18) Crane Printing purchased $5,000 of supplies from Paper Wholesale, terms 2/10, n/30 on July 25, and prepared voucher #611. Crane paid the voucher on July 31.

 

Required: Prepare journal entries to record the above transactions assuming Crane uses the net approach method for recording purchases.

 

19) On October 1, Oak Company purchased $12,000 of merchandise from City Seed Company, terms 2/10, n/30, and prepared voucher #222. Cottonwood paid the invoice on October 15.

 

Required: Prepare journal entries to record the above transactions. Assume Oak uses the net approach method for recording purchases.

Given the following accounts:

[1]Cash in bank

[2]Petty cash

[3]Supplies

[4]Equipment

[5]Notes payable

[6]Vouchers payable

[7]FICA payable

[8]Wages payable

[9]Purchases

[10]Purchase discounts

[11]Discounts lost

[12]Repairs exp

[13]Interest expense

[14]Delivery expense

 

Indicate the account(s) to be debited and credited to record the following transactions.

 

20) Prepared and recorded voucher #422 for the purchase of merchandise (gross method) of $5,000 with credit terms of 2/10, n/30.

Debit ________ & ________ & ________ Credit ________ & ________ & ________

 

21) Received an invoice in the amount of $80 for repairs to the store equipment, voucher #423 was prepared.

Debit ________ & ________ & ________ Credit ________ & ________ & ________

 

22) Paid voucher #419 which was issued to reimburse petty cash for the purchase of supplies, $35, and delivery expense of $50.

Debit ________ & ________ & ________ Credit ________ & ________ & ________

 

23) Prepared voucher #424 in the amount of $6,240 in reply to the payroll department’s request for payment of last week’s wages.

Debit ________ & ________ & ________ Credit ________ & ________ & ________

24) Prepared voucher #425 for a note payable. The principle amounts to $2,500 and there is $100 of interest which has not been accrued.

Debit ________ & ________ & ________ Credit ________ & ________ & ________

 

25) Paid voucher #424.

Debit ________ & ________ & ________ Credit ________ & ________ & ________

 

26) Paid voucher #425.

Debit ________ & ________ & ________ Credit ________ & ________ & ________

 

27) Borrowed $4,000, signing a 5%, 60 day promissory note.

Debit ________ & ________ & ________ Credit ________ & ________ & ________

 

 

 



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