Reference no: EM132722036
Problem - Freddy Flint owns a small retail business called Flint's Fantasy. The cash account has a balance of $20,000 on July 1. The following transactions occurred during July:
July 1 Issued Check No. 414 in payment of July rent, $1,500.
July 1 Purchased merchandise on account from Tang's Toys, Invoice No. 311, $2,700, terms 2/10, n/30.
July 3 Purchased merchandise on account from Sillas & Company, Invoice No. 812, $3,100, terms 1/10, n/30.
July 5 Returned merchandise purchased from Tang's Toys, receiving a credit memo on the amount owed, $500.
July 8 Purchased merchandise on account from Daisy's Dolls, Invoice No. 139, $1,900, terms 2/10, n/30.
July 11 Issued Check No. 415 to Tang's Toys for merchandise purchased on account, less return of July 5 and less 2% discount.
July 13 Issued Check No. 416 to Sillas & Company for merchandise purchased on account, less 1% discount.
July 15 Returned merchandise purchased from Daisy's Dolls, receiving a credit memo on the amount owed, $400.
July 18 Issued Check No. 417 to Daisy's Dolls for merchandise purchased on account, less return of July 15 and less 2% discount.
July 25 Purchased merchandise on account from Allied Business, Invoice No. 489, $2,450, terms n/30.
July 26 Purchased merchandise on account from Tang's Toys, Invoice No. 375, $1,980, terms 2/10, n/30.
July 29 Purchased merchandise on account from Sillas & Company, Invoice No. 883, $3,460, terms 1/10, n/30.
July 31 Freddy Flint withdrew cash for personal use, $2,000. Issued Check No. 418.
July 31 Issued Check No. 419 to Glisan Distributors for a cash purchase of merchandise, $975.
Required -
1. Record the transactions in the purchases journal, cash payments journal, and general journal. Total and rule the purchases and cash payments journals. Prove the cash payments journal.
2. Post from the journals to the general ledger and accounts payable ledger accounts. Use general ledger account numbers as shown in the chapter.