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Argosy, Inc. has ten transactions during 2017 as follows:

Inventory purchases on credit for $2,800 (assume perpetual inventory system).

Merchandise sales to customers for $4,000 cash; $3,000 of related inventory cost.

Employees earn wages of $1,000, which are settled / paid during 2017.

Cash receipts from customers in the amount of $2,200 for credit sales made during 2016.

Payments to suppliers of $4,000 for credit purchases made during 2016.

Declaration and payment of cash dividends of $5,000.

Purchase of machinery for $8,000 with short-term notes payable.

Payment for short-term notes payable of $1,000, which includes $750 of interest from 2016.

Credit merchandise sales to customers for $6,000, with $3,900 of related inventory cost.

Payment of utility billings received in early 2017 for services received during 2016 for $1,200.

Required: Record the journal entries for these transactions (ignore dating the JE’s)

Trans #

Account Description

Debit

Credit

B/S Effect

Perm/Temp

1

2

3

4

5

6

7

8

9

10

.

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Irving Heathcote
Irving HeathcoteLv2
28 Sep 2019

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Comprehensive Problem 7 (Part Level Submission)

On December 1, 2017, Fullerton Company had the following account balances.

Debit Credit
Cash $18,200 Accumulated Depreciation—Equipment $3,000
Notes Receivable 2,200 Accounts Payable 6,100
Accounts Receivable 7,500 Common Stock 50,000
Inventory 16,000 Retained Earnings 14,400
Prepaid Insurance 1,600 $73,500
Equipment 28,000
$73,500


During December, the company completed the following transactions.

Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed).
12 Purchased merchandise on account from Vance Co. $12,000, terms 1/10, n/30.
17 Sold merchandise on account $16,000, terms 2/10, n/30. The cost of the merchandise sold was $10,000.
19 Paid salaries $2,200.
22 Paid Vance Co. in full, less discount.
26 Received collections in full, less discounts, from customers billed on December 17.
31 Received $2,700 cash from customers in payment of account (no discount allowed).


Adjustment data:

1. Depreciation $200 per month.
2.

Insurance expired $400.

Enter the December 1 balances in the ledger T-accounts and post the December transactions I need to make a T-account chart

Required information

Problem 7-1A Special journals, subsidiary ledgers, trialbalance-perpetual LO C3, P1, P2

[The following information applies to the questionsdisplayed below.]

Church Company completes these transactions and events during Marchof the current year (terms for all its credit sales are 3/10,n/30).

Mar. 1 Purchased $40,000 of merchandisefrom Van Industries, invoice dated March 1, terms 3/15, n/30.
2 Sold merchandise on credit to MinCho, Invoice No. 854, for $16,000 (cost is $8,000).
3 (a) Purchased $1,200 of office supplieson credit from Gabel Company, invoice dated March 3, terms n/10EOM.
3 (b) Sold merchandise on credit to LindaWitt, Invoice No. 855, for $8,000 (cost is $4,000).
6 Borrowed $72,000 cash from FederalBank by signing a long-term note payable.
9 Purchased $20,000 of officeequipment on credit from Spell Supply, invoice dated March 9, termsn/10 EOM.
10 Sold merchandise on credit toJovita Albany, Invoice No. 856, for $4,000 (cost is $2,000).
12 Received payment from Min Cho forthe March 2 sale less the discount.
13 (a) Sent Van Industries Check No. 416in payment of the March 1 invoice less the discount.
13 (b) Received payment from Linda Wittfor the March 3 sale less the discount.
14 Purchased $34,000 of merchandisefrom the CD Company, invoice dated March 13, terms 3/10, n/30.
15 (a) Issued Check No. 417, payable toPayroll, in payment of sales salaries expense for the first half ofthe month, $15,200. Cashed the check and paid the employees.
15 (b) Cash sales for the first half ofthe month are $64,000 (cost is $51,200). (Cash sales are recordeddaily, but are recorded only twice here to reduce repetitiveentries.)
16 Purchased $1,720 of store supplieson credit from Gabel Company, invoice dated March 16, terms n/10EOM.
17 Received a $3,400 credit memorandumfrom CD Company for the return of unsatisfactory merchandisepurchased on March 14.
19 Received a $600 credit memorandumfrom Spell Supply for office equipment received on March 9 andreturned for credit.
20 Received payment from Jovita Albanyfor the sale of March 10 less the discount.
23 Issued Check No. 418 to CD Companyin payment of the invoice of March 13 less the March 17 return andthe discount.
27 Sold merchandise on credit toJovita Albany, Invoice No. 857, for $12,000 (cost is $4,800).
28 Sold merchandise on credit to LindaWitt, Invoice No. 858, for $4,800 (cost is $1,920).
31 (a) Issued Check No. 419, payable toPayroll, in payment of sales salaries expense for the last half ofthe month, $15,200. Cashed the check and paid the employees.
31 (b) Cash sales for the last half of themonth are $70,400 (cost is $42,240).
31 (c) Verify that amounts impactingcustomer and creditor accounts were posted and that any amountsthat should have been posted as individual amounts to the generalledger accounts were posted. Foot and crossfoot the journals andmake the month-end postings.


Assume the following ledger account amounts Inventory (March 1 beg.bal. is $63,000), Z. Church, Capital (March 1 beg. bal. is $63,000)and Church Company uses the perpetual inventory system.

Problem 7-1A Part 2

Required:
2-a. Enter the transactions in a sales journal.
2-b. Enter the transactions in a purchasesjournal.
2-c. Enter the transactions in a cash receiptsjournal.
2-d. Enter the transactions in a cashdisbursements journal.
2-e. Enter the transactions in a generaljournal.

Enter the transactions in a sales journal.

SALES JOURNAL
Date Account Debited Invoice Number Accounts Receivable Dr. Sales Cr. Cost of Goods Sold Dr. Inventory Cr.
Mar.31 Totals $0 $0

Enter the transactions in a purchases journal.

PURCHASES JOURNAL
Date Account Date of Invoice Terms Accounts Payable Cr. Inventory Dr. Office Supplies Dr. Other Accounts Dr.
Mar.31 Totals $0 $0 $0 $0

Enter the transactions in a cash receipts journal.

CASH RECEIPTS JOURNAL
Date Account Credited Cash Dr. Sales Discount Dr. Accounts Receivable Cr. Sales Cr. Other Accts. Cr. Cost of Goods Sold Dr. Inventory Cr.
Mar.31 Totals $0 $0 $0 $0 $0 $0

Enter the transactions in a cash disbursements journal.

CASH DISBURSEMENTS JOURNAL
Date Ck.No. Payee Account Debited Cash Cr. Inventory Cr. Other Accounts Dr. Accounts Payable Dr.
Mar.31 Totals $0 $0 $0 $0

Enter the transactions in a general journal.

Journal Entry Worksheet

Received a $3,400 credit memorandum from CD Company for thereturn of unsatisfactory merchandise purchased on March 14.

Received a $600 credit memorandum from Spell Supply for officeequipment received on March 9 and returned for credit.

Date General Journal Debit Credit
Mar. 17

*Enter debits before credits

Enter the transactions in a general journal.

Journal Entry Worksheet

Received a $3,400 credit memorandum from CD Company for thereturn of unsatisfactory merchandise purchased on March 14.

Received a $600 credit memorandum from Spell Supply for officeequipment received on March 9 and returned for credit.

Date General Journal Debit Credit
Mar. 19

*Enter debits before credits

XOS Corporation (XOS) sells accounting-related memorabilia at asmall store. The company was organized and began operations onJanuary 1, 2016.

Events During January,2016:

1. On January 1, the owner invested $100,000 cash in thecompany, receiving 1,000 shares of $2 par value common stock inexchange.

2. On January 1, XOS purchased furniture and fixtures for$30,000. Paid $5,000 cash down, and signed a promissorynote with a 12% annual rate of interest for the balance of thepurchase price. Note plus interest to be paid in 2 years.

3. On January 1, XOS paid two months rent in advance to mallowners for floor space, $6,000.

4. On January 1, XOS paid a one-year premium for liability andcasualty insurance, $1,200.

5. During January, the company purchased merchandise inventoryon account for $25,000.

6. During January, sales totaled $48,000 ($28,000 for cash and$20,000 on credit). The cost of the merchandise sold was$20,000. XOS uses a perpetual inventory system.

7. During January, the company paid wages totaling $3,000.

8. During January, payments on account to suppliers of inventorytotaled $9,000.

9. During January, a customer ordered 100 custom-made t-shirtssaying “SOX ROX!”-for delivery in February, 2016. XOSrequired payment in advance ($1,000) for the entire order.

10. During January, customers paid $10,000 to XOS forsales made on credit

Additional Information:

The furniture and fixtures have an expected useful life of 5years and zero expected salvage value. XOS usesthe straight-line method of depreciation.

At January 31, employees have earned wages of $1,000 that willnot be paid until February.

Utilities charges for January are estimated to be $600. However,the utilities bill will not be received and paid untilmid-February.

Requirements

*2. Prepare any necessary adjusting journal entries atJanuary 31, and post related amounts to the T-Accounts. Thenprepare an adjusted trial balance at January 31.

(Hint: There are 6 AJE’s)

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