The following selected transactions were completed by Amsterdam Supply Co., whic
ID: 2461953 • Letter: T
Question
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.
Record on page 10 of the journal
Mar.
2
Sold merchandise on account to Equinox Co., $19,300, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $14,120.
3
Sold merchandise for $12,200 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $6,930.
4
Sold merchandise on account to Empire Co., $58,930, terms FOB shipping point, n/eom. The cost of merchandise sold was $32,340.
5
Sold merchandise for $30,400 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $20,610.
12
Received check for amount due from Equinox Co. for sale on March 2.
14
Sold merchandise to customers who used American Express cards, $15,040. The cost of merchandise sold was $7,570.
16
Sold merchandise on account to Targhee Co., $29,900, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $17,360.
18
Issued credit memo for $4,900 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,670.
Record on page 11 of the journal
19
Sold merchandise on account to Vista Co., $8,150, terms FOB shipping point, 2/10, n/30. The cost of merchandise sold was $4,850. In addition, Amsterdam Supply Co. immediately paid $65 in freight charges and added this to the invoice sent.
26
Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
28
Received check for amount due from Vista Co. for sale of March 19.
31
Received check for amount due from Empire Co. for sale of March 4.
31
Paid Fleetwood Delivery Service $5,470 for merchandise delivered during March to customers under shipping terms of FOB destination.
Apr.
3
Paid City Bank $830 for service fees for handling MasterCard and American Express sales during March.
15
Paid $6,048 to state sales tax division for taxes owed on sales.
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Amsterdam Supply Co.
General Ledger
ASSETS
110
Cash
121
Accounts Receivable-Empire Co.
122
Accounts Receivable-Equinox Co.
123
Accounts Receivable-Targhee Co.
124
Accounts Receivable-Vista 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
210
Accounts Payable
216
Salaries Payable
218
Sales Tax Payable
219
Customer Refunds Payable
221
Notes Payable
EQUITY
310
Owner, Capital
311
Owner, Drawing
312
Income Summary
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles. Scroll down for page 11 of the journal.
Mar.
2
Sold merchandise on account to Equinox Co., $19,300, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $14,120.
3
Sold merchandise for $12,200 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $6,930.
4
Sold merchandise on account to Empire Co., $58,930, terms FOB shipping point, n/eom. The cost of merchandise sold was $32,340.
5
Sold merchandise for $30,400 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $20,610.
12
Received check for amount due from Equinox Co. for sale on March 2.
14
Sold merchandise to customers who used American Express cards, $15,040. The cost of merchandise sold was $7,570.
16
Sold merchandise on account to Targhee Co., $29,900, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $17,360.
18
Issued credit memo for $4,900 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,670.
Explanation / Answer
Date::::::::::::::::::::::::Particulars:::::::::::::::::::::::::::::::::::::::::::LF::::::::::::::::::Debit:::::::::::Credit
03/02/yy:::::::::::::Accounts Receivable A/c Dr ::::::::::::::::::::N/A::::::::::::::::$19,300
::::::::::::::::::::::To Equinox Co A/c ::::::::::::::::::::::N/A:::::::::::::::::::::::::::::$19,300
( Being sold goods for credit has recorded)
03/02/yy:::::::::::::::Cost of merchandise sold :::::::::::::::::::::::::N/A::::::::::::::::$14,120
::::::::::::::::To merchandise Inventory A/c:::::::::::: ::N/A::::::::::::::::::::::::::::::::::$14,120
(Being Cost of Good sold has recorded)
______________________________________________________________________________
03/03/yy:::::::::::::Cash A/c::: ::::::::::::::::::::::::::::: ::::::::::N/A:::::::::::::::::::$12,932
::::::::::::::::::::::: To Sales Tax A/c:::::::::::::::::::::::::::N/A::::::::::::::::::::::::::::::::::::::$732
::::::::::::::::::::::::: To Sales A/c :::::::::::::::::::::::::::N/A::::::::::::::::::::::::::::::::::::::$12,200
(Being cash sales has recorded)($12,200* 6/100=$732)
03/03/yy:::::::::::::::Cost of merchandise sold ::::::::::::::::::::N/A:::::::::::::::::::$6,930
::::::::::::::::To merchandise Inventory A/c:::::::::::N/A::::::::::::::::::::::::::::::::::::::$6,930
(Being Cost of Good sold has recorded)
________________________________________________________________________
03/04/yy:::::::::::::Accounts Receivable A/c Dr :::::::::::::::::::N/A::::::::::::::$58,930
::::::::::::::::::::::To Empire Co A/c ::::::::::::::::::::N/A:::::::::::::::::::::::::$58,930
( Being sold goods for credit has recorded)
03/04/yy:::::::::::::::Cost of merchandise sold :::::::::::::::::::::N/A::::::::::::::::::$32,340
::::::::::::::::To merchandise Inventory A/c::::::::::::N/A::::::::::::::::::::::::::::::$32,340
(Being Cost of Good sold has recorded)
________________________________________________________________________________
03/05/yy:::::::::::::Debit Card/cash A/c Dr :::::::::::::::::::::::::::N/A::::::::::::::$32,224
To sales A/c:::::::::::::::::::::::::::::::::::::::N/A::::::::::::::::::::::::::::::$30,400
To Sales tax payable a/c ::::::::::::::;::::::N/A:::::::::::::::::::::::::::::$1,824
( Being sold goods for credit has recorded)
03/05/yy:::::::::::::::Cost of merchandise sold :::::::::::::::::::::::N/A:::::::::::::::$20,610.
::::::::::::::::To merchandise Inventory A/c::::::::::::::N/A:::::::::::::::::::::::::::::::$20,610
(Being Cost of Good sold has recorded)
___________________________________________________________________________________
03/12/yy:::::::::::Cash A/c Dr ::::::::::::::::::::::::::::::::::::::::::N/A::::::::::::::::::::::::$19,107
::::::::::::::::::::::::Sales Discounts A/c Dr ::::::::::::::::::::::::::N/A:::::::::::::::::;::::::::::$193
:::::::::::::::::::::::::::::To accounts receivanle Equinox Co N/A::::::::::::::::::::::::::::::::::::::: $19,300
(Being cash received from Equinox Co )
____________________________________________________________________________
03/14//yy:::::::::::::CashA/c DR :::::::::::::::::::::::::::::::::N/A::::::::::::::::::::::$15,040
To sales A/c::::::::::::::::::::::::::::::N/A::::::::::::::::::::::::::::::::::$15,040
(Being cash sales has recorded)
03/14/yy:::::::::::::::Cost of merchandise sold ::::::::::::N/A:::::::::::::::::::::::::$7,570
::::::::::::::::To merchandise Inventory A/c::::N/A:::::::::::::::::::::::::::::::::::::$7,570
(Being Cost of Good sold has recorded)
_______________________________________________________________________________
03/16/yy:::::::::::::::::::Accounts Receivable TargheeA/c Dr ::::::N/A::::::::::::::$29,900
:::::::::::::::::: To sales A/c:::::::::::::::::::::::::::::::::N/A::::::::::::::::::::::::::$29,900
(Being credit sales has recorded)
03/16/yy:::::::::::::::Cost of merchandise sold ::::::::::::::::::::::::N/A::::::::::::::::::$17,360
::::::::::::::::To merchandise Inventory A/c::::::::::::::N/A:::::::::::::::::::::::::::::::$17,360
(Being Cost of Good sold has recorded)
__________________________________________________________________________________
03/18/yy:::::::::::::::::Sales Return A/c Dr::::::::::::::::::::::::::::::::::N/A::::::::::::::::::::$4,900
:::::::::::::::::::::::::::::::::::::To Accounts Receivable A/c:::::::::::::::N/A:::::::::::::::::::::::::::::::$4,900
( sales return from Targhee Co)
03/1/yy:::::::::::::::Cost of merchandise sold :::::::::::::::::::::::::::::N/A::::::::::::::::::$2,670
::::::::::::::::To merchandise Inventory A/c::::::::::::::::N/A:::::::::::::::::::::::::::::::::$2,670
(Being Cost of Good sold return has recorded)
___________________________________________________________________________
03/19/2016::::::::Accounts Receivable Vista Co A/c Dr:::::::::::N/A::::::::::::::::::::$8,150
Frieght Charges A/c Dr:::::::::::::::::::::::::::::N/A::::::::::::::::::::::::$65
::::::::::::::::::::::::::::::To sales A/c::::::::::::::::::::::::::::::::::::::::N/A::::::::::::::::::::::::::::$8,215
(Being credit sales has recorded)
__________________________________________________________________________
03/26/yy:::::::::::::Cash A/c Dr :::::::::::::::::::::::::::::N/A:::::::::::::::::::::$24,750
::::::::::::::::::::::::Sales Discounts A/c Dr :::::::::::::::N/A:::::::::::::::::::::::::$250
:::::::::::::::::::::::::To accounts receivable A/c ::::N/A ::::::::::::::::::::::::::::::::::::: $8,215
(Being cash received from Targhee has recorded)
___________________________________________________________________________
03/28/yy:::::::::::::Cash A/c Dr :::::::::::::::::::::::::::::N/A:::::::::::::::::::::$8,050.70
::::::::::::::::::::::::::Sales Discounts A/c Dr :::::::::::::::N/A::::::::::::::::::::::$164.30
:::::::::::::::::::::::::To accounts receivable Vista Co A/c::::::::::::::::::::::::::::::::: $8,215
(Being cash received from Vista Co has recorded)
__________________________________________________________________________
03/31/yy:::::::::::::Cash A/c Dr :::::::::::::::::::::::::::::N/A:::::::::::::::::::::$58,930
:::::::::::::::::::::::To accounts receivable Empire CoN/A :::::::::::::::::::::::::::::::: $58,930
(Being cash received from Empire Co has recorded)
____________________________________________________________________________
03/31/yy:::::::::Accounts payable A/c ( Fleetwood Delivery Service)Dr :::::::::$5,470
:::::::::::::::::::To Cash A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$5,470
(Being cash paid for expenses has recorded)
___________________________________________________________________________
04/03/yy ::::::::::::: Citi bank A/c Dr::::::::::::::::::::::N/A::::::::::::::::::$830:::::::::::::::
To Cash A/c :::::::::::::::::::N/A:::::::::::::::::::::::::::::::::::::::::$830
(Being cash paid for expenses has recorded)
________________________________________________________________________
04/05/yy::::::::::Sales Tax payable A/c::::::::::::::N/A:::::::::::::::::$6,048
To Cash A/c :::::::::::::::::::N/A::::::::::::::::::::::::::::::$6,048
(Sales tax paid has recorded)
_______________________________________________________________________