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