It is October 16, 2020, and you have just taken over the accounting work of Saskan Enterprises, whose annual accounting period ends each October 31 The companys previous accountant journalized its transactions through October 15 and posted all items that required posting as individual amounts, as an examination of the journals and ledgers in the Working Papers will show The company completed these transactions beginning on October 16, 2020 Oct 16 Sold merchandise on credit to Vickie Foresman, invoice 916, $7,500 Cost, $3,750 Terms of all credit sales are 2 10, n 30 17 Received a $1,090 credit memo from Shore Company for merchandise received on October 15 and returned for credit 17 Purchased office supplies on credit from Brown Supply Company, $580 Invoice dated October 16, terms n 10 EOM 18 Received a $40 credit memo from Brown Supply Company for office supplies received on October 17 and returned for credit 20 Issued a credit memo to Amy Ihrig for defective merchandise sold on October 15 and returned for credit, $500 The returned merchandise was scrapped 21 Purchased store equipment on credit from Brown Supply Company, invoice dated October 21, terms n 10 EOM, $7,200 22 Received payment from Vickie Foresman for the October 12 sale 23 Issued cheque 623 to Sunshine Company in payment of its October 15 invoice 24 Sold merchandise on credit to Bill Grigsby, invoice 917, $1,400 Cost, $750 24 Issued cheque 624 to Shore Company in payment of its October 15 invoice 25 Received payment from Amy Ihrig for the October 15 sale 26 Received merchandise and an invoice dated October 25, terms 2 10, n 60, from Sunshine Company, $7,900 29 Sold a neighbouring merchant five boxes of file folders (office supplies) for cash at cost, $50 30 Ken Shaw, the owner of Saskan Enterprises, used cheque 625 to withdraw $2,500 cash from the business for personal use 31 Issued cheque 626 to Jamie Green, the companys only sales employee, in payment of her salary for the last half of October, $2,200 31 Issued cheque 627 to Countywide Electric Company in payment of the October electric bill, $680 31 Cash sales for the last half of the month were $31,000 Cost, $15,500 Cash sales are usually recorded daily but are recorded only twice in this problem to reduce the repetitive transactions

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 16, 2024

It is October 16, 2020, and you have just taken over the accounting work of Saskan Enterprises, whose annual accounting period ends each October 31.

It is October 16, 2020, and you have just taken over the accounting work of Saskan Enterprises, whose annual accounting period ends each October 31. The companys previous accountant journalized its transactions through October 15 and posted all items that required posting as individual amounts, as an examination of the journals and ledgers in the Working Papers will show. The company completed these transactions beginning on October 16, 2020:

Oct.	16	Sold merchandise on credit to Vickie Foresman, invoice #916, $7,500. Cost, $3,750. Terms of all credit sales are 2/10, n/30.
	17	Received a $1,090 credit memo from Shore Company for merchandise received on October 15 and returned for credit.
	17	Purchased office supplies on credit from Brown Supply Company, $580. Invoice dated October 16, terms n/10 EOM.
	18	Received a $40 credit memo from Brown Supply Company for office supplies received on October 17 and returned for credit.
	20	Issued a credit memo to Amy Ihrig for defective merchandise sold on October 15 and returned for credit, $500. The returned merchandise was scrapped.
	21	Purchased store equipment on credit from Brown Supply Company, invoice dated October 21, terms n/10 EOM, $7,200.
	22	Received payment from Vickie Foresman for the October 12 sale.
	23	Issued cheque #623 to Sunshine Company in payment of its October 15 invoice.
	24	Sold merchandise on credit to Bill Grigsby, invoice #917, $1,400. Cost, $750.
	24	Issued cheque #624 to Shore Company in payment of its October 15 invoice.
	25	Received payment from Amy Ihrig for the October 15 sale.
	26	Received merchandise and an invoice dated October 25, terms 2/10, n/60, from Sunshine Company, $7,900.
	29	Sold a neighbouring merchant five boxes of file folders (office supplies) for cash at cost, $50.
	30	Ken Shaw, the owner of Saskan Enterprises, used cheque #625 to withdraw $2,500 cash from the business for personal use.
	31	Issued cheque #626 to Jamie Green, the companys only sales employee, in payment of her salary for the last half of October, $2,200.
	31	Issued cheque #627 to Countywide Electric Company in payment of the October electric bill, $680.
	31	Cash sales for the last half of the month were $31,000. Cost, $15,500. Cash sales are usually recorded daily but are recorded only twice in this problem to reduce the repetitive transactions.