Question

During November, the following summary transactions were completed. Nov. 8 Paid $3,195 for salaries due employees, of which $1,665 is for November and $1,530 is for October. 10 Received $1,710 cash from customers in payment of account. 11 Purchased merchandise on account from Dimas Discount Supply for $7,200, terms 2/10, n/30. 12 Sold merchandise on account for $4,950, terms 2/10, n/30. The cost of the merchandise sold was $3,600. 15 Received credit from Dimas Discount Supply for merchandise returned $270. 19 Received collections in full, less discounts, from customers billed on sales of $4,950 on November 12. 20 Paid Dimas Discount Supply in full, less discount. 22 Received $2,070 cash for services performed in November. 25 Purchased equipment on account $4,500. 27 Purchased supplies on account $1,530. 28 Paid creditors $2,700 of accounts payable due. 29 Paid November rent $337. 29 Paid salaries $1,170. 29 Performed services on account and billed customers $630 for those services. 29 Received $608 from customers for services to be performed in the future. (b) Journalize the November transactions.

Answer 1

Answer and Explanation:

The journal entries are shown below:

On Nov 8

Salary payable $1,530

Salary expense $1,665

To Cash $3,195

(Being the salary paid is recorded)

On Nov 10

Cash $1,710

To Account receivable $1,710

(being the amount received is recorded)

On Nov 11

Inventory $7,200

To Account payable $7,200

(being the purchase of merchandise on account is recorded)

On Nov 12

Account receivable $4,950

To Sales revenue $4,950

(being the sales is recorded)

Cost of goods sold $3,600

To Inventory $3,600

(Being the cost of goods sold is recorded)

On Nov 15

Account payable $270

To Inventory $270

(Being the purchase return is recorded)

On Nov 19

Cash ($4,950 × 98%) $4,851

Sales discount $99

To Account receivable $4,950

(Being the collection is recorded)

On Nov 20

Account payable ($7,200 - $270) $6,930

To Cash ($6,930 × 98%) $6,791.40

To Inventory $138.60

(being the amount paid is recorded)

On Nov 22

Cash $2,070

To Service revenue $2,070

(Being the service revenue is recorded)

On Nov 25

Equipment $4,500

To Account payable $4,500

(Being the purchase of equipment on account is recorded)

On Nov 27

Supplies $1,530

to Account payable $1,530

(Being purchase of supplies on account is recorded)

On Nov 28

Account payable $2,700

To Cash $2,700

(Being the amount paid is recorded)

On Nov 29

Rent expense $337

To Cash $337

(Being the rent paid is recorded)

On Nov 29

Salaries expense $1,170

To Cash $1,170

(Being salary paid is recorded)

On Nov 29

Account receivable $630

To Service revenue $630

(Being the service revenue is recorded)

On Nov 29

Cash $608

To Unearned revenue $608

(Being the advance payment is recorded)