Question

In: Accounting

The Fashion Rack has a monthly accounting period. The firm’s chart of accounts is shown below....

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

Solutions

Expert Solution

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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