Which of these transactions would go in the general journal. The
special journals are: Sales, Purchases, Cash Payments, Cash
receipts.
I want to know which ones do not qualify to go in the special
journals and need posted to the general journal, please. Thank
you.
| May 2 | Sold 400 USB Ports for $70 per unit and 1,200 GPS units for $75 per unit on account to Dodge, Invoice #2001. |
| May 3 | Received a bill from the law firm of Davenport Associates for $6,300, payable upon receipt, for bond consulting fees, Check #1001. |
| May 4 | Sold 500 Aux Cords on credit to Buick for $77 per unit, Invoice #2002. |
| May 4 | Purchased 2,100 USB Ports on credit from Shure for $45 per unit. |
| May 5 | Paid for office supplies purchased at Staples on May 1st, Check #1002. |
| May 7 | Sold 200 GPS units on account to Chevrolet for $49 per unit, Invoice #2003. |
| May 8 | Issued 4,750 shares of common stock for $13 per share |
| May 11 | Purchased 1,875 GPS units on credit from Sony for $25 per unit. |
| May 11 | The Board of Directors declared a cash dividend of $7 per share for shareholders of record on May 13th, payable on May 17th. |
| May 12 | Paid in full for the May 1 purchase from Yamaha, Check #1003. |
| May 13 | Received and paid expense reports for travel and entertainment totaling $1,500, Check #1004. |
| May 13 | Took advantage of a special deal to purchase 1,500 Aux Cords on account from Panasonic for $42 per unit. |
| May 15 | Received payment in full from Tesla for the May 2nd sale. |
| May 15 | Sold 1,050 USB Ports on credit to Chevrolet for $57 per unit, Invoice #2004. |
| May 16 | Received payment from Buick for $125,000 of the $300,000 owed from April 5. |
| May 17 | Paid the dividend that was declared on May 11th, Check #1005. |
| May 17 | Check # 1006 was issued for payroll: $14,900 for salaries and $5,100 for wages. |
| May 20 | Issued a credit to Chevrolet for the return of 150 defective units from the May 7th sale. These units has a cost basis of $35 per unit. |
| May 20 | Returned the 150 defective units received from Chevrolet to Yamaha. |
| May 22 | Purchased a $500 international phone card for one of the sales representative’s upcoming European business trip, Check #1008. |
| May 23 | Issued bonds payable at face value for $420,000 |
| May 23 | Purchased 2,080 USB Ports from Shure for $41 per unit paying in cash, Check #1009 |
| May 24 | Check #1010 was issued for payroll: $14,900 for salaries and $5,100 for wages. |
| May 25 | Hired and paid a consultant $50,000 to devise a marketing plan. Auto Zone’s management felt this was necessary to develop brand awareness. Check #1011. |
| May 26 | While inspecting the May 11th purchase, it was discovered that the GPS units were programmed for Asia instead of North America. Auto Zone returned the entire order to Sony. |
| May 27 | A bankruptcy judge disallowed Auto Zone’s claim for $25,000 due from Jeep. Management Decided to write off this accounts receivable. |
| May 27 | Sold 500 USB Ports on credit to GMC for $61 per unit, Invoice #2005. |
| May 29 | Paid in full for the purchase from Panasonic on May 13, Check #1012. |
| May 29 | Received payment in full from GMC for the May 27th transaction. |
| May 30 | Auto Zone is behind in its mortgage payments to Fifth Third Bank. Paid a total of $20,000 ($5,000 principal and $15,000 interest), Check #1013. |
| May 31 | Paid the first month’s principal payment of $12,500 on the note payable. In addition, paid one month’s interest, Check #1007 |
| *All purchases on account terms of 2/15, n/30 |
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| **All credit sales have terms of 2/30, n/45 |
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| May Month-end Adjustments: |
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| ( A ) | The Company took a physical count of Office Supplies on May 30 and found the following the value of inventory on hand to be $2,500. The beginning inventory was $3,200. Write the adjusting journal entry. |
| ( B ) | Auto Zone estimates bad debt expense on a monthly basis rather than waiting until year-end. The company uses the allowance method. Based on recent industry estimates, Auto Zone estimates that the allowance account should be 7.5% of accounts receivable. The ending AR balance is $850,000. At the end of the month (prior to this journal entry) there is a CREDIT balance of $19,000 in the Allowance for Doubtful Accounts account. Write the necessary adjusting entry. |
| ( C ) | The Balance of $23,000 in the prepaid insurance account at the beginning of May represents 5 months of coverage. Record the amount of insurance for May. |
| ( D ) | The Company took a physical inventory count on May 30 and found the following inventory on hand to be $100,641. The ending balance in the Inventory account (before this adjusting entry) was $128,947. Write the necessary adjusting entry. |
| ( E ) | Auto Zone has earned two months of the prepaid rent received from their tenant at the beginning of May. |
| ( F ) | Depreciation on the company’s fixed assets for the month of May is as follows: |
| 1. The furniture and equipment for the office was purchased last year for $7,350. these assets have a 5 year life, an expected salvage value of $500, and are depreicated using straight-line method. |
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| 2. The furniture and equipment for the warehouse was purchased a few years ago for $30,000. These assets have a 8-year life, an expected salvage value of $5,000, and are depreciated using the straight-line method. |
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