Required:
1. Balance or reconcile the accounts receivable subsidiaryledger and accounts receivable in the general ledger. Do the samefor the accounts payabel subsidiary ledger and accounts payable inthe general ledger.
GeneralJournal PAGE 6
DATE
ACCOUNT TITLES AND EXPLANATIONS
POST. REF.
DEBIT
CREDIT
(balancing the ledgers)
General Ledger
Accounts Receivable DebitBalance
McMillan Distributors:
Schedule of Accounts Receivable
July 31
Balance
General Ledger
Accounts Payable Credit Balance:$23628.94
McMillan Distributors:
Schedule of Accounts Payable
July 31
Balance
Accounts Receivable SubsidiaryLedger
ACCOUNT BELLLTD.
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
9
Bell Ltd
6
33300
33300
July
19
Bell Ltd
13
32967
32967
July
19
Bell Ltd Discount
13
333
333
July
29
Bell Ltd
21
2976
2976
68610
ACCOUNT M.O.BROWN
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
15
M.O.Brown (credit sale)
11
3990
3990
July
15
M.O.Brown (Sold to)
11
1440
1440
2550
ACCOUNT ISHIKAWAINC.
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
2
Ishikawa Inc (credit sale)
1
24600
24600
July
10
Ishikawa Inc (discount)
8
246
246
July
10
Ishikawa Inc
8
24354
-24354
July
18
Ishikawa Inc (credit sale)
13
2142
-2142
-1650
Accounts Payable SubsidiaryLedger
ACCOUNT BURGESSDISTRIBUTINGLTD.
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
15
Burgess Distribution Ltd (Purchases)
15
$12,282
-$12,282
ACCOUNT NAKKACHCORP.
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
3
Nakkach Corp (purchase of inventory)
2
$14,802
-$14,802
July
13
Nakkach Corp (Discount)
9
$444.06
$444.06
July
22
Nakkach Corp (Furniture Purchase)
16
$3870
-$3870
ACCOUNT MANLEY,INC.
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
13
Manley Inc (Purchase of supplies)
10
$8646
-$8646
July
28
Manley Inc
19
$805
-$805
July
29
Manley Inc (Return)
20
$4050
$4050
General Ledger
ACCOUNT CASH ACCOUNT NO. 111
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
5
Sale of inventory in cash (914)
2
2880
2880
July
5
Purchase of Furniture (532)
4
13110
-13,110
July
10
Purchase of Inventory (533)
7
6858
-6858
July
13
Paid to Nakkach Corp (533)
9
14358
-14358
July
19
Bell Ltd
14
32967
32967
July
25
Payment for Utilities (536)
18
6718
-6718
July
30
Manley Inc
22
2646
-2646
July
31
Ishikawa Inc
23
2142
-2142
July
31
Salary Expenses
24
14082
-14082
Transfer to balance sheet as asset
24,066.94
24,067
ACCOUNT ACCOUNTSRECEIVABLE ACCOUNT NO. 112
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
2
Ishikawa Inc (913)
1
24,600
24,600
July
9
Bell Ltd (914)
6
33,300
33,300
July
10
Ishikawa Inc (913)
8
24,354
-24,354
July
10
Ishikawa Inc (Discount) (913)
8
246
-246
July
15
M.O. Brown (915)
11
3990
3990
July
18
Credit sale to Ishikawa Inc (916)
13
2142
2142
July
19
Bell Ltd (914)
14
32967
-32,967
July
19
Bell Ltd (Discount)
13
333
-333
July
29
Bell Ltd (917)
21
2976
2976
July
31
Ishikawa Inc
23
2142
-2142
Transfer to balance sheet as asset
6966
6966
ACCOUNT SUPPLIES ACCOUNT NO. 116
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
13
Purchase of Supplies Manlet Inc
10
8646
8646
July
24
Sales of Supplies
18
324
-324
8322
-8322
ACCOUNT PREPAIDINSURANCE ACCOUNT NO. 117
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
22
Prepaid Insurance
17
6000
6000
6000
-6000
Req. 1 and4 (continued) P7-6A
ACCOUNT INVENTORY ACCOUNT NO. 118
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
2
Credit Sale to Ishikawa Inc (913)
1
10,800
10800
July
3
Purchase of Inventory from Nakkach Corp
2
14,802
14802
July
5
Sold Inventory for Cash (915)
3
2880
2880
July
9
Credit sale to Bell Ltd. (914)
6
13,860
12860
July
10
Purchase of inventory (533)
7
6858
6858
July
15
Sold to M.O. Brown (915)
11
1440
1440
July
18
Credit Sale to Ishikawa Inc (916)
13
762
762
July
20
Purchases Burgess Distributing Ltd
15
12,282
12282
July
28
Purchase of Inventory
19
8050
8050
July
29
Return of Inventory
20
4050
4050
July
29
Sale of Inventory Bell Ltd. (917)
21
1320
1320
Transfer to balance sheet as asset
9520
9520
ACCOUNT FURNITURE ACCOUNT NO. 151
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
5
Purchase of Furniture (532)
4
13,110
13,110
July
22
Purchase of Furniture Nakkach Corp
16
3870
3870
Transfer to balance sheet as asset
16,980
-16,980
ACCOUNT ACCOUNTSPAYABLE ACCOUNT NO. 211
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
3
Nakkach Corp (914)
2
$14,802
$14,802
July
13
Nakkach Corp (914)
9
$14,357.94
-$14,358
July
13
Nakkach Corp (Discount Recevied) (914)
9
$444.06
-$444
July
13
Manley Inc
10
$8646
$8648
July
20
Burgess Distribution Ltd
15
$12,282
$12282
July
22
Purchase of furniture Nakkach Corp
16
3870
$3870
July
28
Manley Inc
19
$805
$8050
July
29
Manley Inc (Return)
20
$4050
-$4050
July
30
Manley Inc
22
$2646
-$2646
Transfer to balance sheet as liability
$26,152
$26,152
ACCOUNT SALESREVENUE ACCOUNT NO. 411
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
2
Credit Sales (913)
1
$24,600
$24,600
July
5
Case Sales
3
$6462
$6462
July
9
Credit Sales to Bell Ltd (914)
6
$33,300
$33,300
July
15
Credit sale to M.O.Brown (915)
12
$3990
$3990
July
18
Credit sale to Ishikawa Inc (916)
13
$2142
$2142
July
22
Sale of supplies
17
$324
$324
July
29
Sale of inventory
21
$2976
$2976
$73794
-$73794
Req. 1 and4 (continued) P7-6A
ACCOUNT SALESDISCOUNTS ACCOUNT NO. 412
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
10
Ishikawa Inc (913)
8
$246
$246
July
19
Bell Ltd (Discount)
14
$333
$333
Debit to profit loss account
$579
$579
ACCOUNT SALES RETURNSANDALLOWANCES ACCOUNT NO. 413
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
29
Manley Inc (Returns)
20
$4050
$4050
ACCOUNT INTERESTREVENUE ACCOUNT NO. 419
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
8
Collected interest revenue
5
$6650
$6650
Credit to profit loss account
$6650
-$6650
ACCOUNT COST OF GOODSSOLD ACCOUNT NO. 511
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
3
Credit Purchase from Nakkach Corp
2
$14,802
$14,802
July
10
Purchase of inventory
7
$6858
$6858
July
13
Disocunt received from Nakkach Corp
9
$444,06
-$444
July
20
Purchase of inventory from Burgess Distributing Ltd.
15
$12,282
$12,282
July
28
Purchase of inventory Manley Inc
19
$8050
$8050
July
29
Purchase Return of inventory Manley Inc
20
$4050
-$4050
$37,498
-$38,498
ACCOUNT SALARIESEXPENSE ACCOUNT NO. 531
DATE
ITEM
JRNL. REF.
DEBIT
CREDIT
BALANCE
July
Salary Expenses
24
$14,082
14,082
Debit to profit loss account
$14,082
-$14,082
Required:
1. Balance or reconcile the accounts receivable subsidiaryledger and accounts receivable in the general ledger. Do the samefor the accounts payabel subsidiary ledger and accounts payable inthe general ledger.
GeneralJournal PAGE 6 | |||||
DATE | ACCOUNT TITLES AND EXPLANATIONS | POST. REF. | DEBIT | CREDIT | |
(balancing the ledgers)
General Ledger
Accounts Receivable DebitBalance
McMillan Distributors:
Schedule of Accounts Receivable
July 31
Balance
General Ledger
Accounts Payable Credit Balance:$23628.94
McMillan Distributors:
Schedule of Accounts Payable
July 31
Balance
Accounts Receivable SubsidiaryLedger
ACCOUNT BELLLTD. | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 9 | Bell Ltd | 6 | 33300 | 33300 | |
July | 19 | Bell Ltd | 13 | 32967 | 32967 | |
July | 19 | Bell Ltd Discount | 13 | 333 | 333 | |
July | 29 | Bell Ltd | 21 | 2976 | 2976 | |
68610 | ||||||
ACCOUNT M.O.BROWN | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 15 | M.O.Brown (credit sale) | 11 | 3990 | 3990 | |
July | 15 | M.O.Brown (Sold to) | 11 | 1440 | 1440 | |
2550 | ||||||
ACCOUNT ISHIKAWAINC. | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 2 | Ishikawa Inc (credit sale) | 1 | 24600 | 24600 | |
July | 10 | Ishikawa Inc (discount) | 8 | 246 | 246 | |
July | 10 | Ishikawa Inc | 8 | 24354 | -24354 | |
July | 18 | Ishikawa Inc (credit sale) | 13 | 2142 | -2142 | |
-1650 | ||||||
Accounts Payable SubsidiaryLedger
ACCOUNT BURGESSDISTRIBUTINGLTD. | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 15 | Burgess Distribution Ltd (Purchases) | 15 | $12,282 | -$12,282 | |
ACCOUNT NAKKACHCORP. | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 3 | Nakkach Corp (purchase of inventory) | 2 | $14,802 | -$14,802 | |
July | 13 | Nakkach Corp (Discount) | 9 | $444.06 | $444.06 | |
July | 22 | Nakkach Corp (Furniture Purchase) | 16 | $3870 | -$3870 | |
ACCOUNT MANLEY,INC. | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 13 | Manley Inc (Purchase of supplies) | 10 | $8646 | -$8646 | |
July | 28 | Manley Inc | 19 | $805 | -$805 | |
July | 29 | Manley Inc (Return) | 20 | $4050 | $4050 | |
General Ledger
ACCOUNT CASH ACCOUNT NO. 111 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 5 | Sale of inventory in cash (914) | 2 | 2880 | 2880 | |
July | 5 | Purchase of Furniture (532) | 4 | 13110 | -13,110 | |
July | 10 | Purchase of Inventory (533) | 7 | 6858 | -6858 | |
July | 13 | Paid to Nakkach Corp (533) | 9 | 14358 | -14358 | |
July | 19 | Bell Ltd | 14 | 32967 | 32967 | |
July | 25 | Payment for Utilities (536) | 18 | 6718 | -6718 | |
July | 30 | Manley Inc | 22 | 2646 | -2646 | |
July | 31 | Ishikawa Inc | 23 | 2142 | -2142 | |
July | 31 | Salary Expenses | 24 | 14082 | -14082 | |
Transfer to balance sheet as asset | 24,066.94 | 24,067 | ||||
ACCOUNT ACCOUNTSRECEIVABLE ACCOUNT NO. 112 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 2 | Ishikawa Inc (913) | 1 | 24,600 | 24,600 | |
July | 9 | Bell Ltd (914) | 6 | 33,300 | 33,300 | |
July | 10 | Ishikawa Inc (913) | 8 | 24,354 | -24,354 | |
July | 10 | Ishikawa Inc (Discount) (913) | 8 | 246 | -246 | |
July | 15 | M.O. Brown (915) | 11 | 3990 | 3990 | |
July | 18 | Credit sale to Ishikawa Inc (916) | 13 | 2142 | 2142 | |
July | 19 | Bell Ltd (914) | 14 | 32967 | -32,967 | |
July | 19 | Bell Ltd (Discount) | 13 | 333 | -333 | |
July | 29 | Bell Ltd (917) | 21 | 2976 | 2976 | |
July | 31 | Ishikawa Inc | 23 | 2142 | -2142 | |
Transfer to balance sheet as asset | 6966 | 6966 | ||||
ACCOUNT SUPPLIES ACCOUNT NO. 116 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 13 | Purchase of Supplies Manlet Inc | 10 | 8646 | 8646 | |
July | 24 | Sales of Supplies | 18 | 324 | -324 | |
8322 | -8322 | |||||
ACCOUNT PREPAIDINSURANCE ACCOUNT NO. 117 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 22 | Prepaid Insurance | 17 | 6000 | 6000 | |
6000 | -6000 | |||||
Req. 1 and4 (continued) P7-6A
ACCOUNT INVENTORY ACCOUNT NO. 118 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 2 | Credit Sale to Ishikawa Inc (913) | 1 | 10,800 | 10800 | |
July | 3 | Purchase of Inventory from Nakkach Corp | 2 | 14,802 | 14802 | |
July | 5 | Sold Inventory for Cash (915) | 3 | 2880 | 2880 | |
July | 9 | Credit sale to Bell Ltd. (914) | 6 | 13,860 | 12860 | |
July | 10 | Purchase of inventory (533) | 7 | 6858 | 6858 | |
July | 15 | Sold to M.O. Brown (915) | 11 | 1440 | 1440 | |
July | 18 | Credit Sale to Ishikawa Inc (916) | 13 | 762 | 762 | |
July | 20 | Purchases Burgess Distributing Ltd | 15 | 12,282 | 12282 | |
July | 28 | Purchase of Inventory | 19 | 8050 | 8050 | |
July | 29 | Return of Inventory | 20 | 4050 | 4050 | |
July | 29 | Sale of Inventory Bell Ltd. (917) | 21 | 1320 | 1320 | |
Transfer to balance sheet as asset | 9520 | 9520 | ||||
ACCOUNT FURNITURE ACCOUNT NO. 151 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 5 | Purchase of Furniture (532) | 4 | 13,110 | 13,110 | |
July | 22 | Purchase of Furniture Nakkach Corp | 16 | 3870 | 3870 | |
Transfer to balance sheet as asset | 16,980 | -16,980 | ||||
ACCOUNT ACCOUNTSPAYABLE ACCOUNT NO. 211 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 3 | Nakkach Corp (914) | 2 | $14,802 | $14,802 | |
July | 13 | Nakkach Corp (914) | 9 | $14,357.94 | -$14,358 | |
July | 13 | Nakkach Corp (Discount Recevied) (914) | 9 | $444.06 | -$444 | |
July | 13 | Manley Inc | 10 | $8646 | $8648 | |
July | 20 | Burgess Distribution Ltd | 15 | $12,282 | $12282 | |
July | 22 | Purchase of furniture Nakkach Corp | 16 | 3870 | $3870 | |
July | 28 | Manley Inc | 19 | $805 | $8050 | |
July | 29 | Manley Inc (Return) | 20 | $4050 | -$4050 | |
July | 30 | Manley Inc | 22 | $2646 | -$2646 | |
Transfer to balance sheet as liability | $26,152 | $26,152 | ||||
ACCOUNT SALESREVENUE ACCOUNT NO. 411 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 2 | Credit Sales (913) | 1 | $24,600 | $24,600 | |
July | 5 | Case Sales | 3 | $6462 | $6462 | |
July | 9 | Credit Sales to Bell Ltd (914) | 6 | $33,300 | $33,300 | |
July | 15 | Credit sale to M.O.Brown (915) | 12 | $3990 | $3990 | |
July | 18 | Credit sale to Ishikawa Inc (916) | 13 | $2142 | $2142 | |
July | 22 | Sale of supplies | 17 | $324 | $324 | |
July | 29 | Sale of inventory | 21 | $2976 | $2976 | |
$73794 | -$73794 | |||||
Req. 1 and4 (continued) P7-6A
ACCOUNT SALESDISCOUNTS ACCOUNT NO. 412 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 10 | Ishikawa Inc (913) | 8 | $246 | $246 | |
July | 19 | Bell Ltd (Discount) | 14 | $333 | $333 | |
Debit to profit loss account | $579 | $579 | ||||
ACCOUNT SALES RETURNSANDALLOWANCES ACCOUNT NO. 413 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 29 | Manley Inc (Returns) | 20 | $4050 | $4050 | |
ACCOUNT INTERESTREVENUE ACCOUNT NO. 419 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 8 | Collected interest revenue | 5 | $6650 | $6650 | |
Credit to profit loss account | $6650 | -$6650 | ||||
ACCOUNT COST OF GOODSSOLD ACCOUNT NO. 511 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | 3 | Credit Purchase from Nakkach Corp | 2 | $14,802 | $14,802 | |
July | 10 | Purchase of inventory | 7 | $6858 | $6858 | |
July | 13 | Disocunt received from Nakkach Corp | 9 | $444,06 | -$444 | |
July | 20 | Purchase of inventory from Burgess Distributing Ltd. | 15 | $12,282 | $12,282 | |
July | 28 | Purchase of inventory Manley Inc | 19 | $8050 | $8050 | |
July | 29 | Purchase Return of inventory Manley Inc | 20 | $4050 | -$4050 | |
$37,498 | -$38,498 | |||||
ACCOUNT SALARIESEXPENSE ACCOUNT NO. 531 | ||||||
DATE | ITEM | JRNL. REF. | DEBIT | CREDIT | BALANCE | |
July | Salary Expenses | 24 | $14,082 | 14,082 | ||
Debit to profit loss account | $14,082 | -$14,082 | ||||
Related questions
Hello,
i am in accounting and having trouble with my general ledger. i need help with the set up and exactly how to do the balances. its not clicking with me at all. below i have included the information on the problem im working on, and would be great if i could some help.
Journal Entries and Trial Balance
On June 1, 2016, Kim Wheeler established an interior decorating business, Intrex Designs. During the month, Kim completed the following transactions related to the business.
| June | 1 | Kim transferred cash from a personal bank account to an account to be used for the business, $18,400. |
| 4 | Paid rent for period of June 4 to end of month, $1,780. | |
| 6 | Purchased a truck for $15,000, paying $1,000 cash and giving a note payable for the remainder. | |
| 8 | Purchased equipment on account, $7,180. | |
| 10 | Purchased supplies for cash, $1,230. | |
| 12 | Paid annual premiums on property and casualty insurance, $2,760. | |
| 15 | Received cash for job completed, $7,730. | |
| 23 | Paid creditor a portion of the amount owed for equipment purchased on June 13, $2,560. | |
| 24 | Recorded jobs completed on account and sent invoices to customers, $8,800. | |
| 25 | Received an invoice for truck expenses, to be paid in July, $810. | |
| 26 | Paid utilities expense, $920. | |
| 27 | Paid miscellaneous expenses, $330. | |
| 28 | Received cash from customers on account, $3,680. | |
| 29 | Paid wages of employees, $2,450. | |
| 30 | Withdrew cash for personal use, $2,040. |
Required:
1. Journalize each transaction in a two-column journal, beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Journal entry explanations may be omitted. For a compound transaction, if an amount box does not require an entry, leave it blank.
| 11 Cash | 31 Kim Wheeler, Capital |
| 12 Accounts Receivable | 32 Kim Wheeler, Drawing |
| 13 Supplies | 41 Fees Earned |
| 14 Prepaid Insurance | 51 Wages Expense |
| 16 Equipment | 53 Rent Expense |
| 18 Truck | 54 Utilities Expense |
| 21 Notes Payable | 55 Truck Expense |
| 22 Accounts Payable | 59 Miscellaneous Expense |
| General Journal | Page 1 | |||
|---|---|---|---|---|
| Date | Description | Post. Ref. | Debit | Credit |
| 2016 | ||||
| June 1 | Cash | |||
| Kim Wheeler, Capital | ||||
| June 4 | Rent Expense | |||
| Cash | ||||
| June 6 | Truck | |||
| Cash | ||||
| Notes Payable | ||||
| June 8 | Equipment | |||
| Accounts Payable | ||||
| June 10 | Supplies | |||
| Cash | ||||
| June 12 | Prepaid Insurance | |||
| Cash | ||||
| June 15 | Cash | |||
| Fees Earned | ||||
| General Journal | Page 2 | |||
|---|---|---|---|---|
| Date | Description | Post. Ref. | Debit | Credit |
| 2016 | ||||
| June 23 | Equipment | |||
| Accounts Payable | ||||
| June 24 | Accounts Receivable | |||
| Fees Earned | ||||
| June 25 | Truck Expense | |||
| Accounts Payable | ||||
| June 26 | Utilities Expense | |||
| Cash | ||||
| June 27 | Miscellaneous Expense | |||
| Cash | ||||
| June 28 | Cash | |||
| Accounts Receivable | ||||
| June 29 | Wages Expense | |||
| Cash | ||||
| June 30 | Kim Wheeler, Drawing | |||
| Cash | ||||
2. Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in the general journal as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. If an amount box does not require an entry, leave it blank.
| General Ledger | ||||||
|---|---|---|---|---|---|---|
| Account | Cash | ACCOUNT NO. | 11 | |||
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 1 | ||||||
| June 4 | ||||||
| June 6 | ||||||
| June 10 | ||||||
| June 12 | ||||||
| June 15 | ||||||
| June 23 | ||||||
| June 26 | ||||||
| June 27 | ||||||
| June 28 | ||||||
| June 29 | ||||||
| June 30 | ||||||
| Account | Accounts Receivable | ACCOUNT NO. | 12 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 24 | ||||||
| June 28 | ||||||
| Account | Supplies | ACCOUNT NO. | 13 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 10 | ||||||
| Account | Prepaid Insurance | ACCOUNT NO. | 14 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 12 | ||||||
| Account | Equipment | ACCOUNT NO. | 16 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 8 | ||||||
| Account | Truck | ACCOUNT NO. | 18 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 6 | ||||||
| Account | Notes Payable | ACCOUNT NO. | 21 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 6 | ||||||
| Account | Accounts Payable | ACCOUNT NO. | 22 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 8 | ||||||
| June 23 | ||||||
| June 25 | ||||||
| Account | Kim Wheeler, Capital | ACCOUNT NO. | 31 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 1 | ||||||
| Account | Kim Wheeler, Drawing | ACCOUNT NO. | 32 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 30 | ||||||
| Account | Fees Earned | ACCOUNT NO. | 41 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 15 | ||||||
| June 24 | ||||||
| Account | Wages Expense | ACCOUNT NO. | 51 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 29 | ||||||
| Account | Rent Expense | ACCOUNT NO. | 53 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 4 | ||||||
| Account | Utilities Expense | ACCOUNT NO. | 54 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 26 | ||||||
| Account | Truck Expense | ACCOUNT NO. | 55 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 25 | ||||||
| Account | Miscellaneous Expense | ACCOUNT NO. | 59 | |||
|---|---|---|---|---|---|---|
| Balance | ||||||
| Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
| 2016 | ||||||
| June 27 | ||||||
3. Prepare an unadjusted trial balance for Intrex Designs as of June 30, 2016. For those boxes in which no entry is required, leave the box blank. The first two account titles are filled in as an example.
| Intrex Designs Unadjusted Trial Balance June 30, 2016 | ||
|---|---|---|
| Debit Balances | Credit Balances | |
| Cash | ||
| Accounts Receivable | ||
| Totals | ||
4. Determine the excess of revenues over expenses for June.
$
(a) Record the January transactions in a two-column general journal.
Check figures:
Cash Receipts Journal, total Cash DR: $ 70,348
Cash Payments Journal, total Cash CR: 62,060
Net Income: 25,218 Total Assets: 149,568
Total Post Closing Trial Balance: 151,193
Sun & Surf 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 Sun & Surf are indicated in the working papers. Below are a series of transactions for Sun & Surf Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 55% of the sales price.
Jan.3 Sell merchandise on account to M. Knast $5,100, invoice no. 825, and to C. Ryder $1,900, invoice no. 826.
5 Purchase merchandise from R. Drifter $5,000 and N. Sova $2,200, terms n/30.
7 Receive checks from V. Arnold $4,000 and I. Tan $2,000 after discount period has lapsed.
8 Pay freight on merchandise purchased $235.
9 Send checks to K. Xerxes for $9,000 less 2% cash discount, and to T. Caper for $11,000 less 1% cash discount.
9 Issue credit of $300 to C. Ryder for merchandise returned.
10 Summary daily cash sales total $15,500.
11 Sell merchandise on account to D. Gallagher $1,600, invoice no. 827, and to V. Arnold $900, invoice no. 828.
12 Pay rent of $1,000 for January.
13 Receive payment in full from M. Knast and C. Ryder less cash discounts.
15 Withdrawal of $800 cash by J. Sandy for personal use.
15 Post all entries to the subsidiary ledgers.
16 Purchase merchandise from T. Caper $18,000, terms 1/10, n/30; K. Xerxes $14,200, terms 2/10, n/30; and R. Drifter $1,500, terms n/30.
17 Pay $400 cash for office supplies.
18 Return $200 of merchandise to K. Xerxes and receive credit.
20 Summary daily cash sales total $20,100.
21 Issue $15,000 note, maturing in 90 days, to M. Griffen in payment of balance due.
21 Receive payment in full from V. Arnold less cash discount.
22 Sell merchandise on account to M. Knast $2,700, invoice no. 829, and to D. Gallagher $1,300, invoice no. 830.
22 Post all entries to the subsidiary ledgers.
23 Send checks to T. Caper and K. Xerxes in full payment less cash discounts.
25 Sell merchandise on account to I. Tan $3,500, invoice no. 831, and to C. Ryder $6,100, invoice no. 832.
27 Purchase merchandise from T. Caper $14,500, terms 1/10, n/30; N. Sova $1,200, terms n/30; and R. Drifter $5,400, terms n/30.
27 Post all entries to the subsidiary ledgers.
28 Pay $275 cash for office supplies.
31 Summary daily cash sales total $21,300.
31 Pay salaries and wages of $8,100. (continued)
(a) Record the January transactions in a two-column general journal.
1. Office supplies at January 31 total $900.
2. Insurance coverage expires on September 30, 2017.
3. Annual depreciation on the equipment is $1,500.
4. Interest of $50 has accrued on the note payable.
| General Ledger | |||||
| Cash | No. 101 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 37,150 | ||
| Accounts Receivable | No. 112 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 13,000 | ||
| Notes Receivable | No. 115 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 39,000 | ||
| Inventory | No. 120 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 17,795 | ||
| Office Supplies | No. 125 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 1,200 | ||
| Prepaid Insurance | No. 130 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 2,205 | ||
| Equipment | No. 157 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 6,450 | ||
| Accumulated Depreciation - Equipment | No. 158 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 1,500 | ||
| Notes Payable | No. 200 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Accounts Payable | No. 201 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 35,000 | ||
| Interest Payable | |||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| J. Sandy, Capital | No. 301 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 80,300 | ||
| J. Sandy, Drawing | No. 306 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Income Summary | No. 350 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Sales | No. 401 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Sales Returns and Allowances | No. 412 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Sales Discounts | No. 414 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Cost of Goods Sold | No. 505 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Salaries and Wages Expense | No. 627 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Depreciation Expense | No. 711 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Interest Expense | No. 718 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Insurance Expense | No. 722 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Office Supplies Expense | No. 728 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Rent Expense | No. 729 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
(f) Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger.
Check figures:
Cash Receipts Journal, total Cash DR: $ 70,348
Cash Payments Journal, total Cash CR: 62,060
Net Income: 25,218 Total Assets: 149,568
Total Post Closing Trial Balance: 151,193
Sun & Surf 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 Sun & Surf are indicated in the working papers. Below are a series of transactions for Sun & Surf Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 55% of the sales price.
Jan.3 Sell merchandise on account to M. Knast $5,100, invoice no. 825, and to C. Ryder $1,900, invoice no. 826.
5 Purchase merchandise from R. Drifter $5,000 and N. Sova $2,200, terms n/30.
7 Receive checks from V. Arnold $4,000 and I. Tan $2,000 after discount period has lapsed.
8 Pay freight on merchandise purchased $235.
9 Send checks to K. Xerxes for $9,000 less 2% cash discount, and to T. Caper for $11,000 less 1% cash discount.
9 Issue credit of $300 to C. Ryder for merchandise returned.
10 Summary daily cash sales total $15,500.
11 Sell merchandise on account to D. Gallagher $1,600, invoice no. 827, and to V. Arnold $900, invoice no. 828.
12 Pay rent of $1,000 for January.
13 Receive payment in full from M. Knast and C. Ryder less cash discounts.
15 Withdrawal of $800 cash by J. Sandy for personal use.
15 Post all entries to the subsidiary ledgers.
16 Purchase merchandise from T. Caper $18,000, terms 1/10, n/30; K. Xerxes $14,200, terms 2/10, n/30; and R. Drifter $1,500, terms n/30.
17 Pay $400 cash for office supplies.
18 Return $200 of merchandise to K. Xerxes and receive credit.
20 Summary daily cash sales total $20,100.
21 Issue $15,000 note, maturing in 90 days, to M. Griffen in payment of balance due.
21 Receive payment in full from V. Arnold less cash discount.
22 Sell merchandise on account to M. Knast $2,700, invoice no. 829, and to D. Gallagher $1,300, invoice no. 830.
22 Post all entries to the subsidiary ledgers.
23 Send checks to T. Caper and K. Xerxes in full payment less cash discounts.
25 Sell merchandise on account to I. Tan $3,500, invoice no. 831, and to C. Ryder $6,100, invoice no. 832.
27 Purchase merchandise from T. Caper $14,500, terms 1/10, n/30; N. Sova $1,200, terms n/30; and R. Drifter $5,400, terms n/30.
27 Post all entries to the subsidiary ledgers.
28 Pay $275 cash for office supplies.
31 Summary daily cash sales total $21,300.
31 Pay salaries and wages of $8,100. (continued)
Page 2 of 2
Instructions
(a) Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal, a cash payments journal, and a two-column general journal.
(b) Post the journals to the general ledger.
(c) Prepare a trial balance at January 31, 2017, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information.
1. Office supplies at January 31 total $900.
2. Insurance coverage expires on September 30, 2017.
3. Annual depreciation on the equipment is $1,500.
4. Interest of $50 has accrued on the note payable.
(f) Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger.
| General Ledger | |||||
| Cash | No. 101 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 37,150 | ||
| Accounts Receivable | No. 112 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 13,000 | ||
| Notes Receivable | No. 115 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 39,000 | ||
| Inventory | No. 120 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 17,795 | ||
| Office Supplies | No. 125 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 1,200 | ||
| Prepaid Insurance | No. 130 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 2,205 | ||
| Equipment | No. 157 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 6,450 | ||
| Accumulated Depreciation - Equipment | No. 158 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 1,500 | ||
| Notes Payable | No. 200 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Accounts Payable | No. 201 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 35,000 | ||
| Interest Payable | |||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| J. Sandy, Capital | No. 301 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Jan. 1 | Balance | â | $ 80,300 | ||
| J. Sandy, Drawing | No. 306 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Income Summary | No. 350 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Sales | No. 401 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Sales Returns and Allowances | No. 412 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Sales Discounts | No. 414 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Cost of Goods Sold | No. 505 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Salaries and Wages Expense | No. 627 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Depreciation Expense | No. 711 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Interest Expense | No. 718 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Insurance Expense | No. 722 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Office Supplies Expense | No. 728 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
| Rent Expense | No. 729 | ||||
| Date | Explanation | Ref. | Debit | Credit | Balance |
