Acc 225 exercises: 7-1, 7-4, 7-7 & 7-10 (hutton company, moeder co.,

EXERCISE 7-1
Hutton Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursement journal, and a general journal. The following transactions occur in the month of March:
Mar. 2 Sold merchandise costing $300 to B. Fager for $450 cash, invoice no. 5703.
5 Purchased $2,300 of merchandise on credit from Marsh Corp.
7 Sold merchandise costing $800 to J. Dryer for $1,150, terms 2_10, n_30, invoice no. 5704.
8 Borrowed $8,000 cash by signing a note payable to the bank.
12 Sold merchandise costing $200 to R. Land for $320, terms n_30, invoice no. 5705.
16 Received $1,127 cash from J. Dryer to pay for the purchase of March 7.
19 Sold used store equipment for $900 cash to Malone, Inc.
25 Sold merchandise costing $350 to T. Burton for $550, terms n_30, invoice no. 5706.
Prepare headings for a sales journal like the one in Exhibit 7.5. Journalize the March transactions that
should be recorded in this sales journal.
 
 
 
 
EXERCISE 7-4
Moeder Co. uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of November.
Nov. 3 Purchased $3,100 of merchandise on credit from Hargrave Co., terms n_20.
7 Sold merchandise costing $840 on credit to J. York for $900, subject to a $18 sales discount
if paid by the end of the month.
9 Borrowed $2,750 cash by signing a note payable to the bank.
13 J. Emling, the owner, contributed $4,000 cash to the company.
18 Sold merchandise costing $130 to B. Box for $230 cash.
22 Paid Hargrave Co. $3,100 cash for the merchandise purchased on November 3.
27 Received $882 cash from J. York in payment of the November 7 purchase.
30 Paid salaries of $1,600 in cash.
Prepare headings for a cash receipts journal like the one in Exhibit 7.7. Journalize the November
transactions that should be recorded in the cash receipts journal.
 
 
 
 
EXERCISE 7-7
Redmon Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements
journal, and a general journal. The following transactions occur in the month of June.
June 1 Purchased $8,100 of merchandise on credit from Vick, Inc., terms n_30.
8 Sold merchandise costing $900 on credit to R. Panke for $1,500 subject to a $30 sales discount
if paid by the end of the month.
14 Purchased $240 of store supplies from Poe Company on credit, terms n_30.
17 Purchased $260 of office supplies on credit from Rehmer Company, terms n_30.
24 Sold merchandise costing $400 to L. Barnett for $630 cash.
28 Purchased store supplies from Piburn’s for $90 cash.
29 Paid Vick, Inc., $8,100 cash for the merchandise purchased on June 1.
Prepare headings for a purchases journal like the one in Exhibit 7.9. Journalize the June transactions
that should be recorded in the purchases journal.
 
 
 
 
EXERCISE 7-10
Politte Supply uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements
journal, and a general journal. The following transactions occur in the month of April.
Apr. 3 Purchased merchandise for $2,750 on credit from Scott, Inc., terms 2_10, n_30.
9 Issued check no. 210 to Kidman Corp. to buy store supplies for $450.
12 Sold merchandise costing $400 on credit to C. Myers for $670, terms n_30.
17 Issued check no. 211 for $1,500 to pay off a note payable to City Bank.
20 Purchased merchandise for $3,500 on credit from LeBron, terms 2_10, n_30.
29 Issued check no. 212 to LeBron to pay the amount due for the purchase of April 20, less
the discount.
30 Paid salary of $1,700 to B. Decker by issuing check no. 213.
31 Issued check no. 214 to Scott, Inc., to pay the amount due for the purchase of April 3.
Prepare headings for a cash disbursements journal like the one in Exhibit 7.11. Journalize the April transactions that should be recorded in the cash disbursements journal.