The Garden Center is a retail store that sells garden equipment, furniture, and supplies. The Garden Center began operations June 1, 2016. The firm purchases its merchandise for cash and on open account. During June, The Garden Center engaged in the following transactions:
June 1 Purchased lawn mowers on credit from Mow Down Corporation, Invoice 925, $5,025, terms n/30; freight of $125 prepaid by Mow Down Corporation and added to the invoice (total amount due, $5,150).
5 Purchased outdoor chairs and tables on credit for $6,760 from Patio Furniture, Inc., Invoice 992, terms n/30.
9 Purchased grass seed for $948 on credit from Summer Lawn Center, Invoice 4001, terms n/30.
15 Recorded various purchases of merchandise for cash from June 1 to June 15, $2,900.
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 $3,000 to Patio Furniture, Inc., in partial payment of Invoice 992 dated June 5.
30 Recorded various purchases of merchandise for cash from June 16 to June 30, $2,650.
30 Issued Check 105 to Mow Down Corporation in payment of the total amount due on Invoice 925 dated June 1.
1. Open the general ledger accounts indicated below. Enter the balance of cash as of June 1, 2016.
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
502 Freight In
Analyze: What were the total freight costs incurred during June?