Dream Gardens is a retail store that sells garden equipment, furniture, and supplies. Dream Gardens began operations June 1, 2019. The firm purchases its merchandise for cash and on open account. During June, Dream Gardens engaged in the following transactions:

DATE TRANSACTIONS

2019

June 1 Purchased lawn mowers on credit from Mow Down Corporation, Invoice 925, $6,025, terms n/30; freight of $135 prepaid by Mow Down Corporation and added to the invoice (total amount due, $6,160).

5 Purchased outdoor chairs and tables on credit for $7,600 from Patio Dudes, Invoice 992, terms n/30.

9 Purchased grass seed for $748 on credit from Sunset Nursery, Invoice 4001, terms n/30.

15 Recorded various purchases of merchandise for cash from June 1 to June 15, $3,055.

20 Purchased lawn sprinkler systems on credit from Mason Industries, Invoice 9228, $7,250, terms n/30; freight of $320 prepaid by Mason Industries and added to the invoice (total amount due, $7,570).

27 Issued Check 104 for $3,800 to Patio Dudes in partial payment of Invoice 992 dated June 5.

30 Recorded various purchases of merchandise for cash from June 16 to June 30, $2,925.

30 Issued Check 105 to Mow Down Corporation in payment of the total amount due on Invoice 925 dated June 1.

INSTRUCTIONS

1. Open the general ledger accounts indicated below. Enter the balance of cash as of June 1, 2019.

2. Record the transactions in a general journal. Use 1 as the journal page number.

3. Post the entries from the general journal to the appropriate general ledger accounts.

GENERAL LEDGER ACCOUNTS

101 Cash, $20,000 Dr.

205 Accounts Payable

501 Purchases

502 Freight In

Analyze:

What were the total freight costs incurred during June?