account recivable and accounts payable subsidiary ledger

Selected accounts from the chart of accounts of Sandhill Co. are shown below. 101 Cash 306 Owner's Drawings 112 Accounts Receivable 401 Sales Revenue 120 Inventory 414 Sales Discounts 126 Supplies 505 Cost of Goods Sold 131 Prepaid Rent 631 Supplies Expense 201 Accounts Payable 729 Rent Expense 301 Owner's Capital Presented below are the purchases and cash payments journals for Sandhill Co. for its first month of operations PURCHASES JOURNAL P1 Inventory Dr. Date Account Credited Ref. Accounts Payable Cr. July 4 N. Alvarado 6,690 5 F. Rees 7,200 11 J. Gallup 5,710 13 C. Werly 16,100 20 M. Mangus 7,670 43,370 CASH PAYMENTS JOURNAL CP1 Other Accounts Accounts Payable Inventory Cash Dr. Cr. Cr. Date Account Debited Ref. Dr. 510 510 July 4 Supplies 7,200 72 10 F. Rees 7,128 6,270 6,270 11 Prepaid Rent 15 N. Alvarado 6,690 6,690 19 Owner's Drawings 2,210 2,210 16,100 161 15,939 21 C. Werly 8,990 29,990 233 38,747 In addition, the following transactions have not been journalized for July. The cost of all merchandise sold was 65% of the sales price July 1 The founder, N. Sandhill, invests $89,400 in cash. ON 7 8 10 13 Sell merchandise on account to Dow Co. $6,000 terms 1/10, 1/30 Make cash sales totaling $8,000 Sell merchandise on account to S. Goebel $5,000, terms 110,6/30. Sell merchandise on account to W. Leiss $4,500, terms 1/10, 1/30. Recelve payment in full from S. Goebel Receive payment in full from W. Leiss, Receive payment in full from Dow Co, Sell merchandise on account to H. Kenney $5,700, terms 1/10, 1/30, Returned damaged goods to N. Alvarado and received cash refund of $480. 16 20 21 29 Sales Journal Si Date Account Debited Accounts Receivable Dr. Sales Revenue Cr. Cost of Goods Sold Dr. Inventory Cr. Ref. July 6 Dow Co. V 6000 3900 July 8 S. Goebel 5000 3250 July 10 W. Leiss 4500 2925 July 21 H. Kenney 5700 3705 21200 13780 (112)(401) (505)(120) Cash Receipts Journal Accounts Receivable Cr. Date Account Credited Ref. Cash Dr. Sales Discounts Dr. uly 1 Owner's Capital 301 89400 uly 2 Owner's Capital 8000 lily 13 5. Goebel 4950 50 5000 uly 16 W. Leiss > 4455 45 4500 uly 20 Dow Co 6000 6000 aly 29 Inventory 120 480 113285 95 15500 (101) (414) (112) Post to the accounts receivable and accounts payable subsidiary ledgers. (Post entries in the order of entries presented in the previous part.) Accounts Receivable Subsidiary Ledger Dow Co. Date Explanation Ref. Debit Credit Balance July 6 S1 July 20 CRI H. Kenney Date Explanation Ref. Debit Credit Balance si W. Leiss Date Explanation Ref. Debit Credit Balance Si CRI S. Goebel Date Explanation Ref. Debit Credit Balance Si CR1 Accounts Payable Subsidiary Ledger C. Werly Date Explanation Ref. Debit Credit Balance P1 CP1 F. Rees Date Explanation Ref. Debit Credit Balance P1 CP1 P1 CP1 M. Mangus Date Explanation Ref. Debit Credit Balance P1 N. Alvarado Date Explanation Ref. Debit Credit Balance P1 CP1 J. Gallup Date Explanation Ref. Debit Credit Balance P1