1.
Journalize the transactions for the month of July.
1.
Explanation of Solution
Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions:
- Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and
stockholders’ equities . - Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.
Journalize the transactions for the month of July:
Date | Account title and explanation | Post Ref. | Amount | ||
Debit | Credit | ||||
20-- | |||||
July | 1 | Cash | 111 | $25,000.00 | |
Person AV's Capital | 311 | $25,000.00 | |||
1 | Spa Supplies | 115 | $490.00 | ||
Accounts Payable - Company GSS | 211/✓ | $490.00 | |||
1 | Purchases | 511 | $5,300.00 | ||
Freight In | 515 | $145.00 | |||
Accounts Payable - Company SG | 211/✓ | $5,445.00 | |||
1 | Purchases | 511 | $3,692.00 | ||
Freight In | 515 | $104.00 | |||
Accounts Payable – Company LP | 211/✓ | $3,796.00 | |||
2 | Purchases | 511 | $2,623.00 | ||
Freight In | 515 | $98.00 | |||
Accounts Payable - Company SM | 211/✓ | $2,721.00 | |||
2 | Accounts receivable - Company LOL | 113/✓ | $351.00 | ||
Merchandise Sales | 412 | $325.00 | |||
Sales Tax Payable | 215 | $26.00 | |||
3 | Spa Equipment | 128 | $8,235.00 | ||
Accounts Payable -Incorporation SE | 211/✓ | $6,235.00 | |||
Cash | 111 | $2,000.00 | |||
3 | Rent Expense | 612 | $1,650.00 | ||
Cash | 111 | $1,650.00 | |||
4 | Accounts Receivable- Company C | 113/✓ | $520.02 | ||
Merchandise Sales | 412 | $481.50 | |||
Sales Tax Payable | 215 | $38.52 | |||
5 | Accounts Payable - Company GSS | 211/✓ | $492.00 | ||
Cash | 111 | $492.00 | |||
5 | Accounts Payable - Company OS | 211/✓ | $120.00 | ||
Cash | 111 | $120.00 | |||
5 | Miscellaneous Expense | 630 | $98.00 | ||
Cash | 111 | $98.00 | |||
5 | Accounts Payable - Incorporation A | 211/✓ | $397.00 | ||
Cash | 111 | $397.00 | |||
5 | Wages Payable | 212 | $369.50 | ||
Wages Expense | 611 | $1,476.00 | |||
Cash | 111 | $1,845.50 | |||
5 | Office Equipment | 124 | $420.00 | ||
Accounts Payable - Company SE | 211/✓ | $420.00 | |||
5 | Promotion Expense | 630 | $186.00 | ||
Accounts Payable - Company OS | 211/✓ | $186.00 | |||
5 | Office Supplies | 114 | $118.00 | ||
Accounts Payable -Company OS | 211/✓ | $118.00 | |||
5 | Purchases | 511 | $1,253.00 | ||
Freight In | 515 | $56.00 | |||
Accounts Payable - Company G | 211/✓ | $1,309.00 | |||
5 | Accounts receivable - Company PS | 113/✓ | $1,961.23 | ||
Merchandise Sales | 412 | $1,815.95 | |||
Sales Tax Payable | 215 | $145.28 | |||
7 | Cash | 111 | $4,881.60 | ||
Merchandise Sales | 412 | $1,410.00 | |||
Income from Services | 411 | $3,110.00 | |||
Sales Tax Payable | 215 | $361.60 | |||
7 | Cash | 111 | $150.00 | ||
Accounts Receivable - Company JA | 113/✓ | $150.00 | |||
10 | Accounts Receivable - Company HC | 113/✓ | $367.47 | ||
Merchandise Sales | 412 | $340.25 | |||
Sales Tax Payable | 215 | $27.22 | |||
10 | Accounts Receivable - Company MS | 113/✓ | $222.48 | ||
Merchandise Sales | 412 | $206.00 | |||
Sales Tax Payable | 215 | $16.48 | |||
12 | Wages Expense | 611 | $1,845.50 | ||
Cash | 111 | $1,845.50 | |||
12 | Accounts Receivable - Company AFS | 113/✓ | $521.59 | ||
Merchandise Sales | 412 | $482.95 | |||
Sales Tax Payable | 215 | $38.64 | |||
14 | Cash | 111 | $200.00 | ||
Accounts Receivable - Company JM | 113/✓ | $200.00 | |||
14 | Cash | 111 | $4,158.00 | ||
Merchandise Sales | 412 | $1,220.00 | |||
Income from Services | 411 | $2,630.00 | |||
Sales Tax Payable | 215 | $308.00 | |||
18 | Accounts Payable - Company SE | 211/✓ | $1,150.00 | ||
Cash | 111 | $1,150.00 | |||
19 | Wages Expense | 611 | $1,840.50 | ||
Cash | 111 | $1,840.50 | |||
21 | Cash | 111 | $180.00 | ||
Accounts Receivable - Company TL | 113/✓ | $180.00 | |||
21 | Cash | 111 | $5,248.80 | ||
Merchandise Sales | 412 | $1,940.00 | |||
Income from Services | 411 | $2,920.00 | |||
Sales Tax Payable | 215 | $388.80 | |||
25 | Spa Equipment | 128 | $173.00 | ||
Cash | 111 | $173.00 | |||
26 | Wages Expense | 611 | $1,842.00 | ||
Cash | 111 | $1,842.00 | |||
28 | Laundry Expense | 615 | $84.00 | ||
Cash | 111 | $84.00 | |||
28 | Cash | 111 | $109.00 | ||
Accounts Receivable - Company JW | 113/✓ | $109.00 | |||
31 | Cash | 111 | $6,471.36 | ||
Merchandise Sales | 412 | $1,930.00 | |||
Income from Services | 411 | $4,062.00 | |||
Sales Tax Payable | 215 | $479.36 | |||
31 | Person AV's Drawing | 312 | $2,500.00 | ||
Cash | 111 | $2,500.00 | |||
31 | Utilities Expense | 617 | $225.00 | ||
Cash | 111 | $225.00 | |||
31 | Utilities Expense | 617 | $248.00 | ||
Cash | 111 | $248.00 | |||
31 | Spa Equipment | 128 | $1,800.00 | ||
Person AV's Capital | 311 | $1,800.00 |
Table (1)
2.
2.
Explanation of Solution
Post the entries to the accounts receivable, accounts payable and general ledger:
General Ledger:
Sales journal | |||||||
Date | Invoice No. | Customer's name | Post Ref. | Accounts Receivable debit ($) | Sales tax payable credit ($) | Merchandise sales credit ($) | |
20-- | |||||||
July | 2 | 14 | Company LOL | 351.00 | 26.00 | 325.00 | |
4 | 15 | Company C | 520.02 | 38.52 | 481.50 | ||
5 | 16 | Company PS | 1,961.23 | 145.28 | 1,815.95 | ||
10 | 17 | Company HC | 367.47 | 27.22 | 340.25 | ||
10 | 18 | Company MS | 222.48 | 16.48 | 206.00 | ||
12 | 19 | Company AFS | 521.59 | 38.64 | 482.95 | ||
31 | Totals | 3,943.79 | 292.14 | 3,651.65 | |||
(113) | (215) | (412) |
Table (2)
Table (3)
Account: Cash | Account No. 111 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $15,170.00 | |||
1 | J6 | $25,000.00 | $40,170.00 | ||||
3 | J6 | $2,000.00 | $38,170.00 | ||||
3 | J6 | $1,650.00 | $36,520.00 | ||||
3 | J7 | $89.00 | $36,431.00 | ||||
5 | J7 | $492.00 | $35,939.00 | ||||
5 | J7 | $120.00 | $35,819.00 | ||||
5 | J7 | $98.00 | $35,721.00 | ||||
5 | J7 | $397.00 | $35,324.00 | ||||
5 | J7 | $1,845.50 | $33,478.50 | ||||
7 | J8 | $4,881.60 | $38,360.10 | ||||
7 | J8 | $150.00 | $38,510.10 | ||||
12 | J8 | $1,845.50 | $36,664.60 | ||||
14 | J8 | $200.00 | $36,864.60 | ||||
14 | J9 | $4,158.00 | $41,022.60 | ||||
18 | J9 | $1,150.00 | $39,872.60 | ||||
19 | J9 | $1,840.50 | $38,032.10 | ||||
21 | J9 | $180.00 | $38,212.10 | ||||
21 | J9 | $5,248.80 | $43,460.90 | ||||
25 | J9 | $173.00 | $43,287.90 | ||||
26 | J9 | $1,842.00 | $41,445.90 | ||||
28 | J9 | $84.00 | $41,361.90 | ||||
28 | J9 | $109.00 | $41,470.90 | ||||
31 | J9 | $6,471.36 | $47,942.26 | ||||
31 | J10 | $2,500.00 | $45,442.26 | ||||
31 | J10 | $225.00 | $45,217.26 | ||||
31 | J10 | $248.00 | $44,969.26 |
Table (4)
Account: Accounts receivable | Account No. 113 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $1,273.00 | |||
2 | J6 | $367.20 | $1,640.20 | ||||
4 | J7 | $513.54 | $2,153.74 | ||||
5 | J8 | $1,639.39 | $3,793.82 | ||||
7 | J8 | $150.00 | $3,643.82 | ||||
10 | J8 | $351.54 | $3,995.36 | ||||
10 | J8 | $244.08 | $4,239.44 | ||||
12 | J8 | $503.23 | $4,742.67 | ||||
14 | J8 | $200.00 | $4,542.67 | ||||
21 | J9 | $185.00 | $4,357.67 | ||||
28 | J9 | $110.00 | $4,247.67 |
Table (5)
Account: Office supplies | Account No. 114 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $130.00 | |||
2 | J7 | $118.00 | $248.00 |
Table (6)
Account: Spa supplies | Account No. 115 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $205.00 | |||
5 | J7 | $490.00 | $695.00 |
Table (7)
Account: Prepaid insurance | Account No. 117 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $800.00 |
Table (8)
Account: Office equipment | Account No. 124 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $1,150.00 | |||
5 | J7 | $420.00 | $1,570.00 |
Table (9)
Account: Accumulated Depreciation, Office equipment | Account No. 125 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $10.00 |
Table (10)
Account: Spa equipment | Account No. 128 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $7,393.00 | |||
3 | J6 | $8,235.00 | $15,628.00 | ||||
25 | J9 | $173.00 | $15,801.00 | ||||
31 | J10 | $1,800.00 | $17,601.00 |
Table (11)
Account: Accumulated Depreciation, Spa equipment | Account No. 129 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $64.88 |
Table (12)
Account: Accounts payable | Account No. 211 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $2,248.00 | |||
1 | J6 | $490.00 | $2,738.00 | ||||
1 | J6 | $5,445.00 | $8,183.00 | ||||
1 | J6 | $3,796.00 | $11,979.00 | ||||
2 | J6 | $2,721.00 | $14,700.00 | ||||
3 | J6 | $6,235.00 | $20,935.00 | ||||
3 | J7 | $89.00 | $20,846.00 | ||||
5 | J7 | $492.00 | $20,354.00 | ||||
5 | J7 | $120.00 | $20,234.00 | ||||
5 | J7 | $397.00 | $19,837.00 | ||||
5 | J7 | $420.00 | $20,257.00 | ||||
5 | J7 | $186.00 | $20,443.00 | ||||
5 | J7 | $118.00 | $20,561.00 | ||||
5 | J8 | $1,309.00 | $21,870.00 | ||||
18 | J9 | $1,150.00 | $20,720.00 |
Table (13)
Account: Wages payable | Account No. 212 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $369.50 | |||
5 | J7 | $369.50 |
Table (14)
Account: Sales tax payable | Account No. 215 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 2 | J6 | $26.00 | $26.00 | |||
4 | J7 | $38.52 | $64.52 | ||||
5 | J8 | $145.28 | $209.80 | ||||
7 | J8 | $361.60 | $571.40 | ||||
10 | J8 | $27.22 | $598.62 | ||||
10 | J8 | $16.48 | $615.10 | ||||
12 | J8 | $38.64 | $653.74 | ||||
14 | J9 | $308.00 | $961.74 | ||||
21 | J9 | $388.80 | $1,350.54 | ||||
31 | J9 | $479.36 | $1,829.90 |
Table (15)
Account: Person AV, Capital | Account No. 311 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $23,419.62 | |||
1 | J6 | $25,000.00 | 48,419.62 | ||||
31 | J10 | $1,800.00 | 50,219.62 |
Table (16)
Account: Person AV, Drawing | Account No. 312 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 31 | J10 | $2,500.00 | $2,500.00 |
Table (17)
Account: Income summary | Account No. 313 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (18)
Account: Income from services | Account No. 411 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 7 | J8 | $3,110.00 | $3,110.00 | |||
14 | J9 | $2,630.00 | $5,740.00 | ||||
21 | J9 | $2,920.00 | $8,660.00 | ||||
31 | J9 | $4,062.00 | $12,722.00 |
Table (19)
Account: Merchandise sales | Account No. 412 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 2 | J6 | $325.00 | $325.00 | |||
4 | J7 | $481.50 | $806.50 | ||||
5 | J8 | $1,815.95 | $2,622.45 | ||||
7 | J8 | $1,410.00 | $4,032.45 | ||||
10 | J8 | $340.25 | $4,372.70 | ||||
10 | J8 | $206.00 | $4,578.70 | ||||
12 | J8 | $482.95 | $5,061.65 | ||||
14 | J9 | $1,220.00 | $6,281.65 | ||||
21 | J9 | $1,940.00 | $8,221.65 | ||||
31 | J9 | $1,930.00 | $10,151.65 |
Table (20)
Account: Purchases | Account No. 511 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | J6 | $5,300.00 | $5,300.00 | |||
1 | J6 | $3,692.00 | $8,992.00 | ||||
2 | J6 | $2,623.00 | $11,615.00 | ||||
5 | J8 | $1,253.00 | $12,868.00 |
Table (21)
Account: Freight In | Account No. 515 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | J6 | $145.00 | $145.00 | |||
1 | J6 | $104.00 | $249.00 | ||||
2 | J6 | $98.00 | $347.00 | ||||
5 | J8 | $56.00 | $403.00 |
Table (22)
Account: Wages expense | Account No. 611 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 5 | J7 | $1,476.00 | $1,476.00 | |||
12 | J8 | $1,845.50 | $3,321.50 | ||||
19 | J9 | $1,840.50 | $5,162.00 | ||||
26 | J9 | $1,842.00 | $7,004.00 |
Table (23)
Account: Rent expense | Account No. 612 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 3 | J6 | $1,650.00 | $1,650.00 |
Table (24)
Account: Office supplies expense | Account No. 613 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (25)
Account: Spa supplies expense | Account No. 614 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (26)
Account: Laundry expense | Account No. 615 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 28 | J9 | $84.00 | $84.00 |
Table (27)
Account: Advertising expense | Account No. 616 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (28)
Account: Utilities expense | Account No. 617 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 31 | J10 | $225.00 | $225.00 | |||
31 | J10 | $248.00 | $473.00 |
Table (29)
Account: Insurance expense | Account No. 618 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (30)
Account: Depreciation expense, Office equipment | Account No. 619 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (31)
Account: Depreciation expense, Spa equipment | Account No. 620 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (32)
Account: Miscellaneous expense | Account No. 630 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 5 | J7 | $98.00 | $98.00 | |||
5 | J7 | $186.00 | $284.00 |
Table (33)
Accounts receivable ledger:
Accounts receivable ledger | ||||||
Name : Company AFS | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 12 | J8 | $521.59 | $521.59 |
Table (34)
Accounts receivable ledger | ||||||
Name : Company JA | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | ✓ | $325.00 | |||
7 | J8 | $150.00 | $175.00 |
Table (35)
Accounts receivable ledger | ||||||
Name : Company C | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 4 | J7 | $520.02 | $520.02 |
Table (36)
Accounts receivable ledger | ||||||
Name : Company HC | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 10 | J8 | $367.47 | $367.47 |
Table (37)
Accounts receivable ledger | ||||||
Name : Company TL | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $344.00 | ||
21 | J9 | $180.00 | $164.00 |
Table (38)
Accounts receivable ledger | ||||||
Name : Company LOL | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 2 | J6 | $351.00 | $351.00 |
Table (39)
Accounts receivable ledger | ||||||
Name : Company MS | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 10 | J8 | $222.48 | $222.48 |
Table (40)
Accounts receivable ledger | ||||||
Name : Company JM | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | ✓ | $486.00 | |||
14 | J8 | $200.00 | $286.00 |
Table (41)
Accounts receivable ledger | ||||||
Name : Company PS | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 5 | J8 | $1,961.23 | $1,961.23 |
Table (42)
Accounts receivable ledger | ||||||
Name : Company JW | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $109.00 | ||
28 | J8 | $109.00 |
Table (43)
Accounts payable ledger:
Accounts payable ledger | ||||||
Name : Incorporation A | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $397.00 | ||
August | 5 | $397.00 |
Table (44)
Accounts payable ledger | ||||||
Name : Company G | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 5 | J8 | $1,309.00 | $1,309.00 |
Table (45)
Accounts payable ledger | ||||||
Name : Company GSS | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $492.00 | ||
1 | J6 | $490.00 | $982.00 | |||
5 | J7 | $492.00 | $490.00 |
Table (46)
Accounts payable ledger | ||||||
Name : Company LP | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | J6 | $3,796.00 | $3,796.00 |
Table (47)
Accounts payable ledger | ||||||
Name : Company OS | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $120.00 | ||
5 | J7 | $120.00 | $0.00 | |||
5 | J7 | $186.00 | $186.00 | |||
5 | J7 | $118.00 | $304.00 |
Table (48)
Accounts payable ledger | ||||||
Name : Incorporation SE | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $89.00 | ||
3 | J6 | $6,235.00 | $6,324.00 | |||
3 | J7 | $89.00 | $6,235.00 |
Table (49)
Accounts payable ledger | ||||||
Name : Company SG | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | J6 | $5,445.00 | $5,445.00 |
Table (50)
Accounts payable ledger | ||||||
Name : Company SM | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 2 | J6 | $2,721.00 | $2,721.00 |
Table (51)
Accounts payable ledger | ||||||
Name : Company SE | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $1,150.00 | ||
5 | J7 | $420.00 | $1,570.00 | |||
18 | J9 | $1,150.00 | $420.00 |
Table (52)
3.
Prepare
3.
Explanation of Solution
Trial balance: Trial balance is a summary of all the asset, liability, and equity accounts and their balances.
Prepare the trial balance.
Company AAY | ||
Trial balance | ||
As on July 31, 20-- | ||
Account name | Debit | Credit |
Cash | $44,969.26 | |
Accounts Receivable | $4,568.79 | |
Office Supplies | $248.00 | |
Spa Supplies | $695.00 | |
Prepaid Insurance | $800.00 | |
Office Equipment | $1,570.00 | |
Accumulated Depreciation, Office Equipment | $10.00 | |
Spa Equipment | $17,601.00 | |
Accumulated Depreciation, Spa Equipment | $64.88 | |
Accounts Payable | $20,720.00 | |
Sales Tax Payable | $1,829.90 | |
Person AV, Capital | $50,219.62 | |
Person AV, Drawing | $2,500.00 | |
Income from Services | $12,722.00 | |
Merchandise Sales | $10,151.65 | |
Purchases | $12,868.00 | |
Freight In | $403.00 | |
Wages Expense | $7,004.00 | |
Rent Expense | $1,650.00 | |
Laundry Expense | $84.00 | |
Utilities Expense | $473.00 | |
Miscellaneous Expense | $284.00 | |
Total | $95,718.05 | $95,718.05 |
Table (53)
Thus, the total of trial balance of Company AAY is $95,718.05.
4.
Prepare a schedule of accounts receivable.
4.
Explanation of Solution
Schedule of accounts receivable: A schedule of accounts receivable is a subsidiary ledger that list out the accounts of credit customers individually in alphabetical or numeric order with their respective balances.
Prepare a schedule of accounts receivable:
Company AAY | |
Schedule of Accounts receivable | |
July 31, 20-- | |
Particulars | Amount |
Company AFS | $521.59 |
Company JA | $175.00 |
Company C | $520.02 |
Company HC | $367.47 |
Incorporation TL | $164.00 |
Company LOL | $351.00 |
Company MS | $222.48 |
Company JM | $286.00 |
Company PS | $1,961.23 |
Total Accounts receivable | $4,568.79 |
Table (54)
5.
Prepare a schedule of Accounts payable.
5.
Explanation of Solution
Schedule of accounts payable: A schedule of accounts payable lists is a subsidiary ledger that list out the accounts of creditors (vendors/suppliers) individually in alphabetical or numeric order with their respective balances.
Prepare a schedule of Accounts payable:
Company AAY | |
Schedule of Accounts payable | |
July 31, 20-- | |
Particulars | Amount |
Company G | $1,309.00 |
Company GSS | $490.00 |
Company LP | $3,796.00 |
Company OS | $304.00 |
Incorporation SE | $6,235.00 |
Company SG | $5,445.00 |
Company SM | $2,721.00 |
Company SE | $420.00 |
Total Accounts payable | $20,720.00 |
Table (55)
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Chapter 9 Solutions
College Accounting (Book Only): A Career Approach
- You are the accountant for the Best Outdoor Living company which manufactures various outdoor furniture. The furniture is sold by specialty stores and through internet outlets. You are responsible for reviewing costs and creating standards costs based on the information you have reviewed. One of your former colleagues has recently started a company to collect and sell data on industry benchmarks. You are offered the chance to receive benchmarks from other outdoor furniture companies for free if you will provide the standard and actual costs for the last three years of your company. As creation of the standards is a tedious process, you feel this data would be helpful in your job. Review the IMA’s ethical guidelines, under Reading Preparation and identify the conflict with the guidelines. What are the relevant factors in this situation and how you should handle this, and what you would recommend to the Controllerarrow_forwardABC Company is a small business that sells handmade crafts online. The company has been in operation for three years and has been profitable since its inception. The owner, Sarah, has decided to expand her business by renting a physical storefront in addition to her online sales. She plans to purchase inventory and hire an employee to help manage the physical storefront. Sarah wants to know how this expansion will affect her financial statements and overall profitability. 1. How will the purchase of inventory affect the financial statements 2. How will the hiring of an employee affect the financial statements 3. How will the rental expense for the storefront affect the financial statements ???ts?arrow_forwardAlice Trading runs 10 branches and pays for a variety of expenses. Zabrina, the Accounts Payable Clerk of Alice Trading writes the checks for each supplier and the Accounting Manager signs the checks. Zabrina decided she needs a raise and the Manager told her to wait for six months. Zabrina devised a plan to get a raise on her own. She created a new supplier account for her friend’s business, Prime Auto Parts. Zabrina also created two purchase orders for Prime Auto Parts for ₱20,000 and ₱15,000 and wrote checks to pay these invoices. She knows the Manager will sign all checks only looking at the checks over ₱30,000. She delivers the checks to her friend who will encash the checks and give the money to Zabrina. Is this a good way for Zabrina to obtain a raise? Eventually, what will be the effect of her actions? How can Jiffy prevent this type of incident?arrow_forward
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