Refer to the information contained in exercise 4, above. During May 2020, Karen’s Delivery Service deposited four cheques as follows. 

May 

5 Karen Good wrote a personal cheque for $10,000 and deposited it in the company bank account. This is an investment by the owner. 

12 Deposited a cheque from Francine Company, paying invoice No. 801, taking discount. 

20 Deposited a cheque from Charlize Company, paying invoice No. 803, taking discount. 

27 Deposited a cheque from Joshua Enterprises, paying invoice No. 802. 

Enter each deposit into a cash receipts journal. No need to record to individual customer accounts or to the general ledger accounts, but please insert the correct general ledger account numbers in the appropriate places as if the posting were done. Karen’s Owner’s Equity account number is 3000. The Sales Discounts account number is 4500. The Bank account number is 1000. The Accounts Receivable account number is 1200. 

Data From Problem 4

Enter each of the following invoices from Karen’s Delivery Service into a sales journal. Total the entries and place appropriate general ledger account numbers below to show where the total would be posted. There is no need to record any details to individual customer accounts. The company uses 120 as its general ledger account number for Accounts Receivable, and the Sales account number is 400. The Inventory account number is 115 and the Cost of Goods Sold account number is 502. Each sale carries terms of 2/10, n/30. 

2020 May 

4 Invoice No. 801: Sold $200 to Francine Company on account. Cost of inventory: $150.

 7 Invoice No. 802: Sold $300 to Joshua Enterprises on account. Cost of inventory: $225. 

13 Invoice No. 803: Sold $100 to Charlize Company on account. Cost of inventory: $75. 

22 Invoice No. 804: Sold $350 to Francine Company on account. Cost of inventory: $262.50. 

25 Invoice No. 805: Sold $400 to Kirkhouse Consulting on account. Cost of inventory: $300. 

30 Invoice No. 806: Sold $250 to Charlize Company on account. Cost of inventory: $187.50.