Chapter B, Problem 26AP

Using all journals, posting, and balancing the ledgers

Tulsa Computer Security uses the perpetual inventory system and makes all credit sales on terms of n/30. Tulsa completed the following transactions during May:

Requirements

1. 1. Open four-column general ledger accounts using Tulsa’s account numbers and balances as of May 1, 2018, that follow. All accounts have normal balances.

1. 2. Open four-column accounts in the subsidiary ledgers with beginning balances as of May 1, if any. Accounts receivable subsidiary ledger—Balakrishnan Co., $1,700; Berkner Co., $0; M. O. Small, $0; and K. D. King, $0. Accounts payable subsidiary ledger—Henderson Co., $0; Magyar, Inc., $0; Silva Distributing, $0; and White Co., $900.
2. 3. Enter the transactions in a sales journal (page 7), a cash receipts journal (page 5, omit Sales Discounts Forfeited column), a purchases journal (page 10), a cash payments journal (page 8), and a general journal (page 6), as appropriate.
3. 4. Post daily to the accounts receivable subsidiary ledger and to the accounts payable subsidiary ledger.
4. 5. Total each column of the special journals. Show that total debits equal total credits in each special journal. On May 31, post to the general ledger.
5. 6. Prepare a trial balance as of May 31, 2018, to verify the equality of the general ledger. Balance the total of the customer account ending balances in the accounts receivable subsidiary ledger against Accounts Receivable in the general ledger. Do the same for the accounts payable subsidiary ledger and Accounts Payable in the general ledger.