No.

Date

Accounts Titles and Explanation

Debit ($)

Credit ($)

1.

Accounts receivable ($9,800 + $8,600)

18,400

        Sales revenue

18,400

(To record sales revenue)

*In case of FOB shipping point, freight will be paid bythe purchasing party. Hence, no entry for freight isrequired.

2.

Merchandise inventory

5,400

        Accounts payable(3,000 + $2,400)

5,400

(To record purchase of merchandise)

*In case of FOB destination point, freight will be paidby the seller. Hence, no entry for freight isrequired.

3.

Cash ($4,000 + $2,000)

6,000

        Accountsreceivable

6,000

(To record cash received)

4.

Accounts payable

{($9,000 × 0.98) + ($11,000 × 0.99)}

19,710

        Cash

19,710

(To record cash paid)

5.

Sales return and allowances

400

        Accountsreceivable

400

(To record sales return and allowances)

6.

Cash

16,500

        Sales revenue

16,500

(To record sales revenue)

7.

Accounts payable

5,400

        Merchandise inventory($5,400 × 0.02)

108

        Cash ($5,400 ×0.98)

5,292

(To record cash paid)

8.

Cash

18,400

        Accountsreceivable

18,400

(To record cash received)

9.

Prepaid rent

6,000

        Cash

6,000

(To record prepaid rent)

10.

Accounts receivable

1,600

        Sales revenue

1,600

(To record sales revenue)

11.

Office supplies

400

        Cash

400

(To record cash paid for office supplies)

12.

Dividends

900

       Dividend payable

900

(To record dividend payable)

Dividend payable

900

        Cash

900

(To record dividend paid)

13.

Cash

130,000

        Notes payable

130,000

(To record cash received against notes payable)

14.

Merchandise inventory

33,000

        Accounts payable

33,000

(To record purchase of merchandise)

15.

Land

15,000

        Common stock (1,000 ×$10)

10,000

        Gain on purchase ofland

5,000

(To record purchase of land in exchange of common stock)

16.

Accounts payable

200

        Merchandiseinventory

200

(To record purchase return)

17.

Accounts receivable

80,000

        Sales revenue

80,000

(To record sales revenue)

18.

Accounts payable ($33,000 – $200)

32,800

        Cash

32,800

(To record cash paid for accounts payable)

19.

Cash ($40,000 × 0.99)

39,600

Sales discount ($40,000 × 0.01)

400

        Accountsreceivable

40,000

(To record cash received from accounts receivable)

20.

Bad debt expense

1,300

        Accountsreceivable

1,300

(To record bad debt expense)

21.

Utilities expense

10,902

        Cash

10,902

(To record utility expense)

22.

Cash

40,000

        Accountsreceivable

40,000

(To record cash received from accounts receivable)

23.

Cash

7,500

        Accountsreceivable

7,500

(To record cash received from accounts receivable)

24.

Notes payable

110,000

Interest expense ($6,000 – $1,500)

4,500

Interest payable

1,500

        Cash

(To record payment of notes payable)

25.

Wages and salaries expense

45,500

        Wages and salariespayable

45,500

(To record wages and salaries payable)

Wages and salaries payable

44,000

        Cash ($45,500 -$1,500)

44,000

(To record payment of salaries)

26.

Utilities expense

1,250

        Utilities payable

1,250

(To record utilities expense)