Question

Special Journals

Bedrock Company completed these transactions during February of the current year using a perpetual inventory system. Purchases are recorded as of the invoice date to set the discount period.

Required:

You are to enter the February transactions in one of five journals. Post the following items ongoing: All transactions in the general journal All amounts in the “other accounts” columns Individual amounts affecting the accounts receivable subsidiary ledger Individual amounts affecting the accounts payable subsidiary ledger Prepare a trial balance from the general ledger balances Complete Financial Statements in good form Prepare a schedule of accounts receivable and accounts payable

           

                                                                                                                                               

Date	Transaction from Source Document
Feb. 2	Sold merchandise on credit to Dale Dent, invoice No. 711, $800 (cost, $500). (Terms of all credit sales are 2/10, n/60)
3	Received merchandise and an invoice dated February 1 from Able Company, $17,500. Terms are 2/10, n/60.
4	Sold merchandise on credit to Gary Glen, Invoice No. 712, $1,250 (cost, $750). (Terms of all credit sales are 2/10, n/60)
7	Borrowed $5,000 by giving First National Bank a promissory note payable.
9	Purchased office equipment on credit from More Company, invoice dated February 6, terms n/10, EOM, $625.
9	Sent Able Company Check No. 414 in payment of its February 1 invoice less the discount.
11	Sold merchandise on credit to Carl Cole, Invoice No. 713, $1,650 (cost, $1,000). (Terms of all credit sales are 2/10, n/60)
12	Received payment from Dale Dent of the February 2 sale less the discount.
14	Received payment from Gary Glen of the February 4 sale less the discount.
14	Received merchandise and an invoice dated February 11, terms 2/10, n/60, from Old Company, $1,985.
14	Issued check No. 415, payable to Payroll, in payment of sales salaries for the first half of the month, $855. Cashed the check and paid the employees.
14	Cash sales for the first half of the month, $18,460 (cost, $11,000)[1].
16	Purchased merchandise on credit from Best Company, $9,100; store supplies, $45; and office supplies, $30. Invoice dated February 12, terms n/10, EOM.
17	Received a credit memo from Old Company for unsatisfactory merchandise received on February 14th and returned for credit, $85.
21	Received payment from Carl Cole for the sale of February 11 less the discount.
21	Issued check No. 416 to Old Company in payment of its invoice of February 11 less the return and the discount.
24	Sold merchandise on credit to Carl Cole, Invoice No. 714, $835 (cost, $500).
28	Issued check No. 417, payable to Payroll, in payment of sales salaries for the second half of the month, $855. Cashed the check and paid the employees
28	Cash sales for the last half of the month, $20,215 (cost, $12,000).

[1] Normally cash sales are recorded daily, these are representative to reduce the number of repetitive entries.

Answer 1

Journal Entry for all Transaction :;
Date	Particulars	Debit	Credit
Feb-03	Purchase	17500
	Accounts Payables (Able Company)		17500
Feb-02	Accounts Receivables (dale Dent)	800
	Sales		800
Feb-04	Accounts Receivables (Grey Glen)	1250
	Sales		1250
Feb-07	Bank	5000
	To Note Payable		5000
Feb-09	Office Equipment	625
	To Creditor for Fixed Assets (More Company)		625
Feb-09	Accounts Payables (Able Company)	17500
	To Bank		17150
	To Discount		350
Feb-11	Accounts Receivables (Carl Cole)	1650
	Sales		1650
Feb-12	BAnk	784
	Discount	16
	Accounts Receivables (dale Dent)		800
Feb-14	BAnk	1225
	Discount	25
	Accounts Receivables (Grey Glen)		1250
Feb-11	Purchase	1985
	Account Payable (Old Company)		1985
Feb-14	Cash	855
	To Bank		855
	Salary	855
	To Cash		855
Feb-14	Cash	18460
	To Sales		18460
Feb-12	Purchase	9175
	Account Payable (Best Company)		9175
Feb-17	Account Payable (Old Company)	85
	To Purchse Return		85
Feb-21	BAnk	1617
	Discount	33
	Accounts Receivables (Carl Cole)		1650
Feb-21	Accounts Payables (Old Company)	1900
	To Bank		1862
	To Discount		38
Feb-24	Accounts Rececivables (Carl Cole)	835
	To Sales		835
Feb-28	Cash	855
	To BAnk		855
	Salary	855
	To Cash		855
Feb-28	Cash	20215
	To Sales		20215

Income Statement
Purchase	28660	Sales	43210
Less : Purchse Return	-85	Closing Stock	2910
Discount (Net )	-314
Salary	1710
Profit	16149
	46120		46120
Bank Statement
Liabilities	Amount	Assets	Amount
Retained Earnings	16149	Office Equipment	625
Notes Payable	5000	Accounts receivables	835
Accounts Payables	9175	Closing Stock	2910
Creditors for Fixed assets	625	Cash Balance	38675
		Bank Balance	-12096
	30949		30949