During the month of June the following transactions were completed:


1 Edward Beezer invested $20,000 in the business.CASH RECEIPTS JOURNAL

1 Purchased merchandise from Zipay Brothers on account, $2,500; terms 2/10, n/30.PURCHASE JOURNAL

2 Purchased store equipment on account from Dante Company, $520.

2 Purchased merchandise for cash, $1,500.

3 Purchased merchandise from the IAC Company on account, $5,500; 1/10, n/30.

4 Sold merchandise to D. Nazar Associated on account, $725; invoice No. 1000; terms 2/10, n/30.

4 Paid $85 for office supplies.CASH PAYMENT JOURNAL

4 Sold merchandise to H. Franklin, Inc. on account, $625; invoice No. 1001; terms 2/10, n/30.

5 Cash sales for week, $920.CASH RECEIPTS

5 Returned part of merchandise purchased from Zipay Brothers, who agreed to issue credit memorandum for $230.CASH RECIEPTS JOURNAL 230

8 Purchased merchandise from Roosevelt Company on account $1,100; terms

8 Received payment from D. Nazar Associates for invoice No. 1000, less discount.

9 Sold merchandise to T. Connors & Sons on account, $2,000; invoice No. 1002, terms 2/10, n/30.

9 Paid Zipay Brothers for invoice of June 1, less merchandise returned and discount taken.

10 Paid for three months' advertising expense in advance, $600.

11 Paid IAC Company invoice of June 3, less discount.

12 Cash sales for week, $3,140.

12 Sold merchandise to Leonards Home Builders on account, $2,240; invoice No. 1003; terms 2/10, n/30.

15 Paid salaries for first half of month, $640. Paid Dante Company one-half the amount due.

16 Purchased merchandise on account from the Bosak Company, $4,200; terms 2/10, n/30.

17 Paid Roosevelt Company invoice of June 8, less discount.

17 Leonards Home Builders returned merchandise in the amount of $360. Credit was given.

18 Sold merchandise to Pollocks Hardware Store on account, $1,910; invoice No. 1004, terms 2/10, n/30.

19 Received payment from T. Connors & Sons for invoice No. 1002, less discount.

19 Cash sales for week, $2,720.

22 Received payment from Leonards Home Builders for invoice No. 1003, less merchandise returned and discount taken.

22 Paid balance due to Dante Company.

23 Paid transportation charges on merchandise received from Bosak Company, $95.

24 Sold merchandise to C. Vingsen on account, $1,720; invoice No. 1005; terms 2/10, n/30.

25 Purchased merchandise on account from the Big M Supply House, $8,200; terms 2/10, n/30.

25 Paid Bosak Company invoice of June 16, less discount.

26 Cash sales for week, $2,220.

26 Received payment from Pollocks Hardware Store for invoice No. 1004, less discount.

29 Paid Utility bill of $65.

30 Paid salaries for second half of the month, $640.

30 Received amount due from H. Franklin, Inc.

30 Edward Beezer withdrew $700 from the business for his personal use.

REQUIRED: Record the preceding transactions, using the five journals provided on at the back of this unit, and then answer questions 4-8.

4. The total of the purchases journal on June 30 is A. $23,520. C. $22,020. B. $23,000. D. $21,500.

5. The total of the sales discount in the cash receipts journal is A. $92.10. C. $137.50. B. $130.30. D. $195.40.

6. Entries were recorded in the general journal for transactions on A. June 1, 5, and 17. C. June 1, 2, and 30. B. June 2, 17, and 30. D. June 2, 5, and 17.

7. How many entries were made in the Other Accounts column of the cash payments journal? A. 5 C. 7 B. 6 D. 8

8. On June 30, the totals of the purchases journal and the Accounts Payable column of the cash payments journal are posted to the Accounts Payable general ledger account. In addition, individual postings are made from the general journal. After these entries have been posted to the general ledger from the journals, the balance in the accounts payable account is A. $21,500. C. $8,200. B. $8,430. D. $7,680.