Pherigo Co. uses special journals and a general journal. The following transactions occurred during May 2010.
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May 1 |
I. Pherigo invested $50,000 cash in the business. |
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2 |
Sold merchandise to B. Sherrick for $6,300 cash.The cost of the merchandise sold was $4,200. |
|
3 |
Purchased merchandise for $7,200 from J. DeLeon using check no. 101. |
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14 |
Paid salary to H. Potter $700 by issuing check no. 102. |
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16 |
Sold merchandise on account to K. Kimbell for $900, terms n/30.The cost of the merchandise sold was $630. |
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22 |
A check of $9,000 is received from M. Moody in full for invoice 101; no discount given. |
Instructions
(a) Prepare a multiple column cash receipts journal and a multiple column cash payments journal.
(b) Record the transaction(s) for May that should be journalized in the cash receipts journal and cash payments journal.