ID: B Ray Polo owns a variety store called Stars Forever. The following are purc
ID: 2332987 • Letter: I
Question
ID: B Ray Polo owns a variety store called Stars Forever. The following are purchases of inventory, returns, and discounts for the month of March 14. Mar 2 Purchased $2,000 of merchandise from Sundance Furniture on account, Invoice 2177, with a 1% trade discount. Credit terms 2/10, n/30. Paid rent for the month of March. Issued Check 145 for $2,100 2 6 Purchased merchandise from Taylor Supplies. Issued Check 146 for $1,650. 8 Purchased$2.400 ofmerchandise from Fuentes Coon BCount, Invoic e 2178 Credit terms 1/15, n/30 Returned $400 of the merchandise from Fuentes Co. Received Credit Memorandum 11 Paid Invoice 2177 to Sundance Furniture. Issued Check 147 for $1,940.40 Purchased $3,700 of merchandise (included $150 freight) from Sky Divers Inc. on account, Invoice 2179. Credit terms 1/10, n/30, FOB shipping point. Purchased S210 of office supplies from Willow Inc. on account, Invoice 2180 Credit terms 2/10, n/30. Paid Invoice 2178 to Fuentes Co. Issued Check 148 for $1,980 Paid Invoice 2179 to Sky Divers Inc. Issued Check 149 for $3,700 Purchased $1,745 of merchandise from Sundance Furniture on account, Invoice 2181. Credit terms 2/10, n/30 11 12 13 16 23 26 27 A partial chart of accounts is as follows (assume Cash has an existing balance of $20,000): 101 Cash 142 Office Supplies 202 Accounts Payable 501 Purchases 501.1 501.2 502 521 Purchases Returns and Allowances Purchases Discounts Freight-In Rent Expense Required: 1. Journalize the above transactions. 2. Post to the proper general ledger and accounts payable ledger accounts. Remember to use posting references Prepare a schedule of accounts payable. 3. PURCHASES JOURNAL Purchases Debit/ Invoice No. Post Accounts Payable Ref Date From Whom Purchased Credit 17Explanation / Answer
1) Journal Entries-
Date Particulars Debit Credit Mar-02 Purchases A/c 2000 Sundance Furniture A/c 2000 Mar-02 Rent Expense A/c 2100 Bank A/c 2100 Mar-06 Purchases A/c 1650 Bank A/c 1650 Mar-08 Purchases A/c 2400 Fuentes Co A/c 2400 Mar-11 Fuentes Co A/c 400 Purchase Return 400 Mar-12 Sundance Furniture A/c 1940.4 Bank A/c 1940.4 Mar-13 Purchases A/c 3700 Sky Drivers Inc A/c 3700 Mar-16 Office Supplies A/c 210 Willows A/c 210 Mar-23 Fuentes Co A/c 1980 Bank A/c 1980 Mar-26 Sky Drivers Inc A/c 3700 Bank A/c 3700 Mar-27 Purchases A/c 1745 Sundance Furniture A/c 1745