Question
The transactions completed by Revere Courier Company during December, the first month of the fiscal year, were as follows: Dec. 1. Issued Check No. 610
The transactions completed by Revere Courier Company during December, the first month of the fiscal year, were as follows:
Dec. 1. | Issued Check No. 610 for December rent, $4,500. | |
2. | Issued Invoice No. 940 to Capps Co., $1,980. | |
3. | Received check for $5,100 from Trimble Co. in payment of account. | |
5. | Purchased a vehicle on account from Boston Transportation, $39,500. | |
6. | Purchased office equipment on account from Austin Computer Co., $4,800. | |
6. | Issued Invoice No. 941 to Dawar Co., $5,680. | |
9. | Issued Check No. 611 for fuel expense, $800. | |
10. | Received check from Sing Co. in payment of $4,850 invoice. | |
10. | Issued Check No. 612 for $360 to Office To Go Inc. in payment of invoice. | |
10. | Issued Invoice No. 942 to Joy Co., $2,140. | |
11. | Issued Check No. 613 for $3,240 to Essential Supply Co. in payment of account. | |
11. | Issued Check No. 614 for $650 to Porter Co. in payment of account. | |
12. | Received check from Capps Co. in payment of $1,980 invoice of December 2. | |
13. | Issued Check No. 615 to Boston Transportation in payment of $39,500 balance of December 5. | |
16. | Issued Check No. 616 for $40,900 for cash purchase of a vehicle. | |
16. | Cash fees earned for December 116, $21,700. | |
17. | Issued Check No. 617 for miscellaneous administrative expense, $600. | |
18. | Purchased maintenance supplies on account from Essential Supply Co., $1,750. | |
19. | Purchased the following on account from McClain Co.: maintenance supplies, $1,500; office supplies, $325. | |
20. | Issued Check No. 618 in payment of advertising expense, $1,990. | |
20. | Used $3,600 maintenance supplies to repair delivery vehicles. | |
23. | Purchased office supplies on account from Office To Go Inc., $440. | |
24. | Issued Invoice No. 943 to Sing Co., $6,400. | |
24. | Issued Check No. 619 as dividends. | |
25. | Issued Invoice No. 944 to Dawar Co., $5,720. | |
25. | Received check for $4,100 from Trimble Co. in payment of balance. | |
26. | Issued Check No. 620 to Austin Computer Co. in payment of $4,800 invoice of December 6. | |
30. | Issued Check No. 621 for monthly salaries as follows: driver salaries, $16,900; office salaries, $7,600. | |
31. | Cash fees earned for December 1731, $19,700. | |
31. | Issued Check No. 622 in payment for office supplies, $310. |
Instructions
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Enter the following account balances in the general ledger as of December 1:
11 Cash $160,900 32 Retained Earnings $239,250 12 Accounts Receivable 14,050 33 Dividends 14 Maintenance Supplies 10,850 41 Fees Earned 15 Office Supplies 4,900 51 Driver Salaries Expense 16 Office Equipment 28,500 52 Maintenance Supplies Exp. 17 Accum. Depr.Office Equip. 6,900 53 Fuel Expense 18 Vehicles 95,900 61 Office Salaries Expense 19 Accum. Depr.Vehicles 14,700 62 Rent Expense 21 Accounts Payable 4,250 63 Advertising Expense 31 Common Stock 50,000 64 Miscellaneous Administrative Expense -
Journalize the transactions for December, using the following journals similar to those illustrated in this chapter: cash receipts journal (p. 31), purchases journal (p. 37, with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), single-column revenue journal (p. 35), cash payments journal (p. 34), and two-column general journal (p. 1). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
AnswerTotal cash receipts, $57,430
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Post the appropriate individual entries to the general ledger.
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Total each of the columns of the special journals, and post the appropriate totals to the general ledger; insert the account balances.
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Prepare a trial balance.
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