In: Accounting
The transactions completed by AM Express Company during March, the first month of the fiscal year, were as follows:
Mar. 1. | Issued Check No. 205 for March rent, $2,450. | |
2. | Purchased a vehicle on account from McIntyre Sales Co., $26,900. | |
3. | Purchased office equipment on account from Office Mate Inc., $1,570. | |
5. | Issued Invoice No. 91 to Ellis Co., $7,000. | |
6. | Received check for $7,950 from Chavez Co. in payment of invoice. | |
7. | Issued Invoice No. 92 to Trent Co., $9,840. | |
9. | Issued Check No. 206 for fuel expense, $820. | |
10. | Received check for $10,000 from Sajeev Co. in payment of invoice. | |
10. | Issued Check No. 207 to Office City in payment of $450 invoice. | |
10. | Issued Check No. 208 to Bastille Co. in payment of $1,890 invoice. | |
11. | Issued Invoice No. 93 to Jarvis Co., $7,200. | |
11. | Issued Check No. 209 to Porter Co. in payment of $415 invoice. | |
12. | Received check for $7,000 from Ellis Co. in payment of March 5 invoice. | |
13. | Issued Check No. 210 to McIntyre Sales Co. in payment of $26,900 invoice of March 2. | |
16. | Cash fees earned for March 1–16, $26,800. | |
16. | Issued Check No. 211 for purchase of a vehicle, $28,500. | |
17. | Issued Check No. 212 for miscellaneous administrative expense, $4,680. | |
18. | Purchased maintenance supplies on account from Bastille Co., $2,430. | |
18. | Received check for rent revenue on office space, $900. | |
19. | Purchased the following on account from Master Supply Co.: maintenance supplies, $2,640, and office supplies, $1,500. | |
20. | Issued Check No. 213 in payment of advertising expense, $8,590. | |
20. | Used maintenance supplies with a cost of $4,400 to repair vehicles. | |
21. | Purchased office supplies on account from Office City, $990. | |
24. | Issued Invoice No. 94 to Sajeev Co., $9,200. | |
25. | Received check for $14,000 from Chavez Co. in payment of invoice. | |
25. | Issued Invoice No. 95 to Trent Co., $6,300. | |
26. | Issued Check No. 214 to Office Mate Inc. in payment of $1,570 invoice of March 3. | |
27. | Issued Check No. 215 to J. Wu as a personal withdrawal, $4,000. | |
30. | Issued Check No. 216 in payment of driver salaries, $33,300. | |
31. | Issued Check No. 217 in payment of office salaries, $21,200. | |
31. | Issued Check No. 218 for office supplies, $600. | |
31. | Cash fees earned for March 17–31, $29,400. |
Required:
1. The following accounts are setup in the general ledger as of March 1. Using the information below, enter the balances for each account.
11 | Cash | $65,200 | 32 | J. Wu, Drawing | - | |
12 | Accounts Receivable | 31,950 | 41 | Fees Earned | - | |
14 | Maintenance Supplies | 7,240 | 42 | Rent Revenue | - | |
15 | Office Supplies | 3,690 | 51 | Driver Salaries Expense | - | |
16 | Office Equipment | 17,300 | 52 | Maintenance Supplies Expense | - | |
17 | Accum. Depr.—Office Equip. | 4,250 | 53 | Fuel Expense | - | |
18 | Vehicles | 62,400 | 61 | Office Salaries Expense | - | |
19 | Accum. Depr.—Vehicles | 17,800 | 62 | Rent Expense | - | |
21 | Accounts Payable | 2,755 | 63 | Advertising Expense | - | |
31 | J. Wu, Capital | 162,975 | 64 | Miscellaneous Administrative Exp. | - |
2. Journalize the transactions for March using the required journal(s). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
2a. Journalize the transactions for March using the purchases journal (with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
If no entry is required, type "No entry required" and leave the amount boxes blank.
If an amount box does not require an entry, leave it blank.
2b. Journalize the transactions for March using the cash receipts journal. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
If an amount box does not require an entry, leave it blank.
2c. Journalize the transactions for March using the single-column revenue journal. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
2d. Journalize the transactions for March using the cash payments journal. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
If an amount box does not require an entry, leave it blank.
2e. Journalize the transactions for March using the two-column general journal. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
If an amount box does not require an entry, leave it blank.
3. Post the appropriate individual entries to the general ledger.
4. Total each of the columns of the special journals, and post the appropriate totals to the general ledger; insert the account balances.
If an amount box does not require an entry, leave it blank.
5. Prepare a trial balance.
If an amount box does not require an entry, leave it blank.
SOLUTION:- JOURNAL ENTRIES IN THE BOOKS OF AM EXPRESS COMPANY :-
DATE | PARTICULARS | DEBIT | CREDIT |
MAR 1 |
RENT A/C TO BANK BEING RENT PAID VIDE CHEQUE NO 205 |
2450 | 2450 |
MAR 2 |
VEHICLE A/C TO MCINTYRE SALES CO. BEING VEHICLE PURCHASED ON CREDIT FROM MCINTYRE AND CO. |
26900 | 26900 |
MAR 3 |
OFFICE EQUIPMENT A/C TO OFFICE MATE INC. BEING OFFICE EQUIPMENT PURCHASED ON CREDIT |
1570 | 1570 |
MAR 5 |
ELLIS CO. A/C TO SALES BEING SALES MADE TO ELLIS AND CO. |
7000 |
7000 |
MAR 6 |
BANK A/C TO CHAVEZ AND CO. BEING CHEQUE RECEIVED FROM DEBTOR |
7950 | 7950 |
MAR 7 |
TRENT CO. TO SALES BEING SALES MADE TO TRENT AND CO. |
9840 | 9840 |
MAR9 |
FUEL EXPENSES A/C TO BANK BEING CHEQUE PAID FOR FUEL EXPENSES |
820 | 820 |
MAR 10 |
BANK A/C TONSANJEEV AND CO. |
10000 | 10000 |
MAR 10 |
OFFICE CITY A/C TO BANK |
450 | 450 |
MAR 10 |
BASTILLE AND CO. TO BANK |
1890 | 1890 |
MAR 11 |
JARVIS CO TO SALES |
7200 | 7200 |
MAR 11 |
PORTER AND CO. TO BANK |
415 | 415 |
MAR 12 |
BANK A/C TO ELLIS AND CO. |
7000 | 7000 |
MARV 13 |
MCINTYRE SALES A/C TO BANK |
26900 | 26900 |
MAR 16 |
CASH A/C TO FEES EARNED |
26800 | 26800 |
MAR 16 |
VEHICLE A/C TO CREDITORS |
28500 | 28500 |
MAR 17 |
ADMINISTRATIVE EXPENSES A/C TO BANK |
4680 | 4680 |
MAR 18 |
MAINTENANCE SUPPPLIES A/C TO BASTILLE AND CO. |
2430 | 2430 |
MAR 18 |
BANK A/C TO RENT REVENUE ON OFFICE SPACE |
900 | 900 |
MAR 19 |
MAINTENANCE AND OFFICE SUPPLIES A/C TO MASTERVSUPPLY AND CO. |
1500 | 1500 |
MAR 20 |
ADVERTISING EXPENSES A/C TO BANK |
8590 | 8590 |
MAR 20 |
REPAIRING EXPENSES A/C TO MAINTENANCE SUPPLIES |
4400 | 4400 |
MAR 21 |
OFFICE SUPPLIES A/C TO OFFICE CITY |
990 | 990 |
MAR 24 |
SANJEEV CO TO SALES |
9200 | 9200 |
MAR 25 |
BANK A/C TO CHAVEZ AND CO. |
14000 | 14000 |
MAR 25 |
TRENT CO TO SALES |
6300 | 6300 |
MAR 26 |
OFFICE MATE INC TO BANK |
1570 | 1570 |
MAR 27 |
DRAWINGS A/C TO BANK |
4000 | 4000 |
MAR 30 |
DRIVER SALARIES A/C TO BANK |
33300 | 33300 |
MAR 31 |
OFFICE SALARIES A/C TO BANK |
21200 | 21200 |
MAR 31 |
OFFICE SUPPLIES A/C TO BANK |
600 | 600 |
MAR 31 |
CASH A/C TO FEE EARNED |
29400 | 29400 |