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Reined company \'s chart of accounts includes the following select accounts cash

ID: 2471505 • Letter: R

Question

Reined company 's chart of accounts includes the following select accounts cash inventory prepaid insurance Equipment Accounts patable Owner's Drawings Cost Goods Sold on october 1, the accounts payments ledger of Rosineke .Company showed the following balancwe: Uggle Company 42,700,orr co ,$2.500, Rosenthal co $14,800,800 and cleverger compoany $3,700.The october transation involing the payment of cash as folloes oct purchased merchandiese, check no. 63,$300 purchased equipment, check no ,64,$800 paid uggle company balance due of $2,700,iess 2 degree discount, check no 65, $2,646 purchased merchandise, check no 66$2,550. paid Rosenthal Co .balance due of $1,800 check no.67. paid orr Co in full for invoice no .610,$2000 less 2 degree cash discount, check no.69,$1,960. paid Clevenger company in full for invoice no.264,$2,500,check no . 70.

Explanation / Answer

a)Journal Enteries:-

Oct-1

Debit Inventory = 300

Credit Cash = 300

..

Oct-3

Debit Equipment = 800

Credit Cash = 800

..

Oct-5

Debit Uggla Company = 2700

Credit CAsh = 2646

Credit Discount Received = 54

..

Oct-10

Debit Inventory = 2550

Credit Cash = 2550

..

Oct-15

Debit Rosenthal Co. = 1800

Credit Cash = 1800

..

Oct-16

Debit Owner's Drawings = 400

Credit Cash = 400

..

Oct-19

Debit Orr Co. = 2000

Credit Cash = 1960

Credit Discount Received = 1960

..

OCt-29

Debit Clevenger Co = 2500

Credit Cash = 2500