DISCUSSION QUESTIONS Suggested Responses 1. A wholesale business buys goods from manufacturers and sells them to retailers. A wholesaler is sometimes referred to as a middleman. A retail business buys goods either from a manufacturer or a wholesaler and then sells those goods directly to consumers. 2. a. Sales Returns and Allowances debit, contra account b. Merchandise Inventory debit c. Sales credit d. Freight In debit e. Purchases Returns and Allowances credit, contra account f. Sales Tax Payable credit g. Sales Discounts debit, contra account h. Purchases debit i. Purchases Discounts credit, contra account 3. a. A schedule of accounts receivable serves as a verification of the accuracy of the accounts receivable ledger; the schedule s total must equal the balance of the Accounts Receivable (controlling) account in the general ledger. b. A schedule of accounts payable serves as a verification of the accuracy of the accounts payable ledger; the schedule s total must equal the balance of the Accounts Payable (controlling) account in the general ledger. 4. Having an accounts receivable ledger and/or an accounts payable ledger is necessary because including individual accounts in the general ledger would result in an overly long trial balance. For the purposes of extending credit and collecting the amount owed, a business uses an accounts receivable ledger to keep track of how much each individual customer currently owes. Similarly, companies maintain an accounts payable ledger to keep track of what they owe to vendors/suppliers and to make certain that charges and payments are correct. 5. Posting to the accounts receivable ledger and the accounts payable ledger on a daily basis is necessary to keep management and customer service fully informed of the amounts customers owe the company and the amounts the company owes to creditors. 6. A sales return and allowance relates to either a physical return of the goods by a customer to a business or the business s reduction (an allowance) in the original price of the goods to the customer because the goods were defective or damaged. A purchases return and allowance relates to either the company s return of goods to a vendor/supplier or a reduction in the cost (an allowance) of the goods by the vendor/supplier because the goods arrived in damaged condition. 7. FOB destination means that the seller pays all the freight charges on the goods being transported. While the goods are in transit, the seller retains title to the goods. FOB shipping point means that the buyer pays all the freight charges on the goods being transported. In the event that the seller pays for the freight charges in advance, the buyer is responsible for reimbursing the seller. While the goods are in transit, the buyer has title to the goods. 8. The internal control of purchases generally involves the following measures: a. Purchases are made only after proper authorization is given. Purchase requisitions and purchase orders are all prenumbered, so that each form can be accounted for. 362 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
b. The receiving department carefully checks all goods upon receipt for count, damages, and description. Later, the report of the receiving department is verified against the purchase order and the purchase invoice. c. The person who authorizes the payment is neither the person doing the ordering nor the person actually writing the check. Payment is authorized only after verifying the purchase invoice data with the receiving report and purchase order. d. The person who actually writes the check has not been involved in any of the foregoing purchasing procedures. 9. a. Post the total to the general ledger as a debit to Accounts Receivable and a credit to Sales, placing S followed by the sales journal page number in the Post. Ref. column. After posting to each of these accounts, record the account number below the total, placing the number for Accounts Receivable in parentheses on the left and the account number for Sales in parentheses on the right. Draw a single line across the amount column above the total. Below the column total, extend double underlines through the Date column, the Post. Ref. column, and the amount column. Write the last day of the month on the line with the total. b. Post the totals to the general ledger as a credit to Accounts Payable and a debit to Purchases and to Freight In, placing P followed by the purchases journal page number in the Post. Ref. column. After posting to each of these accounts, record the account number below the total, placing the numbers for Accounts Payable, Freight In, and Purchases in parentheses. Draw a single line across the amount column above the total. Below the column total, extend double underlines through the Date column, the Post. Ref. column, and the amount columns. Write the last day of the month on the line with the total. 10. a. Post individual amounts to the credit customer accounts in the accounts receivable ledger on a daily basis. In the Post. Ref. column, place an S followed by the sales journal page number. After posting each entry to the accounts receivable ledger, put a check mark in the Post. Ref. column of the sales journal. b. Post the individual amounts to the vendor/supplier accounts in the accounts payable ledger on a daily basis. In the Post. Ref. column, place a P followed by the purchases journal page number. After posting each entry to the accounts payable ledger, put a check mark in the Post. Ref. column of the purchases journal. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 363
SOLUTIONS TO EXERCISES Exercise 9-1 GENERAL JOURNAL PAGE DESCRIPTION 1 a. Accounts Receivable, G. Frank 1,233.50 1 2 Sales 1,233.50 2 3 Sold merchandise to 3 4 G. Frank, invoice no. 1230. 4 5 5 6 b. Accounts Receivable, Gregory 6 7 Productions 950.00 7 8 Sales 950.00 8 9 Sold merchandise on 9 10 account, invoice no. 1231. 10 11 11 12 c. Sales Returns and Allowances 615.75 12 13 Accounts Receivable, Gregory 13 14 Productions 615.75 14 15 Issued credit memo no. 93. 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 364 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Exercise 9-2 GENERAL JOURNAL PAGE 52 DESCRIPTION 1 1 2 June 16 Sales Returns and Allowances 412 241.27 2 3 Accounts Receivable, F. E. Dixon 113/ 241.27 3 4 Issued credit memo no. 131. 4 5 5 GENERAL LEDGER Accounts Receivable NO. 113 June 1 Balance 6,511.19 16 J52 241.27 6,269.92 Sales Returns and Allowances NO. 412 June 1 Balance 314.60 16 J52 241.27 555.87 F. E. Dixon 416 Fifth Avenue Dallas, TX 75204 S RECEIVABLE LEDGER May 31 J51 312.60 312.60 June 16 J52 241.27 71.33 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 365
Exercise 9-3 a. Sold merchandise on account, $900.00 plus $67.50 sales tax. b. Customer returned merchandise that had a selling price of $49.95. Credited customer s account for $49.95 plus $3.75 sales tax. Exercise 9-4 GENERAL JOURNAL PAGE DESCRIPTION 1 a. Accounts Receivable, A. Bauer 734.40 1 2 Sales 680.00 2 3 Sales Tax Payable 54.40 3 4 Sold merchandise to A. Bauer, 4 5 invoice no. D446. 5 6 6 7 b. Sales Returns and Allowances 105.50 7 8 Sales Tax Payable 8.44 8 9 Accounts Receivable, A. Bauer 113.94 9 10 Issued credit memo no. 114. 10 11 11 Exercise 9-5 a. Purchased merchandise on account, $1,100; freight prepaid and added to the invoice, $84 (total $1,184). b. Returned $120 of merchandise previously purchased on account. Exercise 9-6 GENERAL JOURNAL PAGE DESCRIPTION 1 a. Purchases 914.00 1 2 Accounts Payable, Brewer, Inc. 914.00 2 3 Purchased merchandise from 3 4 Brewer, Inc., invoice no. B2997, 4 5 terms n/30. 5 6 6 7 b. Accounts Payable, Brewer, Inc. 238.00 7 8 Purchases Returns and Allowances 238.00 8 9 Credit memo no. 96 for return 9 10 of merchandise. 10 11 11 366 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Exercise 9-7 GENERAL JOURNAL PAGE 92 DESCRIPTION 1 1 2 July 14 Accounts Payable, Jensen and Silva 212/ 192.30 2 3 Purchases Returns and Allowances 512 192.30 3 4 Credit memo no. 942 for return 4 5 of merchandise. 5 6 6 7 7 Accounts Payable GENERAL LEDGER NO. 212 July 1 Balance 2,761.24 14 J92 192.30 2,568.94 Purchases Returns and Allowances NO. 512 July 1 Balance 230.16 14 J92 192.30 422.46 Jensen and Silva 542 Roselle Blvd. Chicago, IL 60141 S PAYABLE LEDGER June 13 J92 218.00 218.00 July 14 J92 192.30 25.70 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 367
Exercise 9-8 Ford Education Outfitters DESCRIPTION GENERAL JOURNAL PAGE 1 a. Purchases 1,875.34 1 2 Accounts Payable, Romero 2 3 Textbooks, Inc. 1,875.34 3 4 Purchased merchandise from 4 5 Romero Textbooks, Inc., 5 6 invoice no. 10594, terms n/30. 6 7 7 8 b. Accounts Payable, Romero 8 9 Textbooks, Inc. 135.78 9 10 Purchases Returns and Allowances 135.78 10 11 Credit memo no. 513A for 11 12 return of merchandise. 12 13 13 Romero Textbooks, Inc. GENERAL JOURNAL PAGE DESCRIPTION 1 a. Accounts Receivable, Ford Education 1 2 Outfitters 1,875.34 2 3 Sales 1,875.34 3 4 Sold merchandise to Ford 4 5 Education Outfitters, 5 6 invoice no. 10594. 6 7 7 8 Delivery Expense 93.80 8 9 Cash 93.80 9 10 10 11 b. Sales Returns and Allowances 135.78 11 12 Accounts Receivable, Ford 12 13 Education Outfitters 135.78 13 14 Issued credit memo no. 513A. 14 15 15 368 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Exercise 9-9 Chang Electronics GENERAL JOURNAL PAGE DESCRIPTION 1 1 2 Nov. 6 Sales Returns and Allowances 725.50 2 3 Accounts Receivable, The 3 4 Merchandise Market 725.50 4 5 Issued credit memo no. 121. 5 6 6 The Merchandise Market GENERAL JOURNAL PAGE DESCRIPTION 1 1 2 Nov. 6 Accounts Payable, Chang Electronics 725.50 2 3 Purchases Returns and 3 4 Allowances 725.50 4 5 Credit memo no. 121 for return 5 6 of merchandise. 6 7 7 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 369
Exercise 9-10 SALES JOURNAL PAGE 24 INV. NO. CUSTOMER'S S RECEIVABLE DR. SALES CR. 1 1 2 Mar. 6 1128 Osbourne, Inc. 563.17 2 3 14 1129 Ortiz Company 823.50 3 4 20 1130 Bailey Corporation 2,350.98 4 5 24 1131 Shannon Corporation 1,547.07 5 6 31 Total 5,284.72 6 7 (113) (411) 7 8 8 GENERAL LEDGER Accounts Receivable NO. 113 Mar. 1 Balance 31 S24 5,284.72 2,450.39 7,735.11 Sales NO. 411 Mar. 1 Balance 3,569.80 31 S24 5,284.72 8,854.52 370 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Exercise 9-11 PURCHASES JOURNAL 13 SUPPLIER'S INV. NO. INV. TERMS S PAYABLE FREIGHT IN PURCHASES 7 1 1 2 May 3 Owens Company J34Y9 5/1 n/15 265.25 15.00 250.25 2 3 11 Lionel's Lawn & Landscaping R7740 5/9 2/10, n/30 254.72 35.00 219.72 3 4 15 Wright's Farm Supplies 478 5/13 n/30 210.97 210.97 4 5 25 Gutierrez Corporation 2458 5/22 n/30 425.39 425.39 5 6 31 Totals 1,156.33 50.00 1,106.33 6 (212) (514) (511) 7 8 8 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 371
Exercise 9-11 (concluded) Accounts Payable GENERAL LEDGER NO. 212 May 1 Balance 3,492.29 31 P13 1,156.33 4,648.62 Purchases NO. 511 May 1 Balance 4,239.49 31 P13 1,106.33 5,345.82 Freight In NO. 514 May 1 Balance 234.89 31 P13 50.00 284.89 372 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Exercise 9-12 SALES JOURNAL PAGE 18 INV. NO. CUSTOMER'S S RECEIVABLE DR. SALES CR. 10 1 1 2 Oct. 3 414 Anderson Company 443.24 2 3 4 415 R. T. Holcomb 1,426.90 3 4 7 416 Gray and Malo 1,647.00 4 5 11 417 Mercer Mobil 3,112.16 5 6 16 418 J. L. Anthony 2,130.00 6 7 22 419 C. A. Goldschmidt 1,944.05 7 8 31 420 F. A. Baumann 2,791.00 8 9 31 Total 13,494.35 9 (113) (411) 10 11 11 PURCHASES JOURNAL PAGE 10 SUPPLIER'S INV. INV. NO. TERMS S PAYABLE FREIGHT IN PURCHASES 1 1 2 Oct. 2 Colter, Inc. 2706 7/31 2/10, n/30 759.00 49.00 710.00 2 3 3 Thomas and Son 982 8/2 n/30 829.00 57.00 772.00 3 4 5 Archer Mfg. Co. 10611 8/3 2/10, n/30 564.00 564.00 4 5 9 Spence Products Co. B643 8/6 1/10, n/30 165.00 10.00 155.00 5 6 18 L. C. Walter 46812 8/17 n/60 228.00 228.00 6 7 25 Delaney and Cox 1024 8/23 2/10, n/30 376.00 14.00 362.00 7 8 26 Colter, Inc. 2801 8/25 2/10, n/30 406.00 22.00 384.00 8 9 31 Totals 3,327.00 152.00 3,175.00 9 (212) (514) (511) 10 10 11 11 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 373
Exercise 9-12 (continued) S RECEIVABLE LEDGER Anderson Company J. L. Anthony F. A. Baumann + + + 443.24 2,130.00 2,791.00 C. A. Goldschmidt Gray and Malo R. T. Holcomb Mercer Mobil + + + + 1,944.05 1,647.00 1,426.90 3,112.16 GENERAL LEDGER Accounts Receivable 113 Accounts Payable 212 Sales 411 + + + 13,494.35 3,327.00 13,494.35 Purchases 511 + 3,175.00 Freight In 514 + 152.00 S PAYABLE LEDGER Archer Mfg. Co. Colter, Inc. Delaney and Cox + + + 564.00 759.00 376.00 406.00 Bal. 1,165.00 Spence Products Co. Thomas and Son L. C. Walter + + + 165.00 829.00 228.00 374 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Exercise 9-12 (concluded) Kelley Company Schedule of Accounts Receivable October 31, Anderson Company J. L. Anthony F. A. Baumann C. A. Goldschmidt Gray and Malo $ 443.24 2,130.00 2,791.00 1,944.05 1,647.00 R. T. Holcomb Mercer Mobil 1,426.90 3,112.16 Total Accounts Receivable $13,494.35 Kelley Company Schedule of Accounts Payable October 31, Archer Manufacturing Co. Colter, Inc. Delaney and Cox Spence Products Co. Thomas and Son L. C. Walter Total Accounts Payable $ 564.00 1,165.00 376.00 165.00 829.00 228.00 $3,327.00 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 375
Problem 9-1A DESCRIPTION GENERAL JOURNAL PAGE 57 1 1 2 Mar. 4 Accounts Receivable, C. Morales 113/ 28.35 2 3 Sales 411 27.00 3 4 Sales Tax Payable 214 1.35 4 5 Sold merchandise to C. Morales, 5 6 sales slip no. 242. 6 7 7 8 6 Accounts Receivable, R. Dixon 113/ 56.70 8 9 Sales 411 54.00 9 10 Sales Tax Payable 214 2.70 10 11 Sold merchandise to R. Dixon, 11 12 sales slip no. 267. 12 13 13 14 12 Accounts Receivable, B. Cox 113/ 16.80 14 15 Sales 411 16.00 15 16 Sales Tax Payable 214 0.80 16 17 Sold merchandise to B. Cox, 17 18 sales slip no. 279. 18 19 19 20 16 Accounts Receivable, All-Star Legion 113/ 109.20 20 21 Sales 411 104.00 21 22 Sales Tax Payable 214 5.20 22 23 Sold merchandise to All-Star 23 24 Legion, sales slip no. 296. 24 25 25 26 18 Accounts Receivable, Tucker Funeral 26 27 Home 113/ 273.00 27 28 Sales 411 260.00 28 29 Sales Tax Payable 214 13.00 29 30 Sold merchandise to Tucker 30 31 Funeral Home, sales slip no. 314. 31 32 32 33 21 Sales Returns and Allowances 412 30.00 33 34 Sales Tax Payable 214 1.50 34 35 Accounts Receivable, Tucker 35 36 Funeral Home 113/ 31.50 36 37 Issued credit memo no. 27. 37 38 38 39 39 40 40 41 41 376 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-1A (continued) GENERAL JOURNAL PAGE 58 DESCRIPTION 1 1 2 Mar. 23 Accounts Receivable, Price Savings 2 3 and Loan Association 113/ 189.00 3 4 Sales 411 180.00 4 5 Sales Tax Payable 214 9.00 5 6 Sold merchandise to Price 6 7 Savings and Loan Association, 7 8 sales slip no. 337. 8 9 9 10 24 Sales Returns and Allowances 412 25.00 10 11 Sales Tax Payable 214 1.25 11 12 Accounts Receivable, Price 12 13 Savings and Loan Association 113/ 26.25 13 14 Issued credit memo no. 28. 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 41 41 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 377
Problem 9-1A (continued) GENERAL LEDGER Accounts Receivable NO. 113 Mar. 1 Balance 111.22 4 J57 28.35 139.57 6 J57 56.70 196.27 12 J57 16.80 213.07 16 J57 109.20 322.27 18 J57 273.00 595.27 21 J57 31.50 563.77 23 J58 189.00 752.77 24 J58 26.25 726.52 Sales Tax Payable NO. 214 Mar. 1 Balance 72.84 4 J57 1.35 74.19 6 J57 2.70 76.89 12 J57 0.80 77.69 16 J57 5.20 82.89 18 J57 13.00 95.89 21 J57 1.50 94.39 23 J58 9.00 103.39 24 J58 1.25 102.14 Sales NO. 411 Mar. 4 J57 27.00 27.00 6 J57 54.00 81.00 12 J57 16.00 97.00 16 J57 104.00 201.00 18 J57 260.00 461.00 23 J58 180.00 641.00 378 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-1A (continued) Sales Returns and Allowances NO. 412 Mar. 21 J57 30.00 30.00 24 J58 25.00 55.00 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 379
Problem 9-1A (continued) All-Star Legion S RECEIVABLE LEDGER Mar. 1 Balance 34.22 16 J57 109.20 143.42 B. Cox Mar. 12 J57 16.80 16.80 R. Dixon Mar. 6 J57 56.70 56.70 C. Morales Mar. 1 Balance 19.50 4 J57 28.35 47.85 380 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-1A (concluded) Price Savings and Loan Association Mar. 1 Balance 57.50 23 J58 189.00 246.50 24 J58 26.25 220.25 Tucker Funeral Home Mar. 18 J57 273.00 273.00 21 J57 31.50 241.50 Bell Florists Schedule of Accounts Receivable March 31, All-Star Legion B. Cox R. Dixon C. Morales Price Savings and Loan Association Tucker Funeral Home Total Accounts Receivable $143.42 16.80 56.70 47.85 220.25 241.50 $726.52 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 381
Problem 9-2A DESCRIPTION GENERAL JOURNAL PAGE 115 1 1 2 Apr. 2 Purchases 511 399.90 2 3 Accounts Payable, Blackburn Company 212/ 399.90 3 4 Purchased merchandise from 4 5 Blackburn Company, invoice no. 5 6 4R48, invoice dated 4/1, terms 6 7 n/30. 7 8 8 9 5 Purchases 511 83.93 9 10 Freight In 514 15.00 10 11 Accounts Payable, Herrera Company 212/ 98.93 11 12 Purchased merchandise from 12 13 Herrera Company, invoice no. 13 14 4851, invoice dated 4/3, terms 14 15 2/10, n/30. 15 16 16 17 6 Purchases 511 719.85 17 18 Accounts Payable, Barrett, Inc. 212/ 719.85 18 19 Purchased merchandise from 19 20 Barrett, Inc., invoice no. 1845R, 20 21 invoice dated 4/5, terms 1/10, 21 22 n/30. 22 23 23 24 8 Purchases 511 1,849.95 24 25 Freight In 514 76.00 25 26 Accounts Payable, Faulkner Company 212/ 1,925.95 26 27 Purchased merchandise from 27 28 Faulkner Company, invoice no. 28 29 1485, invoice dated 4/7, terms 29 30 2/10, n/30. 30 31 31 32 13 Accounts Payable, Faulkner Company 212/ 589.13 32 33 Purchases Returns and Allowances 512 589.13 33 34 Credit memo no. 415 for return 34 35 of merchandise. 35 36 36 37 37 38 38 39 39 40 40 41 41 382 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-2A (continued) DESCRIPTION GENERAL JOURNAL PAGE 116 1 1 2 Apr. 23 Purchases 511 1,107.00 2 3 Accounts Payable, Rhodes 3 4 Manufacturing 212/ 1,107.00 4 5 Purchased merchandise from 5 6 Rhodes Manufacturing, invoice 6 7 no. 246J, invoice dated 4/21, 7 8 terms net 60. 8 9 9 10 27 Purchases 511 299.70 10 11 Accounts Payable, Solomon 11 12 Products Company 212/ 299.70 12 13 Purchased merchandise from 13 14 Solomon Products Company, 14 15 invoice no. 2675, invoice dated 15 16 4/25, terms net 30. 16 17 17 18 30 Accounts Payable, Solomon Products 18 19 Company 212/ 76.25 19 20 Purchases Returns and Allowances 512 76.25 20 21 Credit memo no. 861 for return 21 22 of merchandise. 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 41 41 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 383
Problem 9-2A (continued) GENERAL LEDGER Accounts Payable NO. 212 Apr. 1 Balance 3,162.55 2 J115 399.90 3,562.45 5 J115 98.93 3,661.38 6 J115 719.85 4,381.23 8 J115 1,925.95 6,307.18 13 J115 589.13 5,718.05 23 J116 1,107.00 6,825.05 27 J116 299.70 7,124.75 30 J116 76.25 7,048.50 Purchases NO. 511 Apr. 1 Balance 559.06 2 J115 399.90 958.96 5 J115 83.93 1,042.89 6 J115 719.85 1,762.74 8 J115 1,849.95 3,612.69 23 J116 1,107.00 4,719.69 27 J116 299.70 5,019.39 Purchases Returns and Allowances NO. 512 Apr. 1 Balance 123.50 13 J115 589.13 712.63 30 J116 76.25 788.88 Freight In NO. 514 Apr. 1 Balance 15.20 5 J115 15.00 30.20 8 J115 76.00 106.20 384 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-2A (continued) Barrett, Inc. S PAYABLE LEDGER Apr. 1 Balance 185.25 6 J115 719.85 905.10 Blackburn Company Apr. 1 Balance 254.64 2 J115 399.90 654.54 Faulkner Company Apr. 1 Balance 485.12 8 J115 1,925.95 2,411.07 13 J115 589.13 1,821.94 Herrera Company Apr. 5 J115 98.93 98.93 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 385
Problem 9-2A (concluded) Rhodes Manufacturing Apr. 1 Balance 452.31 23 J116 1,107.00 1,559.31 Solomon Products Company Apr. 1 Balance 1,785.23 27 J116 299.70 2,084.93 30 J116 76.25 2,008.68 Berry's Pet Store Schedule of Accounts Payable April 30, Barrett, Inc. Blackburn Company Faulkner Company Herrera Company Rhodes Manufacturing Solomon Products Company Total Accounts Payable $ 905.10 654.54 1,821.94 98.93 1,559.31 2,008.68 $7,048.50 386 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-3A GENERAL JOURNAL PAGE 25 DESCRIPTION 1 1 2 Jan. 3 Purchases 511 660.00 2 3 Freight In 514 125.43 3 4 Accounts Payable, Madden, Inc. 212/ 785.43 4 5 Purchased merchandise from 5 6 Madden, Inc., invoice no. 3487, 6 7 invoice dated 1/1, terms 2/10, n/30. 7 8 8 9 4 Purchases 511 420.00 9 10 Accounts Payable, Calhoun Candles, 10 11 Inc. 212/ 420.00 11 12 Purchased merchandise from 12 13 Calhoun Candles, Inc., invoice no. 13 14 4513, invoice dated 1/1, terms 14 15 net 45. 15 16 16 17 12 Accounts Receivable, R. Kielman 113/ 129.60 17 18 Sales 411 120.00 18 19 Sales Tax Payable 214 9.60 19 20 Sold merchandise to R. Kielman, 20 21 sales slip no. 1456. 21 22 22 23 13 Accounts Payable, Calhoun Candles, Inc. 212/ 84.00 23 24 Purchases Returns and Allowances 512 84.00 24 25 Credit memo no. 8715 for return 25 26 of merchandise. 26 27 27 28 21 Purchases 511 197.50 28 29 Accounts Payable, Whitney and Waters 212/ 197.50 29 30 Purchased merchandise from 30 31 Whitney and Waters, invoice no. 31 32 A875, invoice dated 1/18, terms 32 33 2/15, n/45. 33 34 34 35 25 Accounts Receivable, A. Benner 113/ 146.61 35 36 Sales 411 135.75 36 37 Sales Tax Payable 214 10.86 37 38 Sold merchandise to A. Benner, 38 39 sales slip no. 1457. 39 40 40 41 27 Sales Returns and Allowances 412 45.25 41 42 Sales Tax Payable 214 3.62 42 43 Accounts Receivable, A. Benner 113/ 48.87 43 44 Issued credit memo no. 33. 44 45 45 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 387
Problem 9-3A (continued) GENERAL LEDGER Accounts Receivable NO. 113 Jan. 1 Balance 221.16 12 J25 129.60 350.76 25 J25 146.61 497.37 27 J25 48.87 448.50 Accounts Payable NO. 212 Jan. 1 Balance 978.63 3 J25 785.43 1,764.06 4 J25 420.00 2,184.06 13 J25 84.00 2,100.06 21 J25 197.50 2,297.56 Sales Tax Payable NO. 214 Jan. 1 Balance 128.45 12 J25 9.60 138.05 25 J25 10.86 148.91 27 J25 3.62 145.29 Sales NO. 411 Jan. 12 J25 120.00 120.00 25 J25 135.75 255.75 Sales Returns and Allowances NO. 412 Jan. 27 J25 45.25 45.25 388 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-3A (continued) Purchases NO. 511 Jan. 3 J25 660.00 660.00 4 J25 420.00 1,080.00 21 J25 197.50 1,277.50 Purchases Returns and Allowances NO. 512 Jan. 13 J25 84.00 84.00 Freight In NO. 514 Jan. 3 J25 125.43 125.43 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 389
Problem 9-3A (continued) A. Benner S RECEIVABLE LEDGER Jan. 1 Balance 45.77 25 J25 146.61 192.38 27 J25 48.87 143.51 R. Kielman Jan. 1 Balance 175.39 12 J25 129.60 304.99 390 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-3A (continued) S PAYABLE LEDGER Calhoun Candles, Inc. Jan. 1 Balance 355.23 4 J25 420.00 775.23 13 J25 84.00 691.23 Madden, Inc. Jan. 1 Balance 573.15 3 J25 785.43 1,358.58 Whitney and Waters Jan. 1 Balance 50.25 21 J25 197.50 247.75 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 391
Problem 9-3A (concluded) Shirley's Beauty Store Schedule of Accounts Receivable January 31, A. Benner R. Kielman Total Accounts Receivable $143.51 304.99 $448.50 Shirley's Beauty Store Schedule of Accounts Payable January 31, Calhoun Candles, Inc. Madden, Inc. Whitney and Waters Total Accounts Payable $ 691.23 1,358.58 247.75 $2,297.56 392 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-4A SALES JOURNAL PAGE 39 INV. NO. CUSTOMER'S S RECEIVABLE DR. SALES CR. 1 1 2 Apr. 1 761 Myers Company 570.40 2 3 5 762 L. R. Foster Company 486.10 3 4 10 763 Diaz Hardware 293.35 4 5 14 764 Brooks and Bennett 640.16 5 6 17 765 Powell and Reyes 582.12 6 7 24 766 Ortiz Company 652.87 7 8 26 767 Diaz Hardware 832.19 8 9 30 Total 4,057.19 9 10 (113) (411) 10 11 11 GENERAL JOURNAL PAGE 74 DESCRIPTION 1 1 2 Apr. 6 Sales Returns and Allowances 412 40.70 2 3 Accounts Receivable, 3 4 Myers Company 113/ 40.70 4 5 Issued credit memo no. 50. 5 6 6 7 21 Sales Returns and Allowances 412 68.44 7 8 Accounts Receivable, 8 9 Brooks and Bennett 113/ 68.44 9 10 Issued credit memo no. 51. 10 11 11 12 30 Sales Returns and Allowances 412 98.50 12 13 Accounts Receivable, 13 14 Diaz Hardware 113/ 98.50 14 15 Issued credit memo no. 52. 15 16 16 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 393
Problem 9-4A (continued) GENERAL LEDGER Accounts Receivable NO. 113 Apr. 1 Balance 1,169.42 6 J74 40.70 1,128.72 21 J74 68.44 1,060.28 30 J74 98.50 961.78 30 S39 4,057.19 5,018.97 Sales NO. 411 Apr. 1 Balance 11,260.44 30 S39 4,057.19 15,317.63 Sales Returns and Allowances NO. 412 Apr. 1 Balance 396.42 6 J74 40.70 437.12 21 J74 68.44 505.56 30 J74 98.50 604.06 Brooks and Bennett S RECEIVABLE LEDGER Apr. 1 Balance 927.76 14 S39 640.16 1,567.92 21 J74 68.44 1,499.48 394 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-4A (continued) Diaz Hardware Apr. 10 S39 293.35 293.35 26 S39 832.19 1,125.54 30 J74 98.50 1,027.04 L. R. Foster Company Apr. 5 S39 486.10 486.10 Myers Company Apr. 1 Balance 241.66 1 S39 570.40 812.06 6 J74 40.70 771.36 Ortiz Company Apr. 24 S39 652.87 652.87 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 395
Problem 9-4A (concluded) Powell and Reyes Apr. 17 S39 582.12 582.12 Gomez Company Schedule of Accounts Receivable April 30, Brooks and Bennett Diaz Hardware L. R. Foster Company Myers Company Ortiz Company Powell and Reyes Total Accounts Receivable $1,499.48 1,027.04 486.10 771.36 652.87 582.12 $5,018.97 396 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-5A PURCHASES JOURNAL PAGE 81 SUPPLIER'S INV. NO. INV. TERMS S PAYABLE FREIGHT IN PURCHASES 1 1 2 Jan. 2 Snyder and Jordan 268J 1/2 net 60 1,890.00 1,890.00 2 3 4 Simpson Company 39426 1/2 2/10, n/30 2,390.00 90.00 2,300.00 3 4 7 Tran, Inc. 452AD 1/6 1/10, n/30 360.00 360.00 4 5 10 Ukele Company D7742 1/7 2/10, n/30 3,634.00 84.00 3,550.00 5 6 14 Fernandez Products Company 2542 1/13 net 30 186.00 186.00 6 7 22 Snyder and Jordan 392J 1/22 net 60 2,265.00 2,265.00 7 8 28 Fernandez Products Company 2691 1/27 net 30 830.00 830.00 8 9 30 Porter Company 664CC 1/27 2/10, n/30 494.00 48.00 446.00 9 10 31 Totals 12,049.00 222.00 11,827.00 10 11 (212) (514) (511) 11 12 12 13 13 14 14 15 15 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 397
Problem 9-5A (continued) Accounts Payable GENERAL LEDGER NO. 212 Jan. 1 Balance 559.06 31 P81 12,049.00 12,608.06 Purchases NO. 511 Jan. 31 P81 11,827.00 11,827.00 Freight In NO. 514 Jan. 31 P81 222.00 222.00 398 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-5A (continued) S PAYABLE LEDGER Fernandez Products Company Jan. 14 P81 186.00 186.00 28 P81 830.00 1,016.00 Porter Company Jan. 1 Balance 163.17 30 P81 494.00 657.17 Simpson Company Jan. 1 Balance 167.19 4 P81 2,390.00 2,557.19 Snyder and Jordan Jan. 2 P81 1,890.00 1,890.00 22 P81 2,265.00 4,155.00 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 399
Problem 9-5A (concluded) Tran, Inc. Jan. 1 Balance 228.70 7 P81 360.00 588.70 Ukele Company Jan. 10 P81 3,634.00 3,634.00 Patterson Appliance Schedule of Accounts Payable January 31, Fernandez Products Company Porter Company Simpson Company Snyder and Jordan Tran, Inc. Ukele Company Total Accounts Payable $ 1,016.00 657.17 2,557.19 4,155.00 588.70 3,634.00 $12,608.06 400 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-6A SALES JOURNAL PAGE 24 INV. NO. CUSTOMER'S S RECEIVABLE DR. SALES CR. 1 1 2 Apr. 2 1126 Shaw Company 1,746.00 2 3 9 1127 Peterson and Black 860.00 3 4 17 1128 C. N. Hunt 1,015.00 4 5 30 1129 Sampson and McDonald 2,601.00 5 6 30 Total 6,222.00 6 7 (113) (411) 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 401
Problem 9-6A (continued) PURCHASES JOURNAL PAGE 18 SUPPLIER'S INV. NO. INV. TERMS S PAYABLE FREIGHT IN PURCHASES 6 1 1 2 Apr. 4 Payne Company 16521 4/2 1/10, n/30 800.00 800.00 2 3 12 Vix Company L8552 4/11 2/10, n/30 2,531.00 49.00 2,482.00 3 4 26 M. R. Palmer, Inc. 7447 4/23 2/10, n/30 1,527.00 45.00 1,482.00 4 5 30 Totals 4,858.00 94.00 4,764.00 5 (212) (514) (511) 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 402 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-6A (continued) DESCRIPTION GENERAL JOURNAL PAGE 68 1 1 2 Apr. 15 Accounts Payable, Knight and Co. 212/ 120.00 2 3 Purchases Returns and Allowances 512 120.00 3 4 Credit memo no. 79 for return 4 5 of merchandise. 5 6 6 7 19 Sales Returns and Allowances 412 86.00 7 8 Accounts Receivable, Peterson 8 9 and Black 113/ 86.00 9 10 Issued credit memo no. 34. 10 11 11 12 29 Office Supplies Expense 613 152.00 12 13 Accounts Payable, Thornton 13 14 Stationery Company 212/ 152.00 14 15 Invoice no. S336, invoice dated 15 16 4/29, terms n/30. 16 17 17 18 30 Sales Returns and Allowances 412 153.00 18 19 Accounts Receivable, Sampson 19 20 and McDonald 113/ 153.00 20 21 Issued credit memo no. 35. 21 22 22 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 403
Problem 9-6A (continued) GENERAL LEDGER Accounts Receivable NO. 113 Apr. 1 Balance 1,400.00 19 J68 86.00 1,314.00 30 J68 153.00 1,161.00 30 S24 6,222.00 7,383.00 Accounts Payable NO. 212 Apr. 1 Balance 378.00 15 J68 120.00 258.00 29 J68 152.00 410.00 30 P18 4,858.00 5,268.00 Sales NO. 411 Apr. 1 Balance 11,000.00 30 S24 6,222.00 17,222.00 Sales Returns and Allowances NO. 412 Apr. 1 Balance 410.00 19 J68 86.00 496.00 30 J68 153.00 649.00 404 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-6A (continued) Purchases NO. 511 Apr. 1 Balance 9,600.00 30 P18 4,764.00 14,364.00 Purchases Returns and Allowances NO. 512 Apr. 1 Balance 60.00 15 J68 120.00 180.00 Freight In NO. 514 Apr. 1 Balance 712.00 30 P18 94.00 806.00 Office Supplies Expense NO. 613 Apr. 1 Balance 220.00 29 J68 152.00 372.00 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 405
Problem 9-6A (continued) C. N. Hunt S RECEIVABLE LEDGER Apr. 17 S24 1,015.00 1,015.00 Peterson and Black Apr. 1 Balance 426.00 9 S24 860.00 1,286.00 19 J68 86.00 1,200.00 Sampson and McDonald Apr. 1 Balance 974.00 30 S24 2,601.00 3,575.00 30 J68 153.00 3,422.00 Shaw Company Apr. 2 S24 1,746.00 1,746.00 406 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-6A (continued) Knight and Company S PAYABLE LEDGER Apr. 1 Balance 262.00 15 J68 120.00 142.00 M. R. Palmer, Inc. Apr. 1 Balance 116.00 26 P18 1,527.00 1,643.00 Payne Company Apr. 4 P18 800.00 800.00 Thornton Stationery Company Apr. 29 J68 152.00 152.00 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 407
Problem 9-6A (concluded) Vix Company Apr. 12 P18 2,531.00 2,531.00 Reynolds Company Schedule of Accounts Receivable April 30, C. N. Hunt Peterson and Black Sampson and McDonald Shaw Company Total Accounts Receivable $1,015 1,200 3,422 1,746 $7,383 Reynolds Company Schedule of Accounts Payable April 30, Knight and Company M. R. Palmer, Inc. Payne Company Thornton Stationery Company Vix Company Total Accounts Payable $ 142 1,643 800 152 2,531 $5,268 408 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-1B GENERAL JOURNAL PAGE 57 DESCRIPTION 1 1 2 Mar. 4 Accounts Receivable, R. Duarte 113/ 47.25 2 3 Sales 411 45.00 3 4 Sales Tax Payable 214 2.25 4 5 Sold merchandise to R. Duarte, 5 6 sales slip no. 236. 6 7 7 8 7 Accounts Receivable, C. Meadows 113/ 64.05 8 9 Sales 411 61.00 9 10 Sales Tax Payable 214 3.05 10 11 Sold merchandise to C. 11 12 Meadows, sales slip no. 272. 12 13 13 14 12 Accounts Receivable, Anthony Realty 113/ 66.15 14 15 Sales 411 63.00 15 16 Sales Tax Payable 214 3.15 16 17 Sold merchandise to Anthony 17 18 Realty, sales slip no. 294. 18 19 19 20 17 Accounts Receivable, Travis Dress Shop 113/ 178.50 20 21 Sales 411 170.00 21 22 Sales Tax Payable 214 8.50 22 23 Sold merchandise to Travis 23 24 Dress Shop, sales slip no. 299. 24 25 25 26 20 Sales Returns and Allowances 412 36.00 26 27 Sales Tax Payable 214 1.80 27 28 Accounts Receivable, Travis 28 29 Dress Shop 113/ 37.80 29 30 Issued credit memo no. 27. 30 31 31 32 21 Accounts Receivable, Porter Computers 113/ 247.80 32 33 Sales 411 236.00 33 34 Sales Tax Payable 214 11.80 34 35 Sold merchandise to Porter 35 36 Computers, sales slip no. 310. 36 37 37 38 38 39 39 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 409
Problem 9-1B (continued) GENERAL JOURNAL PAGE 58 DESCRIPTION 1 1 2 Mar. 22 Sales Returns and Allowances 412 25.00 2 3 Sales Tax Payable 214 1.25 3 4 Accounts Receivable, Porter 4 5 Computers 113/ 26.25 5 6 Issued credit memo no. 28. 6 7 7 8 27 Accounts Receivable, B. Crosby 113/ 31.50 8 9 Sales 411 30.00 9 10 Sales Tax Payable 214 1.50 10 11 Sold merchandise to B. Crosby, 11 12 sales slip no. 332. 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 41 41 410 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-1B (continued) GENERAL LEDGER Accounts Receivable NO. 113 Mar. 1 Balance 111.22 4 J57 47.25 158.47 7 J57 64.05 222.52 12 J57 66.15 288.67 17 J57 178.50 467.17 20 J57 37.80 429.37 21 J57 247.80 677.17 22 J58 26.25 650.92 27 J58 31.50 682.42 Sales Tax Payable NO. 214 Mar. 1 Balance 72.84 4 J57 2.25 75.09 7 J57 3.05 78.14 12 J57 3.15 81.29 17 J57 8.50 89.79 20 J57 1.80 87.99 21 J57 11.80 99.79 22 J58 1.25 98.54 27 J58 1.50 100.04 Sales NO. 411 Mar. 4 J57 45.00 45.00 7 J57 61.00 106.00 12 J57 63.00 169.00 17 J57 170.00 339.00 21 J57 236.00 575.00 27 J58 30.00 605.00 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 411
Problem 9-1B (continued) Sales Returns and Allowances NO. 412 Mar. 20 J57 36.00 36.00 22 J58 25.00 61.00 412 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-1B (continued) Anthony Realty S RECEIVABLE LEDGER Mar. 1 Balance 34.22 12 J57 66.15 100.37 B. Crosby Mar. 27 J58 31.50 31.50 R. Duarte Mar. 4 J57 47.25 47.25 C. Meadows Mar. 1 Balance 19.50 7 J57 64.05 83.55 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 413
Problem 9-1B (concluded) Porter Computers Mar. 1 Balance 57.50 21 J57 247.80 305.30 22 J58 26.25 279.05 Travis Dress Shop Mar. 17 J57 178.50 178.50 20 J57 37.80 140.70 Abbott Florists Schedule of Accounts Receivable March 31, Anthony Realty B. Crosby R. Duarte C. Meadows Porter Computers Travis Dress Shop Total Accounts Receivable $100.37 31.50 47.25 83.55 279.05 140.70 $682.42 414 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-2B GENERAL JOURNAL PAGE 95 DESCRIPTION 1 1 2 Oct. 3 Purchases 511 959.88 2 3 Freight In 514 79.45 3 4 Accounts Payable, Barrera Company 212/ 1,039.33 4 5 Purchased merchandise from 5 6 Barrera Company, invoice no. 6 7 5493, invoice dated 10/2, terms 7 8 n/30. 8 9 9 10 4 Purchases 511 259.98 10 11 Accounts Payable, Hickman Company 212/ 259.98 11 12 Purchased merchandise from 12 13 Hickman Company, invoice no. 13 14 2JYX, invoice dated 10/2, terms 14 15 2/10, n/30. 15 16 16 17 7 Purchases 511 67.96 17 18 Accounts Payable, Baldwin, Inc. 212/ 67.96 18 19 Purchased merchandise from 19 20 Baldwin, Inc., invoice no. 4183, 20 21 invoice dated 10/6, terms 1/10, 21 22 n/30. 22 23 23 24 10 Accounts Payable, Baldwin, Inc. 212/ 13.94 24 25 Purchases Returns and Allowances 512 13.94 25 26 Credit memo no. 123 for return 26 27 of merchandise. 27 28 28 29 14 Purchases 511 2,599.80 29 30 Freight In 514 140.50 30 31 Accounts Payable, Douglas, Inc. 212/ 2,740.30 31 32 Purchased merchandise from 32 33 Douglas, Inc., invoice no. X431, 33 34 invoice dated 10/12, terms 2/10, 34 35 n/30. 35 36 36 37 37 38 38 39 39 40 40 41 41 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 415
Problem 9-2B (continued) DESCRIPTION GENERAL JOURNAL PAGE 96 1 1 2 Oct. 15 Purchases 511 71.96 2 3 Accounts Payable, Krause, Inc. 212/ 71.96 3 4 Purchased merchandise from 4 5 Krause, Inc., invoice no. A499, 5 6 invoice dated 10/11, terms net 60. 6 7 7 8 24 Purchases 511 2,399.92 8 9 Accounts Payable, Villa 9 10 Manufacturing 212/ 2,399.92 10 11 Purchased merchandise from 11 12 Villa Manufacturing, invoice no. 12 13 4429, invoice dated 10/21, 13 14 terms net 30. 14 15 15 16 27 Accounts Payable, Villa Manufacturing 212/ 346.78 16 17 Purchases Returns and Allowances 512 346.78 17 18 Credit memo no. 452 for return 18 19 of merchandise. 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 416 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-2B (continued) GENERAL LEDGER Accounts Payable NO. 212 Oct. 1 Balance 2,154.01 3 J95 1,039.33 3,193.34 4 J95 259.98 3,453.32 7 J95 67.96 3,521.28 10 J95 13.94 3,507.34 14 J95 2,740.30 6,247.64 15 J96 71.96 6,319.60 24 J96 2,399.92 8,719.52 27 J96 346.78 8,372.74 Purchases NO. 511 Oct. 1 Balance 2,485.12 3 J95 959.88 3,445.00 4 J95 259.98 3,704.98 7 J95 67.96 3,772.94 14 J95 2,599.80 6,372.74 15 J96 71.96 6,444.70 24 J96 2,399.92 8,844.62 Purchases Returns and Allowances NO. 512 Oct. 1 Balance 287.52 10 J95 13.94 301.46 27 J96 346.78 648.24 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 417
Problem 9-2B (continued) Freight In NO. 514 Oct. 1 Balance 48.57 3 J95 79.45 128.02 14 J95 140.50 268.52 418 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-2B (continued) Baldwin, Inc. S PAYABLE LEDGER Oct. 1 Balance 46.57 7 J95 67.96 114.53 10 J95 13.94 100.59 Barrera Company Oct. 1 Balance 743.15 3 J95 1,039.33 1,782.48 Douglas, Inc. Oct. 1 Balance 615.20 14 J95 2,740.30 3,355.50 Hickman Company Oct. 4 J95 259.98 259.98 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 419
Problem 9-2B (concluded) Krause, Inc. Oct. 1 Balance 23.45 15 J96 71.96 95.41 Villa Manufacturing Oct. 1 Balance 725.64 24 J96 2,399.92 3,125.56 27 J96 346.78 2,778.78 Lowery's Pet Depot Schedule of Accounts Payable October 31, Baldwin, Inc. Barrera Company Douglas, Inc. Hickman Company Krause, Inc. Villa Manufacturing Total Accounts Payable $ 100.59 1,782.48 3,355.50 259.98 95.41 2,778.78 $8,372.74 420 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-3B GENERAL JOURNAL PAGE 17 DESCRIPTION 1 1 2 Jan. 2 Purchases 511 450.00 2 3 Freight In 514 87.50 3 4 Accounts Payable, Mejia, Inc. 212/ 537.50 4 5 Purchased merchandise from 5 6 Mejia, Inc., invoice no. 4521, 6 7 invoice dated 1/1, terms 2/10, 7 8 n/30. 8 9 9 10 5 Purchases 511 1,200.00 10 11 Accounts Payable, Braun, Inc. 212/ 1,200.00 11 12 Purchased merchandise from 12 13 Braun, Inc., invoice no. 37A, 13 14 invoice dated 1/3, terms 2/10, 14 15 n/30 15 16 16 17 8 Accounts Receivable, J. Herbert 113/ 118.80 17 18 Sales 411 110.00 18 19 Sales Tax Payable 214 8.80 19 20 Sold merchandise to J. Herbert, 20 21 sales slip no. 113. 21 22 22 23 11 Accounts Payable, Braun, Inc. 212/ 315.25 23 24 Purchases Returns and Allowances 512 315.25 24 25 Credit memo no. 455 for return 25 26 of merchandise. 26 27 27 28 18 Purchases 511 660.00 28 29 Accounts Payable, Vargas, Inc. 212/ 660.00 29 30 Purchased merchandise from 30 31 Vargas, Inc., invoice no. 910, 31 32 invoice dated 1/14, terms net 30. 32 33 33 34 23 Accounts Receivable, T. Cantrell 113/ 216.00 34 35 Sales 411 200.00 35 36 Sales Tax Payable 214 16.00 36 37 Sold merchandise to T. Cantrell, 37 38 sales slip no. 114. 38 39 39 40 26 Sales Returns and Allowances 412 50.00 40 41 Sales Tax Payable 214 4.00 41 42 Accounts Receivable, T. Cantrell 113/ 54.00 42 43 Issued credit memo no. 12. 43 44 44 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 421
Problem 9-3B (continued) GENERAL LEDGER Accounts Receivable NO. 113 Jan. 1 Balance 150.46 8 J17 118.80 269.26 23 J17 216.00 485.26 26 J17 54.00 431.26 Accounts Payable NO. 212 Jan. 1 Balance 693.75 2 J17 537.50 1,231.25 5 J17 1,200.00 2,431.25 11 J17 315.25 2,116.00 18 J17 660.00 2,776.00 Sales Tax Payable NO. 214 Jan. 1 Balance 237.89 8 J17 8.80 246.69 23 J17 16.00 262.69 26 J17 4.00 258.69 Sales 411 NO. Jan. 8 J17 110.00 110.00 23 J17 200.00 310.00 422 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-3B (continued) Sales Returns and Allowances NO. 412 Jan. 26 J17 50.00 50.00 Purchases NO. 511 Jan. 2 J17 450.00 450.00 5 J17 1,200.00 1,650.00 18 J17 660.00 2,310.00 Purchases Returns and Allowances NO. 512 Jan. 11 J17 315.25 315.25 Freight In NO. 514 Jan. 2 J17 87.50 87.50 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 423
Problem 9-3B (continued) T. Cantrell S RECEIVABLE LEDGER Jan. 1 Balance 86.99 23 J17 216.00 302.99 26 J17 54.00 248.99 J. Herbert Jan. 1 Balance 63.47 8 J17 118.80 182.27 424 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-3B (continued) Braun, Inc. S PAYABLE LEDGER Jan. 1 Balance 513.20 5 J17 1,200.00 1,713.20 11 J17 315.25 1,397.95 Mejia, Inc. Jan. 1 Balance 113.40 2 J17 537.50 650.90 Vargas, Inc. Jan. 1 Balance 67.15 18 J17 660.00 727.15 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 425
Problem 9-3B (concluded) May's Beauty Store Schedule of Accounts Receivable January 31, T. Cantrell J. Herbert Total Accounts Receivable $248.99 182.27 $431.26 May's Beauty Store Schedule of Accounts Payable January 31, Braun, Inc. Mejia, Inc. Vargas, Inc. Total Accounts Payable $1,397.95 650.90 727.15 $2,776.00 426 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-4B SALES JOURNAL PAGE 39 INV. NO. CUSTOMER'S S RECEIVABLE DR. SALES CR. 1 1 2 Apr. 3 822 Maxwell Company 652.80 2 3 7 823 B. A. Fitzpatrick Company 462.15 3 4 8 824 Durham Hardware 205.60 4 5 15 825 Briggs and Campos 831.47 5 6 21 826 Pena and Carr 590.34 6 7 26 827 O'Neill Company 569.90 7 8 30 828 Durham Hardware 735.50 8 9 30 Total 4,047.76 9 10 (113) (411) 10 11 11 GENERAL JOURNAL PAGE 74 DESCRIPTION 1 1 2 Apr. 13 Sales Returns and Allowances 412 136.50 2 3 Accounts Receivable, 3 4 B. A. Fitzpatrick Company 113/ 136.50 4 5 Issued credit memo no. 61. 5 6 6 7 24 Sales Returns and Allowances 412 80.45 7 8 Accounts Receivable, 8 9 Briggs and Campos 113/ 80.45 9 10 Issued credit memo no. 62. 10 11 11 12 28 Sales Returns and Allowances 412 52.48 12 13 Accounts Receivable, 13 14 Durham Hardware 113/ 52.48 14 15 Issued credit memo no. 63. 15 16 16 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 427
Problem 9-4B (continued) GENERAL LEDGER Accounts Receivable NO. 113 Apr. 1 Balance 1,169.42 13 J74 136.50 1,032.92 24 J74 80.45 952.47 28 J74 52.48 899.99 30 S39 4,047.76 4,947.75 Sales NO. 411 Apr. 1 Balance 11,260.44 30 S39 4,047.76 15,308.20 Sales Returns and Allowances NO. 412 Apr. 1 Balance 396.42 13 J74 136.50 532.92 24 J74 80.45 613.37 28 J74 52.48 665.85 Briggs and Campos S RECEIVABLE LEDGER Apr. 1 Balance 927.76 15 S39 831.47 1,759.23 24 J74 80.45 1,678.78 428 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
f Problem 9-4B (continued) Durham Hardware CHAPTER 9 Apr. 8 S39 205.60 205.60 28 J74 52.48 153.12 30 S39 735.50 888.62 B. A. Fitzpatrick Company Apr. 7 S39 462.15 462.15 13 J74 136.50 325.65 Maxwell Company Apr. 1 Balance 241.66 3 S39 652.80 894.46 O'Neill Company Apr. 26 S39 569.90 569.90 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 429
Problem 9-4B (concluded) Pena and Carr Apr. 21 S39 590.34 590.34 R. J. Hinton Company Schedule of Accounts Receivable April 30, Briggs and Campos Durham Hardware B. A. Fitzpatrick Company Maxwell Company O'Neill Company Pena and Carr Total Accounts Receivable $1,678.78 888.62 325.65 894.46 569.90 590.34 $4,947.75 430 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-5B PURCHASES JOURNAL PAGE 81 SUPPLIER'S INV. NO. INV. TERMS S PAYABLE FREIGHT IN PURCHASES 1 1 2 Jan. 4 Nielsen Company 26145 1/3 n/60 4,775.00 4,775.00 2 3 7 Barton Tire Company 9763 1/5 2/10, n/30 792.00 792.00 3 4 8 Gross Products Company 17317 1/6 n/30 384.00 384.00 4 5 11 Bray, Inc. 291GE 1/9 1/10, n/30 506.00 36.00 470.00 5 6 19 Gross Products Company 17520 1/17 n/30 96.50 96.50 6 7 24 Nielsen Company 26942 1/23 n/60 1,487.00 1,487.00 7 8 29 Davila Manufacturing Company 762AC 1/26 2/10, n/30 304.80 304.80 8 9 31 Lamb Safety Net 27712 1/26 2/10, n/30 437.47 22.00 415.47 9 10 31 Totals 8,782.77 58.00 8,724.77 10 11 (212) (514) (511) 11 12 12 13 13 14 14 15 15 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 431
Problem 9-5B (continued) Accounts Payable GENERAL LEDGER NO. 212 Jan. 1 Balance 423.08 31 P81 8,782.77 9,205.85 Purchases NO. 511 Jan. 31 P81 8,724.77 8,724.77 Freight In NO. 514 Jan. 31 P81 58.00 58.00 432 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-5B (continued) Barton Tire Company S PAYABLE LEDGER Jan. 1 Balance 156.00 7 P81 792.00 948.00 Bray, Inc. Jan. 11 P81 506.00 506.00 Davila Manufacturing Company Jan. 1 Balance 82.88 29 P81 304.80 387.68 Gross Products Company Jan. 8 P81 384.00 384.00 19 P81 96.50 480.50 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 433
Problem 9-5B (concluded) Lamb Safety Net Jan. 1 Balance 184.20 31 P81 437.47 621.67 Nielsen Company Jan. 4 P81 4,775.00 4,775.00 24 P81 1,487.00 6,262.00 West Bicycle Shop Schedule of Accounts Payable January 31, Barton Tire Company Bray, Inc. Davila Manufacturing Company Gross Products Company Lamb Safety Net Nielsen Company Total Accounts Payable $ 948.00 506.00 387.68 480.50 621.67 6,262.00 $9,205.85 434 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-6B SALES JOURNAL PAGE 24 INV. NO. CUSTOMER'S S RECEIVABLE DR. SALES CR. 1 1 2 Apr. 1 5522 Hubbard Hardware 607.40 2 3 9 5523 Booth Stores 1,025.30 3 4 16 5524 J. A. Acevedo 921.56 4 5 28 5525 Grimes Specialty Company 3,598.70 5 6 30 Total 6,152.96 6 7 (113) (411) 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 435
Problem 9-6B (continued) PURCHASES JOURNAL PAGE 18 SUPPLIER'S TERMS INV. NO. INV. S PAYABLE FREIGHT IN PURCHASES 6 1 1 2 Apr. 4 Roth Manufacturing Company C1142 4/2 1/10, n/30 590.00 34.00 556.00 2 3 11 Baird Products Company 8990 4/11 2/10, n/30 1,831.80 75.00 1,756.80 3 4 24 Atkins Manufacturing Company P1981 4/22 2/10, n/30 1,508.80 76.00 1,432.80 4 5 30 Totals 3,930.60 185.00 3,745.60 5 (212) (514) (511) 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 436 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-6B (continued) DESCRIPTION GENERAL JOURNAL PAGE 68 1 1 2 Apr. 19 Sales Returns and Allowances 412 86.00 2 3 Accounts Receivable, Booth Stores 113/ 86.00 3 4 Issued credit memo no. 32. 4 5 5 6 27 Office Supplies Expense 613 84.40 6 7 Accounts Payable, Carson and Dyer 212/ 84.40 7 8 Invoice no. E621A, invoice dated 8 9 4/25, terms n/30. 9 10 10 11 29 Sales Returns and Allowances 412 80.00 11 12 Accounts Receivable, J. A. Acevedo 113/ 80.00 12 13 Issued credit memo no. 33. 13 14 14 15 30 Accounts Payable, Barajas, Inc. 212/ 115.20 15 16 Purchases Returns and Allowances 512 115.20 16 17 Credit memo no. 79 for return 17 18 of merchandise. 18 19 19 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 437
Problem 9-6B (continued) GENERAL LEDGER Accounts Receivable NO. 113 Apr. 1 Balance 1,400.00 19 J68 86.00 1,314.00 29 J68 80.00 1,234.00 30 S24 6,152.96 7,386.96 Accounts Payable NO. 212 Apr. 1 Balance 378.00 27 J68 84.40 462.40 30 J68 115.20 347.20 30 P18 3,930.60 4,277.80 Sales NO. 411 Apr. 1 Balance 11,000.00 30 S24 6,152.96 17,152.96 Sales Returns and Allowances NO. 412 Apr. 1 Balance 410.00 19 J68 86.00 496.00 29 J68 80.00 576.00 438 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-6B (continued) Purchases NO. 511 Apr. 1 Balance 9,600.00 30 P18 3,745.60 13,345.60 Purchases Returns and Allowances NO. 512 Apr. 1 Balance 60.00 30 J68 115.20 175.20 Freight In NO. 514 Apr. 1 Balance 712.00 30 P18 185.00 897.00 Office Supplies Expense NO. 613 Apr. 1 Balance 220.00 27 J68 84.40 304.40 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 439
Problem 9-6B (continued) J. A. Acevedo S RECEIVABLE LEDGER Apr. 16 S24 921.56 921.56 29 J68 80.00 841.56 Booth Stores Apr. 1 Balance 352.50 9 S24 1,025.30 1,377.80 19 J68 86.00 1,291.80 Grimes Specialty Company Apr. 1 Balance 225.50 28 S24 3,598.70 3,824.20 Hubbard Hardware Apr. 1 Balance 822.00 1 S24 607.40 1,429.40 440 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9-6B (continued) S PAYABLE LEDGER Atkins Manufacturing Company Apr. 24 P18 1,508.80 1,508.80 Baird Products Company Apr. 1 Balance 122.46 11 P18 1,831.80 1,954.26 Barajas, Inc. Apr. 1 Balance 255.54 30 J68 115.20 140.34 Carson and Dyer Apr. 27 J68 84.40 84.40 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 441
Problem 9-6B (concluded) Roth Manufacturing Company Apr. 4 P18 590.00 590.00 Kaufman Metal Products Schedule of Accounts Receivable April 30, J. A. Acevedo Booth Stores Grimes Specialty Company Hubbard Hardware Total Accounts Receivable $ 841.56 1,291.80 3,824.20 1,429.40 $7,386.96 Kaufman Metal Products Schedule of Accounts Payable April 30, Atkins Manufacturing Company Baird Products Company Barajas, Inc. Carson and Dyer Roth Manufacturing Company Total Accounts Payable $1,508.80 1,954.26 140.34 84.40 590.00 $4,277.80 442 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
SOLUTIONS TO ACTIVITIES CONSIDER AND COMMUNICATE Suggested Response Speak to the buyers who order goods. Are they ordering inferior goods? Are the vendors sending inferior goods? Speak to the Receiving Department to see if goods are being mishandled. Also, ask if the goods are arriving in poor condition. The problem may be with the freight carriers. Are the goods appropriately packed and handled? CRITICAL THINKING Suggested Response 1. Most likely, the bookkeeper recorded the $1,800 in sales tax as a credit to sales. Sales Tax Payable should have a credit balance of $1,730 ($1,800 collected $70 on customer returns). Correction: Debit Sales $1,800, credit Sales Tax Payable $1,800 (an omitted account). Most likely, the bookkeeper recorded the $970 in customer returns as a debit to Sales and a credit to Accounts Receivable. Correction: Debit Sales Returns and Allowances $900 (an omitted account), credit Sales $970, and debit Sales Tax Payable $70. Sales Tax Payable Sales Sales Returns and Allowances + + + 70 1,800 1,800 970 900 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 443
CRITICAL THINKING (concluded) Pierce Retail Outlet Trial Balance March 31, Cash 8,940 Accounts Receivable 480 Store Equipment 9,460 Accounts Payable 958 Sales Tax Payable 1,730 D. Pierce, Capital 11,959 D. Pierce, Drawing 4,480 Sales 17,170 Sales Returns and Allowances 900 Rent Expense 2,400 Wages Expense 4,864 Supplies Expense 175 Miscellaneous Expense 118 31,817 31,817 444 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9A-1 DESCRIPTION GENERAL JOURNAL PAGE 25 1 1 2 June 1 Accounts Receivable, Hendrix Office 2 3 Store 451.20 3 4 Sales 451.20 4 5 Sold merchandise to Hendrix 5 6 Office Store, invoice no. 1001. 6 7 7 8 Cost of Goods Sold 397.06 8 9 Merchandise Inventory 397.06 9 10 Cost of merchandise sold to 10 11 Hendrix Office Store, invoice 11 12 no. 1001. 12 13 13 14 3 Merchandise Inventory 500.15 14 15 Accounts Payable, Krueger, Inc. 500.15 15 16 Purchased merchandise from 16 17 Krueger, Inc., invoice no. 845A, 17 18 invoice dated 6/1, terms 1/10, n/30. 18 19 19 20 10 Accounts Receivable, Ballard Stores 2,483.65 20 21 Sales 2,483.65 21 22 Sold merchandise to Ballard 22 23 Stores, invoice no. 1002. 23 24 24 25 Cost of Goods Sold 2,235.29 25 26 Merchandise Inventory 2,235.29 26 27 Cost of merchandise sold to 27 28 Ballard Stores, invoice no. 1002. 28 29 29 30 13 Merchandise Inventory 2,573.13 30 31 Accounts Payable, Kennedy, Inc. 2,573.13 31 32 Purchased merchandise from 32 33 Kennedy, Inc., invoice no. 4833, 33 34 invoice dated 6/11, terms 2/10, n/30. 34 35 35 36 36 37 37 38 38 39 39 40 40 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 445
Problem 9A-1 (concluded) GENERAL JOURNAL PAGE 26 DESCRIPTION 1 1 2 June 18 Accounts Receivable, Lawson Office 2 3 Store 754.99 3 4 Sales 754.99 4 5 Sold merchandise to Lawson 5 6 Office Store, invoice no. 1003. 6 7 7 8 Cost of Goods Sold 671.94 8 9 Merchandise Inventory 671.94 9 10 Cost of merchandise sold to 10 11 Lawson Office Store, invoice 11 12 no. 1003. 12 13 13 14 20 Sales Returns and Allowances 103.25 14 15 Accounts Receivable, Lawson 15 16 Office Store 103.25 16 17 Issued credit memo no. 33. 17 18 18 19 Merchandise Inventory 91.89 19 20 Cost of Goods Sold 91.89 20 21 Cost of merchandise returned, 21 22 credit memo no. 33. 22 23 23 24 25 Merchandise Inventory 1,636.30 24 25 Accounts Payable, Villarreal, Inc. 1,636.30 25 26 Purchased merchandise from 26 27 Villarreal, Inc., invoice no. 4R32, 27 28 invoice dated 6/18, terms net 30. 28 29 29 30 30 Accounts Payable, Villarreal, Inc. 224.50 30 31 Merchandise Inventory 224.50 31 32 Credit memo no. 44 for return 32 33 of merchandise. 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 446 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Problem 9A-2 GENERAL JOURNAL PAGE 84 DESCRIPTION 1 1 2 Nov. 3 Accounts Receivable, Spence Tennis 2 3 Shop 2,482.51 3 4 Sales 2,482.51 4 5 Sold merchandise to Spence 5 6 Tennis Shop, invoice no. 5420. 6 7 7 8 Cost of Goods Sold 1,961.18 8 9 Merchandise Inventory 1,961.18 9 10 Cost of merchandise sold to 10 11 Spence Tennis Shop, invoice 11 12 no. 5420. 12 13 13 14 5 Sales Returns and Allowances 287.45 14 15 Accounts Receivable, Spence 15 16 Tennis Shop 287.45 16 17 Issued credit memo no. 38. 17 18 18 19 Merchandise Inventory 227.09 19 20 Cost of Goods Sold 227.09 20 21 Cost of merchandise returned, 21 22 credit memo no. 38. 22 23 23 24 7 Merchandise Inventory 3,989.16 24 25 Accounts Payable, Maldonado 25 26 Manufacturing, Inc. 3,989.16 26 27 Purchased merchandise from 27 28 Maldonado Manufacturing, Inc., 28 29 invoice no. 1548, invoice dated 29 30 11/4, terms net 45. 30 31 31 32 9 Merchandise Inventory 493.65 32 33 Accounts Payable, Lozano, Inc. 493.65 33 34 Purchased merchandise from 34 35 Lozano, Inc., invoice no. 8755, 35 36 invoice dated 11/5, terms 1/15, 36 37 n/30. 37 38 38 39 39 40 40 41 41 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 447
Problem 9A-2 (concluded) GENERAL JOURNAL PAGE 85 DESCRIPTION 1 1 2 Nov. 12 Accounts Payable, Lozano, Inc. 102.20 2 3 Merchandise Inventory 102.20 3 4 Credit memo no. 542 for return 4 5 of merchandise. 5 6 6 7 17 Accounts Receivable, Jack's Golfing 7 8 Shop 486.35 8 9 Sales 486.35 9 10 Sold merchandise to Jack's 10 11 Golfing Shop, invoice no. 5421. 11 12 12 13 Cost of Goods Sold 432.85 13 14 Merchandise Inventory 432.85 14 15 Cost of merchandise sold to 15 16 Jack's Golfing Shop, invoice 16 17 no. 5421. 17 18 18 19 23 Accounts Receivable, Yates Sporting 19 20 Goods 2,465.99 20 21 Sales 2,465.99 21 22 Sold merchandise to Yates 22 23 Sporting Goods, invoice no. 5422. 23 24 24 25 Cost of Goods Sold 1,972.79 25 26 Merchandise Inventory 1,972.79 26 27 Cost of merchandise sold to 27 28 Yates Sporting Goods, invoice 28 29 no. 5422. 29 30 30 31 28 Merchandise Inventory 543.29 31 32 Accounts Payable, Fields, Inc. 543.29 32 33 Purchased merchandise from 33 34 Fields, Inc., invoice no. 34 35 4599, invoice dated 11/25, terms 35 36 2/10, n/30. 36 37 37 38 38 39 39 40 40 41 41 448 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
ALL ABOUT YOU SPA: GENERAL JOURNAL PAGE 6 DESCRIPTION 1 Reversing Entry 1 2 July 1 Wages Payable 212 369.50 2 3 Wages Expense 611 369.50 3 4 4 5 5 July Transactions 6 1 Cash 111 25,000.00 6 7 A. Valli, Capital 311 25,000.00 7 8 Owner invested cash in business. 8 9 9 10 1 Spa Supplies Expense 614 490.00 10 11 Accounts Payable/Golden Spa Supplies 211/ 490.00 11 12 Bought spa supplies on account, 12 13 Inv. 1836. 13 14 14 15 1 Purchases 511 5,300.00 15 16 Freight In 515 145.00 16 17 Accounts Payable/Spa Goods 211/ 5,445.00 17 18 Bought merch. on account, Inv. 312. 18 19 19 20 1 Purchases 511 3,692.00 20 21 Freight In 515 104.00 21 22 Accounts Payable/Logo Products 211/ 3,796.00 22 23 Bought merch. on acct., Inv. 1579. 23 24 24 25 2 Purchases 511 2,623.00 25 26 Freight In 515 98.00 26 27 Accounts Payable/Spa Magic 211/ 2,721.00 27 28 Bought merch. on acct., Inv. 5033. 28 29 29 30 2 Accts. Receivable/Los Obrigados Lodge 113/ 351.00 30 31 Merchandise Sales 412 325.00 31 32 Sales Tax Payable 215 26.00 32 33 Sold merch. on account, Inv. 14. 33 34 34 35 3 Spa Equipment 124 8,235.00 35 36 Accounts Payable/Spa Equipment, Inc. 211/ 6,235.00 36 37 Cash 111 2,000.00 37 38 Bought spa equip. on account with 38 39 down payment, Ck. 1027, Inv. 2731. 39 40 40 41 3 Rent Expense 612 1,650.00 41 42 Cash 111 1,650.00 42 43 Paid July rent, Ck. 1028. 43 44 44 *Alternatively, if the purchases journal is used, this entry will appear as shown on page 455. **Alternatively, if the sales journal is used, this entry will appear as shown on page 454. * * * ** 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 449
ALL ABOUT YOU SPA (continued) GENERAL JOURNAL PAGE 7 DESCRIPTION 1 1 2 July 3 Accounts Payable/Spa Equipment, Inc. 211/ 89.00 2 3 Cash 111 89.00 3 4 Paid Inv. 2013 in full, Ck. 1029. 4 5 5 6 4 Accounts Receivable/Chaco's 113/ 520.02 6 7 Merchandise Sales 412 481.50 7 8 Sales Tax Payable 215 38.52 8 9 Sold merch. on account, Inv. 15. 9 10 10 11 5 Accounts Payable/Golden Spa Supplies 211/ 492.00 11 12 Cash 111 492.00 12 13 Paid Inv. 804 in full, Ck. 1030. 13 14 14 15 5 Accounts Payable/Office Staples 211/ 120.00 15 16 Cash 111 120.00 16 17 Paid Inv. 522 in full, Ck. 1031. 17 18 18 19 5 Miscellaneous Expense 630 98.00 19 20 Cash 111 98.00 20 21 Paid for flowers and balloons for 21 22 lobby, Ck. 1032. 22 23 23 24 5 Accounts Payable/Adco, Inc. 211/ 397.00 24 25 Cash 111 397.00 25 26 Paid Inv. no. 512 in full, Ck. 1033. 26 27 27 28 5 Wages Expense 611 1,845.50 28 29 Cash 111 1,845.50 29 30 Paid week's wages, Ck. 1034. 30 31 31 32 5 Office Equipment 128 420.00 32 33 Accounts Payable/Superior Equipment 211/ 420.00 33 34 Bought office equip. on account, 34 35 Inv. 3608. 35 36 36 37 5 Miscellaneous Expense 630 186.00 37 38 Accounts Payable/ Office Staples 211/ 186.00 38 39 Bought books for waiting room on 39 40 account, Inv. 1417. 40 41 41 42 5 Office Supplies Expense 613 118.00 42 43 Accounts Payable/ Office Staples 211/ 118.00 43 44 Bought office supplies on account, 44 45 Inv. 1418. 45 46 46 * 450 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
ALL ABOUT YOU SPA (continued) GENERAL JOURNAL PAGE 8 DESCRIPTION 1 1 2 July 5 Purchases 511 1,253.00 2 3 Freight In 515 56.00 3 4 Accounts Payable/Giftco 211/ 1,309.00 4 * 5 Bought merch. on account, Inv. 316. 5 6 6 7 5 Accts. Receivable/Pleasant Spa 113/ 1,961.23 7 8 Merchandise Sales 412 1,815.95 8 9 Sales Tax Payable 215 145.28 9 ** 10 Sold merch. on account, Inv. 16. 10 11 11 12 7 Cash 111 4,881.60 12 13 Merchandise Sales 412 1,410.00 13 14 Income from Services 411 3,110.00 14 15 Sales Tax Payable 215 361.60 15 16 First week's cash revenue. 16 17 17 18 7 Cash 111 150.00 18 19 Accounts Receivable/Jill Anson 113/ 150.00 19 20 Rec'd payment on account, Inv. 10. 20 21 21 22 10 Accounts Receivable/Holmes Condos 113/ 367.47 22 23 Merchandise Sales 412 340.25 23 24 Sales Tax Payable 215 27.22 24 ** 25 Sold merch. on account, Inv. 17. 25 26 26 27 10 Accounts Receivable/Mini Spa 113/ 222.48 27 28 Merchandise Sales 412 206.00 28 29 Sales Tax Payable 215 16.48 29 ** 30 Sold merch. on account, Inv. 18. 30 31 31 32 12 Wages Expense 611 1,845.50 32 33 Cash 111 1,845.50 33 34 Paid week's wages, Ck. 1035. 34 35 35 36 12 Accounts Receivable/About Face Spa 113/ 521.59 36 37 Merchandise Sales 412 482.95 37 38 Sales Tax Payable 215 38.64 38 39 Sold merch. on account, Inv. 19. 39 40 40 41 14 Cash 111 200.00 41 42 Accounts Receivable/Jack Morgan 113/ 200.00 42 43 Rec'd payment on account, Inv. 11. 43 44 44 *Alternatively, if the purchases journal is used, this entry will appear as shown on page 455. **Alternatively, if the sales journal is used, this entry will appear as shown on page 454. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 451
ALL ABOUT YOU SPA (continued) GENERAL JOURNAL PAGE 9 DESCRIPTION 1 1 2 July 14 Cash 111 4,158.00 2 3 Merchandise Sales 412 1,220.00 3 4 Income from Services 411 2,630.00 4 5 Sales Tax Payable 215 308.00 5 6 Second week's cash revenue. 6 7 7 8 18 Accounts Payable/Superior Equipment 211/ 1,150.00 8 9 Cash 111 1,150.00 9 10 Paid Inv. 3140 in full, Ck. 1036. 10 11 11 12 19 Wages Expense 611 1,840.50 12 13 Cash 111 1,840.50 13 14 Paid week's wages, Ck. 1037. 14 15 15 16 21 Cash 111 180.00 16 17 Accounts Receivable/Tory Ligman 113/ 180.00 17 18 Rec'd payment on account, Inv. 12. 18 19 19 20 21 Cash 111 5,248.80 20 21 Merchandise Sales 412 1,940.00 21 22 Income from Services 411 2,920.00 22 23 Sales Tax Payable 215 388.80 23 24 Third week's cash revenue. 24 25 25 26 25 Spa Equipment 124 173.00 26 27 Cash 111 173.00 27 28 Bought nail cart for cash, Ck. 1038. 28 29 29 30 26 Wages Expense 611 1,842.00 30 31 Cash 111 1,842.00 31 32 Paid week's wages, Ck. 1039. 32 33 33 34 28 Laundry Expense 615 84.00 34 35 Cash 111 84.00 35 36 Paid month's laundry bill, Ck. 1040. 36 37 37 38 28 Cash 111 109.00 38 39 Accounts Receivable/Judy Wilcox 113/ 109.00 39 40 Rec'd payment on account, Inv. 13. 40 41 41 42 31 Cash 111 6,471.36 42 43 Merchandise Sales 412 1,930.00 43 44 Income from Services 411 4,062.00 44 45 Sales Tax Payable 215 479.36 45 46 End of month's cash revenue. 46 47 47 452 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
ALL ABOUT YOU SPA (continued) GENERAL JOURNAL PAGE 10 DESCRIPTION 1 1 2 July 31 A. Valli, Drawing 312 2,500.00 2 3 Cash 111 2,500.00 3 4 Owner withdrew cash for personal 4 5 use, Ck. 1041. 5 6 6 7 31 Utilities Expense 617 225.00 7 8 Cash 111 225.00 8 9 Paid monthly telephone bill, 9 10 Ck. 1042. 10 11 11 12 31 Utilities Expense 617 248.00 12 13 Cash 111 248.00 13 14 Paid monthly power and water bill, 14 15 Ck. 1043. 15 16 16 17 31 Spa Equipment 124 1,800.00 17 18 A. Valli, Capital 311 1,800.00 18 19 Investment by owner of personal 19 20 spa equipment. 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 41 41 42 42 43 43 44 44 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 453
ALL ABOUT YOU SPA (continued) Optional: If the sales journal is used, the sales on account entries will appear as follows: SALES JOURNAL 1 INV. NO. CUSTOMER'S S RECEIVABLE SALES TAX PAYABLE MERCHANDISE SALES 1 1 2 July 2 14 Los Obrigados Lodge 351.00 26.00 325.00 2 3 4 15 Chaco's 520.02 38.52 481.50 3 4 5 16 Pleasant Spa 1,961.23 145.28 1,815.95 4 5 10 17 Holmes Condos 367.47 27.22 340.25 5 6 10 18 Mini Spa 222.48 16.48 206.00 6 7 12 19 About Face Spa 521.59 38.64 482.95 7 8 31 Totals 3,943.79 292.14 3,651.65 8 9 (113) (215) (412) 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 454 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
ALL ABOUT YOU SPA (continued) Optional: If the purchases journal is used, the purchases on account entries will appear as follows: PURCHASES JOURNAL PAGE 1 SUPPLIER'S INV. NO. INV. TERMS S PAYABLE FREIGHT IN PURCHASES 1 1 2 July 1 Spa Goods 312 7/1 2/10, n/60 5,445.00 145.00 5,300.00 2 3 1 Logo Products 1579 7/1 2/10, n/60 3,796.00 104.00 3,692.00 3 4 2 Spa Magic 5033 7/2 2/10, n/30 2,721.00 98.00 2,623.00 4 5 5 Giftco 316 7/5 2/10, n/60 1,309.00 56.00 1,253.00 5 7 6 31 Totals 13,271.00 403.00 12,868.00 6 (211) (515) (511) 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 455
ALL ABOUT YOU SPA (continued) GENERAL LEDGER Cash NO. 111 July 1 Balance 15,170.00 1 J6 25,000.00 40,170.00 3 J6 2,000.00 38,170.00 3 J6 1,650.00 36,520.00 3 J7 89.00 36,431.00 5 J7 492.00 35,939.00 5 J7 120.00 35,819.00 5 J7 98.00 35,721.00 5 J7 397.00 35,324.00 5 J7 1,845.50 33,478.50 7 J8 4,881.60 38,360.10 7 J8 150.00 38,510.10 12 J8 1,845.50 36,664.60 14 J8 200.00 36,864.60 14 J9 4,158.00 41,022.60 18 J9 1,150.00 39,872.60 19 J9 1,840.50 38,032.10 21 J9 180.00 38,212.10 21 J9 5,248.80 43,460.90 25 J9 173.00 43,287.90 26 J9 1,842.00 41,445.90 28 J9 84.00 41,361.90 28 J9 109.00 41,470.90 31 J9 6,471.36 47,942.26 31 J10 2,500.00 45,442.26 31 J10 225.00 45,217.26 31 J10 248.00 44,969.26 456 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
ALL ABOUT YOU SPA (continued) Accounts Receivable NO. 113 July 1 Balance 1,264.00 2 J6 351.00 1,615.00 4 J7 520.02 2,135.02 5 J8 1,961.23 4,096.25 7 J8 150.00 3,946.25 10 J8 367.47 4,313.72 10 J8 222.48 4,536.20 12 J8 521.59 5,057.79 14 J8 200.00 4,857.79 21 J9 180.00 4,677.79 28 J9 109.00 4,568.79 Alternatively, if the sales journal is used, all debit entries above would be posted as a single total from the Accounts Receivable Debit column of the sales journal, as follows: 31 S1 3,943.79 4,568.79 Prepaid Insurance 117 NO. July 1 Balance 800.00 Spa Equipment NO. 124 July 1 Balance 7,393.00 3 J6 8,235.00 15,628.00 25 J9 173.00 15,801.00 31 J10 1,800.00 17,601.00 Accumulated Depreciation, Spa Equipment 125 NO. July 1 Balance 64.88 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 457
ALL ABOUT YOU SPA (continued) Office Equipment 128 NO. July 1 Balance 1,150.00 5 J7 420.00 1,570.00 Accumulated Depreciation, Office Equipment NO. 129 July 1 Balance 10.00 Accounts Payable NO. 211 July 1 Balance 2,248.00 1 J6 490.00 2,738.00 1 J6 5,445.00 * 8,183.00 1 J6 3,796.00 * 11,979.00 2 J6 2,721.00 * 14,700.00 3 J6 6,235.00 20,935.00 3 J7 89.00 20,846.00 5 J7 492.00 20,354.00 5 J7 120.00 20,234.00 5 J7 397.00 19,837.00 5 J7 420.00 20,257.00 5 J7 186.00 20,443.00 5 J7 118.00 20,561.00 5 J8 1,309.00 * 21,870.00 18 J9 1,150.00 20,720.00 *Alternatively, if the purchases journal is used, all credit entries with asterisks above would be posted as a single total from the Accounts Payable Credit column of the purchases journal, as follows: 31 P1 13,271.00 20,720.00 Wages Payable NO. 212 July 1 Balance 369.50 1 Reversing J6 369.50 458 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
ALL ABOUT YOU SPA (continued) Sales Tax Payable NO. 215 July 2 J6 26.00 * 26.00 4 J7 38.52 * 64.52 5 J8 145.28 * 209.80 7 J8 361.60 571.40 10 J8 27.22 * 598.62 10 J8 16.48 * 615.10 12 J8 38.64 * 653.74 14 J9 308.00 961.74 21 J9 388.80 1,350.54 31 J9 479.36 1,829.90 *Alternatively, if the sales journal is used, all credit entries with asterisks above would be posted as a single total from the Sales Tax Payable Credit column of the sales journal, as follows: 31 S1 292.14 1,829.90 A. Valli, Capital NO. 311 July 1 Balance 23,084.62 1 J6 25,000.00 48,084.62 31 J10 1,800.00 49,884.62 A. Valli, Drawing NO. 312 July 31 J10 2,500.00 2,500.00 Income Summary NO. 313 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 459
ALL ABOUT YOU SPA (continued) Income from Services NO. 411 July 7 J8 3,110.00 3,110.00 14 J9 2,630.00 5,740.00 21 J9 2,920.00 8,660.00 31 J9 4,062.00 12,722.00 Merchandise Sales NO. 412 July 2 J6 325.00 * 325.00 4 J7 481.50 * 806.50 5 J8 1,815.95 * 2,622.45 7 J8 1,410.00 4,032.45 10 J8 340.25 * 4,372.70 10 J8 206.00 * 4,578.70 12 J8 482.95 * 5,061.65 14 J9 1,220.00 6,281.65 21 J9 1,940.00 8,221.65 31 J9 1,930.00 10,151.65 Alternatively, if the sales journal is used, all credit entries with asterisks above would be posted as a single total from the Sales Credit column of the sales journal, as follows: 31 S1 3,651.65 10,151.65 Purchases NO. 511 July 1 J6 5,300.00 5,300.00 1 J6 3,692.00 8,992.00 2 J6 2,623.00 11,615.00 5 J8 1,253.00 12,868.00 Alternatively, if the purchases journal is used, all debit entries above would be posted as a single total from the Purchases Debit column of the purchases journal, as follows: 31 P1 12,868.00 12,868.00 460 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
ALL ABOUT YOU SPA (continued) Freight In NO. 515 July 1 J6 145.00 145.00 1 J6 104.00 249.00 2 J6 98.00 347.00 5 J8 56.00 403.00 Alternatively, if the purchases journal is used, all debit entries above would be posted as a single total from the Freight In Debit column of the purchases journal, as follows: 31 P1 403.00 403.00 Wages Expense NO. 611 July 1 Reversing J6 369.50 369.50 5 J7 1,845.50 1,476.00 12 J8 1,845.50 3,321.50 19 J9 1,840.50 5,162.00 26 J9 1,842.00 7,004.00 Rent Expense 612 NO. July 3 J6 1,650.00 1,650.00 Office Supplies Expense NO. 613 July 5 J7 118.00 118.00 Spa Supplies Expense NO. 614 July 1 J6 490.00 490.00 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 461
ALL ABOUT YOU SPA (continued) Laundry Expense NO. 615 July 28 J9 84.00 84.00 Advertising Expense NO. 616 Utilities Expense 617 NO. July 31 J10 225.00 225.00 31 J10 248.00 473.00 Insurance Expense NO. 618 Depreciation Expense, Spa Equipment NO. 619 Depreciation Expense, Office Equipment NO. 620 462 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
ALL ABOUT YOU SPA (continued) Miscellaneous Expense NO. 630 July 5 J7 98.00 98.00 5 J7 186.00 284.00 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 463
ALL ABOUT YOU SPA (continued) S RECEIVABLE LEDGER About Face Spa July 12 J8* 521.59 521.59 Jill Anson July 1 Balance 325.00 7 J8 150.00 175.00 Chaco's July 4 J7* 520.02 520.02 Holmes Condos July 10 J8* 367.47 367.47 *Alternatively, if the sales journal is used, these posting references will be S1. 464 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
ALL ABOUT YOU SPA (continued) Tory Ligman July 1 Balance 344.00 21 J9 180.00 164.00 Los Obrigados Lodge July 2 J6* 351.00 351.00 Mini Spa July 10 J8* 222.48 222.48 Jack Morgan July 1 Balance 486.00 14 J8 200.00 286.00 *Alternatively, if the sales journal is used, these posting references will be S1. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 465
ALL ABOUT YOU SPA (continued) Pleasant Spa July 5 J8* 1,961.23 1,961.23 Judy Wilcox July 1 Balance 109.00 28 J9 109.00 *Alternatively, if the sales journal is used, this posting reference will be S1. 466 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
ALL ABOUT YOU SPA (continued) S PAYABLE LEDGER Adco, Inc. July 1 Balance 397.00 5 J7 397.00 Giftco July 5 J8* 1,309.00 1,309.00 Golden Spa Supplies July 1 Balance 492.00 1 J6 490.00 982.00 5 J7 492.00 490.00 Logo Products July 1 J6* 3,796.00 3,796.00 *Alternatively, if the purchases journal is used, these posting references will be P1. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 467
ALL ABOUT YOU SPA (continued) Office Staples July 1 Balance 120.00 5 J7 120.00 5 J7 186.00 186.00 5 J7 118.00 304.00 Spa Equipment, Inc. July 1 Balance 89.00 3 J6 6,235.00 6,324.00 3 J7 89.00 6,235.00 Spa Goods July 1 J6* 5,445.00 5,445.00 Spa Magic July 2 J6* 2,721.00 2,721.00 *Alternatively, if the purchases journal is used, these posting references will be P1. 468 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
ALL ABOUT YOU SPA (continued) Superior Equipment July 1 Balance 1,150.00 5 J7 420.00 1,570.00 18 J9 1,150.00 420.00 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 469
ALL ABOUT YOU SPA (continued) All About You Spa Trial Balance July 31, Cash 44,969.26 Accounts Receivable 4,568.79 Prepaid Insurance 800.00 Spa Equipment 17,601.00 Accumulated Depreciation, Spa Equipment 64.88 Office Equipment 1,570.00 Accumulated Depreciation, Office Equipment 10.00 Accounts Payable 20,720.00 Sales Tax Payable 1,829.90 A. Valli, Capital 49,884.62 A. Valli, Drawing 2,500.00 Income from Services 12,722.00 Merchandise Sales 10,151.65 Purchases 12,868.00 Freight In 403.00 Wages Expense 7,004.00 Rent Expense 1,650.00 Office Supplies Expense 118.00 Spa Supplies Expense 490.00 Laundry Expense 84.00 Utilities Expense 473.00 Miscellaneous Expense 284.00 95,383.05 95,383.05 470 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
ALL ABOUT YOU SPA (concluded) All About You Spa Schedule of Accounts Receivable July 31, About Face Spa $ 521.59 Jill Anson 175.00 Chaco's 520.02 Holmes Condos 367.47 Tory Ligman 164.00 Los Obrigados Lodge 351.00 Mini Spa 222.48 Jack Morgan 286.00 Pleasant Spa 1,961.23 Total Accounts Receivable $4,568.79 All About You Spa Schedule of Accounts Payable July 31, Giftco $ 1,309.00 Golden Spa Supplies 490.00 Logo Products 3,796.00 Office Staples 304.00 Spa Equipment, Inc. 6,235.00 Spa Goods 5,445.00 Spa Magic 2,721.00 Superior Equipment 420.00 Total Accounts Payable $20,720.00 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 471