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. 2 Issued Check No. 114 to All-American Co. for the balance of the account, less a 2% discount. 3 Issued Check No. 115 to Best Equipment Co. for the balance of the account with no discount. 3 Purchased merchandise from All-American Co., $1,550; terms, 2/10,n/30; Invoice No. 109. 4 Purchased merchandise from AI's Sports Wholesalers, $2,850; terms 2/10,n/30; Invoice No. 110 7 Issued Check No. 116 for the cash purchase of merchandise, $745. 9 Issued Check No. 117 in payment of a three-year insurance policy, $850. Feb. 11 Olaf Svendsen, the owner, issued Check No. 118 for his home phone bill, $275 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 22 Purchased office supplies from Office Suppliers, $920; terms, n/30; Invoice No. 112 25 Issued Check No. 121 to Al's Sports Wholesalers for payment on account, $1,000 27 Issued Check No. 122 for the purchase of February 17. 28 Issued Check No. 123 for monthly salaries, $1,500. 28 Issued Check No. 124 for freight charges on merchandise, $295 Directions: 1. Open the following accounts in the general ledger, and enter the balances as of February 1: Account Balance 111 Cash $16,000 Office Supplies Prepaid Insurance Store Equipment .Accounts Payable 112 980 113 75 116 15,600 211 10,810 1,200 9,500 Olaf Svendsen, Drawing 312 511 Purchases Purchases Discounts Freight In Salaries Expense Rent Expense 345 511.2 128 512 1,500 612 900 613 payable ledger, and record the 2. Open the following accounts in the accounts balances as of February 1: Balance Account $3,710 2,350 3,000 1,750 All-American Co. Al's Sports Wholesalers Best Equipment Co. Office Suppliers 3. Record the February transactions in the appropriate journal, either a two-column general journal, a one-column purchases journal, the ones illustrated in the chapter). Post to the accounts payable ledger after each or a cash payments journal (like 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 the schedule of accounts payable. account with the total of
