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Comprehensive Problem 2:
Accounting Cycle with Subsidiary Ledgers, Part 2
During the month of January 20-2, TJ’s Specialty Shop engaged in the following transactions:
Jan. 1 Sold merchandise on account to Anne Clark, $3,000, plus tax of $150. Sale No. 643.
2 Issued Check No. 818 to Nathen Co. in payment of January 1 balance of $800, less 2% discount.
Jan. 3 Purchased merchandise on account from West Wholesalers, $1,500. Invoice No. 678, dated January 3, terms 2/15, n/30.
4 Purchased merchandise on account from Owen Enterprises, $2,000. Invoice No. 767, dated January 4, terms 2/10, n/30.
4 Issued Check No. 819 in payment of phone expense for the month of January, $180.
8 Sold merchandise for cash, $3,600, plus tax of $180.
9 Received payment from Lucy Greene in full settlement of account, $1,491.
10 Issued Check No. 820 to West Wholesalers in payment of January 1 balance of $1,200.
12 Sold merchandise on account to Martha Boyle, $1,000, plus tax of $50. Sale No. 644.
12 Received payment from Anne Clark on account, $2,100.
12 Issued Check No. 821 in payment of wages (Wages Expense) for the two-week period ending January 11, $1,100.
13 Issued Check No. 822 to Owen Enterprises in payment of January 4 purchase. Invoice No. 767, less 2% discount.
13 Martha Boyle returned merchandise for a credit, $800, plus sales tax of $40.
17 Returned merchandise to Evans Essentials for credit, $300.
22 Received payment from John Dempsey on account, $2,121.
26 Issued Check No. 823 in payment of wages (Wages Expense) for the two-week period ending January 25, $1,100.
27 Issued Check No. 824 to KC Power & Light (Utilities Expense) for the month of January, $630.
27 Sold merchandise on account to John Dempsey, $2,000, plus tax of $100. Sale No. 645.
Late in January, TJ’s agreed to sell the business to a competitor. To agree on a selling price, financial statements are needed as of January 31 and for the month of January 20-2. To prepare these financial statements, TJ’s must perform the same procedures it normally does at year-end.
At the end of January, the following adjustments (a)–(j) need to be made:
(a, b) Merchandise inventory as of January 31, $19,000.
(c, d, e) Jones estimates that customers will be granted $500 in refunds of this month’s sales in subsequent months, and the merchandise expected to be returned will have a cost of $360.
(f) Unused supplies on hand, $115.
(g) Unexpired insurance on January 31, $968.
(h) Depreciation expense on the building for the month, $67.
(i) Depreciation expense on the store equipment for the month, $38.
(j) Wages earned but not paid as of January 31, $330.
2. Enter transactions for the month of January in the general journal. Post immediately to the
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Chapter 15 Solutions
College Accounting, Chapters 1-27
- SALES TRANSACTIONS J. K. Bijan owns a retail business and made the following sales on account during the month of August 20--. There is a 6% sales tax on all sales. REQUIRED 1. Record the transactions starting on page 15 of a general journal. 2. Post from the journal to the general ledger and accounts receivable ledger accounts. Use account numbers as shown in the chapter.arrow_forwardSALES TRANSACTIONS T. M. Maxwell owns a retail business and made the following sales on account during the month of July 20--. There is a 5% sales tax on all sales. REQUIRED 1. Record the transactions starting on page 15 of a general journal. 2. Post from the journal to the general ledger and accounts receivable ledger accounts. Use account numbers as shown in the chapter.arrow_forwardOn 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_forward
- C. R. McIntyre Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year: Required 1. Journalize the transactions for May in the cash receipts journal and the sales journal. Assume the periodic inventory method is used. 2. Total and rule the journals. 3. Prove the equality of the debit and credit totals.arrow_forwardThe following transactions were completed by Nelsons Hardware, a retailer, during September. Terms on sales on account are 1/10, n/30, FOB shipping point. Sept. 4Received cash from M. Alex in payment of August 25 invoice of 275, less cash discount. 7Issued Ck. No. 8175, 915.75, to Top Tools, Inc., for invoice. no. 2256, recorded previously for 925, less cash discount of 9.25. 10Sold merchandise in the amount of 175 on a credit card. Sales tax on this sale is 8%. The credit card fee the bank deducted for this transaction is 5. 11Issued Ck. No. 8176, 653.40, to Snap Tools, Inc. for invoice no. 726, recorded previously on account for 660. A trade discount of 15% was applied at the time of purchase, and Snap Tools, Inc.s credit terms are 1/10, n/45. 15Received 95 cash in payment of August 20 invoice from N. Johnson. No cash discount applied. 19Received 1,165 cash in payment of a 1,100 note receivable and interest of 65. 22Voided Ck. No. 8177 due to error. 26Received and paid telephone bill, 62; Ck. No. 8178, payable to Southern Telephone Company. 30Paid wages recorded previously for the month, 3,266, Ck. No. 8179. Required 1. Journalize the transactions for September in the cash receipts journal, the general journal (for the transaction on Sept. 10th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.arrow_forwardHaresharrow_forward
- Journalizing Sales, Sales Returns and Allowances, and Cash Receipts Prepare journal entries for the following transactions. Aug. 4 Sold merchandise on account to S. Miller for $390 plus sales tax of 4%, with 2/10, n/30 cash discount terms. 6 Sold merchandise on account to K. Krtek for $150 plus sales tax of 4%. 10 S. Miller returned merchandise purchased on August 4 for $40 plus sales tax for credit. 13 S. Miller paid the balance due on her account. 15 K. Krtek returned merchandise purchased on August 6 for $50 plus sales tax for credit. 20 K. Krtek paid the balance due on his account. Page: 1 DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT 1 20--Aug. 4 fill in the blank 2 fill in the blank 3 1 2 fill in the blank 5 fill in the blank 6 2 3 fill in the blank 8 fill in the blank 9 3 4 4 5 Aug. 6 fill in the blank 11 fill in the blank 12 5 6 fill in the blank 14 fill in the blank 15…arrow_forwardvd subject-Accountingarrow_forwardPrepare journal entries to record the following transactions entered into by the Marrow Company: accurately only the following account names (not case sensitive): Inventory, A/Rec, N/Rec, Cash, Sales, Sales R/A, Sales/Disc, CGS, Int/Rec, Int/Rev. June 1 Received a $6,000, 12%, 1-year note from Sue Forest as full payment on her account. Account Dr. Account Cr. Nov. 1 Sold merchandise on account to Reeves, Inc., for $7,000, terms 2/10, n/30.Account Dr. Account Cr. Nov. 5 Reeves, Inc., returned merchandise worth $1,000.Account Dr. Account Cr. Nov. 9 Received payment in full from Reeves, Inc.Account Dr. Account Dr. Account Cr. Dec. 31 Accrued interest on Forest's note.Account Dr. Account Cr.arrow_forward
- Required: • Journalize the Transactionsarrow_forwardPrepare purchase journal and cash disbursement journalarrow_forward1 EJ-3 On September 1, the balance of the Accounts Receivable control account in the general ledger of Stark Company was $10,960. The customers' subsidiary ledger contained account balances as follows: Zeyen $1,440, Milo $2,640, Baez $2,060, and Dey $4,820. At the end of September, the various journals contained the following information. Sales journal: Sales to Dey $800; to Zeyen $1,260; to Guy $1,330; to Baez $1,260. Cash receipts journal: Cash received from Baez $1,310; from Dey $2,300; from Guy $380; from Milo $1,800; from Zeyen $1,240. General journal: An allowance is granted to Dey $185. Instructions (a) Set up control and subsidiary accounts and enter the beginning balances. Do not con- struct the journals. (b) Post the various journals. Post the items as individual items or as totals, whichever would be the appropriate procedure. (No sales discounts given.) (c) Prepare a schedule of accounts receivable and prove the agreement of the controlling account with the subsidiary…arrow_forward
- College 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,
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:CengageCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781305084087Author:Cathy J. ScottPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
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