Crest view computers security uses the perpetual inventorysystem and makes all credit sales on terms of 2/10 n /30. Crestview completed the following transactions during May. May 2- Issued inv.# 913. fro sale on account to Forbes, $2000.crestview cost of this inv. was $900 3- Puschasedinv. on credit terms of 3/10 n/60 from Chicosky. co. $2467 5- Soldinventory for cash $ 1077( cost $480) 5 Issued ck. # 532to purchase furniture for cash $2185 8- Collectedinterest revenue of $1775 9- Issued inv. #914 fro sale on account to Bell $5550 ( cost 2310) 10-Puchased inv. forcash $1143 issing ck # 533 12-Recieved cashfrom Forbes in full settlement of her acc. recievable fromsale on May 2nd 13- Puschased supplies onacct.from Manley, $441. terms were net end of the month 15- Sold inv. onaccount to brown issuing invoice # 915 fro $665 ( cost 240) 17-Issued credit memo, toBrown for $665 for merchandise return to us by brown . Alsoaccounted fro receipt of the inventory cost. 18- Issuedinvoice#916 for credit sale to Forbes $357 ( cost $127) 19- Recieved $5439from Bell in full settlement of its acct./recievable from May 9th.bell earned discount by paying early 20- Purchased inv. oncredit terms of net 30 from Sims $2047 22- Puschasedfurniture on credit terms of 3/10 n/60 from Chicosky $645 22 - Issued ck# 535to pay for insurance coverage debiting prepaid insurance fro$1000 24- Sold supplies to anemployee fro cash of $54which was Crestview cost. 25- Issued ck#536 to payutilities bills $453 28- Purchased inventory oncredit terms 2/10 n/30 from Manley$675 29- Returned damagaedinv. to Manley issueing a debit memofor $675 29- Sold goods on accountto Bell issing invoice# 917 for $2900( cost $ 800) 30- Issued ck# 537 to payManley in full on account from May 13th 31- Recieved cash in fullfrom Forbes on credit sale of May 18th . There was nodiscount 31- Issued ck# 538 to paymonthly salaries of $1950 Requirements 1.Open the folloeing four-column general ledger accounts using the Crestview Computer Security account numbers. 2. Open these accounts ing the subsidiary ledgers:Accounts receivable ledger--Bell Co., M.O. Brown ,and K.D.Forbes.Accounts payable ledger--Chicosky Co,;Manley,Inc.;and Sims Distributing. 3. Enter the transactions in a sales journal, a chash receipts journal,a purchases journal, a cash payments journal,and a general journal, as appropriate. 4.Post daily to the accounts receivable ledger and to the accounts payable ledger.On May 31,post to the general ledger. 5.Total each column of the special journals.Show that total debits equal total credits in each special journal. 6.Balance the total of the customer balances in the accounts receivable ledger against Accounts Receivable in the general ledger. Do the same for the accounts payable ledger and Accounts Payable in the general ledger.

P7-29A (90-120 min.) Reqs. 1 and 4 General Ledger Account Cash Debit Credit Accounts Receivable Journal Ref Item Debit Credit Journal Ref Debit Credit Prepaid Insurance Journal Item Ref Debit Credit Journal Ref Debit Credit Journal Ref Debit Credit Accounts Payable Journal Item Ref Debit Credit Journal Ref Debit Credit Journal Ref Debit Credit Sales Returns and Allowances Journal Item Ref Debit Credit Interest Revenue Journal Ref Credit Date Account Date Account Item Date Balance Debit Credit Account No. 112 Balance Debit Credit Supplies Date Account Account No. 111 Journal Ref Account No. 116 Item Account Item Account Item Balance Debit Credit Furniture Date Account No. 117 Inventory Date Balance Debit Credit Account Date Account Date Account Date May Account Date Account Account Balance Debit Credit Account No. 211 Balance Debit Credit Account No. 411 Balance Debit Credit Sales Discounts Item Account No. 412 Balance Debit Credit Account No. 413 Balance Debit Credit Account No. 419 Debit Item 8 Interest Revenue 1,775 Cost of Goods Sold Journal Item Ref Journal Ref Debit Credit Utilities Expense Journal Ref Item Debit Balance Debit Credit Credit Salary Expense Item Balance Debit Credit 1,775 Account No. 511 Debit Date Date May Account No. 151 Item Date Account Balance Debit Credit Sales Revenue Date Account Account No. 118 Account No. 531 Balance Debit Credit Account No. 541 25 Utilities Balance Debit Credit 453 Credit 453 Reqs. 3 and 5 Accounts Receivable Subsidiary Ledger Account Bell Co. Date Account Debit Credit Balance Debit Credit Journal Ref Debit Credit Balance Debit Credit Journal Ref Debit Credit Balance Debit Credit M.O. Brown Date Account Journal Ref Item Item K.D. Forbes Date Item Accounts Payable Subsidiary Ledger Account Chicosky Co. Journal Ref Debit Credit Balance Debit Credit Journal Ref Debit Credit Balance Debit Credit Sims Distributing Journal Item Ref Debit Credit Balance Debit Credit Date Account Item Manley, Inc. Date Account Date Item Sales Journal Page 7 Accounts Receivable DR Date Invoice No. Accounts Debited Post. Ref. Cost of Goods Sold DR Sales Revenue CR Inventory CR Req. 6 Answer: Cash Receipts Journal Page 5 Debits Credits Other Accounts Date Cash Sales Discounts Accounts Receivable Sales Revenue Account Title Post. Ref. Cost of Goods Sold Dr. Inventory Cr. T o t a l C r e d it s = $ T o t a l D e b it s = $ Purchases Journal Credits Reqs. 1, 2 and 3 Amount Page 10 Debits Account Title Date Account Credited Terms Post. Ref. Accounts Payable Inventory Supplies Account Title Post. Ref. D R = $ 6 C R = $ Cash Payments Journal Reqs. 1, 2 and 3 Debits Date Ck. No. Account Debited Post. Ref Other Accounts Page 8 Credits Accounts Payable Inventory Cash C R = $ D R = $ Journal Accounts and Explanations Amount Post. Ref Debit Credit