Apendixx 2

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It is October 16, 2020, and you have just taken over the accounting work of Saskan Enterprises, whose annual accounting period ends each October 31. The company's previous accountant journalized its transactions through October 15 and posted all items that required posting as individual amounts, as an examination of the journals and ledgers in the Working Papers will show. The company completed these transactions beginning on October 16, 2020: Oct. 16 Sold merchandise on credit to Vickie Foresman, invoice #916, $7,500. Cost, $3,750. Terms of all credit sales are 2/10, n/30. 17 Received a $1,090 credit memo from Shore Company for merchandise received on October 15 and returned for credit. 17 Purchased office supplies on credit from Brown Supply Company, $580. Invoice dated October 16, terms n/10 EOM. 18 Received a $40 credit memo from Brown Supply Company for office supplies received on October 17 and returned for credit. 20 Issued a credit memo to Amy Ihrig for defective merchandise sold on October 15 and returned for credit, $500. The returned merchandise was scrapped. 21 Purchased store equipment on credit from Brown Supply Company, invoice dated October 21, terms n/10 EOM, $7,200. 22 Received payment from Vickie Foresman for the October 12 sale. 23 Issued cheque #623 to Sunshine Company in payment of its October 15 invoice. 24 Sold merchandise on credit to Bill Grigsby, invoice #917, $1,400. Cost, $750. 24 Issued cheque #624 to Shore Company in payment of its October 15 invoice. 25 Received payment from Amy Ihrig for the October 15 sale. 26 Received merchandise and an invoice dated October 25, terms 2/10, n/60, from Sunshine Company, $7,900. 29 Sold a neighbouring merchant five boxes of file folders (office supplies) for cash at cost, $50. 30 Ken Shaw, the owner of Saskan Enterprises, used cheque #625 to withdraw $2,500 cash from the business for personal use. 31 Issued cheque #626 to Jamie Green, the company's only sales employee, in payment of her salary for the last half of October, $2,200. 31 Issued cheque #627 to Countywide Electric Company in payment of the October electric bill, $680. 31 Cash sales for the last half of the month were $31,000. Cost, $15,500. Cash sales are usually recorded daily but are recorded only twice in this problem to reduce the repetitive transactions. SASKAN ENTERPRISES Cash Receipts Journal Date (2020) Account Credited Explanation Cash Sales Discount Debit Acct. Rec. Credit Sales Credit Office Supplies Credit Debit Cost of Goods Sold Dr. Merchandise Inventory Cr. 84 4,200 Oct. 2 Oct. 15 Oct. 15 Bill Grigsby Sales Marge Craig Invoice Sept 23 Cash sales Invoice Oct 6 4,116 38,830 2,401 38,830 21,400 49 2.450 Totals (101) (415) (106) (413) (X) (502/119) SASKAN ENTERPRISES Purchases Journal Date (2020) Account Credited Date of Invoice Terms Accounts Payable Credit Merchandise Inventory Debit Office Supplies Debit Other Accts Debit 3,200 3,200 1,300 Oct. 2 Oct. 5 Oct. 15 Oct. 15 Shore Company Brown Supply Co. Shore Company Sunshine Company Oct. 2 Oct. 3 Oct. 15 Oct. 15 2/10, n/60 n/10 EOM 2/10, n/60 2/10, n/60 1,300 3,990 3,990 2,650 2.650 Totals (201) (119) (124) (X) SASKAN ENTERPRISES Cash Disbursements Journal Date (2020) Ch. No. Payee Account Debited Cash Credit Merchandise Inventory Credit Other Accts. Debit Accts. Payable Debit 619 2.250 2.250 Oct. 2 Oct. 6 620 76 Omni Realty Co. Fireside Company Shore Company Jamie Green Rent expense Fireside Company Shore Company Sales salaries expense 3,724 3,136 3,800 3.200 621 64 Oct. 12 Oct. 15 622 2,020 2,020 Totals (101) (119) (201) Journal entry worksheet 1 2 3 > Record the return of merchandise. Note: Enter debits before credits. General Journal Debit Credit Date (2020) Oct 17 Record entry Clear entry View general journal ACCOUNTS RECEIVABLE SUBLEDGER Marge Craig PR Explanation Credit Explanation Debit 3,300 Cre Balance 3,300 Vickie Foresman PR Debit S3 3,650 Date (2020) Oct. 12 S3 Date (2020) Oct. 6 Oct. 9 Oct. 15 G2 2,450 850 2.450 CR3 Bill Grigsby PR Amy Ihrig PR Explanation Credit Explanation Debit Cre Date (2020) Sept. 23 Oct. 2 Debit 4.200 Balance 4.200 Date (2020) Oct. 15 S2 S3 3,100 CR3 4,200 0 ACCOUNTS PAYABLE SUBLEDGER Fireside Company PR Debit Explanation Credit Date (2020) Sept. 28 Oct. 4 Cr Brown Supply Company Explanation PR Debit P2 Date (2020) Oct. 5 P1 4,260 Balance 4,260 3,800 0 G2 460 3,800 Oct. 6 CD4 Explanation Sunshine com PR Debit Explanation Debit Cre Date (2020) Oct. 15 Credit 2,650 Balance 2.650 PR P2 P2 Date (2020) Oct. 2 Oct. 12 Oct. 15 CD4 3,200 P2 GENERAL LEDGER 101: Cash PR 106: Accounts Receivable Explanation PR Debit Date (2020) Explanation Debit Credit Cre Balance 5,361 Sept. 30 Date (2020) Sept. 30 Oct. 9 G2 119: Merchandise Inventory Explanation PR Debit 124: Office Supplies PR Debit Credit Date (2020) Explanation Cre Sept. 30 Date (2020) Sept. 30 Oct. 4 Oct 9 Balance 66,970 66,510 66.940 G2 460 G2 430