12 Appendix
Accounting for
Merchandise
Inventory Using the
Periodic Method of
Inventory Valuation
SOLUTIONS TO EXERCISES
12A–1.
Page 1
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Aug.
Accounts Receivable, Opal Co.
112/√
1
1
0
0
00
Sales
411
1
1
0
0
00
Sales on Account
Accounts Receivable, Glenda Co.
112/√
2
0
0
0
00
Sales
411
2
0
0
0
00
Sales on Account
Sales Returns and Allowances
412
7
4
0
00
Accounts Receivable, Glenda Co.
112/√
7
4
0
00
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
PARTIAL GENERAL LEDGER
Glenda Co.
Accounts Receivable
110
8/18 GJ2 2,000
740 GJ2 8/20
8/16 GJ2 1,100
740 GJ2 8/20
8/18 GJ2 2,000
Bal. 1,260
Bal. 2,360
411
8/16 GJ2 1,100
1,100 GJ2 8/16
Sales Returns and Allowances
412
413
12A–2.
PAGE 2
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Apr.
1
Accounts Payable, A. Jackiewicz
210/√
1
0
0
0
00
9
5
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
PARTIAL GENERAL LEDGER
A. Jackiewicz
Cash
110
4/01 GJ2 1,000
1,000
2,500
980 GJ2 4/1
B. Garcia
Accounts Payable
210
2,400
J. Clark
Purchases Discount
511
Advertising Expense
610
EXERCISES (CONTINUED)
12A-3.
Account
Category
Incr. Or
Decr.
Rules
Amount
Unearned Janitorial Service
Liability
Decrease
Debit
$360
12A-4.
Dec.
31
Sales
5
4
8
8
00
3
5
00
4
7
00
Income Summary
5
7
0
00
31
Income Summary
4
8
6
0
00
Sales Returns & Allowances
2
2
7
00
Sales Discount
1
0
5
00
Purchases
6
2
1
00
Insurance Expense
6
9
2
00
Utilities Expense
4
0
00
Plumbing Expense
5
7
00
Advertising Expense
1
2
00
Depreciation Expense, Office Equip.
2
8
00
31
Income Summary
8
0
5
00
8
0
5
00
SOLUTIONS TO PROBLEMS
PROBLEM 12A-1
(1)
Pizza and More
GENERAL JOURNAL
PAGE 1
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Mar.
1
Accounts Receivable, Felicity Co.
112/√
9
5
0
00
Sales Inv. 1 on Account to Felicity
4
Accounts Receivable, Vow Co.
112/√
5
0
0
00
Pizza Sales
410
5
0
0
00
8
Accounts Receivable, Spanish Co.
112/√
1
2
0
0
00
Grocery Sales
411
1
2
0
0
00
Sales Inv. 3 on Account to Spanish
Sales Returns and Allowances
412
2
4
0
00
Accounts Receivable, Felicity Co.
112/√
2
4
0
00
Pizza Sales
410
6
0
0
00
Accounts Receivable, Spanish Co.
112/√
5
5
0
00
Grocery Sales
411
5
5
0
00
Sales Inv. 5 on Account to Spanish
Pizza Sales
410
3
0
0
00
PROBLEM 12A-1 (CONTINUED)
(2)
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME
FELICITY CO.
ADDRESS
201X
Explanation
Ref.
Debit
Credit
Dr. Balance
1
1
Date
Post
NAME
SPANISH CO.
ADDRESS
Date
201X
Explanation
Post
Ref.
Debit
Credit
Dr. Balance
8
2
0
0
00
2
0
0
00
NAME
VOW CO.
ADDRESS
Date
201X
Explanation
Post
Ref.
Debit
Credit
Dr. Balance
15
6
0
0
00
1
1
0
0
00
PIZZA AND MORE
GENERAL LEDGER
ACCOUNTS RECEIVABLE
ACCOUNT NO. 112
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Mar.
1
GJ1
9
5
0
00
9
5
0
00
8
GJ1
1
2
GJ1
2
4
0
00
2
4
1
0
00
GJ1
3
PROBLEM 12A–1 (CONTINUED)
PIZZA SALES
ACCOUNT NO. 410
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
25
GJ1
3
0
0
00
1
4
0
0
GROCERY SALES
ACCOUNT NO. 411
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Mar.
1
GJ1
9
5
0
00
9
5
0
00
SALES RETURNS AND ALLOWANCES
ACCOUNT NO. 412
201X
Debit
Credit
Debit
Credit
Date
Explanation
Post
Ref.
Balance
PROBLEM 12A-1 (CONCLUDED)
(3)
PIZZA AND MORE
SCHEDULE OF ACCOUNTS RECEIVABLE
MARCH 31, 201X
PROBLEM 12A-2
REED’S SKATE SHOP
GENERAL JOURNAL
PAGE 2
Date
201X
Account Titles and Description
PR
Dr.
Cr.
4
Purchases
510
1
3
0
0
00
1
3
0
0
5
Store Equipment
121
5
3
0
0
00
5
3
0
0
8
Purchases
510
2
0
0
0
00
2
0
0
0
Store Supplies
115
8
0
0
00
8
0
0
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME
KELOWNA CO.
ADDRESS
Date
201X
Explanation
Post
Ref.
Debit
Credit
Cr. Balance
5
GJ2
5
3
0
0
5
3
0
0
NAME
REDWOOD CO.
ADDRESS
2 WEST RD., LYNN, MA 01471
Date
201X
Explanation
Post
Ref.
Debit
Credit
Cr. Balance
8
2
2
NAME
WALDO CO.
ADDRESS
Date
201X
Explanation
Post
Ref.
Debit
Credit
Cr. Balance
4
GJ2
1
3
0
0
1
3
0
0
GJ2
8
0
0
2
1
0
0
PROBLEM 12A-2 (CONCLUDED)
PARTIAL GENERAL LEDGER
STORE SUPPLIES
ACCOUNT NO. 115
201X
Debit
Credit
Debit
Credit
May
GJ2
8
0
0
8
0
0
00
Date
Explanation
Post
Ref.
Balance
STORE EQUIPMENT
ACCOUNT NO. 121
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
May
5
GJ2
5
3
0
0
5
3
0
0
00
ACCOUNTS PAYABLE
ACCOUNT NO. 210
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
May
4
GJ2
1
3
0
0
00
1
3
0
0
00
PURCHASES
ACCOUNT NO. 510
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Copyright © 2019 Pearson Education, Inc.
PROBLEMS (CONTINUED)
PROBLEM 12A-3
Balance Sheet
Credit
11,300
100
23,000
1,550
1,295
23,000
(E) 400
11,300
1,550
1,295
23,000
Acc. Dep., Store Equip.
Accounts Payable
Federal Income Tax Payable
State Income Tax Payable
SUTA Tax Payable
FUTA Tax Payable
Unearned Storage Fees
Sean Win, Capital
Sean Win, Withdrawals
Sales
Sales Ret. & Allow.
Sales Discount
Purchases
Purchases Discount
Purchases Ret. & Allow.
Debit
8,100
4,900
700
50
3,100
Income Statement
Credit
Debit
125
14,500
470
SEAN’ S WHOLESALE CLOTHING COMPANY
WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 201X
Adj. Trial Balance
Credit
Debit
8,100
4,900
700
50
3,100
125
14,500
470
Adjustments
Credit
(A) 8,500
(C) 200
(D) 750
Debit
(B) 4,900
Trial Balance
Credit
Debit
8,100
8,500
900
800
3,100
125
14,500
470
Account Titles
Accounts Receivable
Merchandise Inventory
Supplies
Prepaid Insurance
Store Equipment
Freight-In
Salaries Expense
Payroll Tax Expense
Insurance Expense
PROBLEM 12A-4 (1)
Balance Sheet
Credit
Debit
2,400
Income
Statement
Credit
13,500
3,230
Debit
JAMIE’ S SUPPLIES
WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 201X
Adj. Trial Balance
Credit
13,500
3,230
Debit
2,400
Adjustments
Credit
Debit
Trial Balance
Credit
13,500
3,230
Debit
2,400
Account Titles
Cash
Allow.
Purchases Discounts
1,420
10,600
(B) 10,400
1,020
10,600
Acc. Dep. Equip.