On March 1, Sather Co. sold merchandise to Boone Co. on account, $31,800, terms 2/15, n/30. The cost of the merchandise sold is $19,000. The merchandise was paid for on March 14.

Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Refer to the appropriate companyâs Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Sather Co.

General Ledger

ASSETS

LIABILITIES

110

Cash

121

Accounts Receivable-Boone Co.

125

Notes Receivable

130

Merchandise Inventory

140

Office Supplies

141

Store Supplies

142

Prepaid Insurance

180

Land

192

Store Equipment

193

Accumulated Depreciation-Store Equipment

194

Office Equipment

195

Accumulated Depreciation-Office Equipment

210

Accounts Payable

218

Sales Tax Payable

219

Customer Refunds Payable

220

Unearned Rent

221

Notes Payable

EQUITY

310

Common Stock

311

Retained Earnings

312

Dividends

313

Income Summary

REVENUE

EXPENSES

410

Sales

610

Rent Revenue

501

Cost of Merchandise Sold

521

Delivery Expense

522

Advertising Expense

524

Depreciation Expense-Store Equipment

525

Depreciation Expense-Office Equipment

531

Rent Expense

533

Insurance Expense

534

Store Supplies Expense

535

Office Supplies Expense

536

Credit Card Expense

539

Miscellaneous Expense

710

Interest Expense

CHART OF ACCOUNTS

Boone Co.

General Ledger

ASSETS

LIABILITIES

110

Cash

120

Accounts Receivable

125

Notes Receivable

130

Merchandise Inventory

140

Office Supplies

141

Store Supplies

142

Prepaid Insurance

180

Land

192

Store Equipment

193

Accumulated Depreciation-Store Equipment

194

Office Equipment

195

Accumulated Depreciation-Office Equipment

211

Accounts Payable-Sather Co.

218

Sales Tax Payable

219

Customer Refunds Payable

220

Unearned Rent

221

Notes Payable

EQUITY

310

Common Stock

311

Retained Earnings

312

Dividends

313

Income Summary

REVENUE

EXPENSES

410

Sales

610

Rent Revenue

501

Cost of Merchandise Sold

521

Delivery Expense

522

Advertising Expense

524

Depreciation Expense-Store Equipment

525

Depreciation Expense-Office Equipment

531

Rent Expense

533

Insurance Expense

534

Store Supplies Expense

535

Office Supplies Expense

536

Credit Card Expense

539

Miscellaneous Expense

710

Interest Expense

Question

On March 1, Sather Co. sold merchandise to Boone Co. on account, $31,800, terms 2/15, n/30. The cost of the merchandise sold is $19,000. The merchandise was paid for on March 14.

Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Refer to the appropriate companyâs Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Sather Co.

General Ledger

	ASSETS
	LIABILITIES
110	Cash
121	Accounts Receivable-Boone Co.
125	Notes Receivable
130	Merchandise Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment
210	Accounts Payable
218	Sales Tax Payable
219	Customer Refunds Payable
220	Unearned Rent
221	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
	EXPENSES
410	Sales
610	Rent Revenue
501	Cost of Merchandise Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense

CHART OF ACCOUNTS

Boone Co.

General Ledger

	ASSETS
	LIABILITIES
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Merchandise Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment
211	Accounts Payable-Sather Co.
218	Sales Tax Payable
219	Customer Refunds Payable
220	Unearned Rent
221	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
	EXPENSES
410	Sales
610	Rent Revenue
501	Cost of Merchandise Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense

Oct.	1	Purchased merchandise from UK Imports Co., $14,448, terms FOB destination, n/30.
	3	Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice.
	4	Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30.
	6	Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4.
	13	Paid Hoagie Co. for invoice of October 3.
	14	Paid Taco Co. for invoice of October 4, less debit memo of October 6.
	19	Purchased merchandise from Veggie Co., $27,300, terms FOB shipping point, n/eom.
	19	Paid freight of $400 on October 19 purchase from Veggie Co.
	20	Purchased merchandise from Caesar Salad Co., $22,000, terms FOB destination, 1/10, n/30.
	30	Paid Caesar Salad Co. for invoice of October 20.
	31	Paid UK Imports Co. for invoice of October 1.
	31	Paid Veggie Co. for invoice of October 19.

Nov.	3	Purchased merchandise on account from Moonlight Co., list price$85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
	4	Sold merchandise for cash, $37,680. The cost of the merchandisesold was $22,600.
	5	Purchased merchandise on account from Papoose Creek Co.,$47,500, terms FOB shipping point, 2/10, n/30, with prepaid freightof $810 added to the invoice.
	6	Returned $13,500 ($18,000 list price less trade discount of 25%)of merchandise purchased on November 3 from Moonlight Co.
	8	Sold merchandise on account to Quinn Co., $15,600 with termsn/15. The cost of the merchandise sold was $9,400.
	13	Paid Moonlight Co. on account for purchase of November 3, lessreturn of November 6.
	14	Sold merchandise on VISA, $236,000. The cost of the merchandisesold was $140,000.
	15	Paid Papoose Creek Co. on account for purchase of November5.
	23	Received cash on account from sale of November 8 to QuinnCo.
	24	Sold merchandise on account to Rabel Co., $56,900, terms 1/10,n/30. The cost of the merchandise sold was $34,000.
	28	Paid VISA service fee of $3,540.
	30	Paid Quinn Co. a cash refund of $6,000 for returned merchandisefrom sale of November 8. The cost of the returned merchandise was$3,300.

1.	Cash balance according to the companyâs records at August 31, $18,257.
2.	Cash balance according to the bank statement at August 31, $27,261.
3.	Checks outstanding, $14,624.
4.	Deposit in transit, not recorded by bank, $6,131.
5.	A check for $58 in payment of an account was erroneously recorded in the check register as $580.
6.	Bank debit memo for service charges, $11.

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4

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