Record the following purchase transactions of Money Office Supplies.Aug. 3Purchased 30 chairs on credit, at a cost of $60 per chair. Shipping charges are an extra $5 cash per chair and are not subject to discount. Terms of the purchase are 4/10, n/60, FOB Shipping Point, invoice dated August 3.Aug. 7Purchased 22 chairs with cash, at a cost of $50 per chair. Shipping charges are an extra $3.50 cash per chair and are not subject to discount. Terms of the purchase are FOB Destination.Aug. 12Money Office Supplies pays in full for their purchase on August 3.If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used.Aug. 3 Purchase Merchandise InventoryMerchandise Inventory Accounts PayableAccounts PayableAug. 3 Shipping charges Merchandise InventoryMerchandise Inventory CashCashAug. 7 Purchase with cash Merchandise InventoryMerchandise Inventory CashCashAug. 12 Payment Accounts PayableAccounts Payable CashCash Merchandise InventoryMerchandise Inventory

JOURNAL ENTRIES Journal Entry is the First stage of Process of Accounting. Journal is the Process of…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Record the following purchase transactions of Money Office Supplies.

Aug. 3	Purchased 30 chairs on credit, at a cost of $60 per chair. Shipping charges are an extra $5 cash per chair and are not subject to discount. Terms of the purchase are 4/10, n/60, FOB Shipping Point, invoice dated August 3.
Aug. 7	Purchased 22 chairs with cash, at a cost of $50 per chair. Shipping charges are an extra $3.50 cash per chair and are not subject to discount. Terms of the purchase are FOB Destination.
Aug. 12	Money Office Supplies pays in full for their purchase on August 3.

If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used.

Aug. 3 Purchase	Merchandise Inventory	Merchandise Inventory
	Accounts Payable	Accounts Payable
Aug. 3 Shipping charges	Merchandise Inventory	Merchandise Inventory
	Cash	Cash
Aug. 7 Purchase with cash	Merchandise Inventory	Merchandise Inventory
	Cash	Cash
Aug. 12 Payment	Accounts Payable	Accounts Payable
	Cash	Cash
	Merchandise Inventory	Merchandise Inventory

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