Q-6-6. Rock Castle Construction Accounting transactions resulting from processing

purchasing and cash disbursement transactions

For each of the following transactions, select the proper accounting entry

from the list provided.

a. Inventory was received but not paid for on a purchase order.

Payment terms were 2% 10, Net 30.

1. DR A/C #12100 Inventory Asset

CR A/C #50100 Cost of Goods Sold

2. DR A/C #12100 Inventory Asset

CR A/C #20000 Accounts Payable

3. DR A/C #50100 Cost of Goods Sold

CR A/C #20000 Accounts Payable

4. DR A/C #12100 Inventory Asset

CR A/C #54300 Job Materials

b. A purchase order for the purchase of inventory was prepared and

saved.

1. DR A/C #12100 Inventory Asset

CR A/C #50100 Cost of Goods Sold

2. DR A/C #12100 Inventory Asset

CR A/C #20000 Accounts Payable

3. DR A/C #50100 Cost of Goods Sold

CR A/C #20000 Accounts Payable

4. None of the above (no account ing entry necessary)