Selected accounts from the chart of accounts of Linvik NV are shown below 101 Cash 112 Accounts Receivable 120 Inventory 126 Supplies 140 Land 145 Buildings 201 Accounts Payable 401 Sales Revenue 414 Sales Discounts 505 Cost of Goods Sold 610 Advertising Expense The cost of all merchandise sold was...

a b c Sales Journal S1 Date Account Debited Invoice No Ref Accounts Receivable Dr Sales Revenue Cr C ...

Selected accounts from the chart of accounts of Linvik NV are shown below. 101 Cash 112 Accounts

Question:

Selected accounts from the chart of accounts of Linvik NV are shown below.
101 Cash
112
120 Inventory
126 Supplies
140 Land
145 Buildings
201 Sales Revenue
414 Sales Discounts
505 Cost of Goods Sold
610 Advertising Expense
The cost of all merchandise sold was 70% of the sales price. During October, Linvik completed the following transactions.
Oct. 2 Purchased merchandise on account from Cutler Company €13,500.
4 Sold merchandise on account to Ebert Co. €7,700, invoice no. 204, terms 2/10, n/30.
5 Purchased supplies for cash €80.
7 Made cash sales for the week totaling €8,800.
9 Paid in full the amount owed Cutler Company less a 2% discount.
10 Purchased merchandise on account from Frinzi Ltd. €3,500.
12 Received payment from Ebert Co. for invoice no. 204.
13 Returned €210 worth of damaged goods purchased on account from Frinzi Ltd. on October 10.
14 Made cash sales for the week totaling €8,180.
16 Sold a parcel of land for €27,000 cash, the land's original cost.
17 Sold merchandise on account to B. Reblin & Co. €5,350, invoice no. 205, terms 2/10, n/30.
18 Purchased merchandise for cash €2,450.
21 Made cash sales for the week totaling €8,200.
23 Paid in full the amount owed Frinzi Ltd. for the goods kept (no discount).
25 Purchased supplies on account from Lewis Co. €310.
25 Sold merchandise on account to Marco Ltd. €5,220, invoice no. 206, terms 2/10, n/30.
25 Received payment from B. Reblin & Co. for invoice no. 205.
26 Purchased for cash a small parcel of land and a building on the land to use as a storage facility. The total cost of €35,000 was allocated €21,000 to the land and €14,000 to the building.
27 Purchased merchandise on account from Lisa Co. €8,500.
28 Made cash sales for the week totaling €7,540.
30 Purchased merchandise on account from Cutler Company €14,000.
30 Paid advertising bill for the month from the Gazette, €400.
30 Sold merchandise on account to B. Reblin & Co. €4,760, invoice no. 207, terms 2/10, n/30. Linvik uses the following journals.
1. Sales journal.
2. Single-column purchases journal.
3. Cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Cr., Sales Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr.
4. Cash payments journal with columns for Other Accounts Dr., Dr., Inventory Cr., and Cash Cr.
5. General journal.
Instructions
Using the selected accounts provided:
(a) Record the October transactions in the appropriate journals.
(b) Foot and crossfoot all special journals.
(c) Show how postings would be made by placing ledger account numbers and check marks as needed in the journals. (Actual posting to ledger accounts is not required.)
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...