Newell Ltd. uses special journals and a general journal. The following transactions occurred during May 2017. May
Question:
Newell Ltd. uses special journals and a general journal. The following transactions occurred during May 2017.
May 1 M. Newell invested £50,000 cash in the business in exchange for ordinary shares.
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 £740 by issuing check no. 102.
16 Sold merchandise on account to S. Spies for £920, 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 (see Illustration G-8) and a multi-column cash payments journal (see Illustration G-15). (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.
Step by Step Answer:
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso