creating a journal

v

he following were selected from among the transactions completedby Babcock Company during November of the current year:

Nov.	3	Purchased merchandise on account from Moonlight Co., list price$90,000, trade discount 25%, terms FOB destination, 2/10,n/30.
	4	Sold merchandise for cash, $36,900. The cost of the goods soldwas $20,480.
	5	Purchased merchandise on account from Papoose Creek Co.,$50,700, terms FOB shipping point, 2/10, n/30, with prepaid freightof $750 added to the invoice.
	6	Returned $12,750 ($17,000 list price less trade discount of25%) of merchandise purchased on November 3 from Moonlight Co.
	8	Sold merchandise on account to Quinn Co., $14,550 with termsn/15. The cost of the goods sold was $9,510.
	13	Paid Moonlight Co. on account for purchase of November 3, lessreturn of November 6.
	14	Sold merchandise on VISA, $239,110. The cost of the goods soldwas $137,270.
	15	Paid Papoose Creek Co. on account for purchase of November5.
	23	Received cash on account from sale of November 8 to QuinnCo.
	24	Sold merchandise on account to Rabel Co., $57,100, terms 1/10,n/30. The cost of the goods sold was $32,270.
	28	Paid VISA service fee of $3,700.
	30	Paid Quinn Co. a cash refund of $5,960 for returned merchandisefrom sale of November 8. The cost of the returned merchandise was$3,290.
CHART OF ACCOUNTS
Babcock Company
General Ledger
ASSETS 110 Cash 121 Accounts Receivable-Quinn Co. 122 Accounts Receivable-Rabel Co. 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 211 Accounts Payable-Moonlight Co. 212 Accounts Payable-Papoose Creek Co. 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense