Assignment
Part 1 (10 points):
Below are purchases made by Crabtree Construction Company on account. Record these transactions on the Purchases Journal sheet of the Special Journals Template spreadsheet. Be sure to select the Purchases from the four special journal tabs at the bottom of the spreadsheet.
June 2 Bought merchandise on account from Abt Supply Co., $2000, Invoice 345
June 30 Bought merchandise on account from Carrier Wholesale, Inc. $1,250, Invoice 876
The two accounts used for both of above will be: Purchases and Accounts Payable
Part 2 (16 points):
Martin Cosmetics made the cash payments below during the month of October. Record these transactions in the Cash Payments Journal sheet of the Special Journals Template spreadsheet. Be sure to select the Cash Payments Journal from the four special journal tabs at the bottom of the spreadsheet.
Oct 2 Issued Check #223 to Best Realty for October Rent, $500 (Rent Expense)
Oct. 12 Mailed Check #224 for $3,920 to All Star, Inc. for cosmetics purchased on account earlier (the earlier part of this transaction was to Debit Purchases and Credit Accounts Payable; and this amount has been held in the Accounts Payable account and now you are paying it—so you need to reduce Accounts Payable and reduce Cash in Bank because you are writing a check—look at your rules of Debit/Credit to see how to reduce a liability and how to reduce an asset)
Oct. 15 Purchased office supplies for $150 cash, Check #225 (use Office Supplies Expense)
Oct 20 Issued Check #226 for $425 to pay the light bill (use Utilities Expense)
All four of the above transactions will require a credit to Cash in Bank because checks are being sent so that reduces the bank balance (reduce an Asset with a credit)