dec 1 paid cash to grander company for merchandise with a list price of $600.00, less a 40% trade…

dec 1 paid cash to grander company for merchandise with a list price of $600.00, less a 40% trade - discount. c721\n2 the board of directors declared a dividend of $0.50 per share; capital stock issued is 10,000 shares. m55\n3 paid cash to page supply for office supplies, $125.39. c722\n4 received cash on account from davidson county schools, $1,205.40, covering s387 for $1,230.00, less 2% sales discount, $24.60 r361. (do not adjust sales tax payable.)\n5 wrote off the accounts receivable balance of river supply, $743.23. m56\n6 sold merchandise on account to bumgardner corporation, $3,140.00, plus sales tax, $188.40; total, $3,328.40 s389\n7 bought office supplies on account from uimann stores, $231.58. m57\n8 paid cash on account to mason and peters, $2,303.00, covering p634 for $2,350.00, less discount, $47.00 c723\n9 purchased merchandise on account from drexler supply, $2,483.00. p635.\njournalize the selected transactions found in question assets completed during december of the current year by leverson lighting. use pages for sales, purchases, general, cash receipts, and cash payments journals. the sales tax rate is 6%. payroll tax rates are as follows: social security tax 6.2%; medicare tax, 1.45%; federal unemployment tax, 0.8%; state unemployment tax, 5.4%. source documents are abbreviated as follows: credit memorandum, cm; debit memorandum, dm; memorandum, m; notes receivable, nr; receipt, r; terminal summary, ts.\npage 12\nsales journal\ndate account debited sale no. post. ref. accounts receivable debit sales credit sales tax payable credit

dec 1 paid cash to grander company for merchandise with a list price of $600.00, less a 40% trade - discount. c721\n2 the board of directors declared a dividend of $0.50 per share; capital stock issued is 10,000 shares. m55\n3 paid cash to page supply for office supplies, $125.39. c722\n4 received cash on account from davidson county schools, $1,205.40, covering s387 for $1,230.00, less 2% sales discount, $24.60 r361. (do not adjust sales tax payable.)\n5 wrote off the accounts receivable balance of river supply, $743.23. m56\n6 sold merchandise on account to bumgardner corporation, $3,140.00, plus sales tax, $188.40; total, $3,328.40 s389\n7 bought office supplies on account from uimann stores, $231.58. m57\n8 paid cash on account to mason and peters, $2,303.00, covering p634 for $2,350.00, less discount, $47.00 c723\n9 purchased merchandise on account from drexler supply, $2,483.00. p635.\njournalize the selected transactions found in question assets completed during december of the current year by leverson lighting. use pages for sales, purchases, general, cash receipts, and cash payments journals. the sales tax rate is 6%. payroll tax rates are as follows: social security tax 6.2%; medicare tax, 1.45%; federal unemployment tax, 0.8%; state unemployment tax, 5.4%. source documents are abbreviated as follows: credit memorandum, cm; debit memorandum, dm; memorandum, m; notes receivable, nr; receipt, r; terminal summary, ts.\npage 12\nsales journal\ndate account debited sale no. post. ref. accounts receivable debit sales credit sales tax payable credit

Answer

Explanation:

Step1: Analyze Dec 1 transaction

The list - price of merchandise is $600 with a 40% trade - discount. The amount paid is the list - price minus the trade - discount. The trade - discount amount is $600\times0.4 = 240$. The amount paid is $600 - 240=360$. The journal entry: Debit: Merchandise Inventory $360 Credit: Cash $360

Step2: Analyze Dec 2 transaction

The board of directors declared a dividend of $0.50 per share and 10,000 shares are issued. The total dividend amount is $0.50\times10000 = 5000$. The journal entry: Debit: Retained Earnings $5000 Credit: Dividends Payable $5000

Step3: Analyze Dec 3 transaction

Paid cash of $125.39 for office supplies. The journal entry: Debit: Office Supplies $125.39 Credit: Cash $125.39

Step4: Analyze Dec 4 transaction

Received cash of $1205.40 on account from Davidson County Schools. The invoice amount was $1230 with a 2% sales discount of $1230\times0.02=24.60$. The journal entry: Debit: Cash $1205.40 Debit: Sales Discounts $24.60 Credit: Accounts Receivable $1230

Step5: Analyze Dec 5 transaction

Wrote off the accounts receivable balance of River Supply of $743.23. The journal entry: Debit: Bad Debt Expense $743.23 Credit: Accounts Receivable $743.23

Step6: Analyze Dec 6 transaction

Sold merchandise on account to Bumgardner Corporation. The merchandise amount is $3140 and sales tax is $188.40 (6% of $3140), total of $3328.40. The journal entry: Debit: Accounts Receivable $3328.40 Credit: Sales $3140 Credit: Sales Tax Payable $188.40

Step7: Analyze Dec 7 transaction

Bought office supplies on account from Uimann Stores for $231.58. The journal entry: Debit: Office Supplies $231.58 Credit: Accounts Payable $231.58

Step8: Analyze Dec 8 transaction

Paid cash of $2303 on account to Mason and Peters. The invoice amount was $2350 with a discount of $47. The journal entry: Debit: Accounts Payable $2350 Credit: Cash $2303 Credit: Purchase Discounts $47

Step9: Analyze Dec 9 transaction

Purchased merchandise on account from Drexler Supply for $2483. The journal entry: Debit: Merchandise Inventory $2483 Credit: Accounts Payable $2483

Answer:

See the step - by - step journal entries above for each transaction.