Requirements (to be completed sequentially):

A.Write your name on the top of the general journal (Page 1). Beginning on Page I of the general journal, record the December transactions. Each transaction does require an entry. Improve It uses the gross method for purchases and sales, with a periodic inventory system. Refer to the worksheet for a list of the company's accounts.

B.Post the December transactions to the appropriate general ledger accounts. Balances after the company closed its accounts on November 30 are indicated in each ledger account. DO NOT IGNORE THESE BALANCES. As each item is posted, keep a running balance in the account.

C.Prepare the unadjusted trial balance in the first two columns of the worksheet and input the totals in the very bottom row. The "Net Income" row will NOT be used yet. Specific instructions to be followed carefully:

All work must be using pencils. Be certain your work is legible.

Do not submit anything "back-to-back." Use only one side of each page.

If any calculations result in "cents," round that figure to the nearest dollar AND indicate in parentheses the original figure. The parenthetical figure only has to be shown once. Journal entries: Use paper provided. No explanations or descriptions required.

Skip a line between each entry.

Begin recording transactions on Page 1, and use as many pages as needed.

Posting: As you post each line from the journal, use posting references in both the journal and the ledger.

The examples on Pages 10 and 1 1 in Chapter 3 of your text may be helpful.

No descriptions in the general ledger are required.

ACC 31 1 FALL 2020 Cycle Problem Transactions

The following transactions took place during the month of December, 2019:

Paid $7,500 to cover rent for December, January, February, and March.

2Paid an annual premium of $8,400 for business insurance.

3Received $16,500 from a customer to satisfy a balance from sales in September.

3 Paid $28,500 for display cases and other store fixtures.

5 Borrowed $20,000 from the bank, signing a 3-year, 5.3% promissory note.

7 Purchased $48,000 of merchandise from Gilbert Company with terms 2/ 10, n/ 30.

9Purchased merchandise for $28,000 cash.

10Returned damaged merchandise to Gilbert Company; received credit for $17,000.

10Investors paid a total of $30,000 to purchase 20,000 shares of the company's $.80 par value common stock.

10Sold merchandise to R.J. Anderson on account, $28,000 with terms 2/ 10, net/ 30. 12Received and paid telephone bill in the amount of $425 for December service.

13Completed a $9,700 credit sale to Ben Jackson with terms 1/ 10, n/ 30.

14Paid the balance due to Gilbert Company.

15Received $2,000 of merchandise returned by Ben Jackson.

16Purchased $18,000 of merchandise from Leo Company with terms 1/ 10, n/ 30. 17 A company that owed us $1, 100 filed bankruptcy. The account was written off. 19 Bought $580 of supplies on account.

20 Sold merchandise on account to Martha Conner for $26,000, terms 2/ 15, n/ 30.

20 Received payment in full from Ben Jackson.

24 Received a $385 bill for electricity used in December.

28 Received a check from R.J. Anderson for payment in full.

28Recorded cash sales for December totaling $39,650.

29Paid half of the amount owed to Leo Company.

31 Improve It declared and paid a $. 13 per share cash dividend. (One simple entry)