Enter transactions to the appropriate journals $($Sales$,$ ?Purchases, Cash Receipts, Cash Disbursements or General Journal$).$ ?An example is shown for each special journal $-$ ?transactions b$,$ ?c$,?$ ?and $?.$ ?You do not need to enter those transactions again $-$ ?but be sure to include those items in your transaction totals.

a$)$ ?Hint: before you begin go down the list of transaction and decide what journal it goes in$.$

Post to the appropriate subledgers $($if applicable.$)$

a$)$ ?Hint: use the post column to keep yourself organized as to which amounts you have transferred to the ledgers.

Post to the general ledger accounts.

a$)$ ?Hint: if there are several transactions to the same account in a special journal, you only transfer the total to the general ledger.

Calculate a total for each general ledger account. Draw a line under the last transaction and then the total amount on the side $($debit or credit$)$ ?that has an account balance.

Prepare a trial balance using the totals from each general ledger.

Prepare a multi$-$step Income Statement, complete with a $3$ ?line header. Produce a nicely formatted, high quality work product.

Prepare a classified Balance Sheet $($separate current assets from long$-$term and current liabilities from longterm.$)$ ?Be sure to include the $3-$line header. Produce a nicely formatted, high quality work product.

Prepare simple schedules of AR and AP to test the accuracy of the subledgers. $($nice formatting is not necessary for these.$)$

Example of Manual Accounting

The Manson Company completed these transactions during January of the current year:

$\backslash$table$[[$Trx$,$Journal,Description$],[$a$),,$January $1,$ ?Began business by selling stock for $$400,000\mathrm{.}00.],[$b$),,\backslash$table$[[$January $1,$ ?Rented office space for $1$ ?month using check number $800$ ?for $$10,000\mathrm{.}00$ ?to$],[$Smithlord Properties.$($Example posted to cash disbursement journal$).]]],[$c$),,\backslash$table$[[$January $2,$ ?Purchased office furniture and equipment on credit from Mckay Company, invoice$],[$mck$66$ ?dated January $9,$ ?terms $\frac{2}{10},$ ?net $30,$$$20,499\mathrm{.}11.($Example posted to purchases$],[$journal$).]]],[$d$),,\backslash$table$[[$January $2,$ ?Sold merchandise on credit to John Nelson. Invoice No$.324,$ ?$$7,965\mathrm{.}37.($Terms for$],[$all credit sales are $\frac{2}{10},\frac{?}{30}.($Example posted to sales journal$).]]],[$e$),,\backslash$table$[[$January $3,$ ?Purchased on credit from Cosair Company office supplies, $$1224\mathrm{.}54,$ ?invoice xx$12],[$dated January $3,$ ?due in $30$ ?days. Supplies are expected to last for approximately $4$ ?months.$]]],[$f$),,\backslash$table$[[$January $3,$ ?Received merchandise and invoice F$1$ ?dated Jan $1,$ ?terms $2/10,$ ?n$/30$; from$],[$Farnswood Company, $$213,022\mathrm{.}22.]]],[$g$),,$January $3,$ ?Sold merchandise on credit to Thomas Zak, Invoice no $325,$$$4,666\mathrm{.}88.],[$h$),,\backslash$table$[[$January $10,$ ?Sent Farnswood Company Check no$.876$ ?in payment of its January $1$ ?invoice less$],[$the discount.$]]],[$i$),,$January $10,$ ?Sold merchandise on credit to Margo Edwards, Invoice no$.326,$$$8,375\mathrm{.}21.],[$j$),,$January $11.$ ?Sold merchandise on credit to Ken Duclose, Invoice no$.327,$$$5,554\mathrm{.}23$

Example of Manual Accounting The Manson Company completed these transactions during January of the current year: Trx Journal Description a) b) d) e) f) g) h) i) j) k) 1) m) n) 0) p) q) r) s) t) u) v) w) ) January 1, Began business by selling stock for $400,000.00. January 1, Rented office space for 1 month using check number 800 for $10,000.00 to Smithlord Properties. (Example posted to cash disbursement journal). January 2, Purchased office furniture and equipment on credit from Mckay Company, invoice mck66 dated January 9, terms 2/10, net 30, $20,499.11. (Example posted to purchases journal). January 2, Sold merchandise on credit to John Nelson. Invoice No. 324, $7,965.37. (Terms for all credit sales are 2/10, n/30). (Example posted to sales journal). January 3, Purchased on credit from Cosair Company office supplies, $1224.54, invoice xx12 dated January 3, due in 30 days. Supplies are expected to last for approximately 4 months. January 3, Received merchandise and invoice F1 dated Jan 1, terms 2/10, n/30; from Farnswood Company, $213,022.22. January 3, Sold merchandise on credit to Thomas Zak, Invoice no 325, $4,666.88. January 10, Sent Farnswood Company Check no. 876 in payment of its January 1 invoice less the discount. January 10, Sold merchandise on credit to Margo Edwards, Invoice no. 326, $8,375.21. January 11. Sold merchandise on credit to Ken Duclose, Invoice no. 327, $5,554.23 January 12, Received payment from John Nelson for the January 2 sales less the discount check number 4444. (Example posted to cash receipts journal). January 13, Received payment from Thomas Zak for the January 3 sales less the discount check number 12345. January 15, Issued check no. 877 payable to payroll, in payment of sales salaries for the first half of the month, $7,950.00. Cashed the check and paid the employees. January 15, Cash sales for the first half of the month were $77,341.22. (Normally cash sales are posted daily, but for the purposes of this problem you are going to post them all at once.) January 19, Received payment from Margo Edwards for the sale of January 10 less the discount check number 8888. January 20, Received merchandise and invoice F2 dated Jan 19, terms 2/10, n/30; from Farnswood Company, $113,044.44. January 27, Sold merchandise on credit to Margo Edwards, Invoice no. 328, $6,458.22 January 28, Sold merchandise on credit to Thomas Zak, Invoice no 329, $26,544.11. January 29, Sold merchandise on credit to Heather Terry, Invoice no 330, $11,123.45. January 31, Issued check no. 879 payable to payroll, in payment of sales salaries for the second half of the month, $7,950.00. Cashed the check and paid the employees. January 31, Cash sales for the second half of the month were $72,345.00. (Normally cash sales are posted daily, but for the purposes of this problem, you are going to post them all at once.) January 31, Paid for utilities (water, power, etc) to Unified Utilities Inc. $1,454.77 check number 880. January 31, Paid for advertising from AdsRus for January $10,500.00 check number 881 January 31, Estimated the expected life of the office furniture and equipment to be 5 years with no salvage value. Manson Company will take a full month of straight-line depreciation in January. y) January 31, Counted ending inventory valued at $ 196,312.00. z) January 31, Counted office supplies and determined that approximately $750.00 worth of supplies were left and that the rest had been used in January. ||