Please fill out the table below with the given information. The following were s
ID: 2427630 • Letter: P
Question
Please fill out the table below with the given information.
The following were selected from among the transactions completed by Babcock Company during November of the current year:
Nov.
3
Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
4
Sold merchandise for cash, $37,680. The cost of the merchandise sold was $22,600.
5
Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.
6
Returned $13,500 ($18,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
8
Sold merchandise on account to Quinn Co., $15,600 with terms n/15. The cost of the merchandise sold was $9,400.
13
Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14
Sold merchandise on VISA, $236,000. The cost of the merchandise sold was $140,000.
15
Paid Papoose Creek Co. on account for purchase of November 5.
23
Received cash on account from sale of November 8 to Quinn Co.
24
Sold merchandise on account to Rabel Co., $56,900, terms 1/10, n/30. The cost of the merchandise sold was $34,000.
28
Paid VISA service fee of $3,540.
30
Paid Quinn Co. a cash refund of $6,000 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,300.
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Babcock Company
General Ledger
ASSETS
110
Cash
121
Accounts Receivable-Quinn Co.
122
Accounts Receivable-Rabel Co.
125
Notes Receivable
130
Merchandise Inventory
131
Estimated Returns Inventory
140
Office Supplies
141
Store Supplies
142
Prepaid Insurance
180
Land
192
Store Equipment
193
Accumulated Depreciation-Store Equipment
194
Office Equipment
195
Accumulated Depreciation-Office Equipment
LIABILITIES
211
Accounts Payable-Moonlight Co.
212
Accounts Payable-Papoose Creek Co.
216
Salaries Payable
218
Sales Tax Payable
219
Customer Refunds Payable
221
Notes Payable
EQUITY
310
Common Stock
311
Retained Earnings
312
Dividends
313
Income Summary
REVENUE
410
Sales
610
Interest Revenue
EXPENSES
510
Cost of Merchandise Sold
521
Delivery Expense
522
Advertising Expense
524
Depreciation Expense-Store Equipment
525
Depreciation Expense-Office Equipment
526
Salaries Expense
531
Rent Expense
533
Insurance Expense
534
Store Supplies Expense
535
Office Supplies Expense
536
Credit Card Expense
539
Miscellaneous Expense
710
Interest Expense
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 10
JOURNAL
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Nov.
3
Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
4
Sold merchandise for cash, $37,680. The cost of the merchandise sold was $22,600.
5
Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.
6
Returned $13,500 ($18,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
8
Sold merchandise on account to Quinn Co., $15,600 with terms n/15. The cost of the merchandise sold was $9,400.
13
Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14
Sold merchandise on VISA, $236,000. The cost of the merchandise sold was $140,000.
15
Paid Papoose Creek Co. on account for purchase of November 5.
23
Received cash on account from sale of November 8 to Quinn Co.
24
Sold merchandise on account to Rabel Co., $56,900, terms 1/10, n/30. The cost of the merchandise sold was $34,000.
28
Paid VISA service fee of $3,540.
30
Paid Quinn Co. a cash refund of $6,000 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,300.
Explanation / Answer
DATE DESCRIPTION/Account Titles POST. REF. DEBIT CREDIT 1 Nov,3 Merchandise Inventory Purchase of merchandise on account net of trade discount $ 63,750 Accounts Payable-Moonlight co. $ 63,750 2 Nov,4 Cash Sold merchandise for cash $ 37,680 Sales $ 37,680 Nov,4 cost of merchandise sold cost of merchandise sold $ 22,600 Merchandise Inventory $ 22,600 3 Nov,5 Merchandise Inventory Purchase of merchandise on account net with freight charges $ 48,310 Accounts Payable-Papoose Creek co $ 48,310 4 Nov,6 Accounts Payable-Moonlight co. Purchase returns of merchandise inventory $ 13,500 Merchandise Inventory $ 13,500 5 Nov,8 Accounts Receivable-Quinn Co. Sale of mechandise on account $ 15,600 Sales $ 15,600 Nov,8 cost of merchandise sold cost of merchandise sold $ 9,400 Merchandise inventory $ 9,400 6 Nov,13 Accounts Payable-Moonlight co. Paid moonlight co for purchases less returns less cash discount (63,750 - 13,500 -1,005) $ 49,245 Cash $ 49,245 7 Nov,14 Cash Sold Merchandise on Visa $ 2,36,000 Sales $ 2,36,000 Nov,14 Cost of Merchandise sold Cost of merchandise sold $ 1,40,000 Merchandise inventory $ 1,40,000 8 Nov,15 Accounts Payable-Papoose Creek co Paid Papoose Creek co net of discount $ 47,344 Cash $ 47,344 9 Nov,23 cash Cash received on sale on account $ 15,600 Accounts Receivable-Quinn Co. $ 15,600 10 Nov,24 Accounts Receivable-Rabel co Sales on account $ 56,900 sales $ 56,900 Nov,24 cost of merchandise sold Cost merchandise sold $ 34,000 Merchandise inventory $ 34,000 11 Nov,28 Credit card expenses Visa service fee $ 3,540 Cash $ 3,540 12 Nov,30 Sales cash paid for returned merchandise $ 6,000 Cash $ 6,000 Nov,30 Merchandise inventory Cost of returned merchandise $ 3,300 Cost of merchandise sold $ 3,300