Accounting Information Systems

Selected accounts from the chart of accounts of Mercer Company are shown below
101 Cash
112 Accounts Receivable
120 Inventory
126 Supplies
157 Equipment
201 Accounts Payable
401 Sales
412 Sales Returns and Allowances
414 Sales Discounts
505 Cost of Goods Sold
726 Salaries and Wages Expense

The cost of all merchandise sold was 60% of the sales price. During January, Mercer completed the following transactions.

Jan. 3Purchased merchandise on account to from Gallagher Co. $9,000.
4Purchased supplies for cash $80.
4Sold merchandise on account to Wheeler $5,250, invoice no. 371, terms 1/10, n/30
5Returned $300 worth of damaged goods purchased on account from Gallagher Co. on January 3.
6Made cash sales for the week totaling $3,150.
8Purchased merchandise on account from Phegle Co. $4,500.
9Sold merchandise on account to Linton Corp. $5,400, Invoice no. 372, terms 1/10, n/30.
11Purchased merchandise on account from Cora Co. $3,700.
13Paid in full Gallagher Co. on account less a 2% discount.
13Made cash sales for the week totaling $6,260.
15Received payment from Linton Corp. for invoice no. 372.
15Paid semi-monthly salaries of $14,300 to employees.
17Received payment from Wheeler for invoice no. 371.
17Sold merchandise on account to Delaney Co. $1,200, invoice no. 373, terms 1/10, n/30.
19Purchased equipment on account from Dozier Corp. $5,500.
20 Cash Sales for the week totaled $3,200.
20Paid in full Phegley Co. on account less a 2% discount.
23Purchased merchandise on account from Gallagher Co. $7,800.
24Purchased merchandise on account from Atchison Corp. $5,100.
27Made cash sales for the week totaling $4,230.
30Received payment from Delaney Co. for invoice no. 373.
31Paid semi-monthly salaries of $13,200 to employees.
31Sold merchandise on account to wheeler $9,330, invoice no. 374, terms 1/10, n/30
Mercer Company uses the following journals
  1. Sales journal.
  2. Single-column purchases journal.
  3. Cash receipts journal with columns for cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr., Other Accounts Cr., Cost of Goods Sold Dr., and Inventory Cr.
  4. Cash payments journal with columns for Other Accounts Cr., Accounts Payable Dr., Inventory Cr., and Cash Cr.
  5. General journal.


Using the selected accounts provided:
  1. Record the January transactions in the appropriate journal noted
  2. Foot and cross-foot all special journals.
  3. Show how postings would be made by placing ledger account numbers and check-marks as needed in the journals. (Actual posting to ledger accounts is not required.)


Mercer Company
Mercer Company
Mercer Company
Mercer Company
Mercer Company
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