Problem 74A Selected accounts from the chart of accounts of

Problem 7-4A

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.

Mercer Company uses the following journals.

Using the selected accounts provided:

Record and Post the January transactions in the appropriate journal noted. Foot and cross-foot all special journals. (Record entries in the order displayed in the problem statement.)

PLEASE RECORD THE SALES JOURNAL, PURCHASES JOURNAL, GENERAL JOURNAL, CASH RECEIPTS JOURNAL, CASH PAYMENTS JOURNAL

101		Cash		401		Sales Revenue
112		Accounts Receivable		412		Sales Returns and Allowances
120		Inventory		414		Sales Discounts
126		Supplies		505		Cost of Goods Sold
157		Equipment		726		Salaries and Wages Expense
201		Accounts Payable

Solution

(a) Sales journal S1 Date           Jan Account Debited Invoice No. Ref. Accounts Receivable Dr. Sales Cr. Cost Of Goods sold Dr. Merchandise Inventory Cr. 4 Wheeler 371 ü $           5,340.00 $              3,204.00 9 Linton Corp. 372 ü $           6,800.00 $              4,080.00 17 Delaney Co. 373 ü $           2,190.00 $              1,314.00 31 Wheeler 374 ü $           9,740.00 $              5,844.00 $        24,070.00 $            14,442.00 (b) Purchases Journal P1 Date           Jan Account Debited Ref. Merchandise Inventory Dr.                                     Account Payable Cr. 3 Gallagher Co. ü $                                             10,200.00 8 Phegley Co ü $                                               5,100.00 11 Cora Co ü $                                             37,600.00 23 Gallagher Co. ü $                                               7,300.00 24 Atchison Corp. ü $                                               5,070.00 $                                             65,270.00 (c) General Journal G1 Date           Jan Accounts And Explanation Ref. Debit Credit 5 Accounts Payable - Gallagher Co............. 201/ü $              300.00 Merchandise Inventory.......... 120 $                 300.00 19 Equipment......... 157 $           5,270.00 Accounts Payable - Dozier Corp. ............ 201/ü $              5,270.00 (d) Cash Receipts Journal CR1 Date           Jan Account Debited Ref Cash Dr. Sales Discount Dr. Accounts Receivable Cr. Sales Cr. Other Accounts Cr. Cost Of Goods sold Dr. Merchandise Inventory Cr. 6 $     3,700.00 $      3,700.00 $                       2,220.00 13 $     5,400.00 $      5,400.00 $                       3,240.00 15 Linton Corp. ü $     6,732.00 $                68.00 $              6,800.00 17 Wheeler ü $     5,340.00 $              5,340.00 20 $     2,700.00 $      2,700.00 $                       1,620.00 27 $     4,340.00 $      4,340.00 $                       2,604.00 30 Delaney Co. ü $     2,190.00 $              2,190.00 $ 30,402.00 $                68.00 $            14,330.00 $   16,140.00 $               -   $                       9,684.00 (e) Cash Payment Journal CP1 Date           Jan Account Debited Ref Other Accounts Dr. Accounts Receivable Dr. Merchandise Inventory Cr. Cash Cr. 4 supplies 126 $          70.00 $           70.00 13 Gallagher Co. ü $           9,900.00 $                 198.00 $      9,702.00 15 Salaries Expense 726 $ 14,200.00 $   14,200.00 20 Phegley Co. ü $           5,100.00 $                 102.00 $      4,998.00 31 Salaries Expense 726 $ 12,350.00 $   12,350.00 $ 26,620.00 $        15,000.00 $                 300.00 $   41,320.00