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HAPPY`ER``REMAIN DINGCITIES AND AVOIDZY Directions :` 1. Open the following accounts in the general ledger , and enter the balances as of October 1 :` Ithing Objectives 3 , 4 , 5 , 6\\ Problem 8 - 5 A Objective : To complete a comprehensive problem using live journals and three* ACCOUNT 112 Jash Balance CK Figure ledgers\\ 1 13 Accounts Receivable* $ 9, 300 ance of Accounts the following transactions were completed by Pendleton food Company during` 1 14 store Supplies 11 , 500 vable = $1 , 350 ;\\ October 20 * 1 . All credit sales carry terms of 2/ 10, 17/30. ( Note: Head all directions to` 121 Office Supplies 3, 500 9 balance of Accounts the problem before journalizing and posting the October transactions . )| 122 Store Equip 1 , 890 @ = $12 , 230\\ 211 Office Equi 18. 750 Accounts Payable 8, 560 wait "mal 20X 1\\ 411 Oct . 1 Paid October rent , $1 , 500 .` Received the balance of Bill Fahey's account , less a 2%% discount . 471 . 1 Sales 19 , 700 471. 2 Sales Returns and Allowances 1 18, 400 Paid for radio advertising , $1 , 080 . CY 3, 300 3 Received the balance of Brad Craven's account , less a 2 % discount . ER 571\\ Sales Discounts Purchases 3, 940 3 Sold merchandise on account to Hardy's Food World , $3, 200 . 5\\ 571 . 1 Purchases Returns and Allowances - 6 , 700 `Purchased office equipment for cash , $3 , 100 .' LP 571 .2 5. 400 4, Paid S. Sanchez Co. for the October 1 balance ; no discount . (` 671 Purchases Discounts 3, 000 6/ Made the following credit purchases from S. Sanchez CO .: store supplies , { 612 Rent Expense\\ silJo $450 ; office supplies , $220 ; and merchandise , $1, 060; terms , 17 /30 ._ _ Gi ]` 673 Salaries Expense 30, 100 614 Utilities Expense 675\\ Repairs Expense 7 , 800 Sold merchandise on account to Southside Grocery , $2, 600 .\\ 890 Recorded cash sales for the week , $4 , 690. 0 `` Purchased merchandise on account from Belk's , $8 , 000 ; terms , 1/ 10, 2 / 30. 2\\ 616 Advertising Expense Gas and Oil Expense 3 , 200 618 ___ Paid Zachary Products Co . for the October 1 balance , less a 2% discount. Miscellaneous Expense 1 , 500 936 8 \\ Due to damage during shipment , the following items were returned for* 2 . Open the following accounts in the accounts receivable ledger , and enter the credit to S. Sanchez Co . ; / office supplies , ) $20; store supplies , $ 40 ; and ( ) balances as of October 1 :` merchandise , $60) Debit #` Account Paid Belk's for the October 1 balance , less a 2% discount .\\ Adams CO . Balance "EP $4, 100 *9 Issued a check to a cash customer for the return of damaged\\ Brad Craver 90. merchandise , $85 . Bill Fahey\\ 2 ) Purchased store equipment on account from Baker Supply CO., $6 , 620 21> Hardy's Food World 2, 900 X Southside Grocery - 0 - terms , 2/ 10 , 17 /30 .` 10 Received the balance owed by Adams Co., less a 2% discount ._ {| 13 Received payment from Hardy's Food World for the sale of October 3 . CV 3 . Open the following accounts in the accounts payable ledger , and enter the balances as of October 1 :` QUIGLEY 19 9^ $15 Recorded cash sales for the week , $6 , 010 . er 15 Paid salaries for the first half of the month , $2 , 100 . 08\\ Account Baker Supply CO. Balance 16 Received payment from Southside Grocery for the sale of October 6 . C !` $ - 0 - 17 Paid Belk's the amount due on the purchase of October 7 . CP Belk's 18 Purchased merchandise on account from Engel Co., $3, 600; terms , P. Engel Co . 6 , 500 \\- O - S. Sanchez Co. 4 , 500 2 / 10, 17 /30 .` Zachary Products CO. 8 , 900 17.8 (19) Returned defective merchandise to Engel Co. and received credit , $350 . G.) 21 Purchased merchandise for cash , $1 , 000 . 28\\ 4 . Record the October transactions using a sales journal ( page 8 ) , a cash receipts * 2 2 Sold at cost a computer printer that was no longer needed , $1 , 500 . C. journal ( page 7 ) , a purchases journal ( page 14 ) , a cash payments journal ( page 10 ) , 22 Recorded cash sales for the week , $6 , 495 . CV| and a general journal ( page 5 ) . Post to the subsidiary ledgers after each entry . Start* 3 Paid for miscellaneous expenses , $225 . UP\\ sales invoices with No . 377 , purchases invoices with No . 364 , and checks with NO. 25 ` Paid for repairs to delivery truck , $250 . C.` 419 . Remember that all credit sales carry terms of 2/10 , 1 /30 . 26 Paid gas and oil expense , $125 . CP Purchased merchandise on account from Belk's , $ 4 , 000 . ?` 5 . Post the individual entries from the general journal to the general ledger . Total , 27 28 Paid Engel Co . for the purchase of October 18 , less the return of October 19. UP rule , and post the special journals . 30 Sold merchandise on account to Southside Grocery , $1 , 350 . 5 6 . Prepare schedules of accounts receivable and accounts payable , and verify the total 31 Recorded cash sales for the week , $9 , 600 . CR 31 Paid salaries for the second half of the month , $2 , 200 . CO 31 Paid utility bill , $872 . CP 18 for Cash and the Merchandising Business Chapter 8 | Accounting for a Merchandising Business