Answer:
Jan. 1
Dr Cash $55,750
Dr Supplies $7,800
Cr Common Stock $63,550
Jan. 2
Dr Purchases $11,850
Cr Cash $11,850
Jan. 3
Dr Accounts Receivable - Rivera Corporation, $ $1,010
Cr Sales Revenue $1,010
Jan. 4
Dr Purchases $2,420
Cr Accounts Payable - Tsang Company $2,420
Jan. 5
Dr Freight Expenses $220
Cr Cash $220
Jan. 10
Dr Sales Returns and Allowances $220
Cr Accounts Receivable - Rivera Corporation $220
Jan. 11
Dr Cash $790
Cr Accounts Receivable - Chu Corporation $790
Jan. 13
Dr Accounts Payable - Tsang Company $2,420
Cr Cash $2,420
Jan. 15
Dr Cash $7,620
Cr Sales Revenue $7,620
Jan. 15
Dr Accounts Receivable $1,315
Cr Bank Charges $39
Cr Sales Revenue $1,276
Jan. 16
Dr Equipment $1,915
Cr Cash $1,915
Jan. 17
Dr Equipment $230
Cr Cash $230
Jan. 18
Dr Purchases $6,300
Cr Accounts Payable - Terri Manufacturing $6,300
Jan. 20
Dr Accounts Receivable - Moloney Corp. $3,380
Jan. 21
Dr Purchases $2,480
Dr Freight Expenses $150
Cr Accounts Payable - Johnson Company $2,630
Jan. 27
Dr Accounts Payable - Terri Manufacturing $6,300
Cr Cash $6,300
Jan. 29
Dr Cash $3,380
Accounts Receivable - Moloney $3,380
Jan. 30
Dr Accounts Payable - Johnson Company $2,630
Cr Cash $2,630
Jan. 31
Dr Cash $8,225
Sales Revenue $8,225
Jan. 31
Dr Accounts Receivable $2,520
Cr Bank Charges $76
Cr Sales Revenue $2,444
Explanation:
Preparation of the Journal Entries
Jan. 1
Dr Cash $55,750
Dr Supplies $7,800
Cr Common Stock $63,550
($55,750+$7,800)
(To record the amount invested into the business along with supplies)
Jan. 2
Dr Purchases $11,850
Cr Cash $11,850
(To record the purchase of merchandise inventory by cash)
Jan. 3
Dr Accounts Receivable - Rivera Corporation, $ $1,010
Cr Sales Revenue $1,010
(To record the sale of merchandise on account)
Jan. 4
Dr Purchases $2,420
Cr Accounts Payable - Tsang Company $2,420
(To record the purchase of merchandise inventory on account)
Jan. 5
Dr Freight Expenses $220
Cr Cash $220
(To record the payment of freight charges)
Jan. 10
Dr Sales Returns and Allowances $220
Cr Accounts Receivable - Rivera Corporation $220
(To record the return of merchandise that was sold to Chu Corporation)
Jan. 11
Dr Cash $790
Cr Accounts Receivable - Chu Corporation ($1,010 - $220) $790
(To record the collection of amount from credit sales)
Jan. 13
Dr Accounts Payable - Tsang Company $2,420
Cr Cash $2,420
(To record the payment made to credit purchases)
Jan. 15
Dr Cash $7,620
Cr Sales Revenue $7,620
(To record the cash sales)
Jan. 15
Dr Accounts Receivable $1,315
Cr Bank Charges ($1,315*3/100) $39
Cr Sales Revenue $1,276
($1,315-$39)
(To record the sales made on credit card)
Jan. 16
Dr Equipment $1,915
Cr Cash $1,915
(To record the purchase of equipment on account)
Jan. 17
Dr Equipment $230
Cr Cash $230
(To record the payment of freight charges)
Jan. 18
Dr Purchases $6,300
Cr Accounts Payable - Terri Manufacturing $6,300
(To record the purchase of merchanise inventory on account)
Jan. 20
Dr Accounts Receivable - Moloney Corp. $3,380
Cr Sales Revenue $3,380
(To record the sales made on account)
Jan. 21
Dr Purchases $2,480
Dr Freight Expenses $150
Cr Accounts Payable - Johnson Company $2,630
($2,480+$150)
(To record the purchase of inventory on account)
Jan. 27
Dr Accounts Payable - Terri Manufacturing $6,300
Cr Cash $6,300
(To record the payment made to credit purchases)
Jan. 29
Dr Cash $3,380
Accounts Receivable - Moloney $3,380
(To record the amount received from credit sales)
Jan. 30
Dr Accounts Payable - Johnson Company $2,630
($2,480+$150)
Cr Cash $2,630
(To record the payment made to credit purchases)
Jan. 31
Dr Cash $8,225
Sales Revenue $8,225
(To record the cash sales)
Jan. 31
Dr Accounts Receivable $2,520
Cr Bank Charges ($2,520*3/100) $76
Cr Sales Revenue $2,444
($2,520-$76)
(To record the sales made on credit card)