Reference no: EM131240992

Accounting Assignment

PART I: SHORT RESPONSE

Directions: Please respond to each of the following questions. Write at least 3 to 5 sentences for each question.

1. Explain why a business would choose to use special journals. Must a business open all four special journals in order to use special journals?

2. What are the advantages of using a cash receipts journal and cash payments journal?

PART II: APPLICATION

Directions: Please answer each of the following questions. Show your work as necessary.

1. The following transactions were completed by Figureroa Supplies during the first half of May. Terms of sale are 2/10, n/30.

May 2 Sold merchandise on account to Riggs Company, invoice no. 253, $2,300.
4 Bought merchandise on account from Smokey Supplies, invoice no. 1190, $4,720; terms 2/10, n/60; dated May 2; FOB shipping point, freight prepaid and added to the invoice, $135 (total $4,855).
7 Issued credit memo no. 28 to Riggs Company, $250, for merchandise returned.
8 Bought merchandise on account from Gamble Supplies, invoice no. 1233, $845; terms 1/10, n/30; dated May 6.
11 Received credit memo no. 178, $89, from Gamble Supplies for damaged merchandise.
11 Cash sales for May 1 through May 10, $5,278.
13 Issued Ck. No. 3499, $1,666, to O'Neal Company, in payment of invoice no. C1272 for $1,700 less discount.

Instructions:

Record the transactions for the first half of May, using a general journal, page 8.

2. The following transactions were completed by Figureroa Supplies during the second half of May. Terms of sale are 1/10, n/30.

May 17 Received check from Petty, Inc., $841.50, in payment of $850 invoice less discount.
18 Issued Ck. No. 3500, $748.44, to Gamble Supplies, in payment of $756 invoice less discount.
20 Borrowed $5,000 from First Bank, signing a promissory note for cash.
21 Cash sales for May 11 through May 20, $5,098.
22 Sold merchandise to G. Johnson, invoice no. 278, $225. Johnson used a credit card. The credit card fee is 1.5 percent.
26 Issued Ck. No. 3501, $154, to S. Forbert for miscellaneous expenses not recorded previously.
30 Received and paid bill for advertising in the Daily News, $375, Ck. No. 3502.
31 Cash sales for May 21 through May 31, $5,768.
31 Issued Ck. No. 3503, $5,300.62, for salaries for the month.

Instructions:

Record the transactions for the second half of May, using a cash receipts journal, page 13, or a cash payments journal, page 19.

3. The following transactions were completed by Fox and Company during the second half of December for the current year. Terms of sale are 2/10, n/30 using a periodic inventory system.

Dec. 11 Sold merchandise on account to Bear, Inc., $875, invoice 222.
14 Bought merchandise on account from Bobcat Suppliers, $335; terms 1/10, n/30, FOB shipping point, invoice 535.
15 Paid Roadrunner Freight for freight charges on merchandise purchased from Bobcat Suppliers, $78, Ck. No. 792.
18 Received payment in full from Bear, Inc.
19 Returned $50 of defective merchandise to Bobcat Suppliers, credit memo 25.
20 Cash sales for December 1 through 7, $2,925.
21 Paid weekly wages, $1,272, Ck. No.793, previously recorded.
23 Sold merchandise on account to Deer Company, $1,975, invoice 223, including sales tax of $75.
23 Bought merchandise on account from Elk, Inc., $675, terms 2/10, n/60, FOB Denver, including prepaid and added to the invoice, $125 for a total of $800.
24 Issued Ck. No. 794 to Bobcat Suppliers for invoice 535 to pay in full.
25 Issued credit memo 65 to Deer Company for merchandise returned from sale on the 13th, $203.
25 K. Furr, the owner, withdrew $500 for personal use, Ck. No. 795.

Instructions:

1. Journalize the transactions for December in the appropriate journals.
2. Total and rule the journals.
3. Prove the equality of the debit and credit totals.

Attachment:- Module_Assignment.rar