CONTINUING PROBLEM This chapter will require you to record and post the purchases and cash A month has elapsed since Precision Computer Centre's year-end. Tony Freedman will use four specialized journals for recording business transac- Bons in the month of September you will find two in Chapter 6, and two accounts payable as of August 31 is shown below. An updated chart of in this chapter. To assist you in recording the transactions the schedule of accounts with the current balance listed for each account is provided in The partial September transactions are as follows: Tpayments transactions Comprehensive problem: journaliz- ing and posting to the general and subsidiary ledgers op (120 min) Chapter 6 on page 294 2019 Sep. 5 Chuck Fire Cash Payments Journal Cash Column 58448.88 Paid amount due to Staples, $100, cheque No. 242. 5 Bought merchandise on account from Multi Systems, purchase order No. 4010, $450; terms are 3/10,n/30. 6 Bought office supplies on account from Staples, purchase order No. 4011, $250; terms are n/30. 10 Purchased merchandise on account from Computer Connection, purchase order No. 4012, $500; terms are 1/30, n/60 13 Paid Multi Systems re September 5 purchase, less discount, cheque No. 243. 13 Received West Bell phone bill for September, $70.00; terms n/30. 13 Received and paid City Electric bill for September, $80, cheque No. 244. 16 Remitted outstanding amount payable to Automated Payroll Service for September wages, $1,810.18, cheque No. 245. 17 Issued debit memorandum No. 10 to Computer Connection for merchandise returned from purchase order No. 4012, $100. 17 Paid net amount due to Computer Connection, less discount, cheque No. 246. 23 Paid Alpha Office Co, the amount due from the end of August, cheque No. 247. 25 Paid for office supplies, $50, cheque No. 248. 27 Wrote cheque No. 249 to Able Holdings Inc. for September, October, and November rent, $1,200.00 30 Wrote cheque No. 250 to Automated Payroll Service for September wages, $3,740.20. 30 Paid amount due to West Bell Canada as of August 31 plus the September phone bill received September 13, cheque No. 251. Total $216.00. (Continued) VITRO e $ 420.00 375.00 Schedule of Accounts Payable Precision Computer Centre August 31, 2019 Alpha Office Co. City Newspaper Staples West Bell Canada Total Amount Payable 100.00 146.00 $ 1,041.00 Assignment 1. Journalize the transactions in the appropriate journals (cash payments, purchases, or general journal). 2. Record in the accounts payable subsidiary ledger and post to the general ledger as appropriate. A partial general ledger is included in the Excel templates in MyAccountingLab. 3. Prepare a schedule of accounts payable as of September 30, 2019. PRECISION COMPUTER CENTRE CHART OF ACCOUNTS AND CURRENT BALANCES AS OF 8/31/2019 Debit Account Name Balance Account # Credit Balance 119.500 8 7 4 0 0 0 45000 1 5 10000 380000 9900 10 5000 2000 104100 181018 7 40/600 2 0 1500 2814982 1000 Cash 1020 Accounts Receivable 1025 Prepaid Rent 1030 Supplies 1040 Merchandise Inventory 1080 Computer Shop Equipment 1081 Accumulated Depreciation, Computer Shop Equipment 1090 Office Equipment 1091 Accumulated Depreciation Office Equipment 2000 Accounts Payable 2030 Other Amounts Payable 3000 T. Freedman, Capital 3010 T. Freedman, Withdrawals 3020 Income Summary 4000 Service Revenue 4010 Sales 4020 Sales Returns and Allowances 4030 Sales Discounts 5000 Cost of Goods Sold 5010 Advertising Expense 5020 Rent Expense 5030 Utilities Expense 5040 Phone Expense 5050 Supplies Expense 5060 Insurance Expense 5070 Postage Expense 5080 Depreciation Expense, Computer Shop Equipment 5090 Depreciation Expense, Office Equipment 5100 Miscellaneous Expense 5110 Wages Expense 5120 Payroll Benefits Expense 5130 Interest Expense Bad Debt Expense 48000 40000 9500 14600 2.500 1000 5 0 2 0 0 0 000 5140 Totals 3852600 38 52600 1 2 Ch 7 Continuing Problem Name: Section: Date: 3 4 5 6 7 8 PRECISION COMPUTER CENTRE PURCHASES JOURNAL 9 PAGE 1 10 Sundry 11 Purchase Order No. Post Ref. Ecounts Payable Cr. Post Ref. Date Account Credited Terms Inventory Dr. Account Amount Dr. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 Ch 7 Continuing Problem (CONTINUED) Name: Section: 3 4 Date: 5 6 PRECISION COMPUTER CENTRE CASH PAYMENTS JOURNAL 7 PAGE 1 8 9 Date Chg. No. Account Debited Post Ref. Sundry Dr. counts Payable Dr. Cash Cr. Inventory Cr. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PRECISION COMPUTER CENTRE ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME: ALPHA OFFICE CO. A1 ADDRESS: 121 WHITEMUD FREEWAY, EDMONTON, AB TOT 221 Date 2019 Explanation Post Ref. Debit Credit Cr. Balance Sept 1 Balance 12 420.00 NAME: CITY NEWSPAPER C2 ADDRESS: 10098 EDMONTON WAY, EDMONTON, AB TSA 9S2 Date 2019 Explanation Post Ref. Debit Credit Cr. Balance Sept 1 Balance 375.00 NAME: COMPUTER CONNECTION C3 ADDRESS: 2400, 4421 16 AVENUE, EDMONTON, AB TOR 1A1 Date Explanation Post Ref. Debit Credit Cr. Balance ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME: MULTI SYSTEMS, INC. M1 ADDRESS: 310 N. ESCONDIDO BLVD., EDMONTON, AB T7G 1P1 Date Explanation Post Ref. Debit Credit Cr. Balance NAME:STAPLES S1 ADDRESS: 43 ESCONDIDO AVENUE, EDMONTON, AB T7G 9T9 Date 2019 Explanation Post Ref. Debit Credit Cr. Balance Sept 1 Balance V 100.00 NAME: WEST BELL CANADA W1 ADDRESS: 10149 EDMONTON WAY, EDMONTON, AB T5A 9T1 Date 2019 Explanation Post Ref. Debit Credit Cr. Balance Sept 1 Balance V 146.00 D 22 Post Date 2019 Explanation Debit Credit Cr. Balance 23 Ref. Sept 1 Balance 100.00 24 25 26 27 28 29 30 31 32 33 NAME: WEST BELL CANADA W1 ADDRESS: 10149 EDMONTON WAY, EDMONTON, AB T5A 9T1 Date 2019 Explanation Post Ref. Debit Credit Cr. Balance 34 Sept 1 Balance v 146.00 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 PRECISION COMPUTER CENTRE SCHEDULE OF ACCOUNTS PAYABLE SEPTEMBER 30, 2019 - PRECISION COMPUTER CENTRE GENERAL LEDGER CASH ACCOUNT NO. 1000 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance V Dr 1,195.00 ACCOUNTS RECEIVABLE ACCOUNT NO. 1020 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance V Dr 8,740.00 PREPAID RENT ACCOUNT NO. 1025 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance 1 Dr 0.00 PREPAID RENT ACCOUNT NO. 1025 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance W/ Dr 0.00 29 30 31 32 33 34 35 36 37 38 39 40 SUPPLIES ACCOUNT NO. 1030 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance V Dr 450.00 INVENTORY ACCOUNT NO. 1040 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 Sept 1 Balance 12 Dr 15,100.00 e PRECISION COMPUTER CENTRE GENERAL LEDGER ACCOUNTS PAYABLE ACCOUNT NO. 2000 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance 1 Cr 1,041.00 1 OTHER AMOUNTS PAYABLE Post Explanation Ref. ACCOUNT NO. 2030 Date 2019 Debit Credit Dr/Cr Balance Sept 1 Balance W/ Cr 1,810.18 SALES ACCOUNT NO. 4010 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance 1 Cr 28,149.82 19 OTHER AMOUNTS PAYABLE ACCOUNT NO. 2030 21 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance V Cr 1,810.18 22 23 24 25 26 27 28 29 30 31 32 33 12 SALES ACCOUNT NO. 4010 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance V Cr 28,149.82 34 W/ SALES RETURNS AND ALLOWANCES ACCOUNT NO. 4020 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr 35 36 37 38 39 10 11 12 13 14 15 Balance PRECISION COMPUTER CENTRE GENERAL LEDGER ACCOUNT NO. 4030 SALES DISCOUNTS Post Explanation Ref. Date 2019 Debit Credit Dr/Cr Balance COST OF GOODS SOLD ACCOUNT NO. 5000 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance ACCOUNT NO. 5020 RENT EXPENSE Post Explanation Ref. Date 2019 Debit Credit Dr/Cr Balance Sept 1 Balance 1 Dr 400.00 25 26 27 28 29 30 ACCOUNT NO. 5020 31 32 33 34 RENT EXPENSE Post Ref. Date 2019 Explanation Debit Credit Dr/Cr Balance Sept 1 Balance 12 Dr 35 36 400.00 UTILITIES EXPENSE ACCOUNT NO. 5030 37 38 39 40 41 42 43 44 45 46 47 48 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance LV Dr 95.00 49 PHONE EXPENSE ACCOUNT NO. 5040 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance 50 51 52 53 54 55 56 Sept 1 Balance W/ Dr 146.00 - 57 B D E F G H 1 2 Ch 7 Continuing Problem (CONTINUED) Name: Section: Date: 3 4 5 6 PRECISION COMPUTER CENTRE GENERAL LEDGER 7 8 9 WAGES EXPENSE ACCOUNT NO. 5110 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance Dr 10 11 12 13 14 15 5,020.00 16 17 18 19 20 CONTINUING PROBLEM This chapter will require you to record and post the purchases and cash A month has elapsed since Precision Computer Centre's year-end. Tony Freedman will use four specialized journals for recording business transac- Bons in the month of September you will find two in Chapter 6, and two accounts payable as of August 31 is shown below. An updated chart of in this chapter. To assist you in recording the transactions the schedule of accounts with the current balance listed for each account is provided in The partial September transactions are as follows: Tpayments transactions Comprehensive problem: journaliz- ing and posting to the general and subsidiary ledgers op (120 min) Chapter 6 on page 294 2019 Sep. 5 Chuck Fire Cash Payments Journal Cash Column 58448.88 Paid amount due to Staples, $100, cheque No. 242. 5 Bought merchandise on account from Multi Systems, purchase order No. 4010, $450; terms are 3/10,n/30. 6 Bought office supplies on account from Staples, purchase order No. 4011, $250; terms are n/30. 10 Purchased merchandise on account from Computer Connection, purchase order No. 4012, $500; terms are 1/30, n/60 13 Paid Multi Systems re September 5 purchase, less discount, cheque No. 243. 13 Received West Bell phone bill for September, $70.00; terms n/30. 13 Received and paid City Electric bill for September, $80, cheque No. 244. 16 Remitted outstanding amount payable to Automated Payroll Service for September wages, $1,810.18, cheque No. 245. 17 Issued debit memorandum No. 10 to Computer Connection for merchandise returned from purchase order No. 4012, $100. 17 Paid net amount due to Computer Connection, less discount, cheque No. 246. 23 Paid Alpha Office Co, the amount due from the end of August, cheque No. 247. 25 Paid for office supplies, $50, cheque No. 248. 27 Wrote cheque No. 249 to Able Holdings Inc. for September, October, and November rent, $1,200.00 30 Wrote cheque No. 250 to Automated Payroll Service for September wages, $3,740.20. 30 Paid amount due to West Bell Canada as of August 31 plus the September phone bill received September 13, cheque No. 251. Total $216.00. (Continued) VITRO e $ 420.00 375.00 Schedule of Accounts Payable Precision Computer Centre August 31, 2019 Alpha Office Co. City Newspaper Staples West Bell Canada Total Amount Payable 100.00 146.00 $ 1,041.00 Assignment 1. Journalize the transactions in the appropriate journals (cash payments, purchases, or general journal). 2. Record in the accounts payable subsidiary ledger and post to the general ledger as appropriate. A partial general ledger is included in the Excel templates in MyAccountingLab. 3. Prepare a schedule of accounts payable as of September 30, 2019. PRECISION COMPUTER CENTRE CHART OF ACCOUNTS AND CURRENT BALANCES AS OF 8/31/2019 Debit Account Name Balance Account # Credit Balance 119.500 8 7 4 0 0 0 45000 1 5 10000 380000 9900 10 5000 2000 104100 181018 7 40/600 2 0 1500 2814982 1000 Cash 1020 Accounts Receivable 1025 Prepaid Rent 1030 Supplies 1040 Merchandise Inventory 1080 Computer Shop Equipment 1081 Accumulated Depreciation, Computer Shop Equipment 1090 Office Equipment 1091 Accumulated Depreciation Office Equipment 2000 Accounts Payable 2030 Other Amounts Payable 3000 T. Freedman, Capital 3010 T. Freedman, Withdrawals 3020 Income Summary 4000 Service Revenue 4010 Sales 4020 Sales Returns and Allowances 4030 Sales Discounts 5000 Cost of Goods Sold 5010 Advertising Expense 5020 Rent Expense 5030 Utilities Expense 5040 Phone Expense 5050 Supplies Expense 5060 Insurance Expense 5070 Postage Expense 5080 Depreciation Expense, Computer Shop Equipment 5090 Depreciation Expense, Office Equipment 5100 Miscellaneous Expense 5110 Wages Expense 5120 Payroll Benefits Expense 5130 Interest Expense Bad Debt Expense 48000 40000 9500 14600 2.500 1000 5 0 2 0 0 0 000 5140 Totals 3852600 38 52600 1 2 Ch 7 Continuing Problem Name: Section: Date: 3 4 5 6 7 8 PRECISION COMPUTER CENTRE PURCHASES JOURNAL 9 PAGE 1 10 Sundry 11 Purchase Order No. Post Ref. Ecounts Payable Cr. Post Ref. Date Account Credited Terms Inventory Dr. Account Amount Dr. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 Ch 7 Continuing Problem (CONTINUED) Name: Section: 3 4 Date: 5 6 PRECISION COMPUTER CENTRE CASH PAYMENTS JOURNAL 7 PAGE 1 8 9 Date Chg. No. Account Debited Post Ref. Sundry Dr. counts Payable Dr. Cash Cr. Inventory Cr. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PRECISION COMPUTER CENTRE ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME: ALPHA OFFICE CO. A1 ADDRESS: 121 WHITEMUD FREEWAY, EDMONTON, AB TOT 221 Date 2019 Explanation Post Ref. Debit Credit Cr. Balance Sept 1 Balance 12 420.00 NAME: CITY NEWSPAPER C2 ADDRESS: 10098 EDMONTON WAY, EDMONTON, AB TSA 9S2 Date 2019 Explanation Post Ref. Debit Credit Cr. Balance Sept 1 Balance 375.00 NAME: COMPUTER CONNECTION C3 ADDRESS: 2400, 4421 16 AVENUE, EDMONTON, AB TOR 1A1 Date Explanation Post Ref. Debit Credit Cr. Balance ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME: MULTI SYSTEMS, INC. M1 ADDRESS: 310 N. ESCONDIDO BLVD., EDMONTON, AB T7G 1P1 Date Explanation Post Ref. Debit Credit Cr. Balance NAME:STAPLES S1 ADDRESS: 43 ESCONDIDO AVENUE, EDMONTON, AB T7G 9T9 Date 2019 Explanation Post Ref. Debit Credit Cr. Balance Sept 1 Balance V 100.00 NAME: WEST BELL CANADA W1 ADDRESS: 10149 EDMONTON WAY, EDMONTON, AB T5A 9T1 Date 2019 Explanation Post Ref. Debit Credit Cr. Balance Sept 1 Balance V 146.00 D 22 Post Date 2019 Explanation Debit Credit Cr. Balance 23 Ref. Sept 1 Balance 100.00 24 25 26 27 28 29 30 31 32 33 NAME: WEST BELL CANADA W1 ADDRESS: 10149 EDMONTON WAY, EDMONTON, AB T5A 9T1 Date 2019 Explanation Post Ref. Debit Credit Cr. Balance 34 Sept 1 Balance v 146.00 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 PRECISION COMPUTER CENTRE SCHEDULE OF ACCOUNTS PAYABLE SEPTEMBER 30, 2019 - PRECISION COMPUTER CENTRE GENERAL LEDGER CASH ACCOUNT NO. 1000 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance V Dr 1,195.00 ACCOUNTS RECEIVABLE ACCOUNT NO. 1020 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance V Dr 8,740.00 PREPAID RENT ACCOUNT NO. 1025 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance 1 Dr 0.00 PREPAID RENT ACCOUNT NO. 1025 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance W/ Dr 0.00 29 30 31 32 33 34 35 36 37 38 39 40 SUPPLIES ACCOUNT NO. 1030 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance V Dr 450.00 INVENTORY ACCOUNT NO. 1040 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 Sept 1 Balance 12 Dr 15,100.00 e PRECISION COMPUTER CENTRE GENERAL LEDGER ACCOUNTS PAYABLE ACCOUNT NO. 2000 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance 1 Cr 1,041.00 1 OTHER AMOUNTS PAYABLE Post Explanation Ref. ACCOUNT NO. 2030 Date 2019 Debit Credit Dr/Cr Balance Sept 1 Balance W/ Cr 1,810.18 SALES ACCOUNT NO. 4010 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance 1 Cr 28,149.82 19 OTHER AMOUNTS PAYABLE ACCOUNT NO. 2030 21 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance V Cr 1,810.18 22 23 24 25 26 27 28 29 30 31 32 33 12 SALES ACCOUNT NO. 4010 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance V Cr 28,149.82 34 W/ SALES RETURNS AND ALLOWANCES ACCOUNT NO. 4020 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr 35 36 37 38 39 10 11 12 13 14 15 Balance PRECISION COMPUTER CENTRE GENERAL LEDGER ACCOUNT NO. 4030 SALES DISCOUNTS Post Explanation Ref. Date 2019 Debit Credit Dr/Cr Balance COST OF GOODS SOLD ACCOUNT NO. 5000 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance ACCOUNT NO. 5020 RENT EXPENSE Post Explanation Ref. Date 2019 Debit Credit Dr/Cr Balance Sept 1 Balance 1 Dr 400.00 25 26 27 28 29 30 ACCOUNT NO. 5020 31 32 33 34 RENT EXPENSE Post Ref. Date 2019 Explanation Debit Credit Dr/Cr Balance Sept 1 Balance 12 Dr 35 36 400.00 UTILITIES EXPENSE ACCOUNT NO. 5030 37 38 39 40 41 42 43 44 45 46 47 48 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance LV Dr 95.00 49 PHONE EXPENSE ACCOUNT NO. 5040 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance 50 51 52 53 54 55 56 Sept 1 Balance W/ Dr 146.00 - 57 B D E F G H 1 2 Ch 7 Continuing Problem (CONTINUED) Name: Section: Date: 3 4 5 6 PRECISION COMPUTER CENTRE GENERAL LEDGER 7 8 9 WAGES EXPENSE ACCOUNT NO. 5110 Date 2019 Explanation Post Ref. Debit Credit Dr/Cr Balance Sept 1 Balance Dr 10 11 12 13 14 15 5,020.00 16 17 18 19 20