Gold Corporation Had the Following Transactions Use the Following Sales Journal to Record the Preceding Transactions

question 69

Essay

Gold Corporation had the following transactions:
$$\begin{array} { | l | l | } \hline \text{Jan} , 4 & \text { Sold merchandise inventory on account to Sarah Pardee, } \$ 1,210 . \text { Cost of goods, } \$ 920 . \\&\text { Invoice no. } 101 . \\\hline 10 & \begin{array} { l } \text { Sold merchandise inventory on account to Sean Lewis, } \$ 2,100 . \text { Cost of goods, } \$ 1,660 . \\\text { Invoice no. } 102 .\end{array} \\\hline 12 & \begin{array} { l } \text { Sold merchandise inventory on account to Ellie Robins, } \$ 400 . \text { Cost of goods, } \$ 230 . \\\text { Invoice no. } 103 .\end{array} \\\hline 6 & \begin{array} { l } \text { Sold merchandise inventory on account to Diana Rees, } \$ 870 . \text { Cost of goods, } \$ 630 . \\\text { Invoice no. } 104 .\end{array} \\\hline\end{array}$$ Use the following sales journal to record the preceding transactions.The company uses the perpetual inventory system.
$\begin{array}{|c|c|c|c|c|c|}\hline\text { Sales Journal }&&&&&\text { Page } 1\\\hline \text { Date } & \begin{array}{c}\text { Invoice } \\\text { No. }\end{array} & \begin{array}{c}\text { Customer } \\\text { Account } \\\text { Debited }\end{array} & \begin{array}{c}\text { Post } \\\text { Ref. }\end{array} & \begin{array}{c}\text { Accounts Receivable DR } \\\text { Sales Revenue CR }\end{array} & \begin{array}{c}\text { Cost of Goods Sold DR } \\\text { Merchandise Inventory } \\\text { CR }\end{array} \\\hline\\\hline\\\hline\\\hline\\\hline\end{array}$

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Definitions:

Nonrecurring Items

Financial events that are not expected to happen regularly in a company's business cycle, affecting the company's usual revenue or expenses.

Reported Income

The income that a company officially reports, usually on its income statement, reflecting the financial performance over a specific period.

Return on Assets (ROA)

A financial ratio that indicates how profitable a company is relative to its total assets, calculated as net income divided by total assets.

Return on Common Equity

A financial ratio indicating the amount of net income returned as a percentage of shareholders equity, measuring a company's profitability in generating profits from its equity financing.