Question

R. Santiago Co. uses special journals and a general journal. The following transactions occurred during May 2014.
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
(a) Prepare a multiple-column cash receipts journal (see Illustration 7-9) and a multiple-column cash payments journal (see Illustration 7-16). (Use page 1 for each journal.)
(b) Record the transaction(s) for May that should be journalized in the cash receipts journal and cash payments journal.



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  • CreatedJanuary 30, 2014
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