Reference no: EM132558276

Required:

Question 1: Consider the following transactions. In the blank column beside the transaction, identify the journal it should be recorded in.

Use:

· S...... for Sales Journal

· P...... for Purchases Journal

· CR.... for Cash Receipts Journal

· CD.... for Cash Disbursements Journal

· G.... for General Journal

Dec 1

Purchased merchandise on credit (terms 2/10, n/30).

Dec 2

The owner of the business invested some office furniture into the business.

Dec 3

Sold merchandise on account (terms 2/10, n/30).

Dec 4

The owner invested cash in the business.

Dec 5

A customer returned defective merchandise (from Dec 3 transaction) which was then scrapped.

Dec 6

Gave a customer a credit memo for an allowance on a prior sale.

Dec 7

Received and paid the telephone bill.

Dec 8

Received a credit memorandum from a supplier granting us an allowance on a previous purchase of merchandise.

Dec 9

Received payment from a customer.

Dec 10

Accrued interest revenue.

Dec 11

Paid the balance owing on a purchase (from Dec 1).

Dec 12

Borrowed money from the bank.

Dec 13

Sold old office equipment for cash.

Dec 14

Purchased office supplies on credit.

Dec 15

Paid salaries.

Dec 16

Sold merchandise and received cash.

Dec 17

Prepared closing entries.

Dec 18

Paid cash for merchandise.

Dec 19

Received a credit memorandum from a supplier when defective merchandise was returned.

Dec 20

Performed services on account.