Critical Thinking Problem 9.1 (Algo) Special Journals LO 9-1, 9-2, 9-3, 9-4, 9-5

During September 20X1, Interior Designs Specialty Shop, a retail store, had the transactions listed below. The general ledger accounts used to record these transactions are also provided below.

Critical Thinking Problem 9.1 (Algo) Special Journals LO 9-1, 9-2, 9-3, 9-4, 9-5 During September 20X1, Interior Designs Specialty Shop, a retail store, had the transactions listed below. The general ledger accounts used to record these transactions are also provided below. GENERAL LEDGER ACCOUNTS DATE TRANSACTIONS Sept. 1 Received a check for $1,190 from David Prater to pay his account. 1 Issued Check 1401 for $1,730 to Sadler Floor Coverings, a creditor, in payment of Invoice 6325 dated August 3. 2 Issued Check 1402 for $2,250 to pay the monthly rent. 3 Sold a table on credit for $400 plus sales tax of $32 to Pam Lawrence, Sales Slip 1850. 5 Sergio Cortez, the owner, invested an additional $15,000 cash in the business in order to expand operations. 6 Had cash sales of $3,500 plus sales tax of $280 during the period September 1-6; there was a cash shortage of $20. 6 Purchased carpeting for $2,300 from Reed Millings Company, Invoice 827, dated September 3; terms of 2/10, n/30. 6 Issued Check 1403 for $170 to Tri-City Trucking Company to pay the freight charge on goods received from Reed Millings Company. 8 Purchased store supplies for $430 from Rocker Company, Invoice 4204, dated September 6, net amount due in 30 days. 8 Sold chairs on credit for $600 plus sales tax of $48 to Henry Tolliver, Sales Slip 1851. 11 Accepted a two-month promissory note for $1,850 from Jason Williams to settle his overdue account; the note has an interest rate of 10 percent. 11 Issued Check 1404 for $2,254 to Reed Millings Company, a creditor, in payment of Invoice 827 dated September 3($2,300) less a cash discount ($46). 13 Had cash sales of \$3,125 plus sales tax of \$250 during the period September 8-13. 14 Purchased carpeting for $3,520 plus a freight charge of $80 from Wells Products, Invoice 9453 , dated September 11 , net due and payable in 30 days. 13 Had cash sales of $3,125 plus sales tax of $250 during the period September 8-13. 14 Purchased carpeting for $3,520 plus a freight charge of $80 from Wells Products, Invoice 9453 , dated September 11, net due and payable in 30 days. 15 Collected $1,370 on account from Mesia Davis. 17 Gave a two-month promissory note for $5,560 to McKnight Corporation, a creditor, to settle an overdue balance; the note bears interest at 10 percent. 19 Sold a lamp on credit to Rachel Carter for $200 plus sales tax of \$16, Sales Slip 1852. 20 Had cash sales of $4,875 plus sales tax of $390 during the period September 15-20; there was a cash shortage of $10. 21 Purchased area rugs for $2,900 from Nelson Craft Products, Invoice 677, dated September 18; the terms are 2/10,n/30. 22 Issued Check 1405 for $340 to pay the monthly utility bill. 23 Granted an allowance to Rachel Carter for scratches on the lamp that she bought on Sales Slip 1852 of September 19; issued Credit Memorandum 151 for $54, which includes a price reduction of $50 and sales tax of $4. 24 Received Credit Memorandum 110 for $200 from Nelson Craft Products for a damaged rug that was returned; the original purchase was made on Invoice 677 dated September 18. 24 Robert Kent sent a check for $1,440 to pay the balance he owes. 25 Issued Check 1406 for $3,920 to make a cash purchase of merchandise. 26 Issued Check 1407 for $2,646 to Nelson Craft Products, a creditor, in payment of Invoice 677 of September 18($2,900), less a return ($200) and a cash discount ($54). 27 Purchased hooked rugs for $4,490 plus a freight charge of $120 from Booker, Inc., Invoice 1368, dated September 23, net payable in 45 days. 27 Had cash sales of $3,700 plus sales tax of \$296 during the period September 22-27. 28 Issued Check 1408 for $1,700 to Wells Products, a creditor, in payment of Invoice 8984 dated August 30. 29 Sold a cabinet on credit to Mesia Davis for $2,000 plus sales tax of \$160, Sales Slip 1853. 30 Had cash sales of $1,000 plus sales tax of $80 for September 2930; there was a cash overage of $10. 30 Issued Check 1409 for $7,480 to pay the monthly salaries of the employees. luired: Den the general ledger accounts and enter the balances as of September 1, 20X1. ecord the transactions in a sales journal, a cash receipts journal, a purchases journal, a cash payments journal, and a general ournal. ost the entries from the general journal to the proper general ledger accounts. ost the entries from the Other Accounts Credit section of the cash receipts journal to the proper general ledger accounts. ost the entries from the Other Accounts Debit section of the cash payments journal to the proper general ledger accounts. ost the column totals from the special journals to the proper general ledger accounts. et up an accounts receivable ledger for Interior Designs Specialty Shop. Open an account for each of the customers listed below nd enter the balances as of September 1 . All of these customers have terms of n/30. 8. Post the individual entries from the sales journal, the cash receipts journal, and the general journal to the accounts receivable subsidiary ledger. 9. Prepare a schedule of accounts receivable for September 30,201. 0. Check the total of the schedule of accounts receivable against the balance of the Accounts Receivable account in the general ledger. The two amounts should be the same. 11. Set up an accounts payable subsidiary ledger for Interior Designs Specialty Shop. Open an account for each of the creditors listed above and enter the balances as of September 1, 20X1. 2. Post the individual entries from the purchases journal, the cash payments journal, and the general journal to the accounts payable subsidiary ledger. 3. Prepare a schedule of accounts payable for September 30,201. 4. Check the total of the schedule of accounts payable against the balance of the Accounts Payable account in the general ledger. The two amounts should be the same. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline General Ledgers & Sales & Cash & Purcha... & Cash & General & Acct Rec & Sched... & Acct Pay \\ Ponal & Receipts & Journal & Payme... & Journal \\ Ledgers & of Acct & Ledgers & of Acct \\ \hline \end{tabular} Open the general ledger accounts and enter the balances as of September 1, 20X1. Purchases Journal General Journal >