Concept explainers
All journals and general ledger;
The transactions completed by Revere Courier Company during December, the first month of the fiscal year, were as follows:
Dec. 1. | Issued Check No. 610 for December rent, $4,200. |
2. | Issued Invoice No. 940 to Clifford Co., $1,740. |
3. | Received check for $4,800 from Ryan Co. in payment of account. |
5. | Purchased a vehicle on account from Platinum Motors, $37,300. |
6. | Purchased office equipment on account from Austin Computer Co., $4,500. |
6. | Issued Invoice No. 941 to Ernesto Co., $3,870. |
9. | Issued Check No. 611 for fuel expense, $600. |
10. | Received check from Sing Co. in payment of $4,040 invoice. |
10. | Issued Check No. 612 for $330 to Office To Go Inc. in payment of invoice. |
10. | Issued Invoice No. 942 to Joy Co., $1,970. |
11. | Issued Check No. 613 for $3,090 to Essential Supply Co. in payment of account. |
11. | Issued Check No. 614 for $500 to Porter Co. in payment of account. |
12. | Received check from Clifford Co. in payment of $1,740 invoice of December 2. |
13. | Issued Check No. 615 to Platinum Motors in payment of $37,300 balance of December 5. |
16. | Issued Check No. 616 for $39,800 for cash purchase of a vehicle. |
16. | Cash fees earned for December 1-16, $20,300. |
I7. | Issued Cheek No. 617 for miscellaneous administrative expense, $500. |
18. | Purchased maintenance supplies on account from Essential Supply Co., $1,750. |
19. | Purchased the following on account from McClain Co.: maintenance supplies, $1,500; office supplies, $375. |
20. | Issued Check No. 618 in payment of advertising expense, $1,780. |
20. | Used $3,200 maintenance supplies to repair delivery vehicles. |
23. | Purchased office supplies on account from Office To Go Inc., $400. |
24. | Issued Invoice No. 943 to Sinn Co., $6,100. |
24. | Issued Check No. 619 to S. Holmes as a personal withdrawal, $3,000. |
25. | Issued Invoice No. 944 to Ernesto Co., $5,530. |
25. | Received check for $4,100 from Ryan Co. in payment of balance. |
26. | Issued Check No. 620 to Austin Computer Co. in payment of $4,500 invoice of December 6. |
30. | Issued Check No. 621 for monthly salaries as follows: driver salaries, $16,900; office salaries, $7,100. |
Dec. 31. | Cash fees earned for December 17-31, S 18,900. |
31. | Issued Check No. 622 in payment for office supplies, $340. |
Instructions
1. Enter the following account balances in the general ledger as of December 1:
11 | Cash | $161,680 |
12 | 12,940 | |
14 | Maintenance Supplies | 10,850 |
15 | Office Supplies | 4,900 |
16 | Office Equipment | 28,500 |
17 | Accum. Depr.—Office Equip. | 6,900 |
18 | Vehicles | 95,900 |
19 | Accum. Depr.—Vehicles | 14,700 |
21 | Accounts Payable | 3,920 |
31 | S. Holmes, Capital | 289,250 |
32 | S. Holmes, Drawing | — |
41 | Fees Earned | — |
51 | Driver Salaries Expense | — |
52 | Maintenance Supplies Exp. | — |
53 | Fuel Expense | — |
61 | Office Salaries Expense | — |
62 | Rent Expense | — |
63 | Advertising Expense | — |
64 | Miscellaneous Administrative Expense | — |
2. Journalize the transactions for December, using the following journals similar to those illustrated in this chapter cash receipts journal (p. 30, purchases journal (p. 37, with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), single-column revenue journal (p. 35). cash payments journal (p. 3i). and two-column general journal (p. 1). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
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.
5. Prepare a trial balance.
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Accounting
- Journal Entries for Accounts and Notes ReceivableLancaster, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $15,000, 60 day, eight percent note on account from R. Elliot. Aug.7 Received payment from R. Elliot on her note (principal plus interest). Sep.1 Received a $18,000, 120 day, nine percent note from B. Shore Company on account. Dec.16 Received a $14,400, 45 day, ten percent note from C. Judd on account. Dec.30 B. Shore Company failed to pay its note. Dec.31 Wrote off B. Shore’s account as uncollectible. Lancaster, Inc., uses the allowance method of providing for credit losses. Dec.31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off during this first year have created a debit balance in the Allowance for Doubtful Accounts of $22,600. An analysis of aged receivables indicates that the desired balance of the allowance account should be $19,500. Dec.31 Made the…arrow_forwardJournal Entries for Accounts and Notes ReceivablePittsburgh, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $33,000, 60 day, eight percent note on account from J. Albert. Aug.7 Received payment from J. Albert on her note (principal plus interest). Sep.1 Received an $39,000, 120 day, nine percent note from R.T. Matthews Company on account. Dec.16 Received a $31,800, 45 day, ten percent note from D. Leroy on account. Dec.30 R.T. Matthews Company failed to pay its note. Dec.31 Wrote off R.T. Matthews account as uncollectible. Pittsburgh, Inc. uses the allowance method of providing for credit losses. Dec.31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off during this first year have created a debit balance in the Allowance for Doubtful Accounts of $48,200. An analysis of aged receivables indicates that the desired balance of the allowance account should be $43,000.…arrow_forwardJournal Entries for Accounts and Notes ReceivablePittsburgh, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $34,000, 60 day, eight percent note on account from J. Albert. Aug.7 Received payment from J. Albert on her note (principal plus interest). Sep.1 Received an $40,000, 120 day, nine percent note from R.T. Matthews Company on account. Dec.16 Received a $32,800, 45 day, ten percent note from D. Leroy on account. Dec.30 R.T. Matthews Company failed to pay its note. Dec.31 Wrote off R.T. Matthews account as uncollectible. Pittsburgh, Inc. uses the allowance method of providing for credit losses. Dec.31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off during this first year have created a debit balance in the Allowance for Doubtful Accounts of $49,200. An analysis of aged receivables indicates that the desired balance of the allowance account should be $44,000.…arrow_forward
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Prepare a trial balance.arrow_forwardCatherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200. In the cash disbursements journal, the Accounts Payable column has total debits of $6,800 for November. The Accounts Payable credit column in the purchases journal reveals a total of $10,500 for the current month. Based on this information, what is the ending balance in the Accounts Payable account in the general ledger?arrow_forwardThe 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. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought 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). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. 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