Problem 7-4A Objective: To record purchases and cash payments, post them, and prepare a schedule of accounts payable The following selected transactions were completed by Svendsen's Sports Shop during February 20X1 (Note: Read all directions before journalizing and posting the February transactions.): 20X1 Feb. 1 Issued Check No. 113 for February rent, $900. cooh 2 Issued Check No. 114 to All-American Co. for the balance of the account, less a 2% discount. COSA 3 Issued Check No. 115 to Best Equipment Co. for the balance of the account, with no discount. Cash 3 Purchased merchandise from All-American Co., $1,550; terms, 2/10,n/30; Invoice No. 109. Purch 4 Purchased merchandise from Al's Sports Wholesalers, $2,850; terms, 2/10,n/30; Invoice No. 110. Purch 7 Issued Check No. 116 for the cash purchase of merchandise, $745. Con 9 Issued Check No. 117 in payment of a three-year insurance policy, $850. cash Feb. 11 Olaf Svendsen, the owner, issued Check No. 118 for his home phone $275. cooh 13 Issued Check No. 119 in full payment of the purchase of February 3. 15 Issued Check No. 120 for the cash purchase of office supplies, $325. 17 Purchased display Cases from Best Equipment Co., $1,650; terms, n/30; Invoice No. 111. General 22 Purchased office supplies from Office Suppliers, $920; terms, n/30; Invoice No. 112. General 25 Issued Check No. 121 to Al's Sports Wholesalers for payment on account, $1,000. con 27 Issued Check No. 122 for the purchase of February 17. Con 28 Issued Check No. 123 for monthly salaries, $1,500. Cosh 28 Issued Check No. 124 for freight charges on merchandise, $295. COPY Directions: 1. Open the following accounts in the general ledger, and enter the balances as of February 1: Balance 980 75 312 Account 111 Cash 112 $16,000 Office Supplies 113 Prepaid Insurance 116 Store Equipment 15,600 211 Accounts Payable 10,810 Olaf Svendsen, Drawing 1,200 511 Purchases 9,500 511.2 Purchases Discounts 345 512 Freight In 128 612 Salaries Expense 1,500 613 Rent Expense 900 2. Open the following accounts in the accounts payable ledger, and record the balances as of February 1: Balance Account All-American Co. $3.710 2,350 Al's Sports Wholesalers 3,000 Best Equipment Co. 1.750 Office Suppliers 3. Record the February transactions in the appropriate journal, either a two-column general journal, a one-column purchases journal, or a cash payments journal (like the ones illustrated in the chapter). Post to the accounts payable ledger after each entry. 4. Total the special journals. Make all individual postings from the cash payments journal and the general journal to the general ledger at the end of the month. Then, post the column totals from the special journals. 5. Prepare a schedule of accounts payable. 6. Compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable. PROBLEM 7-4A OR 7-4B General Journal Page 1 Date Account Tide PR Debit Page 1 Date Invoice No Purchases Journal Account Credited 109 AllAmerican 110 Als Sports Wholesaler Purchases Dr Accts Pay. Cr. 4 4 dopo PROBLEM 7-4A OR 7-4B (continued) Cash Payments Journal Page 1 PR Accounts Payable Dr. Purchase Discounts ar Account Debited KO Al Pinarian Best Equip blad Cash Cr. pod po 115 abla Slo 1., 4. General Ledger ACCOUNT Cash ACCOUNT NO. 111 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT HT ACCOUNT Office Supplies ACCOUNT NO. 112 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 386 PART II Accounting for Cash and the Merchandising Business PROBLEM 7-4A OR 7-4B (continued) Cash Payments Journal Page 1 Date No. Account Debited PA General Accounts Payable Dr Purchases Cash pilddo KON Reyte All American Best EQUIP PODP boleh 3 copo 1., 4. General Ledger ACCOUNT Cash ACCOUNT NO. 111 DATE PR DEBIT CREDIT BALANCE DEBIT CREDIT | ACCOUNT NO. 112 ACCOUNT Office Supplies DEBIT CREDIT BALANCE DEBIT CREDIT ITEM DATE 386 PART II Accounting for Cash and the Merchandising Business PROBLEM 7-4A OR 7-48 (continued) ACCOUNT Prepaid Insurance ACCOUNT NO 113 DATE ITEM DEBIT CREDIT BALANCE DEBIT CREDIT THUTH ACCOUNT Store Equipment ACCOUNT NO. 116 DATE ITEM DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Accounts Payable ACCOUNT NO. 211 DATE ITEM PR DEBIT CREDIT DERIT BALANCE CREDIT TIT ACCOUNT Drawing ACCOUNT NO. 312 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT Chapter 7 Accounting for a Merchandising Business 387 PROBLEM 7-4A OR 7-4B (continued) ACCOUNT Purchases ACCOUNT NO. 511 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT HHHHH HTTT ACCOUNT Purchases Discounts ACCOUNT NO. 511.2 DATE ITEM DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Freight in ACCOUNT NO. 512 DATE PA P.H. DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT NO. 612 ACCOUNT Salaries Expense ITEM PR DEBIT BALANCE DEBIT CREDIT DATE CREDIT 388 PART II Accounting for Cash and the Merchandising Business PROBLEM 7-4A OR 7-4B (continued) ACCOUNT Rent Expense ACCOUNT NO 613 DATE ITEM DEBIT CREDIT CREDIT 2., 3. Accounts Payable Ledger NAME ADDRESS Date PR. Debit Credit Balance NAME ADDRESS Debit Balance Credit Date NAME ADDRESS Debt Balance Date Chapter 7 Accounting for a Merchandising Business 38 PROBLEM 7-4A OR 7-4B (continued) NAME ADDRESS Date PR Debit Credit Balance 6. The balance of the Accounts Payable controlling account: Problem 7-4A Objective: To record purchases and cash payments, post them, and prepare a schedule of accounts payable The following selected transactions were completed by Svendsen's Sports Shop during February 20X1 (Note: Read all directions before journalizing and posting the February transactions.): 20X1 Feb. 1 Issued Check No. 113 for February rent, $900. cooh 2 Issued Check No. 114 to All-American Co. for the balance of the account, less a 2% discount. COSA 3 Issued Check No. 115 to Best Equipment Co. for the balance of the account, with no discount. Cash 3 Purchased merchandise from All-American Co., $1,550; terms, 2/10,n/30; Invoice No. 109. Purch 4 Purchased merchandise from Al's Sports Wholesalers, $2,850; terms, 2/10,n/30; Invoice No. 110. Purch 7 Issued Check No. 116 for the cash purchase of merchandise, $745. Con 9 Issued Check No. 117 in payment of a three-year insurance policy, $850. cash Feb. 11 Olaf Svendsen, the owner, issued Check No. 118 for his home phone $275. cooh 13 Issued Check No. 119 in full payment of the purchase of February 3. 15 Issued Check No. 120 for the cash purchase of office supplies, $325. 17 Purchased display Cases from Best Equipment Co., $1,650; terms, n/30; Invoice No. 111. General 22 Purchased office supplies from Office Suppliers, $920; terms, n/30; Invoice No. 112. General 25 Issued Check No. 121 to Al's Sports Wholesalers for payment on account, $1,000. con 27 Issued Check No. 122 for the purchase of February 17. Con 28 Issued Check No. 123 for monthly salaries, $1,500. Cosh 28 Issued Check No. 124 for freight charges on merchandise, $295. COPY Directions: 1. Open the following accounts in the general ledger, and enter the balances as of February 1: Balance 980 75 312 Account 111 Cash 112 $16,000 Office Supplies 113 Prepaid Insurance 116 Store Equipment 15,600 211 Accounts Payable 10,810 Olaf Svendsen, Drawing 1,200 511 Purchases 9,500 511.2 Purchases Discounts 345 512 Freight In 128 612 Salaries Expense 1,500 613 Rent Expense 900 2. Open the following accounts in the accounts payable ledger, and record the balances as of February 1: Balance Account All-American Co. $3.710 2,350 Al's Sports Wholesalers 3,000 Best Equipment Co. 1.750 Office Suppliers 3. Record the February transactions in the appropriate journal, either a two-column general journal, a one-column purchases journal, or a cash payments journal (like the ones illustrated in the chapter). Post to the accounts payable ledger after each entry. 4. Total the special journals. Make all individual postings from the cash payments journal and the general journal to the general ledger at the end of the month. Then, post the column totals from the special journals. 5. Prepare a schedule of accounts payable. 6. Compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable. PROBLEM 7-4A OR 7-4B General Journal Page 1 Date Account Tide PR Debit Page 1 Date Invoice No Purchases Journal Account Credited 109 AllAmerican 110 Als Sports Wholesaler Purchases Dr Accts Pay. Cr. 4 4 dopo PROBLEM 7-4A OR 7-4B (continued) Cash Payments Journal Page 1 PR Accounts Payable Dr. Purchase Discounts ar Account Debited KO Al Pinarian Best Equip blad Cash Cr. pod po 115 abla Slo 1., 4. General Ledger ACCOUNT Cash ACCOUNT NO. 111 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT HT ACCOUNT Office Supplies ACCOUNT NO. 112 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 386 PART II Accounting for Cash and the Merchandising Business PROBLEM 7-4A OR 7-4B (continued) Cash Payments Journal Page 1 Date No. Account Debited PA General Accounts Payable Dr Purchases Cash pilddo KON Reyte All American Best EQUIP PODP boleh 3 copo 1., 4. General Ledger ACCOUNT Cash ACCOUNT NO. 111 DATE PR DEBIT CREDIT BALANCE DEBIT CREDIT | ACCOUNT NO. 112 ACCOUNT Office Supplies DEBIT CREDIT BALANCE DEBIT CREDIT ITEM DATE 386 PART II Accounting for Cash and the Merchandising Business PROBLEM 7-4A OR 7-48 (continued) ACCOUNT Prepaid Insurance ACCOUNT NO 113 DATE ITEM DEBIT CREDIT BALANCE DEBIT CREDIT THUTH ACCOUNT Store Equipment ACCOUNT NO. 116 DATE ITEM DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Accounts Payable ACCOUNT NO. 211 DATE ITEM PR DEBIT CREDIT DERIT BALANCE CREDIT TIT ACCOUNT Drawing ACCOUNT NO. 312 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT Chapter 7 Accounting for a Merchandising Business 387 PROBLEM 7-4A OR 7-4B (continued) ACCOUNT Purchases ACCOUNT NO. 511 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT HHHHH HTTT ACCOUNT Purchases Discounts ACCOUNT NO. 511.2 DATE ITEM DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Freight in ACCOUNT NO. 512 DATE PA P.H. DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT NO. 612 ACCOUNT Salaries Expense ITEM PR DEBIT BALANCE DEBIT CREDIT DATE CREDIT 388 PART II Accounting for Cash and the Merchandising Business PROBLEM 7-4A OR 7-4B (continued) ACCOUNT Rent Expense ACCOUNT NO 613 DATE ITEM DEBIT CREDIT CREDIT 2., 3. Accounts Payable Ledger NAME ADDRESS Date PR. Debit Credit Balance NAME ADDRESS Debit Balance Credit Date NAME ADDRESS Debt Balance Date Chapter 7 Accounting for a Merchandising Business 38 PROBLEM 7-4A OR 7-4B (continued) NAME ADDRESS Date PR Debit Credit Balance 6. The balance of the Accounts Payable controlling account