Sam Santiago operates a retail variety store. The books include a general journal and an accounts payable ledger.

Selected account balances on May 1 are as follows:

General Ledger

Cash .......... $40,000

Accounts Payable ...... 20,000

Accounts Payable Ledger

Fantastic Toys ....... $5,200

Goya Outlet ....... 3,800

Mueller’s Distributors ... 3,600

Van Kooning ........ 7,400

The following are the transactions related to cash payments for the month of May:

May 1 Issued Check No. 426 in payment of May rent (Rent Expense), $2,400.

3 Issued Check No. 427 to Mueller’s Distributors in payment of merchandise purchased on account, $3,600, less a 3% discount. Check was written for $3,492.

7 Issued Check No. 428 to Van Kooning in partial payment of merchandise purchased on account, $5,500. A cash discount was not allowed.

12 Issued Check No. 429 to Fantastic Toys for merchandise purchased on account, $5,200, less a 1% discount. Check was written for $5,148.

15 Issued Check No. 430 to City Power and Light (Utilities Expense), $1,720.

18 Issued Check No. 431 to A-1 Warehouse for a cash purchase of merchandise, $4,800.

26 Issued Check No. 432 to Goya Outlet for merchandise purchased on account, $3,800, less a 2% discount. Check was written for $3,724.

30 Issued Check No. 433 to Mercury Transit Company for freight charges on merchandise purchased (Freight-In), $1,200.

31 Issued Check No. 434 to Town Merchants for a cash purchase of merchandise, $3,000.

REQUIRED

1. Enter the transactions in a general journal.

2. Post from the general journal to the general ledger and the accounts payable ledger. Use general ledger account numbers as shown in the chapter.