Santiago Co.uses special journals and a general journal. The following transactions occurred during May 2019.
| May 1 | R. Santiago invested $40,000 cash in the business. |
| 2 | Sold merchandise to Lawrie Co. for $6,300 cash. The cost of the merchandise sold was $4,200. |
| 3 | Purchased merchandise for $7,700 from J. Moskos using check no. 101. |
| 14 | Paid salary to H. Rivera $700 by issuing check no. 102. |
| 16 | Sold merchandise on account to K. Stanton for $900, terms n/30. The cost of the merchandise sold was $630. |
| 22 | A check of $9,000 is received from M. Mangini in full for invoice 101; no discount given. |
Instructions
- Prepare a multiple-column cash receipts journal and a multiple-column cash payments journal. (Use page 1 for each journal.)
- Record the transaction(s) for May that should be journalized in the cash receipts journal and cash payments journal.
Solution
a. and b.
Santiago Co.
Santiago Co.
Note: Credit Sales on May 16 is not included on the Cash receipts journal and cash payment journal.