Question

Prepare the journal entries for the transactions below:

Credit terms for all sales on account are 2/10, n/30. Huff Fitness uses a perpetual inventory system and therefore records the cost of merchandise sold as well as the sale.

Apr 27   Issued ch #2215 to Miami Water Supply for $340 in payment of the water bill for the month (charge Misc Admin Exp).

Apr 27   Issued ch #2216 for $5,419.40 to Fitness Network in payment of its invoice received April 20, less discount.

Apr 27   Issued ch #2217 for $2500 to Ralph Huff for personal use.

Apr 29   Issued check #2218 to ATT for $612 for the telephone bill for the month. (Misc Admin Exp, $204; Misc Selling Exp, $408).

Answer 1

Date		Account titles and explanation	Ref.	Debit(in $)	Credit(in $)
	Apr-27	Misc Admin expenses		340
		Bank	2215		340
	Apr-27	Accounts Payable(Fitness Network)		6,774.25
		Bank	2216		5,419.40
		Merchandise Inventory			1,354.85
	Apr-27	Drawings		2,500
		Bank	2217		2,500
	Apr-29	Misc Admin expenses		204
		Misc Selling expenses		408
		Bank	2218		6,413