The July transactions of Acorn Industries are described in Problem 7-lB.
Required 1. Prepare a general journal, a purchases journal like that in Exhibit 7.9, and a cash disbursements journal like that in Exhibit 7.11. Number all journal pages as page 3. Review the July transactions of Acorn Industries and enter those transactions that should be journalized in the general journal, the purchases journal, or the cash disbursements journal. Ignore any transactions that should be journalized in a sales journal or cash receipts journal.
2. Open the following general ledger accounts: Cash, Inventory, Office Supplies, Store Supplies, Store Equipment, Accounts Payable, Long-Term Notes Payable, R. Acorn, Capital, Sales Salaries Ex¬ pense, and Advertising Expense. Enter the June 30 balances of Cash ($100,000), Inventory ($200,000), Long-Term Notes Payable ($200,000), and R. Acorn, Capital ($100,000). Also open accounts payable subsidiary ledger accounts for Charm’s Supply, Teton Company, Drake Company, and Plaine, Inc.
3. Verify that amounts that should be posted as individual amounts from the journals have been posted. (Such items are immediately posted.) Foot and crossfoot the journals and make the month-end postings.
4. Prepare a trial balance of the general ledger and a schedule of accounts payable.