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I'm having trouble with the following problem from Cengage. I’m getting error messages in the journalizing for Summit Company. Included are the instructions and screenshots of my results. Please help.
The following selected transactions were completed during August between Summit Companyy and Beartooth Co.
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Aug |
1 |
Summit Company sold merchandise on account to Beartooth Co., $48,000, term FOB Destination, 2/15, n/eom. The cost of the goods sold was $28,800. |
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2 |
Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1. |
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5 |
Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the goods sold was $40,000. |
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9 |
Beartooth Co. Paid freight of $2,300 on August 5 purchase from Summit Company. |
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15 |
Summit Company sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, n/45. Summit paid freight of $1,675 which was added to the invoice. The cost of the goods sold was $35,000. |
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16 |
Beartooth Co. paid Summit Company for purchase of August 1. |
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20 |
Summit Company paid Beartooth Co. a cash refund of $1,000 for defective merchandise purchased on August 1. Beartooth Co. kept the merchandise. |
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31 |
Beartooth Co. paid Summit Company on account for purchase of August 5. |
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31 |
Summit Company issue Beartooth Co. a credit memo for merchandise with an invoice amount of $4,000 that was returned from the August 15 sale. The cost of the merchandise returned was $2,500. |
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Chart of Accounts |
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Summit Company |
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General Ledger |
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ASSETS |
REVENUE |
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110 Cash |
410 Sales |
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121 |
610 Interest Revenue |
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125 Notes Receivable |
EXPENSES |
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130 Inventory |
510 Purchases |
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131 Estimated Returns Inventory |
511 Purchases Returns and Allowances |
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140 Office Supplies |
512 Purchases Discounts |
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141 Store Supplies |
513 Freight In |
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142 Prepaid Insurance |
521 Delivery Expense |
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192 Store Equipment |
522 Advertising expense |
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193 |
524 Depreciation expense-store equipment |
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194 Office equipment |
525 Depreciation expense-office equipment |
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195 Accumulated depreciation-office equipment |
526 Salaries Expense |
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LIABILITIES |
531 Rent Expense |
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210 Accounts Payable |
533 Insurance Expense |
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216 Salaries Payable |
534 Store Supplies Expense |
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218 Sales Tax Payable |
535 Office Supplies Expense |
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219 Customer Refunds Payable |
536 Credit Card Expense |
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221 Notes Payable |
539 Miscellaneous Expense |
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EQUITY |
710 Interest Expense |
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310 Common Stock |
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311 |
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312 Dividends |
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CHART OF ACCOUNTS |
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Beartooth Co. |
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