Mary James owns Mary's Card House in Halifax. As her newly hired accountant, your task is to:
a. Journalize the following transactions for the month of March.
b. Record in subsidiary ledgers and post to the general ledger as appropriate.
c. Total, rule, and cross-add the various journals.
d. Prepare a schedule of accounts receivable and a schedule of accounts payable at month-end.
The following is the partial chart of accounts for Mary's Card House:
Assets _________________________________________Revenue
1100 Cash ................................................ 4100 Card Sales
1200 Accounts Receivable ..... 4120 Sales Returns and Allowances
1450 Prepaid Rent ............................... 4130 Sales Discounts
1620 Delivery Truck ........................................................
................................................................ Cost of Goods
Liabilities ............................................ 5100 Card Purchases
2100 Accounts Payable .... 5120 Purchases Returns and Allowances
2200 Bank Loan Payable ................... 5130 Purchases Discounts
Owner's Equity .................................................. Expenses
3000 M. James, Capital ......................... 6100 Salaries Expense
.................................................... 6150 Cleaning Expense
2016
Mar. 1 Mary James invested $15,000 in the card store.
1 Paid three months' rent in advance to Harbour Realty, cheque No. 1001, $2,700.
1 Purchased merchandise from X-Card Company on account, $5,000. Invoice No. 710, dated March 1, terms 2/10, n/30.
2 Sold merchandise to Jas Investors on account, $1,800. Invoice No. 601, terms 2/10, n/30.
6 Sold merchandise to Paton Lee on account, $700. Invoice No. 602, terms 2/10, n/30.
8 Purchased merchandise from X-Card Company on account, $1,500. Invoice No. 716, dated March 7, terms 2/10, n/30.
9 Sold merchandise to Jas Investors on account, $900. Invoice No. 603, terms 2/10, n/30.
9 Paid Able Cleaning Service $360. Cheque No. 1002.
11 Paid X-Card Company invoice No. 710, dated March 1, cheque No. 1003, taking discount.
12 Paton Lee returned merchandise that cost $300 to Mary's Card House. Mary issued credit memorandum No. 1 to Paton Lee for $300.
12 Purchased merchandise from Kaelynn Imports on account, $4,000. Invoice No. 311, dated March 12, terms 1/15, n/60.
13 Arranged $20,000 bank loan with Royal Bank. Deposited today to the company's bank account.
14 Sold $1,300 worth of card merchandise for cash.
15 Paid casual salaries, $600, cheque No. 1004.
15 Returned merchandise to Kaelynn Imports in the amount of $1,000. Mary's Card House issued debit memorandum No. 1 to Kaelynn Imports.
16 Sold card merchandise for cash, $4,000.
16 Received payment from Paton Lee, invoice No. 602, (less returned merchandise), less discount.
16 Jas Investors paid invoice No. 601, no discount.
16 Sold card supplies to Gayle Herbert on account, $4,000. Invoice No. 604, terms 2/10, n/30.
19 Purchased used delivery truck on account from Halifax Auto, $14,000. Invoice No. 1471, dated March 19 (no discount terms).
22 Sold to Jas Investors card merchandise on account, $900. Invoice No. 605, terms 2/10, n/30.
23 Paid Kaelynn Imports balance owed, cheque No. 1005, taking discount.
23 Sold card merchandise on account to Gayle Herbert, $1,100. Invoice No. 606, terms 2/10, n/30.
24 Purchased for cash, card display supplies from AMR Supplies, $600. Cheque No. 1006.
26 Purchased card merchandise from Benson and McIntyre on account, $4,800. Invoice No. 211, dated March 26, terms 2/10, n/30.
Mar. 26 Jas Investors paid invoice No. 605, dated March 22, taking discount.
27 Gayle Herbert paid invoice No. 606, dated March 23, taking discount.
29 Purchased merchandise from X-Card Company, $1,400. Invoice No. 736, dated March 26, terms 2/10, n/30.
30 Paid half of the balance to Halifax Auto on their invoice No. 1471, cheque No. 1007.
31 Sold merchandise to Youville Company on account, $3,000. Invoice No. 607, terms 2/10, n/30.