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Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition by Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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EXERCISE F-7

Purpose: (L.O. 2) This exercise will allow you to practice recording transactions in the purchases journal and the cash payments journal.

E & Y Company's chart of accounts includes the following selected accounts:

images

A list of selected transactions for June 2014 for E & Y Company (a sole proprietorship) appears below. The purchases journal and the cash payments journal follow that list.

Transactions

June 1 Purchased merchandise, check no. 103, $800.
3 Purchased merchandise on account from Ed Hastings, Inc., invoice no. 1272, terms 2/10, n/30, $1,800.
4 Purchased equipment on credit from Val Edmonds, Inc., $3,000.
5 Purchased supplies on account from PV Roddy, $300.
6 Purchased merchandise on account from Earl Elbert, invoice no. 1521, terms 2/10, n/30, $1,500.
7 Purchased merchandise, check no. 104, $1,200.
10 Purchased merchandise on account from Ed Hastings, Inc., invoice no. 1490, terms 2/10, n/30, $2,000.
12 Paid Ed Hastings, Inc. for invoice no. 1272, $1,800 less 2% discount, check no. 105, $1,764.
13 Paid Val Edmonds, Inc., $3,000 on account, check no. 106.
14 Paid an advertising agency for ads to appear in June, check no. 107, $400.
15 Purchased merchandise on account from Earl Elbert, invoice no. 1706, terms 2/10, n/30, $1,300.
16 Paid premium due on a one-year insurance policy, check no. 108, $600.
17 Paid PV Roddy on account, $300, ...

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