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More Co. is a merchandising business. The account balances for More Co. as of November 30, 2012 (unless otherwise indicated), are as follows
110 Cash $ 13,920
112 Accounts Receivable 34,220
115 Merchandise Inventory 133,900
116 Prepaid Insurance 3,750
117 Store Supplies 2,550
123 Store Equipment 114,300
124 Accumulated Depreciation-Store Equipment 12,600
210 Accounts Payable 21,450
211 Salaries Payable 0
218 Interest Payable 0
220 Note Payable (Due 2017) 10,000
310 P. Williams, Capital (January 1, 2012) 103,280
311 P. Williams, Drawing 10,000
312 Income Summary 0
410 Sales 715,800
411 Sales Returns and Allowances 20,600
412 Sales Discounts 13,200
510 Cost of Merchandise Sold 360,500
520 Sales Salaries Expense 74,400
521 Advertising Expense 18,000
522 Depreciation Expense 0
523 Store Supplies Expense 0
529 Miscellaneous Selling Expense 2,800
530 Office Salaries Expense 40,500
531 Rent Expense 18,600
532 Insurance Expense 0
539 Miscellaneous Administrative Expense 1,650
550 Interest Expense 240
More Co. uses the perpetual inventory system and the last-in, first-out costing method. Transportation-in and purchase discounts should be added to the Inventory Control Sheet, but since this will complicate the computation of the Last-in, first-out costing method, please ignore this step in the process.
More Co. sells four types of television entertainment units.
The sales price of each are
TV A: $3,500
TV B: $5,250
TV C: $6,125
PS D: $9,000
During December, the last month of the accounting year, the following transactions were completed
Dec. 1. Issued check number 2632 for the December rent, $1,600.
3. Purchased four TV C units on account from Prince Co., terms 2/10, n/30, FOB shipping point, $14,800.
4. Issued check number 2633 to pay the transportation changes on purchase of December 3, $400. (NOTE: Do not include shipping and purchase discounts to the Inventory Control sheet for this project.)
6. Sold four TV A and 4 TV B on account to Albert Co., invoice 891, terms 2/10, n/30, FOB shipping point.
7. Received $7,500 cash from Marie Co. on account, no discount.
10. Sold two project systems for cash.
11. Purchased store supplies on account from Matt Co., terms 1/10, n/30
13. Issued check number 2634 for merchandise purchased on December 3, less discount.
14. Issued credit memo for one TV A unit returned on sale of December 6.
15. Issued check number 2635 for advertising expense for last half of December, $1,500.
16. Received cash from sale of December 6, less return of December 14 and discount.
19. Issued check number 2636 for two TV C units, $7,600.
19. Issued check number 2637 for $6,100 to Joseph Co. on account.
20. Sold three TV C units on account to Cameron Co., invoice number
892, terms 1/10, n/30, FOB shipping point.
20. For the convenience of the customer, issued check number 2638 for shipping charges on sale of December 20, $600.
21. Received $11,750 cash from McKenzie Co. on account, no discount.
21. Purchased three projector systems on account from Elisha Co., terms 1/10, n/30, FOB destination, $15,600.
24. Issued a debit memo for return of $5,200 because of a damaged projection system purchased on December 21, receiving credit from the seller.
26. Issued check number 2639 for refund of cash on sales made for cash, $1,000. (Customer was going to return goods until partial refund was arranged.)
27. Issued check number 2640 for sales salaries of $1,750 and office
salaries of $950.
28. Purchased store equipment on account from Matt Co., terms 2/10, n/30, FOB
29. Issued check number 2641 for store supplies, $550.
30. Sold four TV C units on account to Randall Co., invoice number 893
terms 2/10, n/30, FOB shipping point.
30. Received cash from sale of December 20, less discount, plus transportation
paid on December 20.
30. Issued check number 2642 for purchase of December 21, less return
of December 24 and discount.
30. Issued a debit memo for $200 of the purchase returned from
1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account (General Ledger). Write Balance in the item section, and place a check mark (?) in the Post Reference column.
2. Journalize the transactions in a sales journal, purchases journal, cash receipts journal, cash payments journal, or general journal as illustrated in chapter 7. Also post to the Accounts Receivable and Accounts Payable Subsidiary ledgers.
3. Total each column on the special journals and prove the journal.
4. Post the totals of the account columns and individually post the other columns as well as the general journal.
Solution ID:436808 | This paper was updated on 26-Nov-2015Price : $60