Newell Co. uses special journals and a general journal. The following transactions occurred during May 2014. May
Question:
Newell Co. uses special journals and a general journal. The following transactions occurred during May 2014.
May 1 M. Newell invested $48,000 cash in the business in exchange for common stock.
2 Sold merchandise to A. Belton for $6,340 cash. The cost of the merchandise sold was $4,200.
3 Purchased merchandise for $7,200 from E. Reed using check no. 101.
14 Paid salary to M. Hunt $700 by issuing check no. 102.
16 Sold merchandise on account to S. Spies for $900, terms n/30. The cost of the merchandise sold was $630.
22 A check of $9,000 is received from N. Eggert in full for invoice 101; no discount given.
Instructions
(a) Prepare a multi-column cash receipts journal (Illustration) and a multi-column cash payments journal (Illustration). (Use page 1 for each journal.)
(b) Record the transaction(s) for May that should be journalized in the cash receipts journal and cash paymentsjournal.
Step by Step Answer:
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso