Nov. 14 Sold merchandise on nonbank credit cards and reported accounts to the card com-
pany,American Express, $9,850. The cost of the merchandise sold was $5,900.
15 Paid Alamosa Co. on account for purchase of November 5, less discount.
21 Received cash on account from sale of November 11 to Bowles Co., less discount.
24 Sold merchandise on account to Kapinos Co., $4,200, terms 1/10, n/30. The cost of
the merchandise sold was $1,850.
28 Received cash from American Express for nonbank credit card sales of November 14,
less $440 service fee.
30 Received merchandise returned by Kapinos Co. from sale on November 24, $1,100.
The cost of the returned merchandise was $600.Instructions
Journalize the transactions.The following selected transactions were completed during March between Snyder Company
and Brooks Co.:Mar. 1 Snyder Company sold merchandise on account to Brooks Co., $12,750, terms FOB
destination, 2/15, n/eom. The cost of the merchandise sold was $6,000.
2 Snyder Company paid transportation costs of $150 for delivery of merchandise sold
to Brooks Co. on March 1.
5 Snyder Company sold merchandise on account to Brooks Co., $18,500, terms FOB
shipping point, n/eom. The cost of the merchandise sold was $11,000.
6 Brooks Co. returned $2,000 of merchandise purchased on account on March 1 from
Snyder Company. The cost of the merchandise returned was $1,200.
9 Brooks Co. paid transportation charges of $180 on March 5 purchase from Snyder
Company.
15 Snyder Company sold merchandise on account to Brooks Co., $20,000, terms
FOB shipping point, 1/10, n/30. Snyder Company paid transportation costs of
$1,750, which were added to the invoice. The cost of the merchandise sold was
$12,000.
16 Brooks Co. paid Snyder Company for purchase of March 1, less discount and less re-
turn of March 6.
25 Brooks Co. paid Snyder Company on account for purchase of March 15, less discount.
31 Brooks Co. paid Snyder Company on account for purchase of March 5.Instructions
Journalize the March transactions for (1) Snyder Company and (2) Brooks Co.For the year ending December 31, 2007, Guru Systems Inc. reported net income of $241,600 and
paid dividends of $72,000. Comparative balance sheets as of December 31, 2007 and 2006, are as
follows:256 Chapter 5 Accounting for Merchandise Operations
Alternate Problem
5-6BSales-related and purchase-
related transactions for seller
and buyer
Goals3, 4, 5, 6GENERAL LEDGERAppendix Alternate
Problem 5-7BStatement of cash flows using
indirect method- Net cash flows from
operating activities, $188,480