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.

Question

Quizplus · Accepted Answer

The Answer of 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.