Purchase Solution

Moose County Journal of Sales

Not what you're looking for?

Ask Custom Question

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:

July
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.

Attachments
Purchase this Solution

Solution Summary

The following posting helps with problems involving sales.

Solution provided by:
Education
  • MPhil, Madurai Kamaraj University
  • MCom, Annamalai University
  • IATA, International Air Transport Association
Recent Feedback
  • "Great explanations on how the answers were obtained."
  • "Love the way she explains everything step by step."
  • "Solutions were thoroughly explained."
  • "Excellent explanations of how problems are solved"
  • "Thanks"
Purchase this Solution


Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Operations Management

This quiz tests a student's knowledge about Operations Management

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.