Problem 7-4A The cost of all merchandise sold was 60% of the sales price. During January, Ayoade completed the following transactions. Jan....

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Problem 7-4A The cost of all merchandise sold was 60% of the sales price. During January, Ayoade completed the following transactions. Jan. 3 Purchased merchandise on account from Parkinson Co. $11,000. 4 Purchased supplies for cash $71. 4 Sold merchandise on account to Douglas $5,030, invoice no. 371, terms 1/10, n/30. 5 Returned $200 worth of damaged goods purchased on account from Parkinson Co. on January 3. 6 Made cash sales for the week totaling $3,250. 8 Purchased merchandise on account from Denholm Co. $5,300. 9 Sold merchandise on account to Connor Corp. $5,700, invoice no. 372, terms 1/10, n/30. 11 Purchased merchandise on account from Betz Co. $3,530. 13 Paid in full Parkinson Co. on account less a 2% discount. 13 Made cash sales for the week totaling $5,790. 15 Received payment from Connor Corp. for invoice no. 372. 15 Paid semi-monthly salaries of $14,505 to employees. 17 Received payment from Douglas for invoice no. 371. 17 Sold merchandise on account to Bullock Co. $2,430, invoice no. 373, terms 1/10, n/30. 19 Purchased equipment on account from Murphy Corp. $5,407. 20 Cash sales for the week totaled $2,890. 20 Paid in full Denholm Co. on account less a 2% discount. 23 Purchased merchandise on account from Parkinson Co. $7,477. 24 Purchased merchandise on account from Forgetta Corp. $4,684. 27 Made cash sales for the week totaling $4,210. 30 Received payment from Bullock Co. for invoice no. 373. 31 Paid semi-monthly salaries of $12,063 to employees. 31 Sold merchandise on account to Douglas $9,730, invoice no. 374, terms 1/10, n/30. Ayoade Company uses the following journals. 1. Sales journal. 2. Single-column purchases journal. 3. Cash receipts journal. 4. Cash payments journal. 5. General journal. Using the selected accounts provided: Record and Post the January transactions in the appropriate journal noted. Foot and crossfoot all special journals. (Record entries in the order displayed in the problem statement.) Sales Journal S1 Date Account Debited Invoice No. Ref Accounts Receivable Dr. Sales Revenue Cr. Cost of Goods Sold Dr. Inventory Cr. √ √ √ √ (112)(401) (505)(120) Purchases Journal P1 Date Explanation Ref Inventory Dr. Accounts Payable Cr. √ √ √ √ √ (120)(201) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Cash Receipts Journal CR1 Date Account Credited Ref Cash Dr. Sales Discounts Dr. Accounts Receivable Cr. Sales Revenue Cr. Other Accounts Cr. Cost of Goods Sold Dr. Inventory Cr. √ √ √ (101) (414) (112) (401) (X) (505)(120) Cash Payments Journal CP1 Date Explanation Other Accounts Dr. Accounts Payable Dr. Inventory Cr. Cash Cr. (X) (201) (120) (101) Click here if you would like to Show Work for this question Link to Text Link to Text Link To Media Question Attempts: 0 of 3 used Save for later Submit Answer Copyright © 2000-2013 by John Wiley & Sons, Inc. or related companies. All rights reserved. Tooltip JS-control [id=_intjsTooltip_1_]
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