P7-264 Using all journals, posting, and balancing the ledgers "Tulsa Computer Security uses the perpetual inventory system and makes all credit sales on terms of n/30. Tulsa completed the following transactions during May: May 2 Issued invoice no. 913 for sale on account to K. D. King, $2,200 (cost, $1,500) 3 Purchased merchandise inventory on credit terms of 3/10, n/60 from Henderson Co., $2,900. 5 Sold merchandise inventory for cash, $1,800 (cost, $350). 5 Issued check no. 532 to purchase furniture for cash, $2,950. 8 Collected interest revenue of $1,350. 9 Issued invoice no. 914 for sale on account to Berkner Co., $5,700 (cost, $2,000) 10 Purchased merchandise inventory for cash, $1,000, issuing check no. 533. 12 Received cash from K. D. King in full settlement of her account receivable from the sale on May 2. 13 Issued check no. 534 to pay Henderson Co. the net amount owed from May 3. Round to the nearest dollar. 13 Purchased office supplies on account from Magyar, Inc., $500. Terms were n/EOM. 15 Sold merchandise inventory on account M. O. Small, issuing invoice no. 915 for $850 (cost, $400). 18 Issued invoice no. 916 for credit sale to K. D. King, $300 (cost, $150). 19 Received cash from Berkner Co. in full settlement of account receivable from May 9. 20 Purchased merchandise inventory on credit terms of n/30 from Silva Distributing, $2,100. 22 Purchased furniture on credit terms of 3/10, n/60 from Henderson Co., $500. 22 Issued check no. 535 to pay for insurance coverage, debiting Prepaid Insurance for $1,400. 24 Sold office supplies to an employee for cash of $125, which was Tulsa's cost. 25 Received bill and issued check no. 536 to pay utilities, $550. 28 Purchased merchandise inventory on credit terms of 2/10, n/30 from Magyar, Inc., $575. 29 Returned damaged merchandise inventory to Magyar, Inc., issuing a debit memo for $575. 29 Sold merchandise inventory on account to Berkner Co., issuing invoice no. 917 for $2,400 (cost, $1,400). 30 Issued check no. 537 to pay Magyar, Inc. in full for May 13 purchase. 31 Received cash in full from K. D. King on credit sale of May 18. 31 Issued check no. 538 to pay monthly salaries of $2,250. Requirements 1. Open four-column general ledger accounts using Tulsa's account numbers and bal- ances as of May 1, 2018, that follow. All accounts have normal balances. Number Account Bal. 111 Cash $ 15,000 112 114 116 1,700 7,000 600 117 0 Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Furniture Accounts Payable Osage, Capital Sales Revenue 151 2,200 900 211 311 21,400 411 419 7,800 1,300 2,800 511 Interest Revenue Cost of Goods Sold Salaries Expense Utilities Expense 531 1,900 541 200 2. Open four-column accounts in the subsidiary ledgers with beginning balances as of May 1, if any. Accounts receivable subsidiary ledger-Balakrishnan Co., $1,700; Berkner Co., $0; M. O. Small, $0; and K. D. King, $0. Accounts payable subsidiary ledger-Henderson Co., $0; Magyar, Inc., $0; Silva Distributing, $0; and White Co., 5900. 3. Enter the transactions in a sales journal (page 7), a cash receipts journal (page 5, omit Sales Discounts Forfeited column), a purchases journal (page 10), a cash payments journal (page 8), and a general journal (page 6), as appropriate. 4. Post daily to the accounts receivable subsidiary ledger and to the accounts payable subsidiary ledger. 5. Total cach column of the special journals. Show that total debits equal total credits in each special journal. On May 31, post to the general ledger. 6. Prepare a trial balance as of May 31, 2018, to verify the equality of the general ledger. Balance the total of the customer account ending balances in the accounts receivable subsidiary ledger against Accounts Receivable in the general ledger. Do the same for the accounts payable subsidiary ledger and Accounts Payable in the general ledger. P7-264 Using all journals, posting, and balancing the ledgers "Tulsa Computer Security uses the perpetual inventory system and makes all credit sales on terms of n/30. Tulsa completed the following transactions during May: May 2 Issued invoice no. 913 for sale on account to K. D. King, $2,200 (cost, $1,500) 3 Purchased merchandise inventory on credit terms of 3/10, n/60 from Henderson Co., $2,900. 5 Sold merchandise inventory for cash, $1,800 (cost, $350). 5 Issued check no. 532 to purchase furniture for cash, $2,950. 8 Collected interest revenue of $1,350. 9 Issued invoice no. 914 for sale on account to Berkner Co., $5,700 (cost, $2,000) 10 Purchased merchandise inventory for cash, $1,000, issuing check no. 533. 12 Received cash from K. D. King in full settlement of her account receivable from the sale on May 2. 13 Issued check no. 534 to pay Henderson Co. the net amount owed from May 3. Round to the nearest dollar. 13 Purchased office supplies on account from Magyar, Inc., $500. Terms were n/EOM. 15 Sold merchandise inventory on account M. O. Small, issuing invoice no. 915 for $850 (cost, $400). 18 Issued invoice no. 916 for credit sale to K. D. King, $300 (cost, $150). 19 Received cash from Berkner Co. in full settlement of account receivable from May 9. 20 Purchased merchandise inventory on credit terms of n/30 from Silva Distributing, $2,100. 22 Purchased furniture on credit terms of 3/10, n/60 from Henderson Co., $500. 22 Issued check no. 535 to pay for insurance coverage, debiting Prepaid Insurance for $1,400. 24 Sold office supplies to an employee for cash of $125, which was Tulsa's cost. 25 Received bill and issued check no. 536 to pay utilities, $550. 28 Purchased merchandise inventory on credit terms of 2/10, n/30 from Magyar, Inc., $575. 29 Returned damaged merchandise inventory to Magyar, Inc., issuing a debit memo for $575. 29 Sold merchandise inventory on account to Berkner Co., issuing invoice no. 917 for $2,400 (cost, $1,400). 30 Issued check no. 537 to pay Magyar, Inc. in full for May 13 purchase. 31 Received cash in full from K. D. King on credit sale of May 18. 31 Issued check no. 538 to pay monthly salaries of $2,250. Requirements 1. Open four-column general ledger accounts using Tulsa's account numbers and bal- ances as of May 1, 2018, that follow. All accounts have normal balances. Number Account Bal. 111 Cash $ 15,000 112 114 116 1,700 7,000 600 117 0 Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Furniture Accounts Payable Osage, Capital Sales Revenue 151 2,200 900 211 311 21,400 411 419 7,800 1,300 2,800 511 Interest Revenue Cost of Goods Sold Salaries Expense Utilities Expense 531 1,900 541 200 2. Open four-column accounts in the subsidiary ledgers with beginning balances as of May 1, if any. Accounts receivable subsidiary ledger-Balakrishnan Co., $1,700; Berkner Co., $0; M. O. Small, $0; and K. D. King, $0. Accounts payable subsidiary ledger-Henderson Co., $0; Magyar, Inc., $0; Silva Distributing, $0; and White Co., 5900. 3. Enter the transactions in a sales journal (page 7), a cash receipts journal (page 5, omit Sales Discounts Forfeited column), a purchases journal (page 10), a cash payments journal (page 8), and a general journal (page 6), as appropriate. 4. Post daily to the accounts receivable subsidiary ledger and to the accounts payable subsidiary ledger. 5. Total cach column of the special journals. Show that total debits equal total credits in each special journal. On May 31, post to the general ledger. 6. Prepare a trial balance as of May 31, 2018, to verify the equality of the general ledger. Balance the total of the customer account ending balances in the accounts receivable subsidiary ledger against Accounts Receivable in the general ledger. Do the same for the accounts payable subsidiary ledger and Accounts Payable in the general ledger