In: Accounting
The Fashion Rack has a monthly accounting period. The firm’s chart of accounts is shown below. The journals used to record transactions are the sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Postings are made from the journals to the accounts receivable ledger, accounts payable ledger, and general ledger. The employees are paid at the end of the month. A computerized payroll service prepares all payroll records and checks.
INSTRUCTIONS
Open the general ledger accounts and enter the balances for October 1, 2019. Obtain the necessary figures from the postclosing trial balance prepared on September 30, 2019, which is shown below.
Post-Closing Trial Balance:
ACCOUNT NAME |
DEBIT |
CREDIT |
CASH |
59,800.00 |
|
ACCOUNTS RECEIVABLE |
6,210.00 |
|
ALLOWANCE FOR DOUBTFUL ACCOUNTS |
420.00 |
|
MERCHANDISE INVENTORY |
88,996.00 |
|
SUPPLIES |
4,100.00 |
|
PREPAID INSURANCE |
8,400.00 |
|
EQUIPMENT |
83,000.00 |
|
ACCUMULATED DEPRECIATION |
7,050.00 |
|
ACCOUNTS PAYABLE |
18,300.00 |
|
SOCIAL SECURITY TAX PAYABLE |
702.00 |
|
MEDICARE TAX PAYABLE |
162.00 |
|
EMPLOYEE INCOME TAX PAYABLE |
1,020.00 |
|
FEDERAL UNEMPLOYMENT TAX PAYABLE |
512.00 |
|
STATE UNEMPLOYMENT TAX PAYABLE |
1,268.00 |
|
SALES TAX PAYABLE |
17,820.00 |
|
TERESA LOVEJOY, CAPITAL |
203,252.00 |
|
TOTALS |
$250,506.00 |
$250,506.00 |
Solution.
Please find below the General LEdger Accounts as on 1st Oct 2019
General Ledger Accounts as on 1st Oct 2019 | |||||
Dr | Cash A/c | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Balance B/f | 59,800 | 1-Oct-19 | Closing Bal | 59,800 |
Dr | Accounts Recievable | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Balance B/f | 6,210 | 1-Oct-19 | Closing Bal | 6,210 |
Dr | Allowance for Doubtful debts | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Closing Bal | 420 | 1-Oct-19 | Balance B/f | 420 |
Dr | Merchandise Inventory | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Balance B/f | 88,996 | 1-Oct-19 | Closing Bal | 88,996 |
Dr | Supplies | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Balance B/f | 4,100 | 1-Oct-19 | Closing Bal | 4,100 |
Dr | Prepaid Insurance | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Balance B/f | 8,400 | 1-Oct-19 | Closing Bal | 8,400 |
Dr | Equipment | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Balance B/f | 83,000 | 1-Oct-19 | Closing Bal | 83,000 |
Dr | Accumulated Depreciation | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Closing Bal | 7,050 | 1-Oct-19 | Balance B/f | 7,050 |
Dr | Accounts Payable | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Closing Bal | 18,300 | 1-Oct-19 | Balance B/f | 18,300 |
Dr | Social Security Tax payable | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Closing Bal | 702 | 1-Oct-19 | Balance B/f | 702 |
Dr | Medicare Tax Payable | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Closing Bal | 162 | 1-Oct-19 | Balance B/f | 162 |
Dr | Employee Income Tax payable | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Closing Bal | 1,020 | 1-Oct-19 | Balance B/f | 1,020 |
Dr | Federal Unemployement Tax Payable | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19 | Closing Bal | 512 | 1-Oct-19 | Balance B/f | 512 |
Dr | State Unemployment Tax Payable | Cr | |||
Date | Particulars | Amount | Date | Particulars | Amount |
1-Oct-19<
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