Assume that Bishop Company in Problem 7-5A uses the periodic inventory system. Required 1. Open the following
Question:
Assume that Bishop Company in Problem 7-5A uses the periodic inventory system.
Required
1. Open the following general ledger accounts: Cash; Accounts Receivable; Inventory (March 1 beg. bal. is $300,000); Office Supplies; Store Supplies; Office Equipment; Accounts Payable; Long-Term Notes Payable; M. Bishop, Capital (March 1 beg. bal. is $300,000); Sales; Sales Discounts; Purchases; Purchases Returns and Allowances; Purchases Discounts; and Sales Salaries Expense. Open the following accounts receivable subsidiary ledger accounts: Taylor Few, Min Cho, and Lance Snow. Open the following accounts payable subsidiary ledger accounts: Stacy Company, Soy Industries, Tells Supply, and JW Company.
2. Enter the transactions from Problem 7-5A in a sales journal like that in Exhibit, a purchases journal like that in Exhibit 7A.3, a cash receipts journal like that in Exhibit, a cash disbursements journal like that in Exhibit, or a general journal.
3. Prepare a trial balance of the general ledger and prove the accuracy of the subsidiary ledgers by preparing schedules of both accounts receivable and accounts payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
Date Account Debited Mar 2 Min Cho 3 Lance Snow 10 Taylor Few 27 Taylor Few 28 Lance Snow 31 Total D...View the full answer
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
