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instructions- Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10,

n/30. The cost of the goods sold is $67,200. Shore Co. paid freight of $1,800.

Journalize the entries for Shore and Blue Star for the sale, purchase, and payment of amount due. Refer to the appropriate company's Chart of Accounts for exact wording of account titles.


CHART OF ACCOUNTS Shore Co.General Ledger


ASSETS


110 Cash 121 Accounts Receivable-Blue Star Co.125 Notes Receivable 130 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


LIABILITIES 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 410 Sales 610 Rent Revenue


EXPENSES 501 Cost of Goods 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


Journalize the entries for Shore Co. for the sale and payment of the amount due. For grading purposes, use December 31 as the date for all transactions. Refer to the appropriate company's Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1



 






2



 






3



 






4



 






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7



 






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CHART OF ACCOUNTS Blue Star Co.General Ledger


ASSETS

110 Cash 120 Accounts Receivable 125 Notes Receivable 130 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

LIABILITIES

211 Accounts Payable-Shore 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

410 Sales 610 Rent Revenue

EXPENSES

501 Cost of Goods 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



Journalize the entries for Blue Star Co. for the purchase and payment of the amount due. For grading purposes, use December 31 as the date for all transactions. Refer to the appropriate company's Chart of Accounts for exact wording of account titles.

PAGE 20

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1



 






2



 






3



 






4



 

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