Smith Auto uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. July 3 The company purchased $3,300 of merchandise on credit from Advanced Parts, terms n/60.
July 6 The company sold $700 of merchandise for cash (cost is $550) to O’Reily.
July 7 The owner, A. Smith, contributed equipment worth $5,400 to the company.
July 9 The company sold $850 of used equipment (noninventory) on credit to Junk Yard, terms n/30.
July 13 The company sold $3,600 of merchandise (cost is $3,200) on credit to J. Bell, terms n/30.
July 15 The company granted J. Bell an allowance (price reduction) of $540 for merchandise purchased on July 13. Smith Auto credited accounts receivable for that amount.
July 22 The company purchased a building for $24,000 by issuing a note payable.
July 26 The company paid salaries of $4,600 with cash.
1. Journalize its transactions that should be recorded in the general journal.
2. Identify the journal where each of the following transactions should be recorded.