PRACTICE EXERCISE B

Eenne Martin, the once of the Family Shoe Store, has hired you at the book- (6) Set up ledger accounts in the deder stated below The Bank account will

quite w ledger sheets: all others will require only , AR W Lobato Delivery Truck Store Fixtures, A/P Canada Auto Sales A/P Domini Shoe Co A/P Royal Stationery Capical, E. Martin Sales: Purchases,

Genreal Expense: Rent Expente, and Supplies Expense. (b) Record the following auctions in the General Journal All pay ments are to be made by cheque, beginning with Cheque #1. Record

the cheque number issued in the explanation portion of the entry, 20

May Martin invested $35,000 cash in his business

2 Signed rental agreement today with Pelletier Properties for the use

of score space for $1,000 per month (No entry will be made until

the rent is paid because no values have yet been exchanged.) The

first rent cheque will be issued on May 7. Bought store fixtures from O'Connor & Day for $16,500. Paid by

cheque. 3 Bought wrapping materials from Business Warehouse, $145. Paid

by cheque.

4 Bought office supplies for $186.70 from Royal Stationery, Sales Invoice #223: terms net 30 days.

4 Bought used delivery truck for $12,000 from Canada Auto Sales.

Purchase Invoice #773; terms net 30 days

CHAPTER 3

The Ledge

5 Bought merchandise from Dominion Shoe Co., $2,450. Purchase Invoice #525; terms net 10 days

6 Cash sales, $624.75

7 Issued cheque to pay rent for May 9 Sold shoes on account to WA. Crow, $69.95. Sales Invoice #1;

terms net 15 days 10 Cash sales, $924.75.

11 Shoe sales on credit: W.A. Crow, $47.65. R.G. Dragovic, $63.50;

WE Lobato, $40. Sales Invoice #2, 3, and 4; terms net 15 days. (Record this as a compound entry.) 13 Bought additional merchandise on account from Dominion Shoe

Co., $1,300. Purchase Invoice #587; terms net 30 days. 15 Issued cheque for $2,450 to Dominion Shoe Co. in payment of Invoice #523

16 Cash sales, $1,027.50

17 Shoe sales on credic: WF Lobato, $53.50, R.G. Dragovic, $42.40, W.A. Crow, $39.98. Sales Invoices #5, 6, and 7; terms net 15 days 18 Received cheque from WF Lobato in partial payment of his

account, $55. 19 Issued cheque as partial payment to Canada Auto Sales, $6,000 20 Cash sales, $946.98

23 Paid Dominion Shoe Co. $850 on account. 23 Received cheques on account from W.F. Lohan, $35; W.A. Crow $69.95, and R.G. Dragovic, $65.50

25. Sales on credit: R.G. Dragovic, $72.98, and WF Lobato, $44.65. Sales Invoices #8 and 9, terms net 15 days 31 Received cheque from WA. Crow on account, $20.

(c) Post all transactions to the ledger accounts (d) Prepare a trial balance in proper form