Question

Lewis Corporation engaged in the following transactions during June. DATE TRANSACTIONS 20X1 June 4 Purchased merchandise on account from Salinas Company; Invoice 100 for $1,155; terms n/30. 15 Recorded purchases for cash, $1,640. 30 Paid amount due to Salinas Company for the purchase on June 4. Required: Record these transactions in a general journal.

Answer 1

Date Account Titles Debit Credit

June 4 Merchandise

Inventory

(or Purchases) $1,155 Accounts

Payable -

Salinas

Company

Jun 15 Purchases $1,640 Cash

Jun 30 Accounts

Payable

- Salinas

Company $1,155 Cash

Step-by-step explanation:

On June 4, the company purchased merchandise on account from Salinas Company for $1,155. This increases the company's inventory and creates a liability to Salinas Company. Therefore, we debit Merchandise Inventory (or Purchases) for $1,155 and credit Accounts Payable - Salinas Company for the same amount.

On June 15, the company recorded purchases made for cash in the amount of $1,640. This means that the company paid for inventory with cash, so we debit Purchases for $1,640 and credit Cash for the same amount.

On June 30, the company paid the amount due to Salinas Company for the purchase made on June 4. This means that the company reduced its liability to Salinas Company by paying cash. Therefore, we debit Accounts Payable - Salinas Company for $1,155 and credit Cash for the same amount.

Answer 2

Step-by-step explanation:

The transactions can be recorded in a general journal as follows:

Date Account Debit Credit

---------------------------------------------------------

June 4 Purchases (Salinas) $1,155 Accounts Payable (Salinas) $1,155

June 15 Purchases 1,640 Cash 1,640

June 30 Accounts Payable (Salinas) 1,155 Cash 1,155

On June 4, Lewis Corporation purchased merchandise on account from Salinas Company for $1,155. This transaction increases the company's purchases and its accounts payable to Salinas. Therefore, Purchases (Salinas) is debited for $1,155 and Accounts Payable (Salinas) is credited for $1,155.

On June 15, Lewis Corporation recorded purchases for cash of $1,640. This transaction increases the company's purchases and decreases its cash. Therefore, Purchases is debited for $1,640 and Cash is credited for $1,640.

On June 30, Lewis Corporation paid the amount due to Salinas Company for the purchase made on June 4. This transaction decreases the company's accounts payable and its cash. Therefore, Accounts Payable (Salinas) is debited for $1,155 and Cash is credited for $1,155.