Question

The transactions completed by AM Express Company during March, the first month of the fiscal year, were as follows:

Mar 1. Issued Check No. 205 for March rent, $2,450.

Mar 2. Purchased a vehicle on account from McIntyre Sales Co., $26,900.

Mar 3. Purchased office equipment on account from Office Mate Inc., $1,570.

Mar 5. Issued Invoice No. 91 to Ellis Co., $7,000.

Mar 6. Received check for $7,950 from Chavez Co. in payment of invoice.

Mar 7. Issued Invoice No. 92 to Trent Co., $9,840.

Mar 9. Issued Check No. 206 for fuel expense, $820.

Mar 10. Received check for $10,000 from Sajeev Co. in payment of invoice.

Mar 10. Issued Check No. 207 to Office City in payment of $450 invoice.

Mar 10. Issued Check No. 208 to Bastille Co. in payment of $1,890 invoice.

Mar 11. Issued Invoice No. 93 to Jarvis Co., $7,200.

Mar 11. Issued Check No. 209 to Porter Co. in payment of $415 invoice.

Mar 12. Received check for $7,000 from Ellis Co. in payment of March 5 invoice.

Mar 13. Issued Check No. 210 to McIntyre Sales Co. in payment of $26,900 invoice of March 2.

Mar 16. Cash fees earned for March 1–16, $26,800.

Mar 16. Issued Check No. 211 for purchase of a vehicle, $28,500.

Mar 17. Issued Check No. 212 for miscellaneous administrative expense, $4,680.

Mar 18. Purchased maintenance supplies on account from Bastille Co., $2,430.

Mar 18. Received check for rent revenue on office space, $900.

Mar 19. Purchased the following on account from Master Supply Co.: maintenance supplies, $2,640, and office supplies, $1,500.

Mar 20. Issued Check No. 213 in payment of advertising expense, $8,590.

Mar 20. Used maintenance supplies with a cost of $4,400 to repair vehicles.

Mar 21. Purchased office supplies on account from Office City, $990.

Mar 24. Issued Invoice No. 94 to Sajeev Co., $9,200.

Mar 25. Received check for $14,000 from Chavez Co. in payment of invoice.

Mar 25. Issued Invoice No. 95 to Trent Co., $6,300.

Mar 26. Issued Check No. 214 to Office Mate Inc. in payment of $1,570 invoice of March 3.

Mar 27. Issued Check No. 215 to J. Wu as a personal withdrawal, $4,000.

Mar 30. Issued Check No. 216 in payment of driver salaries, $33,300.

Mar 31. Issued Check No. 217 in payment of office salaries, $21,200.

Mar 31. Issued Check No. 218 for office supplies, $600.

Mar 31. Cash fees earned for March 17–31, $29,400.

Instructions:
1. Journalize the transactions for March, using the following journals similar to those illustrated in this chapter: single-column revenue journal, cash receipts journal, purchases journal (with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), cash payments journal, and two column general journal. Also do the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger.

Answer Check Figure: Total cash receipts, $96,050

2. Post the appropriate individual entries to the general ledger.

3. Total each of the columns of the special journals and post the appropriate totals to the general ledger; insert the account balances.

4. Prepare a trial balance.

Answer 1

Date	Particulars	Debit($)	Credit($)
1-Mar	Rent Expense	2450
	Cash		2450
	March rent Pid Check No. 205
2-Mar	Vehicle	26900
	Accounts Payable-McIntyre Sales Co		26900
	Purchased a vehicle from McIntyre Sales Co
3-Mar	office equipment	1570
	Accounts Payable-Office Mate Inc		1570
	Purchased office equipment from Office Mate Inc
5-Mar	Accounts Receivable - Ellis Co	7000
	Sales		7000
	Issued Invoice No. 91
6-Mar	Cash	7950
	Accounts Receivable-Chavez Co		7950
	Received check
7-Mar	Accounts Receivable - Trent Co	9840
	Sales		9840
	Issued Invoice No. 92
9-Mar	fuel expense	820
	Cash		820
	Issued Check No. 206
10-Mar	Cash	10000
	Accounts Receivable -Sajeev Co		10000
	Received check
10-Mar	Accounts Payable-Office Mate Inc	450
	Cash		450
	Issued Check No. 207
10-Mar	Accounts Payable-Bastille Co	1890
	Cash		1890
	Issued Check No. 208
11-Mar	Accounts Receivable -Jarvis Co	7200
	Sales		7200
	Issued Invoice No. 93
11-Mar	Accounts Payable-Porter Co	415
	Cash		415
	Issued Check No. 209
12-Mar	Cash	7000
	Accounts Receivable - Ellis Co		7000
	Received check
13-Mar	Accounts Payable-McIntyre Sales Co	26900
	Cash		26900
	Issued Check No. 210
16-Mar	Cash	26800
	Fees Earned		26800
	Cash fees earned for March 1–16
16-Mar	Accounts Payable	28500
	Cash		28500
	Issued Check No. 211
17-Mar	miscellaneous administrative expense	4680
	Cash		4680
	Issued Check No. 212
18-Mar	maintenance supplies	2430
	Accounts Payable- Bastille Co		2430
	Purchased maintenance supplies
18-Mar	Cash	900
	rent revenue		900
	Received check on office space
19-Mar	maintenance supplies	2640
	office supplies	1500
	Accounts Payable- Master Supply Co		4140
	Purchased maintenance supplies and office supplies
20-Mar	advertising expense	8590
	Cash		8590
	Issued Check No. 213
20-Mar	vehicles Expense	4400
	maintenance supplies		4400
	Used maintenance supplies to repair vehicles
21-Mar	office supplies	990
	Accounts Payable- Office City		990
	Purchased office supplies
24-Mar	Accounts Receivable - Sajeev Co	9200
	Sales		9200
	Issued Invoice No. 94
25-Mar	Cash	14000
	Accounts Receivable - Chavez Co		14000
	Received check
25-Mar	Accounts Receivable -Trent Co	6300
	Sales		6300
	Issued Invoice No. 95
26-Mar	Accounts Payable-Office Mate Inc	1570
	Cash
	Issued Check No. 214
27-Mar	withdrawal	4000
	Cash		4000
	Issued Check No. 215
30-Mar	Salaries Expense	33300
	Cash		33300
	Issued Check No. 216
31-Mar	office salaries	21200
	Cash		21200
	Issued Check No. 217
31-Mar	office supplies	600
	Cash		600
	Issued Check No. 218
31-Mar	Cash	29400
	Fees Earned		29400
	Cash fees earned for March 17–31

Accounts Receivable Ledger
Date	Debit($)	Credit($)	Balance($)
5-Mar	7000		7000
6-Mar		7950	-950
7-Mar	9840		8890
10-Mar		10000	-1110
11-Mar	7200		6090
12-Mar		7000	-910
24-Mar	9200		8290
25-Mar		14000	-5710
25-Mar	6300		$590 Dr

Cash Ledger
Date	Debit($)	Credit($)	Balance($)
1-Mar		2450	-2450
6-Mar	7950		5500
9-Mar		820	4680
10-Mar	10000		14680
10-Mar		450	14230
10-Mar		1890	12340
11-Mar		415	11925
12-Mar	7000		18925
13-Mar		26900	-7975
16-Mar	26800		18825
16-Mar		28500	-9675
17-Mar		4680	-14355
18-Mar	900		-13455
20-Mar		8590	-22045
25-Mar	14000		-8045
26-Mar		1570	-9615
30-Mar		4000	-13615
30-Mar		33300	-46915
31-Mar		21200	-68115
31-Mar		600	-68715
31-Mar	29400		-39315Cr

Accounts Payable Ledger
Date	Debit($)	Credit($)	Balance($)
2-Mar		26900	-26900
3-Mar		1570	-28470
10-Mar	450		-28020
10-Mar	1890		-26130
11-Mar	415		-25715
13-Mar	26900		1185
16-Mar	28500		29685
18-Mar		2430	27255
19-Mar		4140	23115
21-Mar		990	22125
26-Mar	1570		$23695 Dr

Vehicle Ledger
Date	Debit($)	Credit($)	Balance($)
2-Mar	26900		26900
20-Mar	4400		$31300Dr

office equipment Ledger
Date	Debit($)	Credit($)	Balance($)
3-Mar	1570		$1570 Dr

Sales Ledger
Date	Debit($)	Credit($)	Balance($)
5-Mar		7000	-7000
7-Mar		9840	-16840
11-Mar		7200	-24040
24-Mar		9200	-33240
25-Mar		6300	-$39540Cr

Rent Expense Ledger
Date	Debit($)	Credit($)	Balance($)
1-Mar	2450		$2450 Dr

Fuel Expense Ledger
Date	Debit($)	Credit($)	Balance($)
9-Mar	820		$820 Dr

Fees Earned Ledger
Date	Debit($)	Credit($)	Balance($)
16-Mar		26800	-26800
31-Mar		29400	-$56200Cr

miscellaneous administrative expense Ledger
Date	Debit($)	Credit($)	Balance($)
17-Mar	4680		$4680 Dr

maintenance supplies Ledger
Date	Debit($)	Credit($)	Balance($)
18-Mar	2430		2430
19-Mar	2640		5070
20-Mar		4400	$670 Dr

rent revenue Ledger
Date	Debit($)	Credit($)	Balance($)
18-Mar		900	-$900 Cr

office supplies Ledger
Date	Debit($)	Credit($)	Balance($)
19-Mar	1500		1500
21-Mar	990		2490
31-Mar	600		$3090 Dr

advertising expense Ledger
Date	Debit($)	Credit($)	Balance($)
20-Mar	8590		$8590 Dr

withdrawal Ledger
Date	Debit($)	Credit($)	Balance($)
27-Mar	4000		$4000 Dr

Salaries Expense Ledger
Date	Debit($)	Credit($)	Balance($)
30-Mar	33300		33300
31-Mar	21200		$54500 Dr