ACG 2021 Quiz: Chapter 8 - Practice Questions
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1. Balance or reconcile the accounts receivable subsidiaryledger and accounts receivable in the general ledger. Do the samefor the accounts payabel subsidiary ledger and accounts payable inthe general ledger.
GeneralJournal PAGE 6 | |||||
DATE | ACCOUNT TITLES AND EXPLANATIONS | POST. REF. | DEBIT | CREDIT | |
(balancing the ledgers)
General Ledger
Accounts Receivable DebitBalance
McMillan Distributors:
Schedule of Accounts Receivable
July 31
Balance
General Ledger
Accounts Payable Credit Balance:$23628.94
McMillan Distributors:
Schedule of Accounts Payable
July 31
Balance
Accounts Receivable SubsidiaryLedger
ACCOUNT BELLLTD. | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 9 | Bell Ltd | 6 | 33300 | 33300 | |
July | 19 | Bell Ltd | 13 | 32967 | 32967 | |
July | 19 | Bell Ltd Discount | 13 | 333 | 333 | |
July | 29 | Bell Ltd | 21 | 2976 | 2976 | |
68610 |
ACCOUNT M.O.BROWN | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 15 | M.O.Brown (credit sale) | 11 | 3990 | 3990 | |
July | 15 | M.O.Brown (Sold to) | 11 | 1440 | 1440 | |
2550 |
ACCOUNT ISHIKAWAINC. | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 2 | Ishikawa Inc (credit sale) | 1 | 24600 | 24600 | |
July | 10 | Ishikawa Inc (discount) | 8 | 246 | 246 | |
July | 10 | Ishikawa Inc | 8 | 24354 | -24354 | |
July | 18 | Ishikawa Inc (credit sale) | 13 | 2142 | -2142 | |
-1650 |
Accounts Payable SubsidiaryLedger
ACCOUNT BURGESSDISTRIBUTINGLTD. | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 15 | Burgess Distribution Ltd (Purchases) | 15 | $12,282 | -$12,282 | |
ACCOUNT NAKKACHCORP. | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 3 | Nakkach Corp (purchase of inventory) | 2 | $14,802 | -$14,802 | |
July | 13 | Nakkach Corp (Discount) | 9 | $444.06 | $444.06 | |
July | 22 | Nakkach Corp (Furniture Purchase) | 16 | $3870 | -$3870 |
ACCOUNT MANLEY,INC. | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 13 | Manley Inc (Purchase of supplies) | 10 | $8646 | -$8646 | |
July | 28 | Manley Inc | 19 | $805 | -$805 | |
July | 29 | Manley Inc (Return) | 20 | $4050 | $4050 | |
General Ledger
ACCOUNT CASH ACCOUNT NO. 111 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 5 | Sale of inventory in cash (914) | 2 | 2880 | 2880 | |
July | 5 | Purchase of Furniture (532) | 4 | 13110 | -13,110 | |
July | 10 | Purchase of Inventory (533) | 7 | 6858 | -6858 | |
July | 13 | Paid to Nakkach Corp (533) | 9 | 14358 | -14358 | |
July | 19 | Bell Ltd | 14 | 32967 | 32967 | |
July | 25 | Payment for Utilities (536) | 18 | 6718 | -6718 | |
July | 30 | Manley Inc | 22 | 2646 | -2646 | |
July | 31 | Ishikawa Inc | 23 | 2142 | -2142 | |
July | 31 | Salary Expenses | 24 | 14082 | -14082 | |
Transfer to balance sheet as asset | 24,066.94 | 24,067 |
ACCOUNT ACCOUNTSRECEIVABLE ACCOUNT NO. 112 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 2 | Ishikawa Inc (913) | 1 | 24,600 | 24,600 | |
July | 9 | Bell Ltd (914) | 6 | 33,300 | 33,300 | |
July | 10 | Ishikawa Inc (913) | 8 | 24,354 | -24,354 | |
July | 10 | Ishikawa Inc (Discount) (913) | 8 | 246 | -246 | |
July | 15 | M.O. Brown (915) | 11 | 3990 | 3990 | |
July | 18 | Credit sale to Ishikawa Inc (916) | 13 | 2142 | 2142 | |
July | 19 | Bell Ltd (914) | 14 | 32967 | -32,967 | |
July | 19 | Bell Ltd (Discount) | 13 | 333 | -333 | |
July | 29 | Bell Ltd (917) | 21 | 2976 | 2976 | |
July | 31 | Ishikawa Inc | 23 | 2142 | -2142 | |
Transfer to balance sheet as asset | 6966 | 6966 | ||||
ACCOUNT SUPPLIES ACCOUNT NO. 116 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 13 | Purchase of Supplies Manlet Inc | 10 | 8646 | 8646 | |
July | 24 | Sales of Supplies | 18 | 324 | -324 | |
8322 | -8322 |
ACCOUNT PREPAIDINSURANCE ACCOUNT NO. 117 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 22 | Prepaid Insurance | 17 | 6000 | 6000 | |
6000 | -6000 |
Req. 1 and4 (continued) P7-6A
ACCOUNT INVENTORY ACCOUNT NO. 118 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 2 | Credit Sale to Ishikawa Inc (913) | 1 | 10,800 | 10800 | |
July | 3 | Purchase of Inventory from Nakkach Corp | 2 | 14,802 | 14802 | |
July | 5 | Sold Inventory for Cash (915) | 3 | 2880 | 2880 | |
July | 9 | Credit sale to Bell Ltd. (914) | 6 | 13,860 | 12860 | |
July | 10 | Purchase of inventory (533) | 7 | 6858 | 6858 | |
July | 15 | Sold to M.O. Brown (915) | 11 | 1440 | 1440 | |
July | 18 | Credit Sale to Ishikawa Inc (916) | 13 | 762 | 762 | |
July | 20 | Purchases Burgess Distributing Ltd | 15 | 12,282 | 12282 | |
July | 28 | Purchase of Inventory | 19 | 8050 | 8050 | |
July | 29 | Return of Inventory | 20 | 4050 | 4050 | |
July | 29 | Sale of Inventory Bell Ltd. (917) | 21 | 1320 | 1320 | |
Transfer to balance sheet as asset | 9520 | 9520 |
ACCOUNT FURNITURE ACCOUNT NO. 151 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 5 | Purchase of Furniture (532) | 4 | 13,110 | 13,110 | |
July | 22 | Purchase of Furniture Nakkach Corp | 16 | 3870 | 3870 | |
Transfer to balance sheet as asset | 16,980 | -16,980 |
ACCOUNT ACCOUNTSPAYABLE ACCOUNT NO. 211 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 3 | Nakkach Corp (914) | 2 | $14,802 | $14,802 | |
July | 13 | Nakkach Corp (914) | 9 | $14,357.94 | -$14,358 | |
July | 13 | Nakkach Corp (Discount Recevied) (914) | 9 | $444.06 | -$444 | |
July | 13 | Manley Inc | 10 | $8646 | $8648 | |
July | 20 | Burgess Distribution Ltd | 15 | $12,282 | $12282 | |
July | 22 | Purchase of furniture Nakkach Corp | 16 | 3870 | $3870 | |
July | 28 | Manley Inc | 19 | $805 | $8050 | |
July | 29 | Manley Inc (Return) | 20 | $4050 | -$4050 | |
July | 30 | Manley Inc | 22 | $2646 | -$2646 | |
Transfer to balance sheet as liability | $26,152 | $26,152 |
ACCOUNT SALESREVENUE ACCOUNT NO. 411 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 2 | Credit Sales (913) | 1 | $24,600 | $24,600 | |
July | 5 | Case Sales | 3 | $6462 | $6462 | |
July | 9 | Credit Sales to Bell Ltd (914) | 6 | $33,300 | $33,300 | |
July | 15 | Credit sale to M.O.Brown (915) | 12 | $3990 | $3990 | |
July | 18 | Credit sale to Ishikawa Inc (916) | 13 | $2142 | $2142 | |
July | 22 | Sale of supplies | 17 | $324 | $324 | |
July | 29 | Sale of inventory | 21 | $2976 | $2976 | |
$73794 | -$73794 |
Req. 1 and4 (continued) P7-6A
ACCOUNT SALESDISCOUNTS ACCOUNT NO. 412 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 10 | Ishikawa Inc (913) | 8 | $246 | $246 | |
July | 19 | Bell Ltd (Discount) | 14 | $333 | $333 | |
Debit to profit loss account | $579 | $579 |
ACCOUNT SALES RETURNSANDALLOWANCES ACCOUNT NO. 413 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 29 | Manley Inc (Returns) | 20 | $4050 | $4050 | |
ACCOUNT INTERESTREVENUE ACCOUNT NO. 419 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 8 | Collected interest revenue | 5 | $6650 | $6650 | |
Credit to profit loss account | $6650 | -$6650 |
ACCOUNT COST OF GOODSSOLD ACCOUNT NO. 511 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 3 | Credit Purchase from Nakkach Corp | 2 | $14,802 | $14,802 | |
July | 10 | Purchase of inventory | 7 | $6858 | $6858 | |
July | 13 | Disocunt received from Nakkach Corp | 9 | $444,06 | -$444 | |
July | 20 | Purchase of inventory from Burgess Distributing Ltd. | 15 | $12,282 | $12,282 | |
July | 28 | Purchase of inventory Manley Inc | 19 | $8050 | $8050 | |
July | 29 | Purchase Return of inventory Manley Inc | 20 | $4050 | -$4050 | |
$37,498 | -$38,498 |
ACCOUNT SALARIESEXPENSE ACCOUNT NO. 531 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | Salary Expenses | 24 | $14,082 | 14,082 | ||
Debit to profit loss account | $14,082 | -$14,082 |
Week One: Hands-on MIS Application Software ExerciseSolution
Store & Region Sales Database
This exercise helps students understand how a raw file of salestransactions can be analyzed to produce valuable information formanagers. Your challenge is to ask the right questionsabout the data and then present your case!
Import the data into Excel or Access (or compatiblespreadsheet/database). Use the data to perform the belowanalyses:
Analyze ALL THREE of the below items:
1.Best Performing Regions by TotalRevenue
2.Best Performing Stores by TotalRevenue
3.Best Selling Products by TotalRevenue
Select ONLY ONE of the below items:
A.Strongest Selling Period for eachProduct by Total Revenue
B.Strongest Selling Period for eachRegion by Total Revenue
C.Strongest Selling Period for eachStore by Total Revenue
Provide a business case â in the form of ONE descriptiveparagraph and ONE data table-- for eachanalysis. Each paragraph must refer to the informationpresented in the table using the labeled Table #. UseAPA format to label your tables.
SUBMITâ your final report with one WORDdocument and one EXCEL/ACCESS file.
Store & Region Sales Database | |||||||
ID | StoreNo | SalesRegion | ItemNo | ItemDescription | UnitPrice | UnitsSold | WeekEnding |
1 | 1 | South | 2005 | 17"Monitor | $229.00 | 28 | 10/27/10 |
2 | 1 | South | 2005 | 17"Monitor | $229.00 | 30 | 11/24/10 |
3 | 1 | South | 2005 | 17"Monitor | $229.00 | 9 | 12/29/10 |
4 | 1 | South | 3006 | 101Keyboard | $19.95 | 30 | 10/27/10 |
5 | 1 | South | 3006 | 101Keyboard | $19.95 | 35 | 11/24/10 |
6 | 1 | South | 3006 | 101Keyboard | $19.95 | 39 | 12/29/10 |
7 | 1 | South | 6050 | PC Mouse | $8.95 | 28 | 10/27/10 |
8 | 1 | South | 6050 | PC Mouse | $8.95 | 3 | 11/24/10 |
9 | 1 | South | 6050 | PC Mouse | $8.95 | 38 | 12/29/10 |
10 | 1 | South | 8500 | DesktopCPU | $849.95 | 25 | 10/27/10 |
11 | 1 | South | 8500 | DesktopCPU | $849.95 | 27 | 11/24/10 |
12 | 1 | South | 8500 | DesktopCPU | $849.95 | 33 | 12/29/10 |
13 | 2 | South | 2005 | 17"Monitor | $229.00 | 8 | 10/27/10 |
14 | 2 | South | 2005 | 17"Monitor | $229.00 | 8 | 11/24/10 |
15 | 2 | South | 2005 | 17"Monitor | $229.00 | 10 | 12/29/10 |
16 | 2 | South | 3006 | 101Keyboard | $19.95 | 8 | 10/27/10 |
17 | 2 | South | 3006 | 101Keyboard | $19.95 | 8 | 11/24/10 |
18 | 2 | South | 3006 | 101Keyboard | $19.95 | 8 | 12/29/10 |
19 | 2 | South | 6050 | PC Mouse | $8.95 | 9 | 10/27/10 |
20 | 2 | South | 6050 | PC Mouse | $8.95 | 9 | 11/24/10 |
21 | 2 | South | 6050 | PC Mouse | $8.95 | 8 | 12/29/10 |
22 | 2 | South | 8500 | DesktopCPU | $849.95 | 18 | 10/27/10 |
23 | 2 | South | 8500 | DesktopCPU | $849.95 | 18 | 11/24/10 |
24 | 2 | South | 8500 | DesktopCPU | $849.95 | 20 | 12/29/10 |
25 | 3 | South | 2005 | 17"Monitor | $229.00 | 38 | 10/27/10 |
26 | 3 | South | 2005 | 17"Monitor | $229.00 | 30 | 11/24/10 |
27 | 3 | South | 2005 | 17"Monitor | $229.00 | 3 | 12/29/10 |
28 | 3 | South | 3006 | 101Keyboard | $19.95 | 30 | 10/27/10 |
29 | 3 | South | 3006 | 101Keyboard | $19.95 | 32 | 11/24/10 |
30 | 3 | South | 3006 | 101Keyboard | $19.95 | 33 | 12/29/10 |
31 | 3 | South | 6050 | PC Mouse | $8.95 | 25 | 10/27/10 |
32 | 3 | South | 6050 | PC Mouse | $8.95 | 5 | 11/24/10 |
33 | 3 | South | 6050 | PC Mouse | $8.95 | 26 | 12/29/10 |
34 | 3 | South | 8500 | DesktopCPU | $849.95 | 28 | 10/27/10 |
35 | 3 | South | 8500 | DesktopCPU | $849.95 | 27 | 11/24/10 |
36 | 3 | South | 8500 | DesktopCPU | $849.95 | 29 | 12/29/10 |
37 | 4 | North | 2005 | 17"Monitor | $229.00 | 18 | 10/27/10 |
38 | 4 | North | 2005 | 17"Monitor | $229.00 | 20 | 11/24/10 |
39 | 4 | North | 2005 | 17"Monitor | $229.00 | 4 | 12/29/10 |
40 | 4 | North | 3006 | 101Keyboard | $19.95 | 12 | 10/27/10 |
41 | 4 | North | 3006 | 101Keyboard | $19.95 | 24 | 11/24/10 |
42 | 4 | North | 3006 | 101Keyboard | $19.95 | 36 | 12/29/10 |
43 | 4 | North | 6050 | PC Mouse | $8.95 | 29 | 10/27/10 |
44 | 4 | North | 6050 | PC Mouse | $8.95 | 11 | 11/24/10 |
45 | 4 | North | 6050 | PC Mouse | $8.95 | 38 | 12/29/10 |
46 | 4 | North | 8500 | DesktopCPU | $849.95 | 21 | 10/27/10 |
47 | 4 | North | 8500 | DesktopCPU | $849.95 | 24 | 11/24/10 |
48 | 4 | North | 8500 | DesktopCPU | $849.95 | 30 | 12/29/10 |
49 | 5 | North | 2005 | 17"Monitor | $229.00 | 27 | 10/27/10 |
50 | 5 | North | 2005 | 17"Monitor | $229.00 | 25 | 11/24/10 |
51 | 5 | North | 2005 | 17"Monitor | $229.00 | 23 | 12/29/10 |
52 | 5 | North | 3006 | 101Keyboard | $19.95 | 80 | 10/27/10 |
53 | 5 | North | 3006 | 101Keyboard | $19.95 | 82 | 11/24/10 |
54 | 5 | North | 3006 | 101Keyboard | $19.95 | 75 | 12/29/10 |
55 | 5 | North | 6050 | PC Mouse | $8.95 | 65 | 10/27/10 |
56 | 5 | North | 6050 | PC Mouse | $8.95 | 24 | 11/24/10 |
57 | 5 | North | 6050 | PC Mouse | $8.95 | 55 | 12/29/10 |
58 | 5 | North | 8500 | DesktopCPU | $849.95 | 55 | 10/27/10 |
59 | 5 | North | 8500 | DesktopCPU | $849.95 | 57 | 11/24/10 |
60 | 5 | North | 8500 | DesktopCPU | $849.95 | 47 | 12/29/10 |
61 | 6 | East | 2005 | 17"Monitor | $229.00 | 24 | 10/27/10 |
62 | 6 | East | 2005 | 17"Monitor | $229.00 | 85 | 11/24/10 |
63 | 6 | East | 2005 | 17"Monitor | $229.00 | 56 | 12/29/10 |
64 | 6 | East | 3006 | 101Keyboard | $19.95 | 52 | 10/27/10 |
65 | 6 | East | 3006 | 101Keyboard | $19.95 | 58 | 11/24/10 |
66 | 6 | East | 3006 | 101Keyboard | $19.95 | 69 | 12/29/10 |
67 | 6 | East | 6050 | PC Mouse | $8.95 | 35 | 10/27/10 |
68 | 6 | East | 6050 | PC Mouse | $8.95 | 39 | 11/24/10 |
69 | 6 | East | 6050 | PC Mouse | $8.95 | 44 | 12/29/10 |
70 | 6 | East | 8500 | DesktopCPU | $849.95 | 78 | 10/27/10 |
71 | 6 | East | 8500 | DesktopCPU | $849.95 | 88 | 11/24/10 |
72 | 6 | East | 8500 | DesktopCPU | $849.95 | 99 | 12/29/10 |
73 | 7 | East | 2005 | 17"Monitor | $229.00 | 34 | 10/27/10 |
74 | 7 | East | 2005 | 17"Monitor | $229.00 | 36 | 11/24/10 |
75 | 7 | East | 2005 | 17"Monitor | $229.00 | 35 | 12/29/10 |
76 | 7 | East | 3006 | 101Keyboard | $19.95 | 49 | 10/27/10 |
77 | 7 | East | 3006 | 101Keyboard | $19.95 | 47 | 11/24/10 |
78 | 7 | East | 3006 | 101Keyboard | $19.95 | 48 | 12/29/10 |
79 | 7 | East | 6050 | PC Mouse | $8.95 | 45 | 10/27/10 |
80 | 7 | East | 6050 | PC Mouse | $8.95 | 42 | 11/24/10 |
81 | 7 | East | 6050 | PC Mouse | $8.95 | 45 | 12/29/10 |
82 | 7 | East | 8500 | DesktopCPU | $849.95 | 55 | 10/27/10 |
83 | 7 | East | 8500 | DesktopCPU | $849.95 | 57 | 11/24/10 |
84 | 7 | East | 8500 | DesktopCPU | $849.95 | 55 | 12/29/10 |
85 | 8 | East | 2005 | 17"Monitor | $229.00 | 18 | 10/27/10 |
86 | 8 | East | 2005 | 17"Monitor | $229.00 | 17 | 11/24/10 |
87 | 8 | East | 2005 | 17"Monitor | $229.00 | 23 | 12/29/10 |
88 | 8 | East | 3006 | 101Keyboard | $19.95 | 22 | 10/27/10 |
89 | 8 | East | 3006 | 101Keyboard | $19.95 | 18 | 11/24/10 |
90 | 8 | East | 3006 | 101Keyboard | $19.95 | 22 | 12/29/10 |
91 | 8 | East | 6050 | PC Mouse | $8.95 | 14 | 10/27/10 |
92 | 8 | East | 6050 | PC Mouse | $8.95 | 16 | 11/24/10 |
93 | 8 | East | 6050 | PC Mouse | $8.95 | 17 | 12/29/10 |
94 | 8 | East | 8500 | DesktopCPU | $849.95 | 32 | 10/27/10 |
95 | 8 | East | 8500 | DesktopCPU | $849.95 | 28 | 11/24/10 |
96 | 8 | East | 8500 | DesktopCPU | $849.95 | 30 | 12/29/10 |
(a) Record the January transactions in a sales journal.
Check figures:
Cash Receipts Journal, total Cash DR: $ 70,348
Cash Payments Journal, total Cash CR: 62,060
Net Income: 25,218 Total Assets: 149,568
Total Post Closing Trial Balance: 151,193
Sun & Surf Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Sun & Surf are indicated in the working papers. Below are a series of transactions for Sun & Surf Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 55% of the sales price.
Jan.3 Sell merchandise on account to M. Knast $5,100, invoice no. 825, and to C. Ryder $1,900, invoice no. 826.
5 Purchase merchandise from R. Drifter $5,000 and N. Sova $2,200, terms n/30.
7 Receive checks from V. Arnold $4,000 and I. Tan $2,000 after discount period has lapsed.
8 Pay freight on merchandise purchased $235.
9 Send checks to K. Xerxes for $9,000 less 2% cash discount, and to T. Caper for $11,000 less 1% cash discount.
9 Issue credit of $300 to C. Ryder for merchandise returned.
10 Summary daily cash sales total $15,500.
11 Sell merchandise on account to D. Gallagher $1,600, invoice no. 827, and to V. Arnold $900, invoice no. 828.
12 Pay rent of $1,000 for January.
13 Receive payment in full from M. Knast and C. Ryder less cash discounts.
15 Withdrawal of $800 cash by J. Sandy for personal use.
15 Post all entries to the subsidiary ledgers.
16 Purchase merchandise from T. Caper $18,000, terms 1/10, n/30; K. Xerxes $14,200, terms 2/10, n/30; and R. Drifter $1,500, terms n/30.
17 Pay $400 cash for office supplies.
18 Return $200 of merchandise to K. Xerxes and receive credit.
20 Summary daily cash sales total $20,100.
21 Issue $15,000 note, maturing in 90 days, to M. Griffen in payment of balance due.
21 Receive payment in full from V. Arnold less cash discount.
22 Sell merchandise on account to M. Knast $2,700, invoice no. 829, and to D. Gallagher $1,300, invoice no. 830.
22 Post all entries to the subsidiary ledgers.
23 Send checks to T. Caper and K. Xerxes in full payment less cash discounts.
25 Sell merchandise on account to I. Tan $3,500, invoice no. 831, and to C. Ryder $6,100, invoice no. 832.
27 Purchase merchandise from T. Caper $14,500, terms 1/10, n/30; N. Sova $1,200, terms n/30; and R. Drifter $5,400, terms n/30.
27 Post all entries to the subsidiary ledgers.
28 Pay $275 cash for office supplies.
31 Summary daily cash sales total $21,300.
31 Pay salaries and wages of $8,100. (continued)
Instructions
(a) Record the January transactions in a sales journal.
1. Office supplies at January 31 total $900.
2. Insurance coverage expires on September 30, 2017.
3. Annual depreciation on the equipment is $1,500.
4. Interest of $50 has accrued on the note payable.
General Ledger | |||||
Cash | No. 101 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Jan. 1 | Balance | â | $ 37,150 | ||
Accounts Receivable | No. 112 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Jan. 1 | Balance | â | $ 13,000 | ||
Notes Receivable | No. 115 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Jan. 1 | Balance | â | $ 39,000 | ||
Inventory | No. 120 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Jan. 1 | Balance | â | $ 17,795 | ||
Office Supplies | No. 125 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Jan. 1 | Balance | â | $ 1,200 | ||
Prepaid Insurance | No. 130 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Jan. 1 | Balance | â | $ 2,205 | ||
Equipment | No. 157 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Jan. 1 | Balance | â | $ 6,450 | ||
Accumulated Depreciation - Equipment | No. 158 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Jan. 1 | Balance | â | $ 1,500 | ||
Notes Payable | No. 200 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Accounts Payable | No. 201 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Jan. 1 | Balance | â | $ 35,000 | ||
Interest Payable | |||||
Date | Explanation | Ref. | Debit | Credit | Balance |
J. Sandy, Capital | No. 301 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Jan. 1 | Balance | â | $ 80,300 | ||
J. Sandy, Drawing | No. 306 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Income Summary | No. 350 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Sales | No. 401 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Sales Returns and Allowances | No. 412 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Sales Discounts | No. 414 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Cost of Goods Sold | No. 505 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Salaries and Wages Expense | No. 627 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Depreciation Expense | No. 711 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Interest Expense | No. 718 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Insurance Expense | No. 722 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Office Supplies Expense | No. 728 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Rent Expense | No. 729 | ||||
Date | Explanation | Ref. | Debit | Credit | Balance |