Devotchka Co

question 125

Essay

Devotchka Co. uses special journals and a general journal. The following transactions occurred during May 2020.
May 1 Z. Devotchka invested $25,000 cash in the business.
2 Sold merchandise to A. A. Bondy for $5,600 cash. The cost of the merchandise sold
was $3,500.
3 Purchased merchandise for $4,300 from Y. Vandyver using check no. 101.
14 Paid salary to D. Dilego $1,200 by issuing check no. 102.
16 Sold merchandise on account to S. Stevens for $840, terms n/30. The cost of the
merchandise sold was $500.
22 A check of $7,200 is received from S. Sufjan in full for invoice 101; no discount is taken.
Instructions
(a) Prepare a multiple-column cash receipts journal and a multiple-column cash payments journal. (Use page 1 for each journal.)
(b) Record the transaction(s) for May that should be journalized in the cash receipts journal and cash payments journal.

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Definitions:

Marriage Market

A process in which prospective spouses compare the assets and liabilities of eligible partners and choose the best available mate.

Calling

A deep sense of purpose or strong inner impulse toward a particular course of action, especially in a career or vocational path.

Mutual Attraction

A reciprocal sense of physical or emotional appeal experienced between two or more individuals.

Social Exchange Theory

A theory suggesting that human relationships are formed based on a subjective cost-benefit analysis and the comparison of alternatives.