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Michelle French owns and operates Books and More, a retail book store. Selected account balances on June 1 are as follows: General Ledger Cash $32,200.00

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Michelle French owns and operates Books and More, a retail book store. Selected account balances on June 1 are as follows: General Ledger Cash $32,200.00 Accounts Payable 2,000.00 M. French, Drawing 18,000.00 Purchases 67,021.66 Purchases Returns and Allowances 2,315.23 Purchases Discounts 905.00 Freight-In 522.60 Rent Expense 3,125.00 Utilities Expense 1,522.87 Accounts Payable Ledger Northeastern Publishing Co. $ 2,000.00 The following purchases and cash payments transactions took place during the month of June: June 1 Purchased books on account from Irving Publishing Company, $2,100. Invoice No. 101, terms 2/10, 1/30, FOB destination. 2 Issued Check No. 300 to Northeastern Publishing Co. for goods purchased on May 23, terms 2/10, 1/30, 51,960 (the $2,000 invoice amount less the 2% discount). 3 Purchased books on account from Broadway Publishing, Inc., 52,880. Invoice No. 711, less a 20% trade discount, and invoice terms of 3/10, n/30, FOB shipping point. 3 Issued Check No. 301 to Mayday Shipping for delivery from Broadway Publishing, Inc., $250. 4 Issued Check No. 302 for June rent, $625. 8 Purchased books on account from Northeastern Publishing Co., $5,825. Invoice No. 268, terms 2leom, n/60, FOB destination. 10 Received a credit memo from Irving Publishing Company, S550. Books had been returned because the covers were on upside down. 13 Issued Check No. 304 to Broadway Publishing, Inc., for the purchase made on June 3. (Check No. 303 was voided because an error was made in preparing it.) 28 Made the following purchases: Invoice No. Company Amount Terms 579 Broadway Publishing, Inc. $2,350 2/10, 1/30, FOB destination 406 Northeastern Publishing Co. 4,2002/com, 1/60, FOB destination Riley Publishing Co. 3,450 3/10, n/30, FOB destination 30 Issued Check No. 305 to Taylor County Utility Co. for June utilities, $325. 30 French withdrew cash for personal use, $4,500. Issued Check No. 306. 30 Issued Check No. 307 to Irving Publishing Company for purchase made on June 1 less returns made on June 10. 30 Issued Check No. 308 to Northeastern Publishing Co. for purchase made on June 8. 30 Issued Check No. 309 for books purchased at an auction, $1,328. REQUIRED 1. Enter the transactions in a general journal (start with page 16). 2. Post from the journal to the general ledger accounts and the accounts payable ledger. Use general ledger account numbers as indicated in the chapter. 3. Prepare a schedule of accounts payable. 4. If merchandise inventory was $35,523 on January 1 and $42,100 as of June 30, prepare the cost of goods sold section of the income statement for the six months ended June 30, 20- 964

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