Mil Dil
,
Thursday, 12th of August 2010 12:04:01 AM
Assume it is Monday, May 1, the first business day of the month, and you
Mil Dil
have just been hired?
5 Received payment from Knox, Inc., for the
Registered User
balance from the April 28 sale less the May 2
return and the
Joined: Thursday, 27th of May 2010, 16:31:15
discount.
8 Issued Check No. 3411 to Peyton Products to pay for the
Posts: 83
$7,098 of merchandise purchased
on April 29 less the May 3 return and
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a 2% discount.
9 Sold store supplies to the merchant next door at
their cost of $350 cash.
10 Purchased $4,074 of office equipment on
credit from Gear Supply Co., invoice dated May
10, terms n10 EOM. />11 Received payment from Hensel Company for the May 2 sale less the
discount.
11 Purchased $8,800 of merchandise from Garcia, Inc.,
invoice dated May 10, terms 210,
n30.
12 Received an $854
credit memorandum from Gear Supply Co. for the return of defective
office
equipment received on May 10.
15 Issued Check No. 3412,
payable to Payroll, in payment of sales salaries, $5,320, and office/>salaries, $3,150. Cashed the check and paid the employees.
15 Cash
sales for the first half of the month are $59,220 (cost is $38,200). (Cash
sales are
recorded daily but are recorded only twice here to reduce
repetitive entries.)
15 Post to the customer and creditor accounts.
Also post individual items that are not included
in column totals at
the end of the month to the general ledger accounts. (Such items are/>posted daily but are posted only twice each month because they are few
in number.)
16 Sold merchandise on credit to Hensel Company, Invoice
No. 8786, for $3,990 (cost is
$1,890).
17 Purchased $13,650 of
merchandise from Fink Corp., invoice dated May 14, terms 210,
n60.
19 Issued Check No. 3413 to Garcia, Inc., in payment of its May 10
invoice less the discount.
22 Sold merchandise to Lee Services,
Invoice No. 8787, for $6,850 (cost is $4,990), terms
210, n60. />23 Issued Check No. 3414 to Fink Corp. in payment of its May 14 invoice
less the discount.
24 Purchased the following on credit from Gear
Supply Co.: merchandise, $8,120; store supplies,
$630; and office
supplies, $280. Invoice dated May 24, terms n10 EOM.
25 Purchased
$3,080 of merchandise from Peyton Products, invoice dated May 23, terms
210,
n30.
26 Sold merchandise on credit to Crane Corp., Invoice
No. 8788, for $14,210 (cost is $8,230).
26 Issued Check No. 3415 to
Perennial Power in payment of the May electric bill, $1,283.
29 The
owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw $7,000
cash
from the business for personal use.
30 Received payment
from Lee Services for the May 22 sale less the discount.
30 Issued
Check No. 3417, payable to Payroll, in payment of sales salaries, $5,320,
and office
salaries, $3,150. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are $66,052 (cost is
$42,500).
31 Post to the customer and creditor accounts. Also post
individual items that are not included
in column totals at the end of
the month to the general ledger accounts. Foot and crossfoot
the
journals and make the month-end postings.
Required
1. Enter
these transactions in a sales journal, a purchases journal, a cash
receipts journal, a cash disbursements
journal, or a general journal
as illustrated in this chapter. Post when instructed to do
so. Assume
a perpetual inventory system.
2. Prepare a trial balance in the Trial
Balance columns of the work sheet form provided with the working/>papers. Complete the work sheet using the following information for
accounting adjustments:
a. Expired insurance, $553.
b. Ending
store supplies inventory, $2,632.
c. Ending office supplies
inventory, $504.
d. Depreciation of store equipment, $567.
e.
Depreciation of office equipment, $329.
Prepare and post adjusting
and closing entries.
3. Prepare a May 2005 multiple-step income
statement, a May 2005 statement of owner’s equity,
and a May 31,
2005, classified balance sheet.
4. Prepare a post-closing trial
balance. Also prove the accuracy of subsidiary ledgers by preparing/>schedules of both accounts receivable and accounts payable.