Reference no: EM132843416

Question - Beezer's Bargain Shop began operations on June 1, 20XX. The company's bookkeeper determined that five books of original entry would have to be maintained: a cash receipts journal, a cash payments journal, a sales journal, a purchases journal, and a general journal. A chart of accounts was also set up and included the following accounts:

Account Number Account Title

100 Cash

110 Accounts Receivable

120 Office Supplies

130 Prepaid Advertising

140 Store Equipment

200 Accounts Payable

300 Edward Beezer, Capital

310 Edward Beezer, Drawings

400 Sales

410 Sales Returns and Allowances

420 Sales Discounts

500 Purchases

510 Purchase Returns and Allowances

520 Purchase Discounts

530 Transportation In

600 Salaries Expense

610 Utilities Expense

During the month of June the following transactions were completed:

June 1 Edward Beezer invested $20,000 in the business.

June 1 Purchased merchandise from Zipay Brothers on account, $2,500; terms 2/10, n/30.

June 2 Purchased store equipment on account from Dante Company, $520.

June 2 Purchased merchandise for cash, $1,500.

June 3 Purchased merchandise from the IAC Company on account, $5,500; 1/10, n/30.

June 4 Sold merchandise to D. Nazar Associated on account, $725; invoice No. 1000; terms 2/10, n/30.

June 4 Paid $85 for office supplies.

June 4 Sold merchandise to H. Franklin, Inc. on account, $625; invoice No. 1001; terms 2/10, n/30. 5 Cash sales for week, $920.

June 5 Returned part of merchandise purchased from Zipay Brothers, who agreed to issue credit memorandum for $230.

June 8 Purchased merchandise from Roosevelt Company on account, $1,100; terms 1/10, n/30.

June 8 Received payment from D. Nazar Associates for invoice No. 1000, less discount.

June 9 Sold merchandise to T. Connors & Sons on account, $2,000; invoice No. 1002, terms 2/10, n/30.

June 9 Paid Zipay Brothers for invoice of June 1, less merchandise returned and discount taken. 10 Paid for three months' advertising expense in advance, $600.

June 11 Paid IAC Company invoice of June 3, less discount.

June 12 Cash sales for week, $3,140.

June 12 Sold merchandise to Leonards Home Builders on account, $2,240; invoice No. 1003; terms 2/10, n/30.

June 15 Paid salaries for first half of month, $640. Paid Dante Company one-half the amount due. 16 Purchased merchandise on account from the Bosak Company, $4,200; terms 2/10, n/30. 17 Paid Roosevelt Company invoice of June 8, less discount.

June 17 Leonards Home Builders returned merchandise in the amount of $360. Credit was given. 18 Sold merchandise to Pollocks Hardware Store on account, $1,910; invoice No. 1004, terms 2/10, n/30.

June 19 Received payment from T. Connors & Sons for invoice No. 1002, less discount.

June 19 Cash sales for week, $2,720. 22 Received payment from Leonards Home Builders for invoice No. 1003, less merchandise returned and discount taken.

June 22 Paid balance due to Dante Company.

June 23 Paid transportation charges on merchandise received from Bosak Company, $95.

June 24 Sold merchandise to C. Vingsen on account, $1,720; invoice No. 1005; terms 2/10, n/30. 25 Purchased merchandise on account from the Big M Supply House, $8,200; terms 2/10, n/30.

June 25 Paid Bosak Company invoice of June 16, less discount.

June 26 Cash sales for week, $2,220.

June 26 Received payment from Pollocks Hardware Store for invoice No. 1004, less discount.

June 29 Paid Utility bill of $65.

June 30 Paid salaries for second half of the month, $640.

June 30 Received amount due from H. Franklin, Inc. 3

June 30 Edward Beezer withdrew $700 from the business for his personal use.

Required -

1. Find the total of the purchases journal on June 30?

A. $23,520.

B. $23,000.

C. $22,020.

D. $21,500.

2. Find the total of the sales discount in the cash receipts journal?

A. $92.10.

C. $137.50.

B. $130.30.

D. $195.40.

3. Entries were recorded in the general journal for transactions on

A. June 1, 5, and 17.

B. June 2, 17, and 30.

C. June 1, 2, and 30.

D. June 2, 5, and 17.

4. How many entries were made in the Other Accounts column of the cash payments journal?

A. 5

B. 6

C. 7

D. 8

5. On June 30, the totals of the purchases journal and the Accounts Payable column of the cash payments journal are posted to the Accounts Payable general ledger account. In addition, individual postings are made from the general journal. After these entries have been posted to the general ledger from the journals, the balance in the accounts payable account is

A. $21,500.

B. $8,430.

C. $8,200.

D. $7,680