Question
I need to make all these journal entries. I need to know which accounts each entry will go in (A/P, A/R, inventory, cash, COGS ect.)
I need to make all these journal entries. I need to know which accounts each entry will go in (A/P, A/R, inventory, cash, COGS ect.) and which accounts to credit and debt.
1.INTRODUCTION
The Company sells and rents camping equipment from its store in Denver, Colorado. It is a sole proprietorship and is owned and operated by Samuel Stephens. Maintains a perpetual inventory system.The company also rents tents and groups of assorted camping equipment to trail guides. The terms of all sales and all rentals are net 30. The company delivers the equipment to many of its customers. Some customers pick it up at the store. Mr. Stephens makes all deposits. He removes the cash from the cash register and lists all checks received on a deposit ticket. He then gives the duplicate deposit slip to you for recording. The companys accounting system includes:
Examine the business papers that follow. They consist of sales invoices, rental invoices, purchase invoices, duplicate deposits slips, credit memoranda and interoffice memoranda. They appear in the order in which they come to the bookkeepers attention. The actions you as bookkeeper should take regarding these are:
Sales Invoices Enter the information in the Sales Journal. Post to the Subsidiary Accounts Subsidiary Ledger.
Rental Invoices Enter the information in the Sales Journal. Post to the Subsidiary Accounts Subsidiary Ledger.
Purchases Invoices Enter information in the Purchases Journal on the date the invoice is received for each purchase of merchandise inventory or supplies. Post to the Subsidiary Accounts Payable Ledger. Mr. Stephens will send you an interoffice memorandum when he wants you to prepare checks for payment for these invoices.
Credit Memoranda Enter the information in the General Journal.
Duplicate Deposit Tickets All cash deposits are from cash sales of camping equipment and should be recorded as a credit to Sales. The checks listed on the deposit ticket are receipts from customers who have made payments on their accounts and should be recorded as credits to Accounts Receivable and posted to the Subsidiary Accounts Receivable Ledger.
Interoffice Memoranda The owner sends information to you, the bookkeeper, instructing you to do certain tasks, such as prepare checks for his signature, establish a new account, or reclassify a previously recorded purchase. When Mr. Stephens asks you to prepare checks for his signature, you will not prepare a check but you will need to record the payment in the Cash Disbursements Journal. You are not authorized to sign checks to follow good internal control procedures.
CHART OF GENERAL LEDGER ACCOUNTS
Account Title | Account Number |
Cash | 101 |
Petty cash | 102 |
Accounts Receivable | 106 |
Allowance for Doubtful Accounts | 107 |
Interest Receivable | 109 |
Notes Receivable | 111 |
Merchandise Inventory | 119 |
Office Supplies | 124 |
Store Supplies | 125 |
Prepaid Insurance | 128 |
Office Equipment | 163 |
Accumulated Depreciation Office Equipment | 164 |
Store Equipment | 165 |
Accumulated Depreciation Store Equipment | 166 |
Camping Rental Equipment | 167 |
Accumulated Depreciation Camping Rental Equipment | 168 |
Building | 183 |
Accumulated Depreciation Building | 184 |
Accounts Payable | 201 |
Interest Payable | 203 |
Salaries Payable | 209 |
Mortgage Note Payable 9% | 251 |
Samuel Stephens, Capital | 301 |
Samuel Stephens, Withdrawals | 302 |
Camping Equipment Rental Revenue | 406 |
Interest Earned | 409 |
Camping Equipment Sales | 413 |
Cost of Goods Sold | 502 |
Depreciation Expense Building | 606 |
Depreciation Expense Office equipment | 612 |
Depreciation Expense Store Equipment | 613 |
Depreciation Expense Camping Rental Equipment | 615 |
Salaries Expense | 622 |
Interest Expense | 633 |
Insurance Expense | 637 |
Office Supplies Expense | 650 |
Stores Supplies Expense | 651 |
Advertising Expense | 655 |
Bad Debt Expense | 656 |
Miscellaneous Expense | 677 |
Telephone Expense | 688 |
Utilities Expense | 690 |
Income Summary You will not need to add any additional accounts. | 901 |
Business Paper No. 20
Inter-Office Memo | From
Samuel Stephens | Date
June 15, 20XX |
To
Bookkeeper | Subject
Cash Disbursements |
Please prepare checks for the following: (checks # 526,527,528,529)
Dex Company Invoice Dex65-40, terms n/60 $1,117.90
Dixon Company Invoice DC50-31, no discount $ 817.40
Robinson Company Invoice dated May, 15, terms 2/10, 1/30, n/60 $1,942.05
Technical Corporation Invoice dated May 20, terms n/30 $2,000.00
Business Paper No. 21
Inter-Office Memo | From
Samuel Stephens | Date
June 15, 20XX |
To
Bookkeeper | Subject
Replenish Petty Cash Fund |
Please prepare a check to me for replenishment of the petty cash fund. (check #530)
Petty Cash Voucher #3 Office Supplies $46.80 (use Office Supplies asset account)
Petty Cash Voucher #4 Transportation-in $35.90 (use Merchandise Inventory)
Business Paper No.22
Invoice # S6909
Sales Invoice
Zappo Corporation
Date June 21, 20XX
Sold To:
Mr. P. Davis
P.O. Box 14567
Grand Junction, Colorado 75345
Customer Order No.
PD2034 | Our Order No.
S6909 | Date Delivered
6/21/20XX | Delivered Via Customer Pickup | Terms
n/30 | |||
Quantity |
|
|
|
| |||
Ordered | Shipped | Description | Unit Price | Amount | |||
4 | 4 | Type C Group of Camping Equipment | 270 | 00 | 1,080 | 00 | |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
| Total |
|
| 1080 | 00 |
Bookkeepers Copy
Cost of goods sold: $516.00
Business Paper No. 23
Invoice # S6910
Sales Invoice
Date June 22, 20XX
Sold To:
J. Still
2231 After Place
St. James, Colorado, 75127
Customer Order No.
JS2035 | Our Order No.
S6910 | Date Delivered
6/22/20XX | Delivered
Our Truck | Terms
n/30 | |||
Quantity |
|
|
|
| |||
Ordered | Shipped | Description | Unit Price | Amount | |||
20 | 20 | Ground Cloth | 24 | 45 | 489 | 00 | |
1 | 1 | Four-burner stove | 145 | 60 | 145 | 60 | |
|
|
|
|
|
|
| |
|
| Total |
|
| 634 | 60 |
Bookkeepers Copy
Cost of goods sold: $317.00
Business Paper No. 24
Invoice # S6911
Sales Invoice
Date June 22, 20XX
Sold To:
S. Peeples
45 Canada Lane
St. James, Colorado, 75127
Customer Order No.
SP204 | Our Order No.
S6911 | Date Delivered
6/22/20XX | Delivered
Our Truck | Terms
n/30 | |||
Quantity |
|
|
|
| |||
Ordered | Shipped | Description | Unit Price | Amount | |||
5 | 5 | Ground Cloth | 24 | 45 | 122 | 25 | |
4 | 4 | Jackets | 124 | 00 | 496 | 00 | |
|
|
|
|
|
|
| |
|
| Total |
|
| 618 | 25 |
Bookkeepers Copy
Cost of goods sold: $237.80 Business Paper No. 25
Inter-Office Memo | From
Samuel Stephens | Date
June 22, 20XX |
To
Bookkeeper | Subject
Cash Disbursements |
Please prepare three (3) checks for the following invoices: (checks # 531,532,533)
Dixon Company Invoice DC50-45, June 13, terms 2/10, n/60 $ 647.20
Fulton, Incorporated Invoice F296-1, May, 23, terms 2/10, n/60 $ 108.00
Invoice F345-2, June 12, terms 2/10, n/60 $ 767.85
Samson Distributors Invoice S3968, May 23, terms n/30 $1,950.00
Business Paper No. 26
Inter-Office Memo | From
Samuel Stephens | Date
June 22, 20XX |
To
Bookkeeper | Subject
Withdrawal |
Please prepare a check for $3,000, payable to me for my personal use. Check #534
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started