the amount owed, $300.
8	Purchased merchandise on account from Donna's Dolls, Invoice No. 139, $2,900, terms 2/10, n/30.
11	Issued Check No. 415 to Tilly's Toys for merchandise purchased on account, less return of July 5 and less 2% discount.
13	Issued Check No. 416 to Scheer & Company for merchandise purchased on account, less 1% discount.
15	Returned merchandise purchased from Donna's Dolls, receiving a credit memo on the amount owed, $450.
18	Issued Check No. 417 to Donna's Dolls for merchandise purchased on account, less return of July 15 and less 2% discount.
25	Purchased merchandise on account from Applied Business, Invoice No. 489, $2,550, terms n/30.
26	Purchased merchandise on account from Tilly's Toys, Invoice No. 375, $2,140, terms 2/10, n/30.
29	Purchased merchandise on account from Scheer & Company, Invoice No. 883, $3,470, terms 1/10, n/30.

Required:

1. Enter the transactions in a general journal (start with page 16). If an amount box does not require an entry, leave it blank. Do not enter the posting references until you complete part 2. If required, round your answers to the nearest cent.

GENERAL JOURNAL				PAGE 16
DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
20--
Jul. 1	Rent Expense
	Cash
	Check No. 414
Jul. 1	Purchases
	Accounts Payable/Tilly's Toys
	Invoice No. 311
Jul. 3	Purchases
	Accounts Payable/Scheer & Company
	Invoice No. 812
Jul. 5	Accounts Payable/Tilly's Toys
	Purchases
	Returned merchandise
Jul. 8	Purchases
	Accounts Payable/Donna's Dolls
	Invoice No. 139
Jul. 11	Accounts Payable/Tilly's Toys
	Purchases
	Check No. 415
Jul. 13
	Check No. 416
Jul. 15
	Returned merchandise

GENERAL JOURNAL				PAGE 17
DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
20--
Jul. 18
	Check No. 417
Jul. 25
	Invoice No. 489
Jul. 26
	Invoice No. 375
Jul. 29
	Invoice No. 883

2. Post from the journal to the general ledger and accounts payable ledger accounts. If an amount box does not require an entry, leave it blank. After posting to the general ledger, go to part 1 and complete the posting. If required, round your answers to the nearest cent.

GENERAL LEDGER
ACCOUNT	Cash				ACCOUNT NO.	101
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
Jul. 1	Balance				20,300
		J16
		J16
		J16
		J17

ACCOUNT	Accounts Payable				ACCOUNT NO.	202
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
		J16
		J16
		J16
		J16
Jul. 11		J16	2,400			6,500
		J16
		J16
		J17
		J17
Jul. 26		J17		2,140		4,690
		J17

ACCOUNT	Purchases				ACCOUNT NO.	501
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
		J16
		J16
		J16
		J17
Jul. 26		J17	2,140		13,890
		J17

ACCOUNT	Purchases Returns and Allowances				ACCOUNT NO.	501.1
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
		J16
		J16

ACCOUNT	Purchases Discounts				ACCOUNT NO.	501.2
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
		J16
		J16
		J17

ACCOUNT	Rent Expense				ACCOUNT NO.	521
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
		J16

ACCOUNTS PAYABLE LEDGER
NAME	Applied Business
ADDRESS
DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
20--
		J17

NAME	Donna's Dolls
ADDRESS
DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
20--
		J16
		J16
		J17

NAME	Scheer & Company
ADDRESS
DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
20--
		J16
		J16
		J17

NAME	Tilly's Toys
ADDRESS
DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
20--
		J16
		J16
		J16
		J17

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