Question

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

	SALES JOURNAL
		Invoice	A/R – Dr	COGS (dr)
Date	Description	Number	Sales - Cr	M. Inv. (cr)
Feb. 2	Dale Dent	711	800	500
4	Gary Glen	712	1250	750
11	Carl Cole	713	1650	1000
24	Carl Cole	714	835	500
28	Totals		4535	2750

	GENERAL JOURNAL
Date	Description	Debit	Credit
17-Feb	Accounts Payable – Old Company	85
	Merchandise Inventory		85

PURCHASES JOURNAL

				Accounts	Merch.	Office	Store	Other
		Date of		Payable	Inventory	Supplies	Supplies	Accounts
Date	Account	Invoice	Terms	Credit	Debit	Debit	Debit	Debit
3-Feb	Able Company	1-Feb	2/10, n/60	17500	17500
9	More Company	6-Feb	n/10, EOM	625				625
14	Old Company	11-Feb	2/10, n/60	1985	1985
16	Best Company	12-Feb	n/10, EOM	9100	9025	30	45
31	Totals			29210	28510	30	45

CASH RECEIPTS JOURNAL

							COGS (dr)
				Accounts		Sales	M. Inv. (cr)	Other
			Cash	Receivable	Sales	Discounts		Accounts
Date	Account Credited	Explanation	Debit	Credit	Credit	Debit		Credit
7-Feb	Note Payable	Note to First National Bank	5000					5000
12	Dale Dent	Invoice 2/2	784	800		16
14	Gary Glen	Invoice 2/4	1225	1250		25
14	Sales	Cash Sales	18460		18460
21	Carl Cole	Invoice 2/11	1617	1650		33
28	Sales	Cash Sales	20215		20215
28	Totals		47301	3700	38675	74	23000	5000

		CASH DISBURSEMENTS JOURNAL
				Other	Accounts	Merch.
	Ch.		Account	Accounts	Payable	Inventory	Cash
Date	No.	Payee	Debited	Debit	Debit	Credit	Credit
9-Feb	414	Able Company	A/R-Able Company		17500	350	17150
14	415	Payroll	Sales Salaries Expense	855			855
21	416	Old Company	A/R-Old Company		1900	38	1862
28	417	Payroll	Sales Salaries Expense	855			855
31		Totals		1710	19400	388	20722