Simmo Shops uses the perpetual inventory system and makes all credit sales on terms of 2/10, n/30. During May, Simmo Shops completed these transactions (figures are GST inclusive unless stated otherwise): May 1 Owner began Simmo Shops by contributing $10,000 cash. 2 Issued invoice no. 290 for sale on credit to S. D. Cooper, $4 400. Simmo Shops' cost of this inventory was $2 780. 4 Sold inventory for cash, $6 820 (net cost, $3 640). 8 Collected interest revenue of $240. (Ignore GST) 9 Issued invoice no. 291 for sale on credit to Redlands Associates, $12 375 (net cost, $6 600). 12 Received $4 312 cash from S. D. Cooper in full settlement of her account receivable, net of the discount, from the sale of 2 May. 15 Sold inventory on credit to P. E. Freetime, issuing invoice no. 292 for $1 485 (net cost, $820). 17 Issued credit memo to P. E. Freetime for $1 485 for defective goods returned by Freetime. Also accounted for receipt of the inventory at net cost. 18 Issued invoice no. 293 for credit sale to S. D. Cooper, $3 652 (net cost, $1 940). 19 Received $12 127.50 from Redlands in full settlement of its account receivable from 9 May. 24 Sold supplies to an employee for cash of $160, which was Simmo Shops' cost. (ignore GST). 29 Sold goods on credit to Redlands Associates, issuing invoice no. 294 for $3 630 (cost, $2 000). 31 Received cash in full, from S. D. Cooper on credit sale of 18 May. There was no discount. Enter the transactions in a Sales journal, a Cash Receipts journal, and a General journal or Sales Returns journal, as appropriate.Open four-column general ledger accounts using Simmo Shops’ account numbers that follow. Cash 111 Sales revenue 411 Accounts receivable 112 Sales discounts 412 Supplies 116 Sales returns and allowances 413 Prepaid insurance 117 Interest revenue 419 Inventory 118 Cost of sales 511 Furniture Accum. Dep Furniture 151 152 Salary expense Electricity and gas expense 531 541 Accounts payable 211 Depreciation Expense 551 Salaries Accrued /Payable GST Clearing Capital 214 240 301 Supplies expense Insurance Expense 561 571 Open these accounts in the subsidiary ledgers: Accounts receivable ledger-Redlands Associates, P. E. Freetime and S. D. Cooper. Post daily to the Accounts Receivable ledger. On 31 May post to the general ledger. Total each column of the special journals. Show that total debits equal total credits in each special journal. Balance the total of the customer account balances in the Accounts Receivable ledger against Accounts Receivable in the General ledger.
Simmo Shops uses the perpetual inventory system and makes all credit sales on terms of 2/10, n/30. During May, Simmo Shops completed these transactions (figures are GST inclusive unless stated otherwise):
May 1 Owner began Simmo Shops by contributing $10,000 cash.
2 Issued invoice no. 290 for sale on credit to S. D. Cooper, $4 400. Simmo Shops' cost of this inventory was $2 780.
4 Sold inventory for cash, $6 820 (net cost, $3 640).
8 Collected interest revenue of $240. (Ignore GST)
9 Issued invoice no. 291 for sale on credit to Redlands Associates, $12 375 (net cost, $6 600).
12 Received $4 312 cash from S. D. Cooper in full settlement of her account receivable, net of the discount, from the sale of 2 May.
15 Sold inventory on credit to P. E. Freetime, issuing invoice no. 292 for $1 485 (net cost, $820).
17 Issued credit memo to P. E. Freetime for $1 485 for defective goods returned by Freetime. Also accounted for receipt of the inventory at net cost.
18 Issued invoice no. 293 for credit sale to S. D. Cooper, $3 652 (net cost, $1 940).
19 Received $12 127.50 from Redlands in full settlement of its account receivable from 9 May.
24 Sold supplies to an employee for cash of $160, which was Simmo Shops' cost. (ignore GST).
29 Sold goods on credit to Redlands Associates, issuing invoice no. 294 for $3 630 (cost, $2 000).
31 Received cash in full, from S. D. Cooper on credit sale of 18 May. There was no discount.
Enter the transactions in a Sales journal, a Cash Receipts journal, and a General journal or Sales Returns journal, as appropriate.Open four-column general ledger accounts using Simmo Shops’ account numbers that follow.
|
Cash |
111 |
Sales revenue |
411 |
|
|
112 |
Sales discounts |
412 |
|
Supplies |
116 |
Sales returns and allowances |
413 |
|
Prepaid insurance |
117 |
Interest revenue |
419 |
|
Inventory |
118 |
Cost of sales |
511 |
|
Furniture Accum. Dep Furniture |
151 152 |
Salary expense Electricity and gas expense |
531 541 |
|
Accounts payable |
211 |
|
551 |
|
Salaries Accrued /Payable GST Clearing Capital |
214 240 301 |
Supplies expense Insurance Expense |
561 571 |
Open these accounts in the subsidiary ledgers: Accounts receivable ledger-Redlands Associates, P. E. Freetime and S. D. Cooper. Post daily to the Accounts Receivable ledger. On 31 May post to the general ledger.
Total each column of the special journals. Show that total debits equal total credits in each special journal. Balance the total of the customer account balances in the Accounts Receivable ledger against Accounts Receivable in the General ledger.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
