Answer to Question #177695 in Economics for Lilly

Question

Journalize each of the above transactions. Narrations are not required.

Feb 1 Kerry-Ann invested the following assets into the business: cash, $80,000; office furniture, $20,000, bank balance, $5,000

Feb 1 Transferred $25,000 of the cash to the bank.

Feb 2 Paid rent for February by cheque $15,000

Feb 2 Purchased delivery van on credit from Mona Motors Ltd. for $40,000

Feb 3 Bought a refrigerator from Ashley Electronic Store, paying by cash $15,000

Feb. 3 Bought merchandise for resale by cash $35,000.

Feb 3 Sold merchandise to Candy Craze, for cash $10,000 and on credit to Just Cakey $60,000.

Feb 5 Sold merchandise on credit to Simply Yummy $6,500.

Feb 6 Just Cakey settled their account with cash receiving a 3.5% cash discount.

Feb 6 Merchandise valued at $950, to Simply Yummy on February 5, was returned to Kerry-Ann, the wrong order went out. A credit note was issued.

Feb 7 Bought merchandise on credit from Sweetopia $25,000.

Answer 1

Feb1

cash debit 80,000

Fixed assets debit 20,000

bank account debit 5,000

equity capital credit 105,000

Feb1

cash credit 25,000

bank account debit 25,000

Feb 2

sales debit 15,000

payable credit 15,000

Feb 2

Fixed assets debit 40,000

loans credit 40,000

Feb 3

Fixed assets debit 15,000

cash credit 15,000

Feb 3

inventories debit 35,000

cash credit 35,000

Feb 3

sales credit 70,000

cash debit 10,000

accounts receivable debit 60,000

Feb 5

sales credit 6,500

accounts receivable debit 6,500

Feb 6

cash debit 57.900

sales debit 2,100

accounts receivable credit 60,000

Feb 6

sales debit 950

accounts receivable credit 950

Feb 7

inventories debit 25,000

payable credit 25,000