Described below are several transactions which might be recorded by a company like Popp Music Supply Co. Several accounts from the company’s chart of accounts are also listed below. Using these account titles, record each transaction in proper journal entry format in Popp’s journal. A written explanation for each journal entry is not required.
Accounts: Cash Common Stock Accounts Receivable Retained Earnings Inventory Sales Revenue Accounts Payable Selling Expenses Unearned Revenue Administrative Expenses
A) Bills are mailed for musical instruments sold to customers, 5225,000 B) Customers pay for musical instruments in advance, $130,000 C) Administrative employees are paid their monthly salaries, 514,000 D) An invoice is received for 515,200 of new musical instruments purchased (which Popp intends to sell to customers); payment is due in 30 days E) Payments are received from customers for amounts billed in a previous transaction, 5135,000 F) Full payment is made for the musical instruments invoice received in a previous transaction