Reference no: EM131801938
Required: 1. Make two column journals
The following are Shavit Trading's selected transactions during a period.
1. Purchased merchandise on account: list price 60,000, trade discount 20%.
2. Returned some goods due to defect 5,000.
3. Paid office supplies 4,000.
4. Sales on account 150,000.
5. Collected accounts receivable 100,000, less 2% discount.
6. Received notes receivable 10,000 in payment of account receivable.
7. Collected notes receivable 10,000 plus interest 100.
8. Purchased office equipment on account 250,000 (useful life is 10 years).
9. Paid rent expense 3,000.
10. Recorded annual depreciation of office equipment
11. Advances from customers 80,000.
12. Shavit withdrew cash for personal use 6,800.
The following journal entries were made and posted to the general for the above transactions:
|
|
debit
|
credit
|
|
purchases
|
60,000
|
|
|
cash
|
|
60,000
|
|
|
|
|
|
accounts payable
|
500
|
|
|
merchandise inventory
|
|
500
|
|
|
|
|
|
accounts payable
|
4,000
|
|
|
purchases
|
|
4,000
|
|
|
|
|
|
sales
|
105,000
|
|
|
accounts receivable
|
|
105,000
|
|
|
|
|
|
cash
|
100,000
|
|
|
accounts receivable
|
|
98,000
|
|
sales discount
|
|
2,000
|
|
|
|
|
|
cash
|
10,000
|
|
|
notes receivable
|
|
10,000
|
|
|
|
|
|
notes receivable
|
1,000
|
|
|
interest expense
|
100
|
|
|
notes payable
|
|
1,100
|
|
|
|
|
|
office equipment
|
25,000
|
|
|
cash
|
|
25,000
|
|
|
|
|
|
rent expense
|
30,000
|
|
|
accounts payable
|
|
30,000
|
|
|
|
|
|
depreciation expense
|
2,500
|
|
|
equipment
|
|
2,500
|
|
|
|
|
|
accounts receivable
|
80,000
|
|
|
sales
|
|
80,000
|
|
|
|
|
|
income summary
|
8,600
|
|
|
Shavit, Capital
|
|
8,600
|