Question

ACC 121 Project (Use the working papers provided by your instructor to work this practice set project.) Colorado Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Colorado Co. are indicated in the working papers. Below are a series of transactions for the company for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 62% of the sales price.

Jan.3? Sell merchandise on account to B. Richey $2,900, invoice no. 510, and to J. Forbes $1,800, invoice no. 511.

5 Purchase merchandise from S. Vogel $5,000 and D. Lynch $2,200, terms n/30.

7 Receive checks from S. LaDew $4,000 and B. Garcia $2,000 after discount period has lapsed.

8 Pay freight on merchandise purchased $235. 9 Send checks to S. Hoyt for $9,000 less 2% cash discount, and to D. Omara for $11,000 less 1% cash discount.

9 Issue credit of $300 to J. Forbes for merchandise returned.

10 Summary daily cash sales total $15,500.

11 Sell merchandise on account to R. Dvorak $1,600, invoice no. 512, and to S. LaDew $900, invoice no. 513.

12 Pay rent of $1,000 for January.

13 Receive payment in full from B. Richey and J. Forbes less cash discounts.

15 Withdrawal of $800 cash by J. Colorado for her personal use.

15 Post all entries to the subsidiary ledgers.

16 Purchase merchandise from D. Omara $18,000, terms 1/10, n/30; S. Hoyt $14,200, terms 2/10, n/30; and S. Vogel $1,500, terms n/30.

17 Pay $600 cash for office supplies.

18 Return $200 of merchandise to S. Hoyt and receive credit.

20 Summary daily cash sales total $20,100.

21 Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due.

21 Receive payment in full from S. LaDew less cash discount.

22 Sell merchandise on account to B. Richey $2,700, invoice no. 514, and to R. Dvorak $2,800, invoice no. 515.

22 Post all entries to the subsidiary ledgers. 23 Send checks to D. Omara and S. Hoyt in full payment less cash discounts.

25 Sell merchandise on account to B. Garcia $3,500, invoice no. 516, and to J. Forbes $6,100, invoice no. 517.

27 Purchase merchandise from D. Omara $14,500, terms 1/10, n/30; D. Lynch $1,200, terms n/30; and S. Vogel $5,400, terms n/30.

27 Post all entries to the subsidiary ledgers.

28 Pay $200 cash for office supplies.

31 Summary daily cash sales total $21,300.

31 Pay total salaries of $8,100.

Prepare the ajdusting and closing entires.

Answer 1

Accounts receivables
Date	Particulars		$	Date	Particulars		$
03.Jan	B.Richey A/C - credit sales		2900	09.Jan	J.Forbes A/C		300
03.Jan	J.Forbes A/C - credit sales		1800	13.jan	cash &bank a/c		2842
11.Jan	R. Dvorak- credit sales		1600	13.jan	discount allowed a/c		58
11.jan	S. LaDew - credit sales		900	13.jan	cash &bank a/c		1764
22. jan	B.Richey A/C - credit sales		2700	13.jan	discount allowed a/c		36
22. jan	R. Dvorak- credit sales		2800	21.jan	cash &bank a/c		882
25.jan	B. Garcia -credit sales		3500	21.jan	discount allowed a/c		18
25.jan	J.Forbes A/C - credit sales		6100
				31. jan	closing balance		16400
		total	22300			total	22300
Accounts Payables
Date	Particulars		$	Date	Particulars		$
18.jan	S. Hoyt	credit purchases	200	05.Jan	S.Vogel	credit purchases	5000
23.jan	cash&bank a/c	D. Omara	17820	05.Jan	D.Lynch	credit purchases	2200
23.jan	discount received		180	16.jan	D. Omara	credit purchases	18000
23.jan	cash&bank a/c	S. Hoyt	13916	16.jan	S. Hoyt	credit purchases	14200
23.jan	discount received		84	16.jan	S. Vogel	credit purchases	1500
				21 .Jan	Bilis paybles		15000
				27.jan	D. Omara	credit purchases	14500
				27.jan	D.Lynch	credit purchases	1200
				27.jan	S. Vogel	credit purchases	5400
31. jan	closing balance		44800
		total	77000			total	77000
Cash & bank
Date	Particulars		$	Date	Particulars		$
07.Jan	S.Ladew		4000	08.Jan	Fright		235.9
07.Jan	B.Garcia		2000	08.Jan	S. Hoyt $ 9,000@ 2% Disc		8820
10.Jan	Cash Sales		15500	08.Jan	D. Omara $ 11,000@ 2% Disc		10890
13.jan	accounts receivables - B .richey		2842	11.Jan	Rent		1000
13.jan	accounts receivables - B .richey		1764	15.jan	J. Colorado - withdraw		800
20. jan	Cash Sales		20100	17.jan	office expenses		600
31. jan	Cash Sales		21300	23.jan	Accounts Payables -d.omara		17820
				23.jan	Accounts Payables -s.hoyt		13916
				28.jan	office suppliers		200
				31. jan	salaries		8100
				31. jan	closing balance in hand		5124.1
		total	67506			total	67506