Assignment - Principle to Accounting

Question 1 (Total 10 Marks)

Instructions: Indicate in which journal the transactions given below would be recorded by placing the appropriate journal abbreviation in the space provided.

Abbreviation Journal GJ General Journal CB Cash & Bank Book SJ Sales Journal SR Sales Return Journal PJ Purchases Journal PR Purchases Return Journal
CB
1. Received cash on outstanding amount from customer.
SR
2. Customer returned merchandise sold on account.
CB
3. Sold merchandise to customer for cash.
GJ
4. Owner withdrew merchandise for personal use.
GJ
5. Paid shipping charges on merchandise purchased on account.
GJ
6. Purchased office equipment on credit.
PJ
7. Credit purchase from supplier.
GJ
8. Recorded adjusting entries.
SR
9. Returned damage merchandise to supplier which has not paid yet.
SJ
10. Sold merchandise to customer on account.

Question 2 (Total 22 Marks)
Instructions: Given the entry information in Silva Trading, prepare appropriate entries for the month of August 2012:

0. Aug. 1 Sold merchandise for cash $300.

Dr Cash $300

Cr Sales $300

1. Aug. 2 Purchased merchandise from ABC Co. on account for $5,000; terms 2/10, n/30.

2. Aug. 4 Sold excess land for $7,000 accepting a 2-year, 12% note. The land was purchased for $7,000 last year.

3. Aug. 6 Sold merchandise to D. Stone on account for $930, terms 2/10, n/30.

4. Aug. 8 Accepted a sales return of defective merchandise from D. Stone—credit granted was $280.

5. Aug. 11 Purchased merchandise from Tanner Hardware on account for $1,800; terms 1/10, n/30.

6. Aug. 12 Paid freight of $200 on the shipment from ABC Co. in cash.

7. Aug. 15 Received payment in full from D. Stone by cash.

8. Aug. 19 Paid ABC Co. in full by cheque.

9. Aug. 20 Paid Tanner Hardware in full by cheque.

10. Aug. 27 Purchased office supplies for $250