Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 39

Refer to Exercise 7-3 and for each of the November transactions identify the journal in which it would be recorded. Assume the company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal as illustrated in this chapter.
Reference: Exercise 7-3
Ali Co. uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of November.
Nov. 3 The company purchased $3,200 of merchandise on credit from Hart Co., terms n/20.
7 The company sold merchandise costing $840 on credit to J. Than for $1,000, subject to a $20 sales discount if paid by the end of the month.
9 The company borrowed $3,750 cash by signing a note payable to the bank.
13 J. Ali, the owner, contributed $5,000 cash to the company.
18 The company sold merchandise costing $250 to B. Cox for $330 cash.
22 The company paid Hart Co. $3,200 cash for the merchandise purchased on November 3.
27 The company received $980 cash from J. Than in payment of the November 7 purchase.
30 The company paid salaries of $1,650 in cash.
Prepare headings for a cash receipts journal like the one in Exhibit 7.7. Journalize the November transactions that should be recorded in the cash receipts journal.
Reference: Exhibit 7.7.