Suppose you are going to attend interview board for the post of an accountant in acompany. Give the performa of special journals mentioning five specific items in it.(see lesson 5)
Answers
Explanation:
Special Journals
Look at the following transactions of Fooz Ball Town:
July 5 Sold $5,000 of merchandise inventory, terms 1/15, n 30, FOB Destination with a cost of goods sold of $3,000 to Robby Red.
July 6 Paid shipping cost of $200 on merchandise sold on July 5.
July 10 Sold $1,500 of merchandise inventory for cash, FOB Shipping Point, with a cost of goods sold of $1,000.
July 12 Purchased $10,000 of merchandise inventory, terms 2/15, n 45, FOB Destination from Gus Grass.
July 15 Received payment from Robby Red from July 5 sale less the discount.
July 16 Returned $2,500 of merchandise damaged in shipment from July 12 purchase.
July 20 Paid the utility bill for $300.
July 25 Paid for the July 15 purchase less the return and discount.
July 30 Sold $7,000 of merchandise inventory, terms 1/15, n 30, FOB Shipping point with cost of goods sold $5,000 to Bobby Blue.
You can see how these journal entries (using the perpetual inventory method) would be recorded in the general ledger as by clicking fooz ball town to save space.
Note: The entries would be slightly different under the periodic inventory method as cost of goods sold and merchandise inventory are not updated until the end of the period instead of with each sale or purchase.