Question

R. Sheridan Co. uses special journals and a general journal. The following transactions occurred during May 2020.
May 1 R. Sheridan invested $46,800 cash in the business.
2 Sold merchandise to Lawrie Co. for $6,470 cash. The cost of the merchandise sold was $4,300.
3 Purchased merchandise for $7,450 from J. Moskos using check no. 101.
14 Paid salary to H. Rivera $900 by issuing check no. 102.
16 Sold merchandise on account to K. Stanton for $810, terms n/30. The cost of the merchandise sold was $605.
22 A check of $8,830 is received from M. Mangini in full for invoice 101; no discount given.
Prepare a multiple-column cash receipts journal _______ for May that should be journalized. (Record entries in the order presented in the problem.

Answer 1

Answer:

The journal entries will be recorded as follows

Explanation:

1. DR Cash $46,800

CR Capital $46,800

2. DR Sales $6,470

   CR Inventory $4,300

   CR Profit $2,170

3. DR Inventory $7,450

   CR Bank $7,450

14. DR Salaries Expense $900

    CR Bank $900

16. DR Account Receivable $810

     CR Inventory $605

     CR Profit $205

22. DR Cash $8,830

     CR Accounts Receivable $8,830