Homework SourseJournalize the entries for the following transactions Refer
Journalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of account titles. (Note: The company uses a clearinghouse to take care of all bank as well as non-bank credit cards used by its customers.)
Journalize the entries for the transactions on December 31. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
ACCOUNTING EQUATION
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| A. | Sold merchandise for cash, $25,000. The cost of the goods sold was $17,500. |
| B. | Sold merchandise on account, $98,000. The cost of the goods sold was $58,800. |
| C. | Sold merchandise to customers who used MasterCard and VISA, $475,000. The cost of the goods sold was $280,000. |
| D. | Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was $39,000. |
| E. | Received and paid an invoice from National Clearing House Credit Co. for $13,450, representing a service fee paid for processing MasterCard, VISA, and American Express sales. |
Solution
Journal entries recording above transactions
| S.no | Date | Description | P.R | Debit | Credit |
| 1 | Dec 31 | Cash | 10 | 25000 | |
| 2 | Sales | 25000 | |||
| 3 | Cost of merchandise sold | 17500 | |||
| 4 | Merchandise Inventory | 17500 | |||
| 5 | Accounts Receivables | 98000 | |||
| 6 | Sales | 98000 | |||
| 7 | Cost of merchandise sold | 58800 | |||
| 8 | Merchandise Inventory | 58800 | |||
| 9 | Cash | 475000 | |||
| 10 | Sales | 475000 | |||
| 11 | Cost of merchandise sold | 280000 | |||
| 12 | Merchandise Inventory | 280000 | |||
| 13 | Cash | 63000 | |||
| 14 | Sales | 63000 | |||
| 15 | Cost of merchandise sold | 39000 | |||
| 16 | Merchandise Inventory | 39000 | |||
| 17 | Credit card expense | 13450 | |||
| 18 | Cash | 13450 |
