Selected accounts from the chart of accounts of Ruby Ltd are shown below. 

The cost of all inventory sold was 60% of the sales price. During January, Ruby Ltd completed the following transactions.

Ruby Ltd uses the following journals:

1. Sales journal.

2. Single-column purchases journal.

3. Cash receipts journal with columns for Cash Dr, Discount Allowed Dr, Accounts Receivable Cr, Sales Cr, Other Accounts Cr, and Cost of Sales Dr/Inventory Cr.

4. Cash payments journal with columns for Other Accounts Dr, Accounts Payable Dr, Inventory Cr, Discount Received Cr, and Cash Cr.

5. General journal. 

Required

Using the selected accounts provided:

(a) Record the January transactions in the appropriate journal.

(b) Total and cross-foot all special journals.

(c) Show how postings would be made by placing ledger account numbers and ticks (✓) as needed in the journals. (Actual posting to ledger accounts is not required.) 

Transcribed Image Text:

101 Cash 112 Accounts Receivable 120 Inventory 126 Supplies 157 Equipment 201 Accounts Payable 401 Sales 412 Sales Returns and Allowances Discount Received 416 505 716 726 Cost of Sales Discount Allowed Salaries Expense