Orion Trading Ltd. — A Month of Transactions
Orion Trading Ltd. is a merchandising business. Journalize the following transactions for June 2024. Narrations are optional. The company uses the perpetual inventory system.
- Jun 1 — The owner invested 50,000 cash to start the business.
- Jun 2 — Purchased equipment for 12,000, paying 4,000 in cash and signing a note payable for the balance.
- Jun 4 — Purchased merchandise inventory on account for 9,500.
- Jun 7 — Paid the June office rent of 1,800 in cash.
- Jun 10 — Sold goods on account for 14,000. The cost of the goods sold was 8,200. (Record both the sale and the cost.)
- Jun 12 — Purchased office supplies for 650 cash.
- Jun 15 — Paid employee salaries of 3,200 in cash.
- Jun 18 — Collected 9,000 cash from credit customers.
- Jun 20 — Paid 6,000 cash to suppliers on account.
- Jun 24 — Received 2,400 cash in advance for goods to be delivered in July.
- Jun 27 — Paid the utilities bill of 480 in cash.
- Jun 30 — The owner withdrew 1,500 cash for personal use.
- Jun 30 — Recorded depreciation on the equipment for the month, 200.