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Feb
28
Post to the customer and creditor accounts and post any
amounts that should be posted as individual amounts to
general ledger accounts.
28
Foot and crossfoot the journals and make the month-end
postings.
Required:
1. Open the following general ledger accounts: Cash, Accounts
Receivable, Inventory, Store Supplies, Office Supplies, Office
Equipment, Notes Payable, Accounts Payable, F. Stone, Capital,
Sales, Sales Discounts, Cost of Goods Sold, and Sales Salaries
Expense.
2. Open the following accounts receivable ledger accounts: Carl Cole,
Dale Dent, and Gary Glen.
3. Open the following accounts payable ledger accounts: Able
Company, Best Company, More Company, and Old Company.
4. Enter the transactions in a Sales Journal, a Purchases Journal, a
Cash Receipts Journal, a Cash Disbursements Journal, and a General
Journal similar to the ones illustrated in this chapter. Post when
instructed to do so.
5. Prepare a trial balance and prove the subsidiary ledgers by preparing
schedules of accounts receivable and payable.
Solution: Alternate Demonstration Problem
Appendix E
SALES JOURNAL
Date
Account Debited
Invoice
Number
PR
Accts Rec Dr
Sales Cr
Cost of Goods Sold Debit
Inventory Credit
Feb.
2
Dale Dent
711
800.00
500.00
4
Gary Glen
712
1,250.00
850.00
11
Carl Cole
713
1,650.00
1,000.00
24
Carl Cole
714
835.00
475.00
26
Gary Glen
715
775.00
375.00
28
Totals
. . . .
5,310.00
3,200.00
(112/411)
(511/113)
PURCHASES JOURNAL
Date
Amount Credited
Date of
Invoice
Terms
P
R
Accounts
Payable
Credit
Inventory
Debit
Store
Supplies
Debit
Office
Supplies
Debit
Feb.
3
Able Company
1/30
2/10, n/60
1,750.00
1,750.00
. . . . .
. . . . .
5
Best Company
2/4
n/10, EOM
1,965.00
1,855.00
75.00
35.00
14
Old Company
2/11
2/10, n/60
1,985.00
1,985.00
. . . . .
. . . . .
16
Best Company
2/12
n/10, EOM
485.00
410.00
45.00
30.00
28
Totals
. . . . .
. . . . . . . .
6,185.00
6,000.00
120.00
65.00
(212)
(113)
(115)
(116)
CASH RECEIPTS JOURNAL
Date
Account
Credited
Explanation
PR
Cash
Debit
Sales
Disc.
Debit
Accts.
Rec.
Credit
Sales
Credit
Other
Accts.
Credit
Cost of
Goods Sold
Debit
Inventory
Credit
Feb.1
F.Stone,
Capital
Investment
311
100,000.00
................
...............
...............
100,000.00
...............
7
Notes
Payable
Note to bank
211
5,000.00
................
...............
...............
5,000.00
...............
12
Dale Dent
Sale of 2/2
784.00
16.00
800.00
...............
................
...............
14
Gary Glen
Sale of 2/4
1,225.00
25.00
1,250.00
...............
................
...............
14
Sales
Cash sales
18,460.00
................
...............
18,460.00
................
9,500.00
21
Carl Cole
Sale of 2/11
1,617.00
33.00
1,650.00
...............
................
...............
28
Sales
Cash sales
20,215.00
................
...............
20,215.00
................
11,500.00
28
Totals ...........
........................
147,301.00
74.00
3,700.00
38,675.00
105,000.00
21,000.00
(111)
(413)
(112)
(411)
()
(511/113)
CASH DISBURSEMENTS JOURNAL
Date
Ch.
No.
Payee
Account Debited
PR
Cash
Credit
Inventory
Credit
Accts.
Pay
Debit
Other
Accts.
Debit
Feb.1
413
Flint Company
Inventory
113
75,000.00
................
...............
75,000.00
9
414
Able Company
Invoice of 1/30
1,715.00
35.00
1,750.00
...............
14
415
Payroll
Sales Salaries Exp.
612
855.00
................
...............
855.00
21
416
Old Company
Invoice of 2/11
1,862.00
38.00
1,900.00
...............
28
417
Payroll
Sales Salaries Exp.
612
855.00
................
...............
855.00
28
Totals ...........
...................................
80,287.00
73.00
3,650.00
76,710.00
(111)
(113)
(212)
()
GENERAL JOURNAL
Feb 9
Office Equipment
133
625.00
Accounts Payable/ More Company
212/
625.00
17
Accounts Payable/ Old Company
212/
85.00
Inventory
113
85.00
18
Accounts Payable/ More Company
212/
130.00
Office Equipment
133
130.00
GENERAL LEDGER
Cash Acct. No. 111
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
28
R2
D2
147,301
80,287
147,301
67,014
Accounts Receivable Acct. No. 112
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
28
S2
R2
5,310
3,700
5,310
1,610
Inventory Acct. No. 113
Date
Explanation
PR
Debit
Credit
Balance
Feb.
2
17
28
28
28
28
D2
G2
P2
S2
R2
D2
75,000
6,000
85
3,200
21,000
73
75,000
74,915
80,915
77,715
56,715
56,642
Store Supplies Acct. No. 115
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
P2
120
120
Office Supplies Acct. No. 116
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
P2
65
65
Office Equipment Acct. No. 133
Date
Explanation
PR
Debit
Credit
Balance
Feb.
9
18
G2
G2
625
130
625
495
Notes Payable Acct. No. 211
Date
Explanation
PR
Debit
Credit
Balance
Feb.
7
R2
5,000
5,000
Accounts Payable Acct. No. 212
Date
Explanation
PR
Debit
Credit
Balance
Feb.
9
17
18
28
28
G2
G2
G2
P2
D2
85
130
3,650
625
6,185
625
540
410
6,595
2,945
F. Stone, Capital Acct. No. 311
Date
Explanation
PR
Debit
Credit
Balance
Feb.
1
R2
100,000
100,000
Sales Acct. No. 411
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
28
S2
R2
5,310
38,675
5,310
43,985
Sales Discounts Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
R2
74
74
Cost of Goods Sold Acct. No. 511
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
28
R2
SJ
21,000
3,200
21,000
24,200
Sales Salaries Expense Acct. No. 612
Date
Explanation
PR
Debit
Credit
Balance
Feb.
14
28
D2
D2
855
855
855
1,710
ACCOUNTS RECEIVABLE LEDGER
Carl Cole
Date
Explanation
PR
Debit
Credit
Balance
Feb.
11
21
24
S2
R2
S2
1,650
835
1,650
1,650
-0-
835
Dale Dent
Date
Explanation
PR
Debit
Credit
Balance
Feb.
2
12
S2
R2
800
800
800
-0-
Gary Glen
Date
Explanation
PR
Debit
Credit
Balance
Feb.
4
14
26
S2
R2
S2
1,250
775
1,250
1,250
-0-
775
ACCOUNTS PAYABLE LEDGER
Able Company
Date
Explanation
PR
Debit
Credit
Balance
Feb.
3
9
P2
D2
1,750
1,750
1,750
-0-
Best Company
Date
Explanation
PR
Debit
Credit
Balance
Feb.
5
16
P2
P2
1,965
485
1,965
2,450
More Company
Date
Explanation
PR
Debit
Credit
Balance
Feb.
9
18
G2
G2
130
625
625
495
Old Company
Date
Explanation
PR
Debit
Credit
Balance
Feb.
14
17
21
P2
G2
D2
85
1,900
1,985
1,985
1,900
-0-
BEDROCK COMPANY
Trial Balance
February 28, 20XX
Cash ...........................................................................
$67,014
Accounts Receivable ................................................
1,610
Inventory ....................................................................
56,642
Store supplies ............................................................
120
Office supplies ...........................................................
65
Office equipment .......................................................
495
Notes payable ............................................................
$ 5,000
Accounts payable ......................................................
2,945
F. Stone, Capital ........................................................
100,000
Sales ...........................................................................
43,985
Sales discounts .........................................................
74
Cost of Goods Sold ...................................................
24,200
Sales salaries expense .............................................
1,710
______
Totals ................................................................
$151,930
$151,930
BEDROCK COMPANY
Schedule of Accounts Receivable
February 28, 20XX
Carl Cole .....................................................................
$ 835
Gary Glen ...................................................................
775
Total ..................................................................
$1,610
BEDROCK COMPANY
Schedule of Accounts Payable
February 28, 20XX
Best Company ...........................................................
$2,450
More Company ..........................................................
495
Total .................................................................
$2,945
