Explore BrainMass

Explore BrainMass

    Moose County Journal of Sales

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The general ledger of Moose County Something includes the following accounts:

    Cash........................111 Equipment............189
    Inventory...............131 Accounts Payable..211
    Prepaid Insurance.161 Rent Expense........562
    Supplies.................171 Utilities Expense...565

    Transactions in July that affected purchases and cash payments were as follows:

    1 Paid monthly rent, debiting Rent Expense for $750
    3 Purchased inventory on credit from Koko Co., $4,000; terms 2/15, n/45
    5 Purchased supplies on credit from Yum Yum Sales, $640; terms 2/10, n/30.
    6 Paid gas and water utility bills, $340.
    8 Purchased equipment on account from K. Fund Co., $840; terms 2/10, n/30
    9 Returned the equipment to K. Fund Co. It was defective.
    10 Paid Koko Co. the amount owed on the purchase of July 3.
    11 Purchased inventory on account from K. Fund Co., $850; terms 2/10, n/30
    13 Purchased inventory for cash, $1,268.
    14 Paid an insurance premium, debiting Prepaid Insurance, $1,930.
    16 Paid electricity utility bill, $140.
    18 Paid our account payable to Yum Yum Sales, from July 5.
    19 Paid account payable to K. Fund Co., from July 11.
    20 Purchased supplies on account from J. Goodwinter Supplies, $90; terms net 30.
    21 Purchased inventory on credit from Brodie Brothers, $2,750; terms 1/10, n/30.
    25 Returned inventory purchased or $450 on July 21, to Brodie Brothers.
    30 Paid Brodie Brothers the net amount owed from July 21, less the return on July 25.

    *Please see attachment

    1. Use the appropriate journal to record the preceding transactions in a purchases journal, a cash payments journal (omit the Check No. column), and a general journal. Moose County Something records purchase returns in the general journal.
    2. Total each column of the special journals. Show that the total debits equal total credits in each special journal.
    3. Show how postings would be made from the journals by writing the account numbers and check marks in the appropriate places in the journals.

    © BrainMass Inc. brainmass.com October 10, 2019, 6:48 am ad1c9bdddf


    Solution Summary

    The following posting helps with problems involving sales.