Seo-hyeon’s Auto Supply uses special journals and a general journal. The following transactions occurred during September 2020 (amounts in thousands).

Sept. 2 Sold merchandise on account to A. Jinwoo, invoice no. 101, NT$620, terms n/30. The cost of the merchandise sold was NT$420.

10 Purchased merchandise on account from Jeju Company NT$650, terms 2/10, n/30.
12 Purchased office equipment on account from C. Song NT$6,500.
21 Sold merchandise on account to New Taiwan Supply Co., invoice no. 102 for NT$800, terms 2/10, n/30. The cost of the merchandise sold was NT$480.
25 Purchased merchandise on account from Leung Sisters NT$860, terms n/30.
27 Sold merchandise to Ulsan Company for NT$700 cash. The cost of the merchandise sold was NT$400.

Instructions
a. Prepare a sales journal (see Illustration 7.7) and a single-column purchases journal (see Illustration 7.13). (Use page 1 for each journal.)
b. Record the transaction(s) for September that should be journalized in the sales journal and the purchases journal.

Transcribed Image Text:

ILLUSTRATION 7.7 Posting the sales journal a General Ledger Software for Accounting Go Bookmarks Iools View Eile Edit Help O Problem Help O Post Entries Tools Closing Reports SALES JOURNAL Invoice Accts. Receivable Dr. Cost of Goods Sold Dr. Sales Revenue Cr. Date Account Debited No. Ref. Inventory Cr. 2020 May 3 Abbot Sisters 101 10,600 6,360 Babson Co. 102 П,350 7,370 14 Carson Bros. 103 7,800 5,070 Deli Co. 19 104 9,300 6,510 Abbot Sisters 21 105 15,400 10,780 At the end of the Deli Co. Babson Ca. 24 106 21,210 15,900 accounting period, the company posts totals to the general ledger. 27 107 14,570 90,230 10.200 62.190 (112) / (401) (505) / (120) The company posts individual amounts to the subsidiary ledger daily. GENERAL LEDGER Accounts Receivable No. I12 ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER OOO Ref. Date Debit Credit Balance 2020 Abbot Sisters May 31 SI 90,230 90,230 Date Ref. Debit Credit Balance 2020 May 3 SI 10,600 15,400 10,600 26,000 Inventory Debit No. 120 21 SI Date Ref. Credit Balance 2020 Babson Co. 62,190 May 31 SI 62,190 Balance Date Ref. Debit Credit 2020 May 7 SI П,350 14,570 I1,350 25,920 Sales Revenue No. 401 SI 27 Date Ref. Debit Credit Balance 2020 Carson Bros. May 31 SI 90,230 90,230 Date Ref. Debit Credit Balance 2020 May 14 SI 7,800 7,800 Cost of Goods Sold No. 505 Date Ref. Debit Credit Balance 2020 Deli Co. May 31 SI 62,190 62,190 Date Ref. Debit Credit Balance 2020 May 19 24 SI SI 9,300 9,300 21,210 30,510 The subsidiary ledger is separate from the general ledger. Accounts Receivable is a control account. The normal balance for Inventory is a debit. But because of the sequence in which we have posted the special journals, with the sales journal first, the credits to Inventory are posted before the debits. This posting sequence explains the credit balance in Inventory, which exists only until the other journals are posted. Hstart General Ledger General Jml Sales Jrnl Cash Receipts Jrnl Purchases Jrnl