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Rose Pico began her retail business, Pico Inc., on October 1,2016. A post-closing trial balance was prepared on November 30,2016 and those balances are posted in the ledgers at December1.

Pico Inc. uses a perpetual inventory system. During December,Pico Inc. entered into the following transactions:

Dec. 2 Purchased merchandise on accountfrom Ohio Wholesale, $4,000 terms FOB shipping, 2/10, n/30, withprepaid freight of $125 added to the invoice.
4 Received cash from Third Street onaccount, $1,960.
8 Returned $180 (net of discount) ofmerchandise purchased on Dec. 2.
11 Issue Check #5471 to Ohio Wholesaleon account for full amount of Dec. 2 purchase.
12 Issued Check #5472 to Decker OfficeProducts as partial payment toward current balance, $512.
13 Issued Invoice #3462 to KitchenWorld for merchandise sold on account, $8,300, n/30. The cost ofmerchandise sold was $2,490.
15 Issued Check #5473 to thereceptionist for bi-monthly salary, $600.
16 Issued Invoice #3463 to My Garage,terms 2/10, n/30, for merchandise sold on account, $6,800. The costof the merchandise sold was $2,040.
18 Purchased supplies from DeckerOffice Products on account, $580, Invoice #2915, terms n/30.
19 Issued Invoice #3464 to Liz's Housefor merchandise sold on account, list price $6,000, trade discount30%. Cost: $1,500
21 Purchased merchandise on accountfrom EDH Distribution, $6,000 terms FOB destination, 2/10,n/30.
22 Issued Invoice #3465 to Arnie'sWholesale Club, for merchandise sold on account, $6,700 terms 2/10,n/30. The cost of merchandise sold was $1,970
26 Received cash from My Garage onaccount, for full amount owed.
27 Received cash from Liz's House onaccount, $2,500.
29 Issued Check #5474 in payment ofwindow cleaning, $65.
30 Issued Check #5475 to thereceptionist for bi-monthly salary, $600.
31 Issued Invoice #3466 to Geideman's,for merchandise sold on account $4,800. The cost of the merchandisesold was $1,450.
31 Issued Check #5476 to Rose Pico asa personal withdrawal, $8,500.

Note: You may find it useful to copy and pastethe following instructions to a file and print them. Also, in thisproblem, you will see [More] in many locations. Click on thoselinks for helpful hints and additional instructions. In thespecial journals and all ledgers, dates must be entered in Mon DDformat. (December 9 would be entered as Dec. 9)

Required:
1. Journalize each of the Decembertransactions using the following journals. (Posting references willbe inserted in requirement 2.) [More]
A. Journal (pg. 11)
B. Revenue journal (pg. 8)[More]
C. Cash receipts journal (pg.11)
D. Purchases journal (pg. 9)[More]
E. Cash payments journal (pg.12)
2. Post the journal entries to theappropriate ledgers. [More] Posting should be completed in thefollowing order:
A. Post the entries on journalpage 11 to the general ledger. [More]
B. Post the individual revenuejournal entries to the accounts receivable subsidiary ledger.[More]
C. Post the individual cashreceipts journal entries to the accounts receivable subsidiaryledger. [More]
D. Post the individual purchasesjournal entries to the accounts payable subsidiary ledger.[More]
E. Post the individual cashpayments journal entries to the accounts payable subsidiary ledgerand the appropriate general ledger accounts. [More]
3. Total each of the columns ofthe special journals. Verify that total debits equal total creditsin each journal.
4. Post the totals of the specialjournals to the appropriate general ledger accounts. [More] Specialjournals must be posted in the following order:
I. Revenue journal
II. Cash receipts journal
III. Purchases journal
IV. Cash payments journal
5. Prepare an unadjusted trialbalance. [More]
6. At the end of December, thefollowing adjustment data were assembled. Analyze and use thesedata to complete parts (7) and (8).
• Insurance expired duringDecember is $200.
• Office supplies on hand onDecember 31 are $615.
• Depreciation of officeequipment for December is $300.
• Rent expired during December is$1,280.
• A physical inventory indicatesthat $10,955 is actually on hand.

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Hubert Koch
Hubert KochLv2
28 Sep 2019

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The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow.

Jan. 2 Issued Ck. No. 6981 for monthly rent, $775.

2 J. Hammond, the owner, invested an additional $3,500 in the business.

4 Bought merchandise on account from Valencia and Company, invoice no. A691, $2,930; terms 2/10, n/30; dated January 2.

4 Received check from Vega Appliance for $980 in payment of $1,000 invoice less discount.

4 Sold merchandise on account to L. Paul, invoice no. 6483, $850.

6 Received check from Petty, Inc., $637, in payment of $650 invoice less discount.

7 Issued Ck. No. 6982, $588, to Fischer and Son, in payment of invoice no. C1272 for $600 less discount.

Jan. 7 Bought supplies on account from Doyle Office Supply, invoice no. 1906B, $108; terms net 30 days.

7 Sold merchandise on account to Ellison and Clay, invoice no. 6484, $787.

9 Issued credit memo no. 43 to L. Paul, $54, for merchandise returned.

11 Cash sales for January 1 through January 10, $4,863.20.

11 Issued Ck. No. 6983, $2,871.40, to Valencia and Company, in payment of $2,930 invoice less discount.

14 Sold merchandise on account to Vega Appliance, invoice no. 6485, $2,050.

18 Bought merchandise on account from Costa Products, invoice no. 7281D, $4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, $147 (total $5,001).

21 Issued Ck. No. 6984, $194, to M. Miller for miscellaneous expenses not recorded previously.

21 Cash sales for January 11 through January 20, $4,591.

23 Issued Ck. No. 6985 to Forbes Freight, $96, for freight charges on merchandise purchased on January 4.

23 Received credit memo no. 163, $376, from Costa Products for merchandise returned.

29 Sold merchandise on account to Bruce Supply, invoice no. 6486, $1,835.

31 Cash sales for January 21 through January 31, $4,428. 31 Issued Ck. No. 6986, $53, to M. Miller for miscellaneous expenses not recorded previously.

31 Recorded payroll entry from the payroll register: total salaries, $6,200; employees’ federal income tax withheld, $872; FICA taxes withheld, $350.30.

31 Recorded the payroll taxes: FICA taxes, $474.30; state unemployment tax, $334.80; federal unemployment tax, $49.60.

31 Issued Ck. No. 6987, $4,977.70, for salaries for the month.

31 J. Hammond, the owner, withdrew $1,000 for personal use, Ck. No. 6988.

111 Cash 311 J. Hammond, Capital

113 Accounts Receivable 312 J. Hammond, Drawing

114 Merchandise Inventories

115 Supplies 412 Sales Returns and Allowances

116 Prepaid Insurance 413 Sales Discounts

121 Equipment 511 Purchases

212 Accounts Payable 512 Purchases Returns and Allowances

215 Salaries Payable 513 Purchases Discounts

216 Employees’ Federal Income Tax Payable 514 Freight In

217 FICA Taxes Payable 621 Salary Expense

218 State Unemployment Tax Payable 622 Payroll Tax Expense

219 Federal Unemployment Tax Payable 631 Miscellaneous Expense

Required

1. Post daily all entries involving customer accounts to the accounts receivable ledger.

2. Post daily all entries involving creditor accounts to the accounts payable ledger.

3. Post daily the general journal entries to the general ledger. Write the owner’s name in the Capital and Drawing accounts.

4. Prepare a trial balance.

5. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?

American Meter Company closes its books and prepares financial statements at the end of each month. American uses the perpetual inventory system. The company completed the following transactions during August, 2017:

Aug 1 Issued check no. 682 for August rent of $1,000

2. Issued check no. 683 to pay salaries of $1,240, which includes salary payable of $930 from July 31 (ignore payroll deductions).

2. Issued invoice no. 503 for sale on account to R. T. Loeb, $600. American’s cost of this merchandise was $190.

3. Purchased inventory on credit terms of 1/15, n/60 from Grant, Inc., $1,400

4. Received net amount of cash on account from Fullam Company, $2,156, within the discount period. The invoice, dated July 26 with terms of 2/10, net 30, was in the amount of $2,200.

4. Sold inventory for cash, $330 (cost, $104)

5. Received from Park-Hee, Inc. merchandise that had been sold earlier for $550 (cost, $174)

5. Issued check no. 684 to purchase supplies for cash, $780

6. Collected interest revenue of $1,100

7. Issued invoice no. 504 for sale on account to K. D. Skipper, $2,400 (cost, $759)

8. Issued check no. 685 to pay Federal Company $2,600 of the amount owed at July 31. This payment occurred after the discount period.

11. Issued check no. 686 to pay Grant, Inc. the net amount owed from August 3

12. Received cash from R. T. Loeb in full settlement of her account receivable from August 2

16. Issued check no. 687 to pay salary expense of $1,240

19. Received half the July 31 amount receivable from K. D. Skipper—after the end of the discount period

19. Purchased inventory for cash $850, issuing check no. 688

22. Purchased furniture on credit terms of 3/15, n/60 from Beaver Corporation, $510

23. Sold inventory on account to Fullam Company, issuing invoice no. 505 for $9,966 (cost, $3,152)

25. Issued check no. 689 to pay utilities, $432

26. Purchased supplies on credit terms 2/10, n/30 from Federal Company, $180

30. Returned damaged inventory to company from whom American made the cash purchase on August 19, receiving cash of $850

30. Granted a sales allowance of $175 to K. D. Skipper

31. Purchased inventory on credit terms 1/10, n/30 from Suncrest Supply, $8,330

31. Issued check no. 690 to Lester Mednick, owner of the business, for personal withdrawal, $1,700

The chart of accounts with account balances as of July 31, 2017 are as follows:

General Ledger

101 Cash $ 8,650 401 Sales Revenue

102 Accounts Receivable 19,560 402 Sales Discounts

104 Interest Receivable 403 Sales Returns & Allowances

105 Merchandise Inventory 41,800 410 Interest Revenue

109 Supplies 2,150 501 Cost of Goods Sold

117 Prepaid Insurance 2,200 510 Salary Expense

140 Note Receivable, Long-Term 11,000 513 Rent Expense

160 Furniture 37,270 514 Depreciation Expense

161 Accumulated Depreciation 10,550 516 Insurance Expense

201 Accounts Payable 13,410 517 Utilities Expense

204 Salary Payable 930 519 Supplies Expense

207 Interest Payable 320 523 Interest Expense

220 Note Payable, Long-Term 42,000

301 Lester Mednick, Capital 55,420

302 Lester Mednick, Withdrawals

400 Income Summary

Accounts Receivable Subsidiary Ledger:

Fullam Company, $3,200

R T. Loeb, 0

Park-Hee Inc., 7,590

K.D. Skipper, 8,770

Accounts Payable Subsidiary Ledger:

Beaver Corporation $ 0

Federal Company 13,410

Grant, Inc, 0

Suncrest Supply 0

Prepare a Trial Balance in the Trial Balance Columns of a Worksheet (Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, and Balance Sheet headings).

Check figure: Trial Balance before any adjusting entries should total $142,516

The 2 questions before this was the following.

Journalize the August transactions in the general journal (page 9). Do not include the explanations. American makes all credit sales on terms of 2/10, n/30 unless otherwise indicated. I have posted the beginning balances to the general ledgers and subsidiary ledgers for you.

Post daily to the general ledger. Also post to the accounts receivable subsidiary ledger and the accounts payable subsidiary ledger when appropriate. On August 31 post to the general ledger.

I'm unsure if what I get form the previous answers will also help do this quesiton.

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