Presented below are the sales and cash receipts journals for Hudson Co. for its first month of operations.
|
SALES JOURNAL |
S1 |
|||||||||||
|
Date |
Account Debited |
Ref. |
Accounts Receivable Dr. |
Cost of Goods Sold Dr. |
||||||||
|
Feb. 3 |
C. Leslie |
Sales Revenue Cr. |
Inventory Cr. |
|||||||||
|
9 |
S. David |
4,000 |
2,400 |
|||||||||
|
12 |
T. Baker |
5,000 |
3,000 |
|||||||||
|
26 |
W. Oz |
6,500 |
3,900 |
|||||||||
|
5,500 |
3,300 |
|||||||||||
|
21,000 |
12,600 |
|||||||||||
|
CASH RECEIPTS JOURNAL |
||||||||||||
|
Sales |
Accounts |
Sales |
Other |
Cost of Goods |
||||||||
|
Owner’s |
Cash |
Discounts |
Receivable |
Revenue |
Accounts |
Sold Dr. |
||||||
|
Date |
Account Credited |
Ref. |
Dr. |
Dr. |
Cr. |
Cr. |
Cr. |
Inventory Cr.. |
||||
|
Feb. 1 |
Owner’s Capital |
23,000 |
23,000 |
|||||||||
|
2 |
4,500 |
4,500 |
||||||||||
|
13 |
C. Leslie |
3,960 |
40 |
4,000 |
||||||||
|
18 |
Inventory |
120 |
120 |
|||||||||
|
26 |
S. David |
5,000 |
5,000 |
|||||||||
|
36,580 |
40 |
9,000 |
4,500 |
23,120 |
||||||||
In addition, the following transactions have not been journalized for February 2012.
|
Feb. |
2 |
Purchased merchandise on account from B. Baumgartner for $3,600, terms 2/10, n/30. |
|
7 |
Purchased merchandise on account from A. Martin for $23,000, terms 1/10, n/30. |
|
|
9 |
Paid cash of $980 for purchase of supplies. |
|
|
12 |
Paid $3,528 to B. Baumgartner in payment for $3,600 invoice, less 2% discount. |
|
|
15 |
Purchased equipment for $5,500 cash. |
|
|
16 |
Purchased merchandise on account from D. Gale $1,900, terms 2/10, n/30. |
|
|
17 |
Paid $22,770 to A. Martin in payment of $23,000 invoice, less 1% discount. |
|
|
20 |
S. Hudson withdrew cash of $800 from the business for personal use. |
|
|
21 |
Purchased merchandise on account from Kansas Company for $6,000, terms 1/10, n/30. |
|
|
28 |
Paid $1,900 to D. Gale in payment of $1,900 invoice. |
Instructions
(a) Open the following accounts in the general ledger.
|
101 |
Cash |
301 |
Owner’s Capital |
|
112 |
Accounts Receivable |
306 |
Owner’s Drawings |
|
120 |
Inventory |
401 |
Sales Revenue |
|
126 |
Supplies |
414 |
Sales Discounts |
|
157 |
Equipment |
505 |
Cost of Goods Sold |
|
158 |
Accumulated Depreciation—Equipment |
631 |
Supplies Expense |
|
201 |
Accounts Payable |
711 |
Depreciation Expense |
(b) Journalize the transactions that have not been journalized in a one column purchases journal and the cash payments journal (see Illustration 7 16).
(c) Post to the accounts receivable and accounts payable subsidiary ledgers. Follow the sequence of transactions as shown in the problem.
(d) Post the individual entries and totals to the general ledger.
(e) Prepare a trial balance at February 28, 2012.
(f) Determine that the subsidiary ledgers agree with the control accounts in the general ledger.
(g) The following adjustments at the end of February are necessary.
(1) A count of supplies indicates that $200 is still on hand.
(2) Depreciation on equipment for February is $150.
Prepare the adjusting entries and then post the adjusting entries to the general ledger.
(h) Prepare an adjusted trial balance at February 28, 2012.