Posted: December 18th, 2024

Journalize the entries to record the transactions of Amsterdam Supply Co.|A/c mathematics

Journalize the entries to record the transactions of Amsterdam Supply Co.|A/c mathematics

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.

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Journalize the entries to record the transactions of Amsterdam Supply Co.

Refer to the Chart of Accounts for exact wording of account titles.

Mar 2: Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,300.

Mar 3: Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,000.

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Mar 4: Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200.

Mar 5: Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $19,400.

Mar 12: Received check for amount due from Equinox Co. for sale on March 2.

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Mar 14: Sold merchandise to customers who used American Express cards, $13,700. The cost of the goods sold was $8,350.

Mar 16: Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $16,000.

Mar 18: Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900.

Mar19: Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of the goods sold was $5,000.

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Mar 26: Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.

Mar 28: Received check for amount due from Vista Co. for sale of March 19.

Mar 31: Received check for amount due from Empire Co. for sale of March 4.

Mar 31:Paid Fleetwood Delivery Service $5,600 for merchandise delivered during March to customers under shipping terms of FOB destination.

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Apr 3: Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March.

Apr 15: Paid $6,544 to state sales tax division for taxes owed on sales.

Refer to the Chart of Accounts for exact wording of account titles.

ASSETS

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110Cash

121Accounts Receivable-Empire Co.

122Accounts Receivable-Equinox Co.

123Accounts Receivable-Targhee Co

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124Accounts Receivable-Vista Co.

125Notes Receivable130Inventory

131Estimated Returns Inventory

140Office Supplies

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141Store Supplies

142Prepaid Insurance

180Land

192Store Equipment

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193Accumulated Depreciation-Store Equipment

194Office Equipment195Accumulated Depreciation-Office Equipment

LIABILITIES

210Accounts Payable

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216Salaries Payable

218Sales Tax Payable

219Customer Refunds Payable

221Notes Payable

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310Common Stock

311Retained Earnings

312Dividends

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313Income Summary

REVENUE

410Sales

610Interest Revenue

EXPENSES

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510Cost of Goods Sold

521Delivery Expense

522Advertising Expense

524Depreciation Expense-Store Equipment

525Depreciation Expense-Office Equipment

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526Salaries Expense

531Rent Expense

533Insurance Expense

534Store Supplies Expense

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535Office Supplies Expense

536Credit Card Expense

539Miscellaneous Expense

710Interest Expense

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