Reference no: EM131202364
Billy Bob Supply Company uses four special journals: purchases, sales, cash receipts, and cash disbursements, along with a general journal. The following transactions were incurred during August:
Aug 1 – Purchased merchandise from Able Co. for $5,000, terms 2/10, n/30.
Aug 3 – Received check from Fox Co. (full balance outstanding) for July sale (less the 2% discount).
Aug 3 – Sent check No. 757 for $4,900 to Able Co. in full payment of outstanding balance from the prior month.
Aug 4 – Sold merchandise on credit to Coe Co. for $5,000, terms 2/10, n/30, Invoice No. 245. Cost of goods sold is $2,100.
Aug 5 – Purchased merchandise from Baker Co. for $6,000, terms 1/15, n/30.
Aug 8- Purchased office supplies on credit from Echo Co. for $500, terms n/30.
Aug 9 – Returned merchandise costing $300 to Able Co. from August 1 purchase.
Aug 11 – Paid Able Co. for the August 1 purchase, (less discount) Check No. 758.
Aug 13 – Received cash payment from Coe Co. for August 4 sale (less discount).
Aug 15 – Paid August rent of $1,000, Check No. 759.
Aug 15 – Sold merchandise on credit to Fox Co. for $5,000, terms 2/10, n/30, Invoice No. 246. Cost of goods sold is $2,400.
Aug 18 – Sold merchandise on credit to Coe Co. for $4,000, terms 2/10, n/30, Invoice No. 247. Cost of goods sold is $2,200.
Aug 18 – Received $2,400 cash for the $2,000 note receivable from Fox Corp. (included $400 Interest).
Aug 19 – Sold merchandise on credit to Thomas Co. for $6,000, terms 2/10, n/30, Invoice No. 248. Cost of the goods sold was $3,700.
Aug 20 – Made cash payment in full to Baker Co. for the August 5 purchase, Check No. 760.
Aug 20 – Sold merchandise on credit to Fox Co. for $4,000, terms 2/10, n/30, Invoice No. 249. Cost of the goods sold is $2,000.
Aug 22 – Sold merchandise on credit to Thomas Co. for $4,000, terms 2/10, n/30, Invoice No. 250. Cost of goods sold is $2,200.
Aug 25 – Received full payment less discount from Fox Co. for August 15 sale.
Aug 28 – Recorded cash sales for the month $7,000. The cost of the goods sold was $3,000.
Aug 29 – Paid Telephone Bill for August of $800, Check No. 761. Paid Salaries of $500 each to 3 employees Checks 762, 763, 764.
Aug 30 – Issued Check #765 for $5,200 ($5,000 note payable and $200 interest expense)
Record the above transactions in the appropriate special journals (General Journal, Purchases Journal, Cash Disbursements Journal, Sales Journal, Cash Receipts Journal). AND Post to ledgers and prepare the trial balances.
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