Accounting
Essay by review • February 13, 2011 • Research Paper • 4,071 Words (17 Pages) • 2,499 Views
Backflip Co.
GENERAL JOURNAL
Page 1
Date Account Titles and Explanations PR Debits Credits
2005
May
1 Rent Expense - Office Space 5120 680
Rent Expense - Selling Space 5050 2,720
Cash 1060 3,400
Issued Chq #3410 in payment of rent
2 Accounts Receivable - Essex Company 1200 6,800
Sales 4020 6,800
Sold Merchandise under terms of 2/10, net 30
2 Cost of Goods Sold 5010 3,960
Merchandise Inventory 1230 3,960
To record cost of goods actually sold
2 Sales Returns and Allowances 4030 125
Accounts Receivable - Nabors Inc. 1200 125
To record credit note issued to Nabors Inc for defective merchandise
2 Merchandise Inventory 1230 85
Cost of Goods Sold 5010 85
Returned goods to inventory
2 Cost of Goods Sold 5010 85
Merchandise Inventory 1230 85
To record discarded merchandise
3 Accounts Payable - Parkay Products 2200 748
Merchandise Inventory 1230 748
To record Credit Memo received
4 Merchandise Inventory 1230 39,125
Store Supplies 1250 611
Office Supplies 1240 105
Accounts Payable - Thompson Supply Co. 2200 39,841
Purchased Merchandise on Credit, terms N/10, EOM
Backflip Co
GENERAL JOURNAL
Page 2
Date Account Titles and Explanations PR Debits Credits
2005
May
5 Cash 1060 4,508
Sales Discount 4040 92
Accounts Receivable - Nabors Inc. 1200 4,600
Payment received within discount period - 2% disc. Taken
5 Temporary Investments 1100 3,600
Cash 1060 3,600
400 shares of Zeus Inc purchased - chq #3411
5 Accounts Payable - Parkay Products 2200 6,350
Merchandise Inventory 1230 127
Cash 1060 6,223
Paid for purchase within terms, 2% disc. Taken - chq #3412
9 Cash 1060 325
Store Supplies 1250 325
To record sale of store supplies
10 Office Equipment 1410 4,125
Accounts Payable - Thompson Supply Co. 2200 4,125
Purchased merchandise on credit, n/10 EOM
11 Cash 1060 6,664
Sales Discount 4040 136
Accounts Receivable - Essex Company 1200 6,800
Payment received within discount period, 2% disc. Taken
11 Merchandise Inventory 1230 9,000
Accounts Payable - Gale Inc. 1200 9,000
Purchased merchandise on credit, 2/10, n/30
12 Accounts Payable - Thompson Supply Co. 2200 899
Office Equipment 1410 899
To record Credit Memo received
Backflip Co
GENERAL JOURNAL
Page 3
Date Account Titles and Explanations PR Debits Credits
2005
May
15 Sales Salaries Expense 5040 5,720
Office Salaries Expense 5100 3,850
Cash 1060 9,570
Paid Salaries - issued chq. #3413
15 Cash 1060 61,220
Sales 4020 61,220
To record cash sales
15 Cost of Goods Sold 5010 34,498
Merchandise Inventory 1230 34,498
To record cost of goods actually sold
16 Accounts Receivable - Essex Company 1200 3,490
Sales 4020 3,490
Sold Merchandise under terms of 2/10, net 30
16 Cost of Goods Sold 5010 2,099
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