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Gates Company Maintains Four Special Journals and a General Journal

Question 200

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Gates Company maintains four special journals and a general journal to record its transactions.indicate each transactions listed to the appropriate journal .

Premises:
Shareholders invested cash in the business in exchange for ordinary shares.
Purchased store supplies on account.
Sold merchandise to customer on account.
Purchased a 2-year fire insurance policy for cash.
Received a check from a customer as payment on account.
Paid for store supplies purchased in transaction 2.
Purchased merchandise on account.
Issued a credit memorandum to a customer who returned defective merchandise previously sold on account.
Purchased office equipment for cash.
Made an adjusting entry for store supplies used during the period.
Responses:
Sales journal (S)
Cash receipts journal (CR)
Cash payments journal (CP)
Single-column purchases journal (P)
General journal (G)

Correct Answer:

Shareholders invested cash in the business in exchange for ordinary shares.
Purchased store supplies on account.
Sold merchandise to customer on account.
Purchased a 2-year fire insurance policy for cash.
Received a check from a customer as payment on account.
Paid for store supplies purchased in transaction 2.
Purchased merchandise on account.
Issued a credit memorandum to a customer who returned defective merchandise previously sold on account.
Purchased office equipment for cash.
Made an adjusting entry for store supplies used during the period.
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