Country Vs City Living

Jan. 4 Wages Expense 623 150

Wages Payable 210 600

Cash 101 750

Paid employee.

5 Cash 101 10,000

A. Lopez, Capital 301 10,000

Additional investment by owner.

7 Merchandise Inventory 119 5,700

Accounts Payable 201 5,700

Purchased merchandise on credit.

9 Cash 101 3,500

Accounts Receivable—Gomez Co. 106.6 3,500

Collected accounts receivable.

11 Accounts Receivable—Alex’s Eng. Co 106.1 6,500

Unearned Computer Services Revenue 236 2,500

Computer Services Revenue 403 9,000

Completed work on project.

13 Accounts Receivable—Chang Corp. 106.5 6,000

Sales 413 6,000

Sold merchandise on credit.

13 Cost of Goods Sold 502 4,080

Merchandise Inventory 119 4,080

To record cost of Jan. 13 sale.

15 Merchandise Inventory 119 400

Cash 101 400

Paid freight on incoming merchandise.

16 Cash 101 5,600

Computer Services Revenue 403 5,600

Collected cash revenue from customer.

Serial Problem — SP 5 (Continued)

Jan. 17 Accounts Payable 201 5,700

Merchandise Inventory 119 57

Cash 101 5,643

Paid account payable within discount period. (Discount taken = $5,700 x .01 = $57)

20* Sales Returns and Allowances 414 500

Accounts Receivable—Chang Corp. 106.5 500

Customer returned defective goods.

* Success Systems leaves the cost of defective products in its costs of goods