Concept explainers
The following transactions were completed by Yang Restaurant Equipment during January, 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. Yang Restaurant Equipment does not track cash sales by customer.
Jan. 2 Issued Ck. No. 6981 to Tri-County Management Company for monthly rent, $850.
2 L. Yang, the owner, invested an additional $4,500 in the business.
4 Bought merchandise on account from Valentine and Company, invoice no. A694, $2,830; terms 2/10, n/30; dated January 2.
4 Received check from Velez Appliance for $980 in payment of invoice for $1,000 less discount.
4 Sold merchandise on account to L. Parrish, invoice no. 6483, $755.
6 Received check from Peck, Inc., $637, in payment of $650 invoice less discount.
7 Issued Ck. No. 6982, $588, to Frost and Son, in payment of invoice no. C127 for $600 less discount.
7 Bought supplies on account from Dudley Office Supply, invoice no. 190B, $93.54; terms net 30 days.
7 Sold merchandise on account to Ewing and Charles, invoice no. 6484, $1,115.
9 Issued credit memo no. 43 to L. Parrish, $47, for merchandise returned.
11 Cash sales for January 1 through January 10, $4,454.87.
11 Issued Ck. No. 6983, $2,773.40, to Valentine and Company, in payment of $2,830 invoice less discount.
14 Sold merchandise on account to Velez Appliance, invoice no. 6485, $2,100.
14 Received check from L. Parrish, $693.84, in payment of $755 invoice, less return of $47 and less discount.
Jan. 19 Bought merchandise on account from Crawford Products, invoice no. 7281, $3,700; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to invoice, $142 (total $3,842).
21 Issued Ck. No. 6984, $245, to A. Bautista for miscellaneous expenses not recorded previously.
21 Cash sales for January 11 through January 20, $3,689.
23 Received credit memo no. 163, $87, from Crawford Products for merchandise returned.
29 Sold merchandise on account to Bradford Supply, invoice no. 6486, $1,697.20.
29 Issued Ck. No. 6985 to Western Freight, $64, for freight charges on merchandise purchased January 4.
31 Cash sales for January 21 through January 31, $3,862.
31 Issued Ck. No. 6986, $65, to M. Pineda for miscellaneous expenses not recorded previously.
31 Recorded payroll entry from the payroll register: total salaries, $5,899.95; employees’ federal income tax withheld, $795; FICA Social Security tax withheld, $365.80, FICA Medicare tax withheld, $85.50.
31 Recorded the payroll taxes: FICA Social Security tax, $365.80; FICA Medicare tax, $85.50; state
31 Issued Ck. No. 6987, $4,653.65, for salaries for the month.
31 L. Yang, the owner, withdrew $1,000 for personal use, Ck. No. 6988.
Required
- 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used.
The chart of accounts is as follows:
- 2.
Post daily all entries involving customer accounts to theaccounts receivable ledger. - 3. Post daily all entries involving creditor accounts to the accounts payable ledger.
- 4. Post daily the general
journal entries to the general ledger. Write the owner’s name in the Capital and Drawing accounts. - 5. Prepare a
trial balance . - 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?
1.
Journalize the transaction in the general journal using periodic inventory method.
Explanation of Solution
General journal is a record of financial transaction. The transactions are recorded in the journal prior to posting them to the accounts in the general ledger.
Periodic inventory system: The method or system of recording the transactions related to inventory occasionally or periodically are referred to as periodic inventory system.
Journalize the transaction in general journal:
General journal | Page:1 | ||||
Date | Description | Post ref. | Debit ($) | Credit($) | |
20___ | |||||
Jan. | 2 | Rent expense | 627 | 850 | |
Cash | 111 | 850 | |||
(Record rent paid by cash, Ck.no.6981) | |||||
2 | Cash | 111 | 4,500 | ||
Mr. L capital | 311 | 4,500 | |||
(Record additional capital invested | |||||
by owner) | |||||
4 | Purchases | 511 | 2,830 | ||
Accounts payable, V company | 212 | 2,830 | |||
(Record purchase of merchandise from | |||||
V company, invoice no: A694) | |||||
4 | Cash | 111 | 980 | ||
Sales discounts | 413 | 20 | |||
Accounts receivable, V company | 113 | 1,000 | |||
(Record received check from V company | |||||
for $980 in payment of invoice) | |||||
4 | Accounts receivable, L company | 113 | 755 | ||
Sales | 411 | 755 | |||
(Record merchandise sold on account | |||||
to L company) | |||||
6 | Cash | 111 | 637 | ||
Sales discount | 413 | 13 | |||
Accounts receivable, P company | 113 | 650 | |||
(Record received check from P company | |||||
for $637 in payment of invoice) | |||||
7 | Accounts payable, F and S | 600 | |||
Purchase discounts | 12 | ||||
Cash | 588 | ||||
(Record issued check to F and S in | |||||
payment of invoice no: C127) | |||||
7 | Supplies | 115 | 93.54 | ||
Accounts payable, D company | 212 | 93.54 | |||
(Record purchase of supplies on account | |||||
from D company) | |||||
7 | Accounts receivable, E and C | 113 | 1,115 | ||
Sales | 411 | 1,115 | |||
(Record merchandise sold to E and C) |
Table (1)
General journal | Page:2 | ||||
Date | Description | Post ref. | Debit ($) | Credit($) | |
20___ | 9 | Sales returns and allowances | 111 | 47 | |
Jan. | Accounts receivable | 311 | 47 | ||
(Record issued credit memo to E and C for | |||||
return of merchandise) | |||||
11 | Cash | 111 | 4,454.87 | ||
Sales | 411 | 4,454.87 | |||
(record cash sales) | |||||
11 | Accounts payable, V company | 212 | 2,830 | ||
Cash | 111 | 2,773.40 | |||
Purchase discounts | 513 | 56.6 | |||
(Record issued check to V company for | |||||
$2,773.40 in payment of invoice) | |||||
14 | Accounts receivable, V company | 113 | 2,100 | ||
Sales | 411 | 2,100 | |||
(Record merchandise sold to V company) | |||||
14 | Cash | 11 | 693.84 | ||
Sales discount | 413 | 14.16 | |||
Accounts receivable, L company | 113 | 708 | |||
(Record received check from L company | |||||
for $980 in payment of invoice) | |||||
19 | Purchases | 511 | 3,700 | ||
Freight in | 514 | 142 | |||
Accounts payable, C company | 212 | 3,842 | |||
(Record purchase of merchandise on | |||||
account from C company) | |||||
21 | Miscellaneous expense | 631 | 245 | ||
Cash | 111 | 245 | |||
(Record issued check to A.B company for | |||||
$245 in payment of invoice) | |||||
21 | Cash | 111 | 3,689 | ||
Sales | 411 | 3,689 | |||
(Record cash sales) | |||||
23 | Accounts payable | 212 | 87 | ||
Purchase returns and allowances | 512 | 87 | |||
(Record received credit memo from | |||||
C company) | |||||
Table (2)
General journal | Page:3 | ||||
Date | Description | Post ref. | Debit ($) | Credit($) | |
20___ | |||||
Jan. | 29 | Accounts receivable, B company | 113 | 1,697.2 | |
Sales | 411 | 1,697 | |||
(Record sale of merchandise to B company) | |||||
29 | Freight in | 514 | 64 | ||
Cash | 111 | 64 | |||
(Record freight in charges) | |||||
31 | Cash | 111 | 2,830 | ||
Sales | 411 | 2,773.40 | |||
(Record cash sales) | |||||
31 | Miscellaneous expense | 631 | 65 | ||
Cash | 111 | 65.00 | |||
(Record payment of miscellaneous | |||||
expense to M company) | |||||
31 | Salary expense | 621 | 5,899.95 | ||
Employees Federal Income Tax payable | 216 | 795 | |||
FICA Social Security Tax payable | 217 | 365.8 | |||
FICA Medicare Tax payable | 218 | 85.5 | |||
Salaries payable | 215 | 4,653.65 | |||
(Record salaries paid) | |||||
31 | Payroll tax expense | 511 | 3,700 | ||
FICA Social Security Tax payable | 514 | 142 | |||
FICA Medicare Tax payable | 212 | 3,842 | |||
State Unemployment Tax payable | |||||
Federal Unemployment Tax payable | |||||
(Record payment of payroll tax expense) | |||||
31 | Salaries payable | 215 | 4,653.65 | ||
Cash | 111 | 4,653.65 | |||
(Record payment of salaries) | |||||
31 | Mr. L , drawing | 312 | 1,000 | ||
Cash | 111 | 1,000 | |||
(Record Mr. L withdraw cash for | |||||
personal use) |
Table (3)
2.
Record the entries from customer accounts to the accounts receivable ledger.
Explanation of Solution
Account receivable: The amount of money to be received by a company for the sale of goods and services to the customers is referred to as account receivable.
The entries from customer accounts to the accounts receivable ledger:
Accounts receivable ledger | ||||||
Name: B company | ||||||
Address: | ||||||
Date | Items | Post ref. | Debit ($) | Credit ($) | Balance ($) | |
20___ | ||||||
Jan | 29 | 3 | 1,697.2 | 1,697 | ||
Name: E and C company | ||||||
Address: | ||||||
Date | Items | Post ref. | Debit ($) | Credit ($) | Balance ($) | |
20___ | ||||||
Jan | 7 | 1 | 1,115 | 1,115 | ||
Name: L company | ||||||
Address: | ||||||
Date | Items | Post ref. | Debit ($) | Credit ($) | Balance ($) | |
20___ | ||||||
Jan | 4 | 1 | 755 | 755 | ||
9 | 2 | 47 | 708 | |||
14 | 2 | 708 | 0 | |||
Name: P company | ||||||
Address: | ||||||
Date | Items | Post ref. | Debit ($) | Credit ($) | Balance ($) | |
20___ | ||||||
Jan | 1 | Balance | 650 | |||
6 | 1 | 650 | 0 | |||
Name: V company | ||||||
Address: | ||||||
Date | Items | Post ref. | Debit ($) | Credit ($) | Balance ($) | |
20___ | ||||||
Jan | 1 | Balance | 1,000 | |||
4 | 1 | 1,000 | 0 | |||
14 | 2 | 2,100 | 2,100 |
Table (4)
3.
Record the entries from creditor accounts to the accounts payable ledger.
Explanation of Solution
Account payable: The amount of money to be paid by a company for the purchase of goods and services from the seller is referred to as account payable.
The entries from creditor accounts to the accounts payable ledger:
Accounts payable ledger | ||||||
Name: C company | ||||||
Address: | ||||||
Date | Items | Post ref. | Debit ($) | Credit ($) | Balance ($) | |
20___ | ||||||
Jan | 19 | 2 | 3,842 | 5,001 | ||
23 | 2 | 87 | 3,755 | |||
Name: D company | ||||||
Address: | ||||||
Date | Items | Post ref. | Debit ($) | Credit ($) | Balance ($) | |
20___ | ||||||
Jan | 7 | 1 | 93.5 | 94 | ||
Name: F and sons | ||||||
Address: | ||||||
Date | Items | Post ref. | Debit ($) | Credit ($) | Balance ($) | |
20___ | ||||||
Jan | 1 | Balance | 600 | |||
7 | 1 | 600 | 0 | |||
Name: V company | ||||||
Address: | ||||||
Date | Items | Post ref. | Debit ($) | Credit ($) | Balance ($) | |
20___ | ||||||
Jan | 4 | 1 | 2,830 | 2,830 | ||
11 | 2 | 2,830 | 0 |
Table (5)
4.
Post the prepared journals and other accounts column to general ledger.
Explanation of Solution
Posting of transaction: The process of transferring the journalized transactions into the accounts of the ledger is known as posting of transaction.
General ledger: General ledger is a record of all accounts of assets, liabilities, and stockholders’ equity, necessary to prepare financial statements.
Posting the transaction from journal to general ledger:
General ledger | |||||||||||||||||
Account: Cash | Account No:111 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 1 | Balance | 8,740 | ||||||||||||||
2 | 1 | 850 | 7,890.00 | ||||||||||||||
2 | 1 | 4,500 | 12,390.00 | ||||||||||||||
4 | 1 | 980 | 13,370 | ||||||||||||||
6 | 1 | 637 | 14,007 | ||||||||||||||
7 | 1 | 588 | 13,419 | ||||||||||||||
11 | 2 | 4,454.87 | 17,873.87 | ||||||||||||||
11 | 2 | 2,773.40 | 15,100.47 | ||||||||||||||
14 | 2 | 693.84 | 15,794.31 | ||||||||||||||
21 | 2 | 245 | 15,549.31 | ||||||||||||||
21 | 2 | 3,689 | 19,238.31 | ||||||||||||||
29 | 3 | 64 | 19,174.31 | ||||||||||||||
31 | 3 | 3,862 | 23,036.31 | ||||||||||||||
31 | 3 | 65 | 22,971.31 | ||||||||||||||
31 | 3 | 4,653.65 | 18,317.66 | ||||||||||||||
31 | 3 | 1,000 | 17,317.66 | ||||||||||||||
Account: Accounts receivable | Account No:113 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 1 | Balance | 1650 | ||||||||||||||
4 | 1 | 1000 | 650 | ||||||||||||||
4 | 1 | 755 | 1,405 | ||||||||||||||
6 | 1 | 650 | 755 | ||||||||||||||
7 | 1 | 1,115 | 1,870 | ||||||||||||||
9 | 2 | 47 | 1,823 | ||||||||||||||
14 | 2 | 2,100 | 3,923 | ||||||||||||||
14 | 2 | 708 | 3,215 | ||||||||||||||
29 | 3 | 1,697.20 | 4,912.20 | ||||||||||||||
Account: Merchandise inventory | Account No:114 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 1 | Balance | 20,584 | ||||||||||||||
Account: Suppliers | Account No:115 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 1 | Balance | 592 | ||||||||||||||
7 | 1 | 93.54 | 685.54 | ||||||||||||||
Account: Prepaid insurance | Account No:116 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 1 | Balance | 390 | ||||||||||||||
Account: Equipment | Account No:121 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 1 | Balance | 3,644 | ||||||||||||||
Account: Accounts payable | Account No:212 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 1 | Balance | 600 | ||||||||||||||
4 | 1 | 2,830 | 3,430 | ||||||||||||||
7 | 1 | 600 | 2,830 | ||||||||||||||
7 | 1 | 93.54 | 2,923.54 | ||||||||||||||
11 | 2 | 2,830 | 93.54 | ||||||||||||||
19 | 2 | 3,842 | 3,935.54 | ||||||||||||||
23 | 2 | 87 | 3,848.54 | ||||||||||||||
Account: Salaries payable | Account No:215 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 31 | 3 | 4,653.65 | 4,653.65 | |||||||||||||
31 | 3 | 4,653.65 | 0 | ||||||||||||||
Account: Employees federal income tax payable | Account No:216 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 31 | 3 | 795 | 795 | |||||||||||||
Account: FICA social security tax payable | Account No:217 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 31 | 3 | 365.8 | 365.8 | |||||||||||||
31 | 3 | 365.8 | 731.6 | ||||||||||||||
Account: FICA Medicare payable | Account No:218 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 31 | 3 | 85.5 | 85.5 | |||||||||||||
31 | 3 | 85.5 | 171 | ||||||||||||||
Account: State unemployment tax payable | Account No:218 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 31 | 3 | 318.6 | 318.6 | |||||||||||||
Account: Federal unemployment tax payable | Account No:219 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 31 | 3 | 35.4 | 35.4 | |||||||||||||
Account: Mr. Y capital | Account No:311 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 1 | Balance | 35,000 | ||||||||||||||
2 | 1 | 4,500 | 39,500 | ||||||||||||||
Account: Mr. Y Drawing | Account No:312 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 31 | 3 | 1,000 | 1,000 | |||||||||||||
Account: Sales | Account No:411 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 4 | 1 | 755 | 755 | |||||||||||||
7 | 1 | 1,115 | 1,870 | ||||||||||||||
11 | 2 | 4,454.87 | 6,324.87 | ||||||||||||||
14 | 2 | 2,100 | 8,424.87 | ||||||||||||||
21 | 2 | 3,689 | 12,113.87 | ||||||||||||||
29 | 3 | 1,697.20 | 13,811.07 | ||||||||||||||
31 | 3 | 3,862 | 17,673.07 | ||||||||||||||
Account: Sales return and allowance | Account No:412 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 9 | 2 | 47 | 47 | |||||||||||||
Account: Sales discounts | Account No:413 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 4 | 1 | 20 | 20 | |||||||||||||
6 | 1 | 13 | 33 | ||||||||||||||
14 | 2 | 14.16 | 47.16 | ||||||||||||||
Account: Purchases | Account No:511 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 4 | 1 | 2,830 | 2,830 | |||||||||||||
19 | 2 | 3,700 | 6,530 | ||||||||||||||
Account: Purchases returns and allowances | Account No:512 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 23 | 2 | 87 | 87 | |||||||||||||
Account: Purchase discounts | Account No:513 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 7 | 1 | 12 | 12.0 | |||||||||||||
11 | 2 | 56.6 | 68.6 | ||||||||||||||
Account: Freight in | Account No:514 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 19 | 2 | 142 | 142 | |||||||||||||
29 | 3 | 64 | 206 | ||||||||||||||
Account: Salary expense | Account No:621 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 31 | 3 | 5,899.95 | 5,899.95 | |||||||||||||
Account: Payroll tax expense | Account No:622 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 31 | 3 | 805.3 | 805.3 | |||||||||||||
Account: Rent expense | Account No:627 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 2 | 1 | 850 | 850 | |||||||||||||
Account: Miscellaneous expense | Account No:631 | ||||||||||||||||
Date | Item | Post ref | Debit | Credit | Balance | ||||||||||||
20___ | ($) | ($) | Debit ($) | Credit($) | |||||||||||||
Jan | 21 | 2 | 245 | 245 | |||||||||||||
31 | 3 | 65 | 310 |
Table (6)
5.
Prepare a trail balance for Y Company.
Explanation of Solution
Trial balance: Trial balance is a summary of all the ledger accounts balances presented in a tabular form with two column, debit and credit. It checks the mathematical accuracy of the ledger postings and helps preparing the final accounts.
Preparing the trial balance for Y Company:
Y company | ||
Trail balance | ||
January 31, 20__ | ||
Account name | Debit ($) | Credit($) |
Cash | 17,317.7 | |
Accounts receivable | 4,912.2 | |
Merchandise inventory | 20,584 | |
Supplies | 685.5 | |
Prepaid insurance | 390 | |
Equipment | 3,644 | |
Accounts payable | 3,848.5 | |
Employee's federal income tax payable | 795 | |
FICA social security tax payable | 731.6 | |
FICA Medicare tax payable | 171 | |
State unemployment tax payable | 318 | |
Federal unemployment tax payable | 35.4 | |
Mr. L capital | 39,500 | |
Mr. L drawings | 1,000 | |
Sales | 17,673 | |
Sales returns and allowances | 47 | |
Sales discounts | 47.16 | |
Purchases | 6,530 | |
Purchases returns and allowances | 87 | |
Purchases discounts | 68.6 | |
Freight in | 206 | |
Salary expense | 5,899.9 | |
Payroll tax expense | 805.3 | |
Rent expense | 850 | |
Miscellaneous expense | 310 | |
$63,228.81 | $63,288.81 |
Table (7)
6.
Prepare a schedule for accounts receivable and accounts payable.
Explanation of Solution
Schedule for the accounts receivable:
H company | |
Schedule of accounts receivable | |
January 31, 20__ | |
Particulars | Amount($) |
B company | 1,697.2 |
E and C company | 1,115 |
V company | 2,100 |
Total accounts receivable | $4,912.2 |
Table (8)
Schedule for the accounts payable:
H company | |
Schedule of accounts payable | |
January 31, 20__ | |
Particulars | Amount($) |
C company | 3,755 |
D company | 93.5 |
Total accounts payable | $3,848.5 |
Table (9)
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Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
- 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. 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 in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 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. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?arrow_forwardThe following transactions were completed by Yang Restaurant Equipment during January, 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. Yang Restaurant Equipment does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to Tri-County Management Company for monthly rent, 850. 2L. Yang, the owner, invested an additional 4,500 in the business. 4Bought merchandise on account from Valentine and Company, invoice no. A694, 2,830; terms 2/10, n/30; dated January 2. 4Received check from Velez Appliance for 980 in payment of invoice for 1,000 less discount. 4Sold merchandise on account to L. Parrish, invoice no. 6483, 755. 6Received check from Peck, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Frost and Son, in payment of invoice no. C127 for 600 less discount. 7Bought supplies on account from Dudley Office Supply, invoice no. 190B, 93.54; terms net 30 days. 7Sold merchandise on account to Ewing and Charles, invoice no. 6484, 1,115. 9Issued credit memo no. 43 to L. Parrish, 47, for merchandise returned. 11Cash sales for January 1 through January 10, 4,454.87. 11Issued Ck. No. 6983, 2,773.40, to Valentine and Company, in payment of 2,830 invoice less discount. 14Sold merchandise on account to Velez Appliance, invoice no. 6485, 2,100. 14Received check from L. Parrish, 693.84, in payment of 755 invoice, less return of 47 and less discount. Jan. 19Bought merchandise on account from Crawford Products, invoice no. 7281, 3,700; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to invoice, 142 (total 3,842). 21Issued Ck. No. 6984, 245, to A. Bautista for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 3,689. 23Received credit memo no. 163, 87, from Crawford Products for merchandise returned. 29Sold merchandise on account to Bradford Supply, invoice no. 6486, 1,697.20. 29Issued Ck. No. 6985 to Western Freight, 64, for freight charges on merchandise purchased January 4. 31Cash sales for January 21 through January 31, 3,862. 31Issued Ck. No. 6986, 65, to M. Pineda for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 5,899.95; employees federal income tax withheld, 795; FICA Social Security tax withheld, 365.80, FICA Medicare tax withheld, 85.50. 31Recorded the payroll taxes: FICA Social Security tax, 365.80; FICA Medicare tax, 85.50; state unemployment tax, 318.60; federal unemployment tax, 35.40. 31Issued Ck. No. 6987, 4,653.65, for salaries for the month. 31L. Yang, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 91; a purchases journal, page 74; a cash receipts journal, page 56; a cash payments journal, page 63; and a general journal, page 119. 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. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?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. If you are using the form-based approach with QuickBooks or general ledger, select Cash Sales as the customer for all cash sales transactions. 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. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals on scratch paper. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?arrow_forward
- The following transactions were completed by Yang Restaurant Equipment during January, 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. Yang Restaurant Equipment does not track cash sales by customer. If you are using the form-based approach with QuickBooks or general ledger, select Cash Sales as the customer for all cash sales transactions. Required 1. Record the transactions for January using a general journal, page 1. Assume the periodic inventory method is used. If using QuickBooks, record transactions using either the journal entry method or the forms-based approach, as directed by your instructor. The chart of accounts is as follows: 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. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable (A/R Aging Detail report in QuickBooks) and a schedule of accounts payable (A/P Aging Detail report in QuickBooks). Do the totals equal the balances of the related controlling accounts? If using QuickBooks or general ledger, ignore Steps 2, 3, and 4.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. If you are using the form-based approach with QuickBooks or general ledger, select Cash Sales as the customer for all cash sales transactions. Required 1. Record the transactions for January using a general journal, page 1. Assume the periodic inventory method is used. If using QuickBooks, record transactions using either the journal entry method or the forms-based approach as directed by your instructor. The chart of accounts is as follows: 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. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. If using QuickBooks or general ledger, ignore Steps 2, 3, and 4. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable (A/R Aging Detail report in QuickBooks) and a schedule of accounts payable (A/P Summary Detail report in QuickBooks). Do the totals equal the balances of the related controlling accounts?arrow_forwardThe following transactions were completed by Yang Restaurant Equipment during January, 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. Yang Restaurant Equipment does not track cash sales by customer. If you are using the form-based approach with QuickBooks or general ledger, select Cash Sales as the customer for all cash sales transactions. Required 1. Record the transactions for January using a sales journal, page 91; a purchases journal, page 74; a cash receipts journal, page 56; a cash payments journal, page 63; and a general journal, page 119. 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. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals on scratch paper. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?arrow_forward
- On March 24, MS Companys Accounts Receivable consisted of the following customer balances: S. Burton 310 A. Tangier 240 J. Holmes 504 F. Fullman 110 P. Molty 90 During the following week, MS made a sale of 104 to Molty and collected cash on account of 207 from Burton and 360 from Holmes. Prepare a schedule of accounts receivable for MS at March 31, 20--.arrow_forwardIvanhoe Company had cash sales of $77,328 (including taxes) for the month of June. Sales are subject to 8.00% sales tax. Prepare the entry to record the sales. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Creditarrow_forwardOswego Clay Pipe Company provides services of $46,000 to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. What would Oswego record on April 23, assuming the customer made the correct payment on that date? A. Cash Sales Revenue Accounts Receivable B. Cash Sales Discounts Accounts Receivable Interest Revenue C. Cash Sales Discounts Accounts Receivable D. Cash Accounts Receivable Sales Revenue Select one: O A. Option A OB. Option B O C. Option C OD. Option D Clear my choice 45,540 460 46,000 460 45,540 460 46,000 46,000 46,000 460 46,000 45,540 460arrow_forward
- Presented below is information from Novak Computers Incorporated. July 1 10 17 30 Sold $25,600 of computers to Robertson Company with terms 3/15, n/60. Novak uses the gross method to record cash discounts. Novak estimates allowances of $1,664 will be honored on these sales. (Novak records these estimates at point of sale.) Prepare the necessary journal entries for Novak Computers. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Novak received payment from Robertson for the full amount owed from the July transactions. Sold $256,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. The Clark Store paid Novak for its purchase of July 17. Date July 1 V July 17 July 10 V July 30 V Account Titles and Explanation…arrow_forwardOswego Clay Pipe Company sold $46,000 of pipe to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. Oswego uses the gross method of accounting for sales discounts. What entry would Oswego make on June 10, assuming the customer made the correct payment on that date? Multiple Choice Cash Accounts receivable Discounts receivable Cash Accounts receivable Sales discounts forfeited Cash Accounts receivable Cash Accounts receivable Sales discounts forfeitedarrow_forwardRecord these transactions in general journal ledger: Dec 1: Purchased equipment costing $15,608 by taking out a 4-month installment note with First Bank. Dec 4: Accepted a sales return from Eastern for an item having an original gross sales price of $6,000. The original sale to Eastern occurred in November with terms 2/15, n/30. Dec 5: Specifically wrote off the receivable balance owed by Baker as uncollectible. Dec 7: Returned defective inventory with a gross cost of $4,000 back to Hunt Corp. Dec 14: Wilson returned an item originally purchased on Dec 12 with a gross sales price of $7,000. Dec 14: Returned inventory with a gross cost of $2,000 back to Nelson Industries. Dec 18: Bought office supplies on account for $9,000 from Staples Inc. (open a new Accounts Payable in the subsidiary ledger--Vendor # 210-30). Invoice # is OM1218. Staples Inc.’s terms are n/30 Dec 19: Received the December utilities bill for the amount of $15,000. The bill will be paid in January of next year.…arrow_forward
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781305084087Author:Cathy J. ScottPublisher:Cengage LearningCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,