A Company Entered into the Following Transactions

question 117

Short Answer

A company entered into the following transactions. For each transaction, indicate the appropriate journal in which it should be recorded.
a. Sales Journal
b. Purchases Journal
c. Cash Receipts Journal
d. Cash Disbursements Journal
e. General Journal
_____ 1. Purchased merchandise on credit.
_____ 2. Sold merchandise on credit.
3. Purchased merchandise for cash.
_____ 4. Sold merchandise for cash.
_____ 5. Paid cash to settle the utility bill.
_____ 6. Owner invested more cash in the business.
_____ 7. Recorded depreciation for the period.
_____ 8. Borrowed cash from the bank.
9. Bought office supplies on credit.
10. Received cash from a customer to settle an account receivable.

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Definitions:

Direct Materials

Materials that can be directly linked to the manufacturing of particular products or services.

Units Sold

The total quantity of products or services sold within a specific period, often used to measure business performance.

Direct Labor

The labor costs directly tied to the production of goods or the provision of services.

Variable Costs

Expenses that vary directly with the production output or activity levels.