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GENERAL LEDGER ACCOUNTS 101 Cash $ 21,800 Dr. 131 Equipment 65,000 Dr. 201 Notes payable 205 Accounts payable 4,970 Cr. 501 Purchases 503 Purchases ret.
GENERAL LEDGER ACCOUNTS
101 | Cash | $ | 21,800 | Dr. |
131 | Equipment | 65,000 | Dr. | |
201 | Notes payable | |||
205 | Accounts payable | 4,970 | Cr. | |
501 | Purchases | |||
503 | Purchases ret. and allow. | |||
504 | Purchases discounts | |||
611 | Rent expense | |||
614 | Salaries expense | |||
617 | Telephone expense | |||
DATE | TRANSACTIONS | |||
June | 1 | Issued Check 1101 for $3,300 to pay the monthly rent. | ||
3 | Purchased merchandise for $3,500 from Perfect Fit Shoe Shop, Invoice 746, dated June 1; the terms are 2/10, n/30. | |||
5 | Purchased new store equipment for $5,400 from Middleton Company, Invoice 9067 dated June 4, net payable in 30 days. | |||
7 | Issued Check 1102 for $1,560 to Leisure Wear Clothing Company, a creditor, in payment of Invoice 3342 of May 9. | |||
8 | Issued Check 1103 for $2,989 to Perfect Fit Shoe Shop, a creditor, in payment of Invoice 746 dated June 1 ($3,050), less a cash discount ($61). | |||
12 | Purchased merchandise for $2,275 from Juandas Coat Shop, Invoice 9922, dated June 9, net due and payable in 30 days. | |||
15 | Issued Check 1104 for $237 to pay the monthly telephone bill. | |||
18 | Received Credit Memorandum 203 for $775 from Juandas Coat Shop for defective goods that were returned; the original purchase was made on Invoice 9922 dated June 9. | |||
21 | Purchased new store equipment for $10,400 from Warren Company; issued a three-month promissory note with interest at 10 percent. | |||
23 | Purchased merchandise for $6,300 from The Motor Speedway, Invoice 1927, dated June 20; terms of 2/10, n/30. | |||
25 | Issued Check 1105 for $1,475 to Juandas Coat Shop, a creditor, as payment on account, Invoice 7416 dated May 28. | |||
28 | Issued Check 1106 for $6,174 to The Motor Speedway, a creditor, in payment of Invoice 1927 of June 20 ($6,300), less a cash discount ($126). | |||
30 | Purchased merchandise for $2,070 from Jogging Shoes Store, Invoice 4713, dated June 26; the terms are 1/10, n/30. | |||
30 | Issued Check 1107 for $5,700 to pay the monthly salaries of the employees. |
Required:
- Open the general ledger accounts and enter the balances as of June 1, 20X1.
- Record the transactions in a purchases journal, a cash payments journal, and a general journal.
- Post the entries from the general journal and from the Other Accounts Debit section of the cash payments journal to the proper general ledger accounts.
- Post the column totals from the special journals to the general ledger.
- Show how the firms net cost of purchases would be reported on its income statement for the month ended June 30.
Analyze: What total liabilities does the company have at month-end? Post the opening balances and transactions into the appropriate ledger accounts.
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