50.1K

Verified Solution

Link Copied!

If a transaction is to be recorded in a special journal, select "Entered in special journal" in the first account field. Otherwise, prepare the general journal entry. Prepare a journal entry for each of the special journals at month-end.

Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30).

Mar.		1		Purchased $46,500 of merchandise from Hall Industries, terms 2/15, n/30.
Mar.		2		Sold merchandise on credit to Allen Co., Invoice No. 854, for $51,600 (cost is $31,000).
Mar.		3		Purchased $1,300 of office supplies on credit from Wright Company, terms n/30.
Mar.		3		Sold merchandise on credit to Rick Mitchell, Invoice No. 855, for $15,000 (cost is $9,000).
Mar.		6		Borrowed $86,000 cash from Federal Bank by signing a long-term note payable.
Mar.		9		Purchased $22,250 of office equipment on credit from Knight Supply, terms n/30.
Mar.		10		Sold merchandise on credit to Carolyn Clinton, Invoice No. 856, for $12,000 (cost is $7,200).
Mar.		12		Received payment from Allen Co. for the March 2 sale less the discount of $1,032.
Mar.		13		Sent Hall Industries Check No. 416 in payment of the March 1 invoice less the discount of $930.
Mar.		13		Received payment from Rick Mitchell for the March 3 sale less the discount of $300.
Mar.		14		Purchased $56,000 of merchandise from the King Co., terms 2/10, n/30.
Mar.		15		Issued Check No. 417 for $24,100, payee is Payroll, in payment of sales salaries expense for the first half of the month.
Mar.		15		Cash sales for the first half of the month are $47,000 (cost is $28,200). These cash sales are recorded in the cash receipts journal on March 15.
Mar.		16		Purchased $1,800 of store supplies on credit from Wright Company, terms n/30.
Mar.		17		Returned $6,000 of unsatisfactory merchandise purchased on March 14 to King Co.. Zhang reduces accounts payable by that amount.
Mar.		19		Returned $3,340 of office equipment purchased on March 9 to Knight Supply. Zhang reduces accounts payable by that amount.
Mar.		20		Received payment from Carolyn Clinton for the sale of March 10 less the discount of $240.
Mar.		23		Issued Check No. 418 to King Co. in payment of the March 14 purchase less the March 17 return and the discount of $1,000.
Mar.		27		Sold merchandise on credit to Carolyn Clinton, Invoice No. 857, for $26,000 (cost is $15,600).
Mar.		28		Sold merchandise on credit to Rick Mitchell, Invoice No. 858, for $9,000 (cost is $5,400).
Mar.		31		Issued Check No. 419 for $24,100, payee is Payroll, in payment of sales salaries expense for the last half of the month.
Mar.		31		Cash sales for the last half of the month are $42,300 (cost is $25,400). These cash sales are recorded in the cash receipts journal on March 31.

Answer & Explanation Solved by verified expert

See Answer