The Following Are Transactions for Brian for the Month of October

question 9

Essay

The following are transactions for Brian for the month of October. Indicate how the following transactions would be recorded by completing the necessary journal entries as appropriate using the perpetual inventory system (omit explanations).
Oct. 1 Brian invested $15,000 in his business.
Oct. 3 Sold $2,500 of merchandise on account to H. Holand, sales invoice No. 1, terms 1/10, n/30, cost $2,000.
Oct. 5 Sold $1,200 of merchandise on account to T. Traer, sales invoice No. 2, terms 1/10, n/30, cost $1,000.
Oct. 13 Received cash from H. Holand in payment for October 3 transaction, less the discount.
Oct. 14 Issued credit memorandum No. 1 to T. Traer for $100 for merchandise returned in good condition from October 5 sale on account, cost $80.
Oct. 15 Received cash from T. Traer for the amount due, less the discount.
GENERAL JOURNAL

Date		Account Tiles and Description	PR	Debit	Credit

GENERAL LEDGER $$\text { Cash } 101$$ $$\text { Inventory } 110$$ $$\text { Sales Discount } 402$$ $$\text { Brad. Cap } 301$$ $$\text { Accounts Rec } 102$$ $$\text { Sales } 401$$ $$\text { Sales Ret.and All. } 403$$ $$\text { Cost of Goods Sold } 501$$ SUBSIDIARY LEDGER $$\text { H. Holand }$$ $$\text { T. Traer }$$

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Definitions:

Stock Purchased

The act of buying shares in a company, representing partial ownership and possibly entitling the shareholder to dividends and voting rights.

Accounting

The systematic process of recording, measuring, and communicating financial information about economic entities.

Investments

Assets purchased with the aim of generating income or appreciating in value over time, such as stocks, bonds, real estate, or other investments.

Equity Method

An accounting technique used to record investments in other companies where the investor holds significant influence but not full control or majority ownership.