General Ledger

Account

Number

Account Title

January 1

Opening Balance

101

Cash

Kshs 33,750

112

Accounts Receivable

13,000

115

Notes Receivable

39,000

120

Merchandise Inventory

20,000

125

Office Supplies

1,000

130

Prepaid Insurance

2,000

157

Equipment

6,450

158

Accumulated Depreciation -Equipment

1,500

201

Accounts Payable

35,000

301

Ordinary Share Capital

50,000

303

Retained Earnings

28,700

Accounts ReceivableSubsidiary Ledger

Customer

January 1

Opening

Balance

R. Devo

Kshs 1,500

B. Habari

7,500

S. Ingunza

4,000

Accounts PayableSubsidiary Ledger

Creditor

January 1

Opening

Balance

S. Koskei

Kshs9,000

R. Michuki

15,000

D. Maneno

11,000

The transactions for January 2020 were as follows:-

January.3 Sell merchandise on account to B. Ratemo Kshs3,100, invoice no. 510, and J. Furaha Kshs 1,800 invoice no. 511.

5 Purchase merchandise on account from S. Yimbo Kshs3,000 and D. Lelei Kshs 2,700

7Receive checks for Kshs 4,000 from S. Ingunza and Kshs 2,000 from B. Habari.

8Pay freight on merchandise purchased Kshs 180.

9Send checks to S. Koskei for Kshs 9,000 and D. Maneno for Kshs 11,000

10Summary cash sales total Kshs 15,500.

11Sell merchandise on account to R. Devo for Kshs 1,900, invoice no.

512, and to S. Ingunza Kshs 900, invoice no. 513. Post all entries to the subsidiary ledgers

12Pay rent of Kshs 1,000 for January.

13Receive payment in full from B. Ratemo and J. Furaha.

15Paid dividends Kshs 800 by cash to the shareholders.

16Purchase merchandise on account from D. Maneno for Kshs 15,000, from S. Koskeifor Kshs 13,900, and from S. Yimbo for Kshs 1,500.

17Pay Kshs400 cash for office supplies.

18Return Kshs 200 of merchandise to S. Koskei and receive credit.

20 Summary cash sales total Kshs 17,500.

21

21

22

23

25

27

28

31

31

Issue Kshs 15,000 note to R. Michuki in payment of balance due.

Receive payment in full from S. Ingunza

Post all entries to the subsidiary ledgers

Sell merchandise on account to B. Ratemo for Kshs 3,700, invoice no. 514, and to R. Devo for Kshs 800, invoice no. 515.

Send checks to D. Maneno and S. Koskei in full payment.

Sell merchandise on account to B. Habari forKshs 3,500, invoice no.

516, and to J. Furaha for Kshs 6,100, invoice no. 517.

Purchase merchandise on account from D. Maneno for Kshs 12,500, from D. Lelei for Kshs 1,200, and from S. Yimbo for Kshs 2,800.

Pay Kshs 200 cash for office supplies.

Summary cash sales total Kshs 22,920.

Pay sales salaries of Kshs 4,300 and office salaries of Kshs 3,600.

(a)Record the January transactions in the appropriate journal:

i) Sales journalii) Purchases journaliii) Cash receipts journaliv) Cash payment journalv) General journal

(b)Post the journals to the general and subsidiary ledgers. Add and number new accounts (chart) in an orderly fashion as needed.

(c)Prepare a unadjusted trial balance at January 31, 2020.