Chapter B, Problem 29BP

Using all journals, posting, and balancing the ledgers

Atlanta Computer Security uses the perpetual inventory system and makes all credit sales on terms of n/30. During March, Atlanta completed these transactions:

Requirements

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

1. 2. Open four-column accounts in the subsidiary ledgers with beginning balances as of March 1, if any. Accounts receivable subsidiary ledger: Arrundel Co., $1,900; Common Co., $0; L. E. Kingston, $0; and Suarez, $0. Accounts payable subsidiary ledger: High, $0; Mann Corp, $0; James Swenson, $0; and Young Co., $900.
2. 3. Enter the transactions in a sales journal (page 8), a cash receipts journal (page 3, omit Sales Discounts Forfeited column), a purchases journal (page 6), a cash payments journal (page 9), and a general journal (page 4), 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 March 31, post to the general ledger.
5. 6. Prepare a trial balance as of March 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.