Sam Santiago operates a retail variety store. The books in
Question and Solution
Sam Santiago operates a retail variety store. The books include a general journal and an accounts payable ledger. Selected account balances on May 1 are as follows: General Ledger Cash .......... $40,000 Accounts Payable ...... 20,000 Accounts Payable Ledger Fantastic Toys ....... $5,200 Goya Outlet ....... 3,800 Mueller’s Distributors ... 3,600 Van Kooning ........ 7,400 The following are the transactions related to cash payments for the month of May: May 1 Issued Check No. 426 in payment of May rent (Rent Expense), $2,400. 3 Issued Check No. 427 to Mueller’s Distributors in payment of merchandise purchased on account, $3,600, less a 3% discount. Check was written for $3,492. 7 Issued Check No. 428 to Van Kooning in partial payment of merchandise purchased on account, $5,500. A cash discount was not allowed. 12 Issued Check No. 429 to Fantastic Toys for merchandise purchased on account, $5,200, less a 1% discount. Check was written for $5,148. 15 Issued Check No. 430 to City Power and Light (Utilities Expense), $1,720. 18 Issued Check No. 431 to A-1 Warehouse for a cash purchase of merchandise, $4,800. 26 Issued Check No. 432 to Goya Outlet for merchandise purchased on account, $3,800, less a 2% discount. Check was written for $3,724. 30 Issued Check No. 433 to Mercury Transit Company for freight charges on merchandise purchased (Freight-In), $1,200. 31 Issued Check No. 434 to Town Merchants for a cash purchase of merchandise, $3,000. REQUIRED 1. Enter the transactions in a general journal. 2. Post from the general journal to the general ledger and the accounts payable ledger. Use general ledger account numbers as shown in the chapter.