Liz Ames owns Fancy Writing Supply Co. in Moncton. As her newly hired accountant, your task is to:

a. Journalize the following transactions for the month of May.

b. Record in subsidiary ledgers and post to the general ledger as appropriate.

c. Total, rule, and cross-add the various journals.

d. Prepare a schedule of accounts receivable and a schedule of accounts payable at month-end.

The following is the partial chart of accounts for Fancy Writing Supply Co.:

Assets ............................................................. Revenue

1000 Cash ................................. 4000 Writing Supplies Sales

1100 Accounts Receivable .... 4020 Sales Returns and Allowances

1350 Prepaid Rent ............................... 4025 Sales Discounts

1800 Printing Press ........................................................

............................................................... Cost of Goods

Liabilities ................................................. 5000 Purchases

2150 Accounts Payable ... 5100 Purchases Returns and Allowances

2400 Bank Loan Payable ................... 5125 Purchases Discounts

Owner's Equity ................................................ Expenses

3000 E. Ames, Capital ......................... 6140 Cleaning Expense

.......................................... 6200 Display Supplies Expense

.......................................... 6500 Printing Supplies Expense

...................................................... 6800 Salaries Expense

2015

May 1 Liz Ames invested $25,000.00 and a printing press worth $30,000.00 in the business.

1 Paid three months' rent in advance to Riverfront Realty, cheque No. 3001, $2,100.00.

2 Purchased merchandise from Gant Paper Co. on account, $5,247.25. Invoice No. 24388, dated May 1, terms 2/10, n/30.

3 Sold merchandise to Dr. M. LaPeierre on account, $1,250.00. Invoice No. 801, terms 2/10, n/30.

6 Sold merchandise to Hon. N. Marachee on account, $2,457.50. Invoice no. 802, terms 2/10, n/30.

8 Purchased merchandise from Gant Paper Co. on account, $1,500. Invoice No. 24451, dated March 7, terms 2/10, n/30.

9 Sold merchandise to Fern Michaels, LLB, on account, $1,250.00. Invoice No. 803, terms 2/10, n/30.

May 10 Paid Jenkins Cleaning Service $287.50. Cheque No. 3002.

11 Paid Gant Paper Co. invoice No. 24388, dated May 2, cheque No. 3003, taking discount.

12 Dr. M. LaPeirre returned letterhead that cost $175.00 because of a design flaw. Liz issued credit memorandum No. 101 to the customer for this amount.

12 Purchased merchandise from Markham Inks on account, $985.25. Invoice No. 931, dated March 12, terms 3/15, n/60.

13 Arranged $10,000.00 bank loan with Royal Bank. Deposited today to the company's bank account.

14 Sold paper stock for cash, $585.00. Deposited today.

15 Paid casual salaries to D. Lee, $970.00, cheque No. 3004.

15 Returned merchandise to Markham Inks in the amount of $235.00. Liz issued debit memorandum No. 25 for this amount.

16 Sold more paper stock for cash, $1,500.00. Deposited today.

16 Received payment from Hon. N. Marachee, invoice No. 802, less discount.

17 Dr. M. LaPeierre paid invoice No. 801, less return, no discount.

18 Sold stationery supplies to B. Kirk, CA, on account, $2,765.50. Invoice No. 804, terms 2/10, n/30.

19 Purchased used printing press on account from Maritime Equipment Sales, $21,500.00. Invoice No. 30275, dated May 19 (no discount terms).

22 Sold to Dr. M. LaPeierre, additional stationery merchandise on account, $1,145.00. Invoice No. 805, terms 2/10, n/30.

23 Paid Markham Inks balance owed, cheque No. 3005, taking discount.

23 Sold merchandise on account to B. Kirk, CA, $724.65. Invoice No. 806, terms 2/10, n/30.

24 Purchased for cash, display supplies from MDS Supplies, $387.50. Cheque No. 3006.

26 Purchased envelope merchandise from Findlay and Fortune on account, $3,600.00. Invoice No. 6289, dated May 26, terms 2/10, n/30.

26 Dr. M. LaPeierre paid invoice No. 805, dated May 22, taking discount.

27 B. Kirk, CA, paid invoice No. 804, dated May 18, taking discount.

29 Purchased merchandise from Gant Paper Co., $3,475.80. Invoice No. 24722, dated May 28, terms 2/10, n/30.

30 Paid half of the balance to Maritime Equipment Sales on their invoice No. 30275, cheque No. 3007.

31 Sold merchandise to Moncton Hospital on account, $3,650.00. Invoice No. 807, terms 2/10, n/30.