During September 2019, 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

101Cash$18,945Dr.451Sales Returns and Allowances109Notes Receivable501Purchases111Accounts Receivable6,140Dr.502Freight In121Supplies710Dr.503Purchases Returns and Allowances131Inventory29,365Dr.504Purchases Discounts201Notes Payable611Cash Short or Over205Accounts Payable9,560Cr.614Rent Expense231Sales Tax Payable617Salaries Expense301Sergio Cortez, Capital45,600Cr.619Utilities Expense401Sales

DATETRANSACTIONSSept.1Received a check for $1,050 from David Prater to pay his account.1Issued Check 1401 for $1,940 to Sadler Floor Coverings, a creditor, in payment of Invoice 6325 dated August 3.2Issued Check 1402 for $2,500 to pay the monthly rent.3Sold a table on credit for $650 plus sales tax of $52.00 to Pam Lawrence, Sales Slip 1850.5Sergio Cortez, the owner, invested an additional $15,000 cash in the business in order to expand operations.6Had cash sales of $3,900 plus sales tax of $312 during the period September 1-6; there was a cash shortage of $20.6Purchased carpeting for $4,450 from Reed Millings Company, Invoice 827, dated September 3; terms of 2/10, n/30.6Issued Check 1403 for $158 to Tri-City Trucking Company to pay the freight charge on goods received from Reed Millings Company.8Purchased store supplies for $370 from Rocker Company, Invoice 4204, dated September 6, net amount due in 30 days.8Sold chairs on credit for $950 plus sales tax of $76.00 to Henry Tolliver, Sales Slip 1851.11Accepted a two-month promissory note for $2,100 from Jason Williams to settle his overdue account; the note has an interest rate of 10 percent.11Issued Check 1404 for $4,361 to Reed Millings Company, a creditor, in payment of Invoice 827 dated September 3 ($4,450) less a cash discount ($89).13Had cash sales of $3,850 plus sales tax of $308 during the period September 8-13.14Purchased carpeting for $3,700 plus a freight charge of $84 from Wells Products, Invoice 9453, dated September 11, net due and payable in 30 days.15Collected $1,260 on account from Mesia Davis.17Gave a two-month promissory note for $5,500 to McKnight Corporation, a creditor, to settle an overdue balance; the note bears interest at 12 percent.19Sold a lamp on credit to Rachel Carter for $250 plus sales tax of $20, Sales Slip 1852.20Had cash sales of $4,100 plus sales tax of $328 during the period September 15-20; there was a cash shortage of $9.00.21Purchased area rugs for $2,800 from Nelson Craft Products, Invoice 677, dated September 18; the terms are 2/10, n/30.22Issued Check 1405 for $306 to pay the monthly utility bill.23Granted 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 $4.24Received Credit Memorandum 110 for $300 from Nelson Craft Products for a damaged rug that was returned; the original purchase was made on Invoice 677 dated September 18.24Robert Kent sent a check for $1,730 to pay the balance he owes.25Issued Check 1406 for $3,600 to make a cash purchase of merchandise.26Issued Check 1407 for $2,450 to Nelson Craft Products, a creditor, in payment of Invoice 677 of September 18 ($2,800), less a return ($300) and a cash discount ($50).27Purchased hooked rugs for $4,200 plus a freight charge of $128 from Booker, Inc., Invoice 1368, dated September 23, net payable in 45 days.27Had cash sales of $4,800 plus sales tax of $384 during the period September 22-27.28Issued Check 1408 for $2,120 to Wells Products, a creditor, in payment of Invoice 8984 dated August 30.29Sold a cabinet on credit to Mesia Davis for $1,200 plus sales tax of $96, Sales Slip 1853.30Had cash sales of $1,500 plus sales tax of $120 for September 29-30; there was a cash overage of $10.30Issued Check 1409 for $6,800 to pay the monthly salaries of the employees.

Required:

1. Open the general ledger accounts and enter the balances as of September 1, 2019.
2. Record the transactions in a sales journal, a cash receipts journal, a purchases journal, a cash payments journal, and a general journal.
3. Post the entries from the general journal to the proper general ledger accounts.
4. Post the entries from the Other Accounts Credit section of the cash receipts journal to the proper general ledger accounts.
5. Post the entries from the Other Accounts Debit section of the cash payments journal to the proper general ledger accounts.
6. Total, prove, and rule the special journals as of September 30.
7. Post the column totals from the special journals to the proper general ledger accounts.
8. Set up an accounts receivable ledger for Interior Designs Specialty Shop. Open an account for each of the customers listed below and enter the balances as of September 1. All of these customers have terms of n/30.

Credit CustomersNameBalance 9/01/19Rachel CarterMesia Davis$1,260.00Robert Kent1,730.00Pam LawrenceDavid Prater1,050.00Henry TolliverJason Williams2,100.00

1. Post the individual entries from the sales journal, the cash receipts journal, and the general journal to the accounts receivable subsidiary ledger.
2. make a schedule of accounts receivable for September 30, 2019.
3. 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.

CreditorsNameBalance 9/01/19TermsBooker, Inc.n/45McKnight Corporation$5,5001/10, n/30Nelson Craft Products2/10, n/30Rocker Companyn/30Reed Millings Company2/10, n/30Sadler Floor Coverings1,940n/30Wells Products2,120n/30

1. 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, 2019.
2. Post the individual entries from the purchases journal, the cash payments journal, and the general journal to the accounts payable subsidiary ledger.
3. make a schedule of accounts payable for September 1, 2019.
4. Check the total of the schedule of accounts payable against the balance of theAccounts Payableaccount in the general ledger. The two amounts should be the same.