AP7-3A
The chart of accounts of Lopez Company includes the following selected accounts.
112 Accounts Receivable 401 Sales
120 Merchandise 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 selected transactions were completed. All purchases and sales were on account. The cost of all merchandise sold was 70% of the sales price.
July 1 Purchased merchandise from Fritz Company $7,568.
2 Received freight bill from Wayward Shipping on Fritz purchase $384.
3 Made sales to Pinick Company $1,190, and to Wayne Bros. $1,500.
5 Purchased merchandise from Moon Company $3,251.
8 Received credit on merchandise returned to Moon Company $347.
13 Purchased store supplies from Cress Supply $672.
15 Purchased merchandise from Fritz Company $3,562 and from Anton Company $3,226.
16 Made sales to Sager Company $3,980 and to Wayne Bros. $1,480.
18 Received bill for advertising from Lynda Advertisements $579.
21 Sales were made to Pinick Company $110 and to Haddad Company $3,400.
22 Granted allowance to Pinick Company for merchandise damaged in shipment $46.
24 Purchased merchandise from Moon Company $3,049.
26 Purchased equipment from Cress Supply $840.
28 Received freight bill from Wayward Shipping on Moon purchase of July 24, $428.
30 Sales were made to Sager Company $5,340.
Instructions
(a) Journalize the transactions above in a purchases journal, a sales journal, and a general journal. (If answer is zero, please enter 0. Do not leave any fields blank. For multiple entries on the same day, list in the same order presented in the problem.)
Purchases Journal
P1
Date
Account Credited
Ref.
Accounts Payable Cr.
Merch. Inventory Dr.
Other Accounts Dr.
July 1 Lynda AdvertisementsCress SupplyWayne Bros.Sager CompanyMerchandise InventorySalesHaddad CompanySuppliesMoon CompanyEquipmentAnton CompanyPinick CompanySales Returns and AllowancesCost of Goods SoldAdvertising ExpenseFritz CompanyWayward Shipping P
2 Haddad CompanySuppliesMerchandise InventoryMoon CompanyCress SupplyEquipmentSales Returns and AllowancesCost of Goods SoldSalesWayne Bros.Anton CompanyFritz CompanyAdvertising ExpenseWayward ShippingLynda AdvertisementsPinick CompanySager Company P
5 Moon CompanyFritz CompanyWayne Bros.Anton CompanyMerchandise InventoryPinick CompanySalesHaddad CompanySales Returns and AllowancesCost of Goods SoldSuppliesAdvertising ExpenseEquipmentCress SupplyWayward ShippingLynda AdvertisementsSager Company P
13 Sager CompanySales Returns and AllowancesMoon CompanyAnton CompanyCost of Goods SoldHaddad CompanyLynda AdvertisementsMerchandise InventoryAdvertising ExpenseWayne Bros.SuppliesPinick CompanyCress SupplyEquipmentFritz CompanySalesWayward Shipping 126/P
15 Wayne Bros.Pinick CompanyCress SupplySager CompanyMerchandise InventoryLynda AdvertisementsAnton CompanyHaddad CompanySuppliesAdvertising ExpenseEquipmentSalesSales Returns and AllowancesCost of Goods SoldMoon CompanyFritz CompanyWayward Shipping P
15 EquipmentAnton CompanyCost of Goods SoldSalesCress SupplySales Returns and AllowancesAdvertising ExpenseWayne Bros.Pinick CompanySager CompanyFritz CompanyWayward ShippingMoon CompanyLynda AdvertisementsHaddad CompanyMerchandise InventorySupplies P
18 Sales Returns and AllowancesSuppliesEquipmentSalesPinick CompanyCost of Goods SoldSager CompanyHaddad CompanyMerchandise InventoryAdvertising ExpenseLynda AdvertisementsFritz CompanyWayward ShippingMoon CompanyAnton CompanyWayne Bros.Cress Supply 610/P
24 Wayne Bros.Cress SupplyAnton CompanySuppliesEquipmentLynda AdvertisementsPinick CompanyWayward ShippingSager CompanySales Returns and AllowancesFritz CompanyHaddad CompanyAdvertising ExpenseMerchandise InventorySalesCost of Goods SoldMoon Company P
26 Sales Returns and AllowancesWayward ShippingSalesAdvertising ExpenseSager CompanyEquipmentCress SupplyHaddad CompanyMerchandise InventoryLynda AdvertisementsWayne Bros.SuppliesMoon CompanyCost of Goods SoldPinick CompanyFritz CompanyAnton Company 157/P
28 Lynda AdvertisementsSuppliesSager CompanyEquipmentSalesCost of Goods SoldHaddad CompanyWayne Bros.Pinick CompanyAnton CompanyMoon CompanyMerchandise InventorySales Returns and AllowancesCress SupplyAdvertising ExpenseWayward ShippingFritz Company P
(201) (120) (X)
Sales Journal
S1
Date
Account Debited
Ref.
Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Merch. Inventory Cr.
July 3 Pinick CompanySalesWayward ShippingEquipmentSales Returns and AllowancesMoon CompanyFritz CompanyWayne Bros.Haddad CompanyAnton CompanyLynda AdvertisementsCress SupplySager CompanyMerchandise InventorySuppliesCost of Goods SoldAdvertising Expense P
3 Lynda AdvertisementsPinick CompanySager CompanyEquipmentWayward ShippingHaddad CompanyMoon CompanySalesSales Returns and AllowancesAnton CompanyMerchandise InventorySuppliesCost of Goods SoldAdvertising ExpenseWayne Bros.Fritz CompanyCress Supply P
16 Fritz CompanyHaddad CompanyMerchandise InventoryWayward ShippingEquipmentWayne Bros.Advertising ExpensePinick CompanySuppliesSalesSales Returns and AllowancesCost of Goods SoldCress SupplySager CompanyMoon CompanyAnton CompanyLynda Advertisements P
16 Cost of Goods SoldAdvertising ExpenseSalesWayne Bros.Fritz CompanyWayward ShippingAnton CompanyLynda AdvertisementsPinick CompanySuppliesMoon CompanyCress SupplySager CompanyHaddad CompanySales Returns and AllowancesMerchandise InventoryEquipment P
21 Advertising ExpensePinick CompanyFritz CompanyHaddad CompanyWayward ShippingMoon CompanyLynda AdvertisementsSales Returns and AllowancesSalesWayne Bros.Cost of Goods SoldAnton CompanyMerchandise InventoryCress SupplySager CompanySuppliesEquipment P
21 Cost of Goods SoldWayne Bros.Haddad CompanySalesFritz CompanyWayward ShippingMoon CompanySales Returns and AllowancesEquipmentSuppliesPinick CompanySager CompanyAdvertising ExpenseCress SupplyMerchandise InventoryAnton CompanyLynda Advertisements P
30 SuppliesCress SupplyCost of Goods SoldFritz CompanyMerchandise InventoryWayward ShippingMoon CompanyAnton CompanyLynda AdvertisementsWayne Bros.Pinick CompanyHaddad CompanyEquipmentAdvertising ExpenseSalesSales Returns and AllowancesSager Company P
(112)(401) (505)(120)
GENERAL JOURNAL
G1
Date Description/Account Debit Credit
July 8 Acc. Payable-Anton CompanyAcc. Payable-Cross SupplyAcc. Receivable-Haddad CompanyAcc. Receivable-Pinick CompanySales Returns and AllowancesMerchandise InventoryAcc. Payable-Fritz CompanyAdvertising ExpenseSuppliesAcc. Payable-Wayward SupplyCashCost of Goods SoldAcc. Payable-Lynda AdvertisementsEquipmentAcc. Receivable-Wayne Bros.SalesAcc. Payable-Moon CompanyAcc. Receivable-Sager Company
SuppliesAcc. Receivable-Sager CompanyMerchandise InventoryAcc. Payable-Anton CompanyEquipmentAcc. Payable-Fritz CompanyAcc. Payable-Cross SupplySalesCashAcc. Payable-Moon CompanyAdvertising ExpenseCost of Goods SoldAcc. Receivable-Pinick CompanyAcc. Receivable-Wayne Bros.Acc. Receivable-Haddad CompanyAcc. Payable-Wayward SupplySales Returns and AllowancesAcc. Payable-Lynda Advertisements
July 22
SuppliesAcc. Receivable-Pinick CompanyAcc. Payable-Wayward SupplyAcc. Payable-Anton CompanyCashEquipmentSalesMerchandise InventoryAcc. Payable-Moon CompanyCost of Goods SoldAdvertising ExpenseSales Returns and AllowancesAcc. Payable-Cross SupplyAcc. Receivable-Wayne Bros.Acc. Payable-Fritz CompanyAcc. Payable-Lynda AdvertisementsAcc. Receivable-Sager CompanyAcc. Receivable-Haddad Company
SuppliesAdvertising ExpenseAcc. Payable-Cross SupplyAcc. Receivable-Sager CompanyAcc. Payable-Anton CompanyCost of Goods SoldAcc. Receivable-Haddad CompanySales Returns and AllowancesEquipmentAcc. Payable-Fritz CompanySalesAcc. Receivable-Pinick CompanyCashAcc. Receivable-Wayne Bros.Acc. Payable-Moon CompanyMerchandise InventoryAcc. Payable-Wayward SupplyAcc. Payable-Lynda Advertisements
(b) Post to both the general and subsidiary ledger accounts. (Assume that all accounts have zero beginning balances.) (If answer is zero, please enter 0. Do not leave any fields blank.
General Ledger
Accounts Receivable No. 112
Date
Explanation Ref. Debit Credit Balance
July 31 S1
22 G1
Merchandise Inventory No. 120
Date
Explanation Ref. Debit Credit Balance
July 31 P1
8 G1
31 S1
Supplies No. 126
Date
Explanation Ref. Debit Credit Balance
July 13 P1
Equipment No. 157
Date
Explanation Ref. Debit Credit Balance
July 26 P1
Accounts Payable No. 201
Date
Explanation Ref. Debit Credit Balance
July 31 P1
8 G1
Sales No. 401
Date
Explanation Ref. Debit Credit Balance
July 31 S1
Sales Returns and Allowances No. 412
Date
Explanation Ref. Debit Credit Balance
July 22 G1
Cost of Goods Sold No. 505
Date
Explanation Ref. Debit Credit Balance
July 31 S1
Advertising Expense No. 610
Date
Explanation Ref. Debit Credit Balance
July 18 P1
Accounts Receivable Subsidiary Ledger
Wayne Bros.
Date
Explanation Ref. Debit Credit Balance
July 3 S1
16 S1
Pinick Company
Date
Explanation Ref. Debit Credit Balance
July 3 S1
21 S1
22 G1
Sager Company
Date
Explanation Ref. Debit Credit Balance
July 16 S1
30 S1
Haddad Company
Date
Explanation Ref. Debit Credit Balance
July 21 S1
Accounts Payable Subsidiary Ledger
Cress Supply
Date
Explanation Ref. Debit Credit Balance
July 13 P1
26 P1
Wayward Shipping
Date
Explanation Ref. Debit Credit Balance
July 2 P1
28 P1
Fritz Company
Date
Explanation Ref. Debit Credit Balance
July 1 P1
15 P1
Moon Company
Date
Explanation Ref. Debit Credit Balance
July 5 P1
8 G1
24 P1
Lynda Advertisements
Date
Explanation Ref. Debit Credit Balance
July 18 P1
Anton Company
Date
Explanation Ref. Debit Credit Balance
July 15 P1
(c) Prove the agreement of the control and subsidiary accounts.
Accounts receivable balance:
$
Subsidiary account balances
Wayne Bros. $
Pinick Company
Sager Company
Haddad Company
Total
$
Accounts payable balance
$
Subsidiary account balances
Cress Supply $
Wayward Shipping
Fritz Company
Moon Company
Lynda Advertisements
Anton Company
Total
$
Click here if you would like to Show Work for this question
Question Attempts: 0 of 5 used