1. Open the following three-column general ledger accounts using the account numbers given:

Cash 111 Sales Revenue - 411

Account Receivable 112 Sales Discount - 412

Supplies 116 Sales Returns and Allowances - 413

Prepaid insurance 117 Interest Revenue - 419

Inventory 118 Cost of Goods Sold - 511

Furniture 151 Salaries Expense - 531

Accounts Payable 211 Utilities Expense 541

2. Open these accounts in the subsidiary ledgers: Accounts receivable subsidiary ledger Bell Ltd., M.O Brown, and Ishikawa Inc.; Accounts Payable subsidiary ledger Nakkach Corp., Manley Inc., and Burgess Distribution Ltd.

McMillian Distributors, which use the perpetual inventory system and makes all credit sales on terms of 1/10, n/30, completed the following transactions during July:

Jul. 2 - Issued invoice no. 913 for sale on account to Ishikawa Inc., $24,600 McMillians cost of this inventory was $10,800. Credit sales terms are 1/10, n/30.

Jul.3 - Purchased inventory on credit terms of 3/10, n/60 from Nakkach Corp., $14,802. The invoice was dated July 3.

Jul 5 - Sold inventory for cash, $6462 (cost $2880).

Jul 5 Issued cheque no. 532 to purchase furniture for cash, $13,110.

Jul 8 - Collected interest revenue of $6650

Jul 9 Issued invoice no. 914 for sale on account to Bell Ltd., $33,300 (cost, $13860). Credit sales terms are 1/10, n/30.

Jul 10 Purchased inventory for cash, $6858, issuing cheque no. 533

Jul 12 Received cash from Ishikawa Inc. in full settlement of its account receivable from the sale on July 2.

Jul 13 Issued cheque no. 534 to pay Nakkach Cirp. the net amount owed from July 3. (Round to the nearest dollar.)

Jul 13 Purchased supplies on account from Manlet inc., $8646. Terms were net end of month. The invoice was dated July 13.

Jul 15 Sold inventory on account to M.O. Brown, issuing invoice no. 915 for $3990 (cost $1440). Credit sales terms are 1/10, n/30.

Jul 17 Issued credit memo to M.O. Brown for $3990 for merchandise sent in error and returned by Brown. Also accounted for receipt of the inventory.

Jul. 18 Issued invoice no. 916 for credit sale to Ishikawa Inc., $2142 (cost $762). Credit sales terms are 1/10, n/30.

Jul 19 Received $32,967 from bell Ltd. in full settlement of its account receivable from July 9.

Jul 20 Purchased inventory on credit terms of net 30 from Burgess Distributing Ltd., $12282. The invoice was dated July 20.

Jul 22 Purchased furniture on credit terms of 3/10, n/60 from Nakkach Corp., $3870. The invoice was dated July 22.

Jul 22 - Issued cheque no. 535 to pay for insurance coverage, debiting Prepaid Insurance for $6000.

Jul 24 Sold supplies to an employer for cash $324, which was the cost of the supplies.

Jul 25 Issued cheque no. 536 to pay utilities $6718.

Jul 28 Purchased inventory on credit terms of 2/10, n/30 from Manley Inc., $8050. The invoice date was July 28.

Jul 29 Returned damaged inventory to Manley Inc., issuing a debit memo for $4050.

Jul 29 Sold goods on account to Bell Ltd., issuing invoice no. 917 for $2976 (cost, $1320). Credit sales terms are 1/10, n/10.

Jul 30 Issued cheque no. 537 to pay Manley Inc. $2646

Jul 31 Received cash in full on account from Ishikawa Inc.

Jul 31 Issued cheque no. 538 to pay monthly salaries of $14082.

General Ledger

ACCOUNT CASH ACCOUNT NO. 111
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE
			111

ACCOUNT ACCOUNTS RECEIVABLE ACCOUNT NO. 112
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT SUPPLIES ACCOUNT NO. 116
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT PREPAID INSURANCE ACCOUNT NO. 117
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

Req. 1

ACCOUNT INVENTORY ACCOUNT NO. 118
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT FURNITURE ACCOUNT NO. 151
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT ACCOUNTS PAYABLE ACCOUNT NO. 211
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT SALES REVENUE ACCOUNT NO. 411
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

Req. 1

ACCOUNT SALES DISCOUNTS ACCOUNT NO. 412
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT SALES RETURNS AND ALLOWANCES ACCOUNT NO. 413
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE
						)

ACCOUNT INTEREST REVENUE ACCOUNT NO. 419
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT COST OF GOODS SOLD ACCOUNT NO. 511
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT SALARIES EXPENSE ACCOUNT NO. 531
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT UTILITIES EXPENSE ACCOUNT NO. 541
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

Req. 2 (posting to the ledgers)

Accounts Receivable Subsidiary Ledger

ACCOUNT BELL LTD.
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT M.O. BROWN
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT ISHIKAWA INC.
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

Req. 2

Accounts Payable Subsidiary Ledger

ACCOUNT BURGESS DISTRIBUTING LTD.
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT NAKKACH CORP.
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE

ACCOUNT MANLEY, INC.
DATE		ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE