Cotter corporation | Business & Finance homework help

Cotter Corporation had the following selected transactions for the
month of May, 20XX.
May 4 Received $300 from E. Gilmour representing the
balance from a sale made in March.
6 Made a credit sale of merchandise to W. Jones,
invoice No. 506, $890.
7 E. Cotter invested additional cash of $6,000.
8 Sold merchandise on credit to R. Hopkins, invoice
No. 507, $2,000.
11 Received payment from W. Jones for invoice No.
506, less a 2% discount.
13 R. Hopkins was granted a $90 credit for merchandise
returned.
15 Cash sales for the first half of the month totaled
$740.
19 Sold merchandise on account to R. Donovan,
invoice No. 508, $1,250.
21 Received payment from R. Hopkins for invoice No. 507, less return of
May 13.
25 Sold merchandise on account to D. Ruddy, invoice No. 509, $1,845.
27 Obtained a short-term loan of $1,500 from a local bank.
28 Received payment from R. Donovan for invoice No. 508, less a 2% discount.
31 Cash sales for the second half of the month totaled $620.
REQUIRED: Record the preceding transactions, using the sales journal, cash
receipts journal, and the general journal provided at the back of this unit and
then answer questions 1–3.
1. The total of the cash column in the cash receipts journal is
A. $13,257.20 C. $7,257.20
B. $13,167.20 D. $7,167.20
2. The total of the sales journal for the month is
A. $7,485. C. $5,985.
B. $7,345. D. $5,895.
3. Which of the following transactions will appear in the general journal?
A. May 7 C. May 7 and 13
B. May 13 D. May 7, 13, and 27

[shortposting]

Beezer’s Bargain Shop began operations on June 1, 20XX. The company’s bookkeeper
determined that five books of original entry would have to be maintained:
a cash receipts journal, a cash payments journal, a sales journal, a purchases
journal, and a general journal. A chart of accounts was also set up and included
the following accounts:
Account Number Account Title
100 Cash
110 Accounts Receivable
120 Office Supplies
130 Prepaid Advertising
140 Store Equipment
200 Accounts Payable
300 Edward Beezer, Capital
310 Edward Beezer, Drawings
400 Sales
410 Sales Returns and Allowances
420 Sales Discounts
500 Purchases
510 Purchase Returns and Allowances
520 Purchase Discounts
530 Transportation In
600 Salaries Expense
610 Utilities Expense
During the month of June the following transactions were completed:
June 1 Edward Beezer invested $20,000 in the business.
1 Purchased merchandise from Zipay Brothers on account, $2,500; terms
2/10, n/30.
2 Purchased store equipment on account from Dante Company, $520.
2 Purchased merchandise for cash, $1,500.
3 Purchased merchandise from the IAC Company on account, $5,500; 1/10,
n/30.
4 Sold merchandise to D. Nazar Associated on account, $725; invoice No.
1000; terms 2/10, n/30.
4 Paid $85 for office supplies.
4 Sold merchandise to H. Franklin, Inc. on account, $625; invoice No. 1001;
terms 2/10, n/30.
5 Cash sales for week, $920.
5 Returned part of merchandise purchased from Zipay Brothers, who agreed to
issue credit memorandum for $230.
8 Purchased merchandise from Roosevelt Company on account, $1,100; terms
1/10, n/30.
8 Received payment from D. Nazar Associates for invoice No. 1000, less
discount.
9 Sold merchandise to T. Connors & Sons on account, $2,000; invoice No.
1002, terms 2/10, n/30.
9 Paid Zipay Brothers for invoice of June 1, less merchandise returned and
discount taken.
10 Paid for three months’ advertising expense in advance, $600.
11 Paid IAC Company invoice of June 3, less discount.
12 Cash sales for week, $3,140.
12 Sold merchandise to Leonards Home Builders on account, $2,240; invoice
No. 1003; terms 2/10, n/30.
15 Paid salaries for first half of month, $640.
Paid Dante Company one-half the amount due.
16 Purchased merchandise on account from the Bosak Company, $4,200; terms
2/10, n/30.
17 Paid Roosevelt Company invoice of June 8, less discount.
17 Leonards Home Builders returned merchandise in the amount of $360. Credit
was given.
18 Sold merchandise to Pollocks Hardware Store on account, $1,910; invoice
No. 1004, terms 2/10, n/30.
19 Received payment from T. Connors & Sons for invoice No. 1002, less
discount.
19 Cash sales for week, $2,720.
22 Received payment from Leonards Home Builders for invoice No. 1003, less
merchandise returned and discount taken.
22 Paid balance due to Dante Company.
23 Paid transportation charges on merchandise received from Bosak Company,
$95.
24 Sold merchandise to C. Vingsen on account, $1,720; invoice No. 1005; terms
2/10, n/30.
25 Purchased merchandise on account from the Big M Supply House, $8,200;
terms 2/10, n/30.
25 Paid Bosak Company invoice of June 16, less discount.
26 Cash sales for week, $2,220.
26 Received payment from Pollocks Hardware Store for invoice No. 1004, less
discount.
29 Paid Utility bill of $65.
30 Paid salaries for second half of the month, $640.
30 Received amount due from H. Franklin, Inc.
30 Edward Beezer withdrew $700 from the business for his personal use.
4. The total of the purchases journal on June 30 is
A. $23,520. C. $22,020.
B. $23,000. D. $21,500.
5. The total of the sales discount in the cash receipts journal is
A. $92.10. C. $137.50.
B. $130.30. D. $195.40.
6. Entries were recorded in the general journal for transactions on
A. June 1, 5, and 17. C. June 1, 2, and 30.
B. June 2, 17, and 30. D. June 2, 5, and 17.
7. How many entries were made in the Other Accounts column of the cash payments
journal?
A. 5 C. 7
B. 6 D. 8
8. On June 30, the totals of the purchases journal and the Accounts Payable column of
the cash payments journal are posted to the Accounts Payable general ledger account.
In addition, individual postings are made from the general journal. After these entries
have been posted to the general ledger from the journals, the balance in the accounts
payable account is
A. $21,500. C. $8,200.
B. $8,430. D. $7,680.

9. Which one of the following does not apply to payroll accounting?
A. The calculations of the amount of taxes payable to the city.
B. The recording of amounts owed to each employee for each pay period.
C. The calculation of the amount to be accrued to each accounting period for General
Expenses.
D. Determining the proper amounts to be withheld from employees’ paycheques.

10. Timesheets would be used in which one of the following payroll methods?
A. Straight salary C. Hourly payroll
B. Piecework rate D. Commission

11. Which one of the following headings would not be used on a straight-salary method?
A. Group Insurance C. Federal Income Tax
B. Overtime Pay D. Pension Plan

12. Which one of the following would affect a company’s profit-and-loss statement?
A. Sale Salaries C. Pension Plan Payable
B. Group Insurance Payable D. Prepaid Insurance

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