Homework answers / question archive / The chart of accounts of LR Company includes the following selected accounts

The chart of accounts of LR Company includes the following selected accounts

Business

Share With

The chart of accounts of LR Company includes the following selected accounts. 112 Accounts Receivable 401 Sales Revenue 120 Inventory 412 Sales Returns and Allowances 126 Supplies 505 Cost of Goods Sold 157 Equipment 610 Advertising Expense 201 Accounts Payable In July, the following transactions were completed. All purchases and sales were on account. The cost of all merchandise sold was 70% of the sales July Purchased merchandise from Eby Company $8,120. 1 2 Received freight bill from Shaw Shipping on Eby purchase $400. 3 Made sales to Fort Company $1,570 and to Hefner Bros. $1,720. 5 Purchased merchandise from Getz Company $3,280. 8 Received credit on merchandise returned to Getz Company $320. 13 Purchased store supplies from Dayne Supply $720. 15 Purchased merchandise from Eby Company $3,700 and from Bosco Company $4,200. 16 Made sales to Aybar Company $3,180 and to Hefner Bros. $1,970. 18 Received bill for advertising from Welton Advertisements $590. 21 Sales were made to Fort Company $200 and to Duncan Company $3,110. 22 Granted allowance to Fort Company for merchandise damaged in shipment $60. 24 Purchased merchandise from Getz Company $2,980. 26 Purchased equipment from Dayne Supply $770. 28 Received freight bill from Shaw Shipping on Getz purchase of July 24, S490. 30 Sales were made to Aybar Company $5,850. Journalize the transactions above in a purchases journal, a sales journal, and a general journal. (Record entries in the order displayed in the pr Date Purchases Journal P1 Account Credited (Debited) Ref. Accounts Payable Cr. Inventory Dr. Other Accounts Dr. Eby Company ? 8120 8120 puly 1 July 2 Shaw Shipping ? 400 400 Puly 5 Getz Company ? 3280 3280 Duly 13 Dayne Supply (Supplies) 126/V 720 720 Duly 15 Eby Company ? 3700 3700 puly 15 Bosco Company ? 4200 4200 Duly 18 Welton Advertisements 610/v 590 590 Puly 24 Getz Company 2980 2980 Puly 26 Dayne Supply (Supplies) 157/V 770 770 buly 28 Shaw Shipping ? 490 490 25250 23170 2080 (201) (120) (X) (40) (12) 1) Sales Journal 51 Accounts Receivable Dr. Cost of Goods Sold Dr. Ref. Sales Revenue Cr. Inventory Cr. ? 1570 1099 Date Account Debited Duly 3 Fort Company puly 3 Hefner Bros. ? 1720 1204 Puly 16 Aybar Company ? 3180 2226 Puly 16 Hefner Bros. ? 1970 1379 Puly 21 Fort Company ? 200 140 þuly 21 Duncan Company ? 3110 2177 Puly 30 Aybar Company ? 5850 4095 17600 12320 (112401) (505)(120) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the Date Account Titles and Explanation Debit Credit Puly 8 Accounts Payable 320 Inventory 320 Puly 22 Sales Revenue 60 60 Accounts Receivable Post to both the general and subsidiary ledger accounts. (Assume that all accounts have zero beginning balances.). (Post entries in the orde General Ledger Accounts Receivable Date No. 112 Credit Balance Explanation Ref. Debit si G1 Inventory Date No. 120 Credit Balance Explanation Ref. Debit P1 G1 Si P1 770 puly 26 Accounts Payable Date 770 No. 201 Credit Balance Explanation Ref. Debit P1 G1