Question

The general ledger of Circus Lake Golf Shop includes the following selected accounts, along with their account numbers:
Transactions in December that affected purchases and cash payments were as follows:
Dec. 2 Purchased merchandise inventory on credit from Trudel, $4,200. Terms were 3/10, n/30.
3 Paid monthly rent, debiting Rent Expense for $2,200.
5 Purchased office supplies on credit terms of 3/10, n/30 from Rapid Supply, $450.
8 Received and paid electricity utility bill, $530.
9 Purchased equipment on account from Alright Equipment, $6,200. Payment terms were net 30.
10 Returned the equipment to Alright Equipment. It was damaged.
11 Paid Trudel the amount owed on the purchase of December 2.
12 Purchased merchandise inventory on account from Callahan Golf, $4,500. Terms were 2/10, n/30.
13 Purchased merchandise inventory for cash, $640.
14 Paid a semiannual insurance premium, debiting Prepaid Insurance, $1,300.
16 Paid its account payable to Rapid Supply from December 5.
18 Received and paid gas and water utility bills, $700.
21 Purchased merchandise inventory on credit terms of 2/10, n/45 from Dunnstable, Inc., $3,100.
21 Paid its account payable to Callahan Golf from December 12.
22 Purchased office supplies on account from Office Space, Inc., $300. Terms were net 30.
26 Returned to Dunnstable, Inc. $1,300 of the merchandise inventory purchased on
December 21.
31 Paid Dunnstable, Inc. the net amount owed from December 21 less the return on December 26.
Requirements
1. Use the appropriate journal to record the preceding transactions in a purchases journal, a cash payments journal (omit the Check No. column), and a general journal. Circus Lake Golf Shop records purchase returns in the general journal. The company uses the perpetual inventory system.
2. Total each column of the special journals. Show that total debits equal total credits in each special journal.
3. Show how postings would be made from the journals by writing the account numbers and check marks in the appropriate places in the journals.


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  • CreatedJune 15, 2015
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