Essay About Date Account Titles And Shares Of Zeus Inc

Accounting
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Backflip Co.
GENERAL JOURNAL
Page 1
Account Titles and Explanations
Debits
Credits
Rent Expense – Office Space
Rent Expense – Selling Space
2,720
Cash
3,400
Issued Chq #3410 in payment of rent
Accounts Receivable – Essex Company
6,800
Sales
6,800
Sold Merchandise under terms of 2/10, net 30
Cost of Goods Sold
3,960
Merchandise Inventory
3,960
To record cost of goods actually sold
Sales Returns and Allowances
Accounts Receivable – Nabors Inc.
To record credit note issued to Nabors Inc for defective merchandise
Merchandise Inventory
Cost of Goods Sold
Returned goods to inventory
Cost of Goods Sold
Merchandise Inventory
To record discarded merchandise
Accounts Payable – Parkay Products
Merchandise Inventory
To record Credit Memo received
Merchandise Inventory
39,125
Store Supplies
Office Supplies
Accounts Payable – Thompson Supply Co.
39,841
Purchased Merchandise on Credit, terms N/10, EOM
Backflip Co
GENERAL JOURNAL
Page 2
Account Titles and Explanations
Debits
Credits
4,508
Sales Discount
Accounts Receivable – Nabors Inc.
4,600
Payment received within discount period – 2% disc. Taken
Temporary Investments
3,600
Cash
3,600
400 shares of Zeus Inc purchased – chq #3411
Accounts Payable – Parkay Products
6,350
Merchandise Inventory
Cash
6,223
Paid for purchase within terms, 2% disc. Taken – chq #3412
Store Supplies
To record sale of store supplies
Office Equipment
4,125
Accounts Payable – Thompson Supply Co.
4,125
Purchased merchandise on credit, n/10 EOM
6,664
Sales Discount
Accounts Receivable – Essex Company
6,800
Payment received within discount period, 2% disc. Taken
Merchandise Inventory
9,000
Accounts Payable – Gale Inc.
9,000
Purchased merchandise on credit, 2/10, n/30
Accounts Payable – Thompson Supply Co.
Office Equipment
To record Credit Memo received
Backflip Co
GENERAL JOURNAL
Page 3
Account Titles and Explanations
Debits
Credits
Sales Salaries Expense
5,720
Office Salaries Expense
3,850
Cash
9,570
Paid Salaries – issued chq. #3413
61,220
Sales
61,220
To record cash sales
Cost of Goods Sold
34,498
Merchandise Inventory
34,498
To record cost of goods actually sold
Accounts Receivable – Essex Company
3,490
Sales
3,490
Sold Merchandise under terms of 2/10, net 30
Cost of Goods Sold
2,099