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Comprehensive Problem 2:
Accounting Cycle with Subsidiary Ledgers, Part 1
During the second half of December 20-1, TJ’s Specialty Shop engaged in the following transactions:
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Dec. 16 Received payment from Lucy Greene on account, $1,960.
16 Sold merchandise on account to Kim Fields, $160, plus sales tax of $8. Sale No. 640.
17 Returned merchandise to Evans Essentials for credit, $150.
18 Issued Check No. 813 to Evans Essentials in payment of December 1 balance of $1,250, less the credit received on December 17.
19 Sold merchandise on account to Lucy Greene, $620, plus tax of $31. Sale No. 641.
22 Received payment from John Dempsey on account, $1,560.
23 Issued Check No. 814 for the purchase of supplies, $120. (Debit Supplies)
24 Purchased merchandise on account from West Wholesalers, $1,200.
Invoice No. 465, dated December 24, terms n/30.
26 Purchased merchandise on account from Nathen Co., $800.
Invoice No. 817, dated December 26, terms 2/10, n/30.
27 Issued Check No. 815 to KC Power & Light (Utilities Expense) for the month of December, $630.
27 Sold merchandise on account to John Dempsey, $2,020, plus tax of $101. Sale No. 642.
29 Received payment from Martha Boyle on account, $2,473.
29 Issued Check No. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $1,100.
30 Issued Check No. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $200.
As of December 16, TJ’s account balances were as follows:
TJ’s also had the following subsidiary ledger balances as of December 16:
4. Prepare schedules of
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Chapter 15 Solutions
College Accounting, Chapters 1-27
- During the current year, a business sells equipment for $440,000. The equipment cost $290,000 when purchased and placed in service two years ago and $85,000 of depreciation deductions were allowed. The results of the sale are ____. OPTIONS: A) ordinary income of $120,000. B) Sec. 1231 gain of $120,000. C) ordinary income of $90,000 and LTCL of $30,000. D) ordinary income of $85,000 and Sec. 1231 gain of $150,000.Answer this questionarrow_forwardFalcon Auto Repair Shop uses a job order cost... Please answer the general accounting questionarrow_forward?!arrow_forward
- During the current year.arrow_forwardDuring the current year, a business sells equipment for $440,000. The equipment cost $290,000 when purchased and placed in service two years ago and $85,000 of depreciation deductions were allowed. The results of the sale are ____. OPTIONS: A) ordinary income of $120,000. B) Sec. 1231 gain of $120,000. C) ordinary income of $90,000 and LTCL of $30,000. D) ordinary income of $85,000 and Sec. 1231 gain of $150,000.arrow_forwardStep by step answerarrow_forward
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