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The following were selected from among the transactions completed by Babcock Company during...

Question:

The following were selected from among the transactions completed by Babcock Company during November of the current year:

Nov. 3. Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
4. Sold merchandise for cash, $37,680. The cost of the merchandise sold was $22,600.
5. Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.
6. Returned $13,500 ($18,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
8. Sold merchandise on account to Quinn Co., $15,600 with terms n/15. The cost of the merchandise sold was $9,400.
13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14. Sold merchandise on VISA, $236,000. The cost of the merchandise sold was $140,000.
15. Paid Papoose Creek Co. on account for purchase of November 5.
23. Received cash on account from sale of November 8 to Quinn Co.
24. Sold merchandise on account to Rabel Co., $56,900, terms 1/10, n/30. The cost of the merchandise sold was $34,000.
28. Paid VISA service fee of $3,540.
30. Paid Quinn Co. a cash refund of $6,000 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,300.

Instructions:

Journalize the transactions.

Journal Entries

The journal entry is recording the business transaction in books of accounts. It records all transactions related to business on a cash or accrual basis. Journal entry has a double-entry system. Keeping all of your records in an easy to read journal entry will help you to find the date you need quickly when the time comes.

Answer and Explanation: 1

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Journal entries

Date ParicularsDebit Credit
Nov. 03Merchandise inventory(85,000*75%) A/c Dr
To Accounts payable-moonlight
(To record the purchase...

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Journal Entries and Trial Balance in Accounting

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Chapter 3 / Lesson 10
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Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.


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