Question

Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow: DATE TRANSACTIONS 2019 Sept. 2 Purchased ski boots for $5,900 plus a freight charge of $240 from Colorado Ski Shop, Invoice 6672, terms n/30. 3 Purchased skis for $11,500 from Alaska Supply Company, Invoice 5916; terms 1/10, n/30. 7 Received Credit Memorandum 165 for $930 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672. 11 Purchased ski jackets for $4,300 from Cold Mountain Clothing Company, Invoice 4091, terms n/30. 12 Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount. 22 Purchased ski poles for $4,060 plus a freight charge of $135 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30. 23 Purchased ski pants for $2,550 from Swenson Ski Goods, Invoice 528, terms n/30. 25 Received Credit Memorandum 245 for $330 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528. 27 Purchased ski sweaters for $2,900 plus a freight charge of $115 from Colorado Ski Shop, Invoice 6722, terms n/30. 30 Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7. Required: Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balance of Cash as of September 1, 2019. Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts payable ledger. Prepare a schedule of accounts payable. GENERAL LEDGER ACCOUNTS 101 Cash, $26,000 Dr. 201 Accounts Payable 501 Purchases 502 Freight In 503 Purchases Returns and Allowances 504 Purchases Discounts ACCOUNTS PAYABLE LEDGER ACCOUNTS Alaska Supply Company Cold Mountain Clothing Company Colorado Ski Shop Swenson Ski Goods Analyze: What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.

Answer 1

Cash				No.101
Date	Details	Debit	Credit	Balance
				Debit	Credit
Sept.1	Balance			26000
Sept.12			11385	14615
Sept.30			5210	9405
				9405
Accounts Payable				No.201
Date	Details	Debit	Credit	Balance
				Debit	Credit
Sept.30		17970	31700		13730
					13730
Purchases				No.501
Date	Details	Debit	Credit	Balance
				Debit	Credit
Sept.2		5900		5900
Sept.3		11500		17400
Sept.11		4300		21700
Sept.22		4060		25760
Sept.23		2550		28310
Sept.27		2900		31210
Freigth In				No.502
Date	Details	Debit	Credit	Balance
				Debit	Credit
Sept.2		240		240
Sept.22		135		375
Sept.27		115		490
Purchase returns and allowances				No.503
Date	Details	Debit	Credit	Balance
				Debit	Credit
Sept.7			930		930
Sept.25			330		1260
					1260
Purchase discounts				No.504
Date	Details	Debit	Credit	Balance
				Debit	Credit
Sept.12			115		115
					115

Accounts Payable - Subsidiary Ledger
Alaska Supply Copmany
Date	Debit	Credit	Balance
Sept.3		11500	11500
Sept.12	11500		0
Sept.22		4195	4195
			4195
Cold Mountain Clothing Company
Date	Debit	Credit	Balance
Sept.11		4300	4300
			4300
			4300
			4300
Colarado Ski Shop
Date	Debit	Credit	Balance
Sept.2		6140	6140
Sept.7	930		5210
Sept.27		3015	8225
Sept.30	5210		3015
Swenson Ski goods
Date	Debit	Credit	Balance
Sept.23		2550	2550
Sept.25	330		2220

Schedule of accounts payable
Alaska Supply Company	4195
Cold Mountain Clothing company	4300
Colarado Ski Shop	3015
Swnson Ski Goods	2220
Total	13730