Problem 7-4A Selected accounts from the chart of accounts of Mercer Company are
ID: 2603163 • Letter: P
Question
Problem 7-4A
Selected accounts from the chart of accounts of Mercer Company are shown below.
The cost of all merchandise sold was 60% of the sales price. During January, Mercer completed the following transactions.
Mercer Company uses the following journals.
Using the selected accounts provided:
Record and Post the January transactions in the appropriate journal noted. Foot and cross-foot all special journals. (Record entries in the order displayed in the problem statement.)
PLEASE RECORD THE SALES JOURNAL, PURCHASES JOURNAL, GENERAL JOURNAL, CASH RECEIPTS JOURNAL, CASH PAYMENTS JOURNAL
101 Cash 401 Sales Revenue 112 Accounts Receivable 412 Sales Returns and Allowances 120 Inventory 414 Sales Discounts 126 Supplies 505 Cost of Goods Sold 157 Equipment 726 Salaries and Wages Expense 201 Accounts PayableExplanation / Answer
(a) Sales journal S1 Date Jan Account Debited Invoice No. Ref. Accounts Receivable Dr. Sales Cr. Cost Of Goods sold Dr. Merchandise Inventory Cr. 4 Wheeler 371 ü $ 5,340.00 $ 3,204.00 9 Linton Corp. 372 ü $ 6,800.00 $ 4,080.00 17 Delaney Co. 373 ü $ 2,190.00 $ 1,314.00 31 Wheeler 374 ü $ 9,740.00 $ 5,844.00 $ 24,070.00 $ 14,442.00 (b) Purchases Journal P1 Date Jan Account Debited Ref. Merchandise Inventory Dr. Account Payable Cr. 3 Gallagher Co. ü $ 10,200.00 8 Phegley Co ü $ 5,100.00 11 Cora Co ü $ 37,600.00 23 Gallagher Co. ü $ 7,300.00 24 Atchison Corp. ü $ 5,070.00 $ 65,270.00 (c) General Journal G1 Date Jan Accounts And Explanation Ref. Debit Credit 5 Accounts Payable - Gallagher Co............. 201/ü $ 300.00 Merchandise Inventory.......... 120 $ 300.00 19 Equipment......... 157 $ 5,270.00 Accounts Payable - Dozier Corp. ............ 201/ü $ 5,270.00 (d) Cash Receipts Journal CR1 Date Jan Account Debited Ref Cash Dr. Sales Discount Dr. Accounts Receivable Cr. Sales Cr. Other Accounts Cr. Cost Of Goods sold Dr. Merchandise Inventory Cr. 6 $ 3,700.00 $ 3,700.00 $ 2,220.00 13 $ 5,400.00 $ 5,400.00 $ 3,240.00 15 Linton Corp. ü $ 6,732.00 $ 68.00 $ 6,800.00 17 Wheeler ü $ 5,340.00 $ 5,340.00 20 $ 2,700.00 $ 2,700.00 $ 1,620.00 27 $ 4,340.00 $ 4,340.00 $ 2,604.00 30 Delaney Co. ü $ 2,190.00 $ 2,190.00 $ 30,402.00 $ 68.00 $ 14,330.00 $ 16,140.00 $ - $ 9,684.00 (e) Cash Payment Journal CP1 Date Jan Account Debited Ref Other Accounts Dr. Accounts Receivable Dr. Merchandise Inventory Cr. Cash Cr. 4 supplies 126 $ 70.00 $ 70.00 13 Gallagher Co. ü $ 9,900.00 $ 198.00 $ 9,702.00 15 Salaries Expense 726 $ 14,200.00 $ 14,200.00 20 Phegley Co. ü $ 5,100.00 $ 102.00 $ 4,998.00 31 Salaries Expense 726 $ 12,350.00 $ 12,350.00 $ 26,620.00 $ 15,000.00 $ 300.00 $ 41,320.00