Question

Special Journals

Bedrock Company completed these transactions during February of the current year using a perpetual inventory system. Purchases are recorded as of the invoice date to set the discount period.

Required:

You are to enter the February transactions in one of five journals.

All transactions in the general journal

All amounts in the “other accounts” columns

Individual amounts affecting the accounts receivable subsidiary ledger

Individual amounts affecting the accounts payable subsidiary ledger

Prepare a trial balance from the general ledger balances

Complete Financial Statements in good form

Prepare a schedule of accounts receivable and accounts payable

 

Date

Transaction from Source Document

Feb. 2

Sold merchandise on credit to Dale Dent, invoice No. 711, $800 (cost, $500).

(Terms of all credit sales are 2/10, n/60)

3

Received merchandise and an invoice dated February 1 from Able Company, $17,500. Terms are 2/10, n/60.

4

Sold merchandise on credit to Gary Glen, Invoice No. 712, $1,250 (cost, $750).

(Terms of all credit sales are 2/10, n/60)

7

Borrowed $5,000 by giving First National Bank a promissory note payable.

9

Purchased office equipment on credit from More Company, invoice dated February 6, terms n/10, EOM, $625.

9

Sent Able Company Check No. 414 in payment of its February 1 invoice less the discount.

11

Sold merchandise on credit to Carl Cole, Invoice No. 713, $1,650 (cost, $1,000). (Terms of all credit sales are 2/10, n/60)

12

Received payment from Dale Dent of the February 2 sale less the discount.

14

Received payment from Gary Glen of the February 4 sale less the discount.

14

Received merchandise and an invoice dated February 11, terms 2/10, n/60, from Old Company, $1,985.

14

Issued check No. 415, payable to Payroll, in payment of sales salaries for the first half of the month, $855. Cashed the check and paid the employees.

14

Cash sales for the first half of the month, $18,460 (cost, $11,000)[1].

16

Purchased merchandise on credit from Best Company, $9,100; store supplies, $45; and office supplies, $30. Invoice dated February 12, terms n/10, EOM.

17

Received a credit memo from Old Company for unsatisfactory merchandise received on February 14th and returned for credit, $85.

21

Received payment from Carl Cole for the sale of February 11 less the discount.

21

Issued check No. 416 to Old Company in payment of its invoice of February 11 less the return and the discount.

24

Sold merchandise on credit to Carl Cole, Invoice No. 714, $835 (cost, $500).

28

Issued check No. 417, payable to Payroll, in payment of sales salaries for the second half of the month, $855. Cashed the check and paid the employees

28

Cash sales for the last half of the month, $20,215 (cost, $12,000).

[1] Normally cash sales are recorded daily, these are representative to reduce the number of repetitive entries.

Required:

You are to enter the February transactions in one of five journals.

Post the following items ongoing:

All transactions in the general journal

All amounts in the “other accounts” columns

Individual amounts affecting the accounts receivable subsidiary ledger

Individual amounts affecting the accounts payable subsidiary ledger

Prepare a trial balance from the general ledger balances

Complete Financial Statements in good form

Prepare a schedule of accounts receivable and accounts payable

 



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