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Robbins, Co. had the following transactions occur in May:

03-May Purchased $3200 of merchandise on credit from Hearst Co, terms n/20.
6 Sold merchandise costing $640 on credit to P. Biatti for $900, subject to an $18 discount if paid by the end of May.
9 Borrowed $3500 cash by signing a note payable to the bank.
13 K. Robbins, the new owner contributed $8500 cash to the business.
15 Sold merchandise costing $150 to S. Boyd for $285 cash.
17 Paid Hearst Co $3200 cash for merchandise purchased on May 3.
22 Received $882 cash from P. Biatti in payment of the May 6 transaction.
26 Paid salaries of $1970 in cash.

Prepare a cash receipts journal like the one in Exhibit 7.7. Journalize the May transactions that must be
recorded in the cash receipts journal.
Part 1 – Special Journals (8 points)
Encinitas Electronics uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements
journal and a general journal as illustrated in chapter 7. Encinitas recently completed the following transactions
a through h. Identify the journal in which each transaction should be recorded.

Sold merchandise for cash.
Paid an employee’s salary in cash.
Purchased merchandise on credit.
Purchased shop supplies on credit.
Sold merchandise on credit.
Paid cash to a creditor.
Purchased inventory for cash.
Borrowed cash from the bank.

Part 2 – Sales Journal (8 points)
Falcon Company had the following transactions occur in June:

01-Jun Sold merchandise costing $300 to S. Hagar for $550 cash, invoice #2142.
4 Purchased $2,000 of merchandise on credit from Marrs, Corp.
6 Sold merchandise costing $600 to J. Berry for $950, terms 2/10, n/30, invoice #2143.
7 Borrowed $3400 cash by signing a note payable to the bank.
11 Sold merchandise costing $250 to R. Graves for $500, terms n/30, invoice #2144.
13 Received $931 cash from J. Berry in payment of the June 6th sale.
17 Sold used store equipment for $630 cash to Molnar, Inc.
21 Sold merchandise costing $470 to E. Burton for $750, terms n/30, invoice #2145.

Required: Prepare a sales journal like the one in Exhibit 7.5. Journalize the June transactions that
must be recorded in the sales journal.
Part 3 – Cash Receipts Journal (14 points)