The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers. Record on page 10 of the journal Mar. 2 Sold merchandise on account to Equinox Co., $19,300, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $14,120. 3 Sold merchandise for $12,200 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $6,930. 4 Sold merchandise on account to Empire Co., $58,930, terms FOB shipping point, n/eom. The cost of merchandise sold was $32,340. 5 Sold merchandise for $30,400 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $20,610. 12 Received check for a

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Description: The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well a

Solution: Introduction: Journal entry is an accounting entry to record every transaction takes place…

Answered: The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail…

FINANCIAL ACCOUNTING

10th Edition

ISBN: 9781259964947

Author: Libby

Publisher: MCG

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business…

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Question

The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.

Record on page 10 of the journal

Mar.	2	Sold merchandise on account to Equinox Co., $19,300, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $14,120.
	3	Sold merchandise for $12,200 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $6,930.
	4	Sold merchandise on account to Empire Co., $58,930, terms FOB shipping point, n/eom. The cost of merchandise sold was $32,340.
	5	Sold merchandise for $30,400 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $20,610.
	12	Received check for amount due from Equinox Co. for sale on March 2.
	14	Sold merchandise to customers who used American Express cards, $15,040. The cost of merchandise sold was $7,570.
	16	Sold merchandise on account to Targhee Co., $29,900, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $17,360.
	18	Issued credit memo for $4,900 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,670.

Record on page 11 of the journal

	19	Sold merchandise on account to Vista Co., $8,150, terms FOB shipping point, 2/10, n/30. Added $65 to the invoice for prepaid freight. The cost of merchandise sold was $4,850.
	26	Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
	28	Received check for amount due from Vista Co. for sale of March 19.
	31	Received check for amount due from Empire Co. for sale of March 4.
	31	Paid Fleetwood Delivery Service $5,470 for delivery of merchandise in March to customers under shipping terms of FOB destination.
Apr.	3	Paid City Bank $830 for service fees for handling MasterCard and American Express sales during March.
	15	Paid $6,048 to state sales tax division for taxes owed on sales.

Required:

Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS

Amsterdam Supply Co.

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable-Empire Co.
122	Accounts Receivable-Equinox Co.
123	Accounts Receivable-Targhee Co.
124	Accounts Receivable-Vista Co.
125	Notes Receivable
130	Merchandise Inventory
131	Estimated Returns Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
218	Sales Tax Payable
219	Customer Refunds Payable
221	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
526	Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense

Journal

Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles. Scroll down for page 11 of the journal.

PAGE 10

JOURNAL

ACCOUNTING EQUATION