During the second half of December 20-1, TJ's Specialty Shop engaged in the following transactions:

Dec. 16 Received payment from Lucy Greene on account, $1,960.

16 Sold merchandise on account to Kim Fields, $160, plus sales tax of $8. Sale No. 640.

17 Returned merchandise to Evans Essentials for credit, $150.

18 Issued Check No. 813 to Evans Essentials in payment of December 1 balance of $1,250, less the credit received on December 17.

19 Sold merchandise on account to Lucy Greene, $620, plus tax of $31. Sale No. 641.

22 Received payment from John Dempsey on account, $1,560.

23 Issued Check No. 814 for the purchase of supplies, $120. (Debit Supplies)

24 Purchased merchandise on account from West Wholesalers, $1,200. Invoice No. 465, dated December 24, terms n/30.

26 Purchased merchandise on account from Nathen Co., $800. Invoice No. 817, dated December 26, terms 2/10, n/30.

27 Issued Check No. 815 in payment of utilities expense for the month of December, $630.

27 Sold merchandise on account to John Dempsey, $2,020, plus tax of $101. Sale No. 642.

29 Received payment from Martha Boyle on account, $2,473.

29 Issued Check No. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $1,100.

30 Issued Check No. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $200.

As of December 16, TJ's account balances were as follows:

TJ's also had the following subsidiary ledger balances as of December 16:

At the end of the year, the following adjustments (a)–(g) need to be made:
(a, b) Merchandise inventory as of December 31, $19,700.
(c) Unused supplies on hand, $525.
(d) Unexpired insurance on December 31, $1,000.
(e) Depreciation expense on the building for the year, $800.
(f) Depreciation expense on the store equipment for the year, $450.
(g) Wages earned but not paid as of December 31, $330.
REQUIRED'GENERAL JOURNAL
1. If you are not using the working papers, open a general ledger, an accounts receivable ledger, and an accounts payable ledger as of December 16. Enter the December 16 balance of each of the accounts, with a check mark in the Posting Reference column.
For working paper users and nonusers:
2. Enter transactions for the second half of December in the general journal. Post immediately to the accounts receivable and accounts payable ledgers.
3. Post from the journal to the general ledger.
4. Prepare schedules of accounts receivable and accounts payable.
5. Prepare a year-end work sheet, an income statement, a statement of owner's equity, and a balance sheet. The mortgage payable includes $600 that is due within one year.
6. Journalize and post adjusting entries.
7. Journalize and post closing entries.
8. Prepare a post-closing trial balance.
9. Journalize and post reversing entries for the adjustments where appropriate, as of January 1, 20-2.
REQUIRED'SPECIAL JOURNALS
For those not using working papers:
1. If you are not using the working papers:
a. Open a general ledger, an accounts receivable ledger, and an accounts payable ledger as of
December 16. Enter the following December 16 balances in the general ledger accounts and place a check mark in the Posting Reference column.
Cash $ 11,500
Accounts Receivable 7,823
Accounts Payable 6,850
Sales Tax Payable 933
Sales 116,000
Purchases 60,500
Purchases Discounts 575
b. Enter the December 16 balances in the rest of the general ledger accounts, as indicated in the trial balance, and place a check mark in the Posting Reference column.
c. Enter the December 16 balances in the accounts receivable and accounts payable ledgers, as indicated in the subsidiary ledger account listings, and place a check mark in the Posting Reference column.
d. Insert Dec. 1–15, Cumulative Amount, and the following amounts in the special journal columns.
Sales Journal: Accounts Receivable Dr., 4,263;
Sales Cr., 4,060; Sales Tax Payable Cr., 203
Cash Receipts Journal: Accounts Receivable
Cr., 1,830; Sales Cr., 4,840; Sales Tax Pay
Cr., 242; Cash Dr., 6,912
Purchases Journal: Purchases Dr./Accts. Pay.
Cr., 3,900
Cash Payments Journal: General Dr., 1,680;
Accounts Payable Dr., 7,150; Purchases
Discounts Cr., 123; Cash Cr., 8,707.
For working paper users and nonusers:
2. Enter transactions for the second half of December in the proper journals. If you are using the working papers, the cumulative amount of entries in the special journals for December 1–15 has been entered in these journals for you. Post immediately to the accounts receivable and accounts payable ledgers.
3. Post from the journals to the general ledger. Post the journals in the following order: general, sales, purchases, cash receipts, and cash payments.
4. Prepare schedules of accounts receivable and accounts payable.
5. Prepare a year-end work sheet, an income statement, a statement of owner's equity, and a balance sheet. The mortgage payable includes $600 that is due within one year.
6. Journalize and post adjusting entries.
7. Journalize and post closing entries
8. Prepare a post-closing trial balance.
9. Journalize and post reversing entries for the adjustments where appropriate, as of January 1,20-2.

Transcribed Image Text:

Account Account No. Debit Credit $ 9,705 10,256 21,800 1,035 1,380 8,700 52,000 Cash 101 Accounts Reccivable Merchandisc Inventory Supplics Prepaid Insurance Land Building Accum. Depr.-Building Store Equipment Accum. Depr.-Storc Equipment Accounts Payable Wages Payable Sales Tax Payable Mortgage Payable Tom Jones, Capital Tom Jones, Drawing Income Summary Sales 122 131 141 145 161 171 $ 9,200 171.1 181 28,750 181.1 9,300 3,600 202 219 231 1,378 12,525 90,000 251 311 312 8,500 313 124,900 401 $ 1,430 Sales Returns and Allowances 401.1 Purchases Purchascs Returns and Allowances Purchascs Discounts 501 64,400 501.1 460 501.2 698 Freight-In Wages Expense Advertising Expense Supplics Expense Telephone Expense Utilities Expense Insurance Expense Depr. Expense-Building Depr. Expense-Store Equipment Miscellancous Expense Interest Expense 175 502 511 26,100 4,700 512 524 525 2,180 6,900 533 535 540 541 549 2,700 1,350 $252,061 551 $252,061