1. Purchased merchandise for cash. Debit Purchases Credit Cash

2. Purchased merchandise from Accounts Payable-Bob Bennet Debit Purchases Credit Acct. Pay. & Bob Bennet

3. Paid cash on account to Bob Bennett; no discount Debit Acct. Pay. & Bob Bennett Credit Cash

4. Paid cash on account to Bob Bennett less purchase discount Debit Acct. Pay. and Bob Bennett Credit Cash Purchase Discount

5. Returned merchandise on account to Bob Bennett Debit Acct. Pay. and Bob Bennett Credit Purchases Returns & Allowances

6. Recorded cash and credit card sales plus sales tax. Debit Cash Credit Sales, Sales tax payable

7. Sold merchandise on account to Ann Adams plus tax Debit Acct. Rec. & Ann Adams Credit Sales Sales Tax Payable

8. Received cash on account from Accounts Receivable-Gina Gates; no discount Debit Cash Credit Acct. Rec. & Gina Gates

9. Received cash from Ann Adams less sales discount Debit Cash Sales Discount Credit Acct. Rec. and Ann Adams

10. Granted credit to Ann Adams for merchandise returned plus tax Debit Sales Ret. & Allow. Sales Tax Payable Credit Acct. Rec. and Ann Adams

11. Paid cash for supplies. Debit Supplies Credit Cash

12. Bought supplies on account from Connie Conley Debit Supplies Credit Acct. Pay. & Connie Conley

13. Paid cash to Sam Smith, owner, personal use. Debit Sam Smith, Drawing Credit Cash

14. Sam Smith, owner, withdrew merchandise for personal use. Debit Sam Smith, Drawing Credit Purchases

15. Paid cash for sales tax owed. Debit Sales Tax Payable Credit Cash

16. Paid cash for the insurance premium. Debit Prepaid Insurance Credit Cash

17. Received cash from Sam Smith, owner, as an investment. Debit Cash Credit Sam Smith, Capital

18. Paid cash to establish a petty cash fund. Debit Petty Cash Credit Cash

19. Paid cash to replenish petty cash: supplies, advertising expense, cash is short. Debit Supplies Advertising Exp. Cash Short and Over Credit Cash

20. Paid cash for rent. Debit Rent Expense Credit Cash

21. Record the adjusting entry for Supplies Debit Supplies Expense Credit Supplies

22. Recorded adjusting entry for Prepaid Insurance Debit Insurance Exp. Credit Prepaid Insurance

23. Close the sales account. Debit Sales Credit Income Summary

24. Close the rent expense account. Debit Income Summary Credit Rent Expense

25. Close income summary (net income balance). Debit Income Summary Credit Owner, Capital

26. Close income summary (net loss balance). Debit Owner, Capital Credit Income Summary

27. Close the drawing account. Debit Owner, Capital Credit Owner, Drawing