Brown Company (buyer) and Stone Corp. (seller) engaged in the following transactions during February 20X1:

Brown Company

Stone Corp.

INSTRUCTIONS
1. Open the accounts payable ledger account and accounts receivable ledger account indicated below for both Brown Company and Stone Corp. Enter the balances as of February 1, 20X1.
2. Journalize the transactions above in a general journal for both Brown Company and Stone Corp. Begin the journals for both companies with page 12.
3. Post the transactions to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger for Brown Company.
4. Post the transactions to the appropriate accounts in the general ledger and the accounts receivable subsidiary ledger for Stone Corp.

GENERAL LEDGER ACCOUNTS—BROWN COMPANY
201 Accounts Payable, $7,000 Cr.

ACCOUNTS PAYABLE LEDGER ACCOUNT—BROWN COMPANY
Stone Corp., $7,000

GENERAL LEDGER ACCOUNTS—STONE CORP.
111 Accounts Receivable, $7,000 Dr.

ACCOUNTS RECEIVABLE LEDGER ACCOUNT—STONE CORP.
Brown Company, $7,000

Analyze: 

What is the balance of the accounts payable for Stone Corp. in the Brown Company accounts payable subsidiary ledger? What is the balance of the accounts receivable for Brown Company in the Stone Corp. accounts receivable subsidiary ledger?

Transcribed Image Text:

DATE 20X1 Feb. 8 9 15 18 28 TRANSACTIONS Issued Check 2001 for $6,860 on account to Stone Corp. in payment of Invoice 1985 dated January 30, 20X1, less the cash discount of $140. Purchased merchandise for $6,800 from Stone Corp., Invoice 1990; terms 2/10, n/30. Received Credit Memorandum 220 from Stone Corp. for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1990, dated February 9. Paid amount due to Stone Corp. for Invoice 1990 of February 9, less the return of February 15 and less the cash discount, Check 2009. Purchased merchandise for $7,400 from Stone Corp., Invoice 2008; terms 2/10, n/30.