Complete the General Journal using accounts listed Debit Credit Account Title Cash Accounts
Receivable Merchandise Inventory Accounts Payable Common Stock Retained Earnings Totals
$ 26,000 4,000 50,000 $ 4,000 43,000 33,000 $ 80,000 $80,000 The following events occurred
in 2012. 1. 2. Cash paid for land purchase Merchandise purchased on account Terms: 1/10 n/45,
FOB Shipping Point $ 20,000 $126,000 3. Freight paid in cash for merchandise purchase above
4. Defective Merchandise returned purchased in event 2 5. Merchandise costing $60,356 sold for
cash 6. Merchandise costing 84,220 sold on account $ 1,000 $ 3,600 $ 86,000 $120,000 Terms:
1/20 n/30 7. Paid cash on accounts payable with discount (event 2) 8. Paid Selling expenses 9.
A/R collected within discount period 10. A/R collected after discount period 11. Paid other
operating expenses $ 11,600 $ 50,000 $ 60,000 $ 6,400
Solution
Date Account Titles & Explanations Debt Credit 2 Merchandise Purchase a/c 126000
Accounts Payable 126000 3 Freight Expenses A/c 1000 Cash 1000 4 Accounts
Payable 3600 Merchandise Purchase a/c 3600 5 Cash A/c 86000 Sales A/c 86000
6 Accounts Receivable 120000 Sales A/c 120000 7 Accounts Payable 122400
Discount Received A/c 12240 Cash 110160 8 Selling Expenses 11600 Cash 11600
9 Cash A/c 96000 Discount Allowed A/c 24000 Accounts Receivable 120000 10
Cash A/c 120000 Accounts Receivable 120000 11 Operating Expenses 6400 Cash
6400.
