The post closing trial balance for Cortez Co. is as follows.
|
CORTEZ CO. |
||
|
Debit |
Credit |
|
|
Cash |
$ 41,500 |
|
|
Accounts Receivable |
15,000 |
|
|
Notes Receivable |
45,000 |
|
|
Merchandise Inventory |
23,000 |
|
|
Equipment |
6,450 |
|
|
Accumulated Depreciation—Equipment |
$ 1,500 |
|
|
Accounts Payable |
43,000 |
|
|
B. Cortez, Capital |
86,450 |
|
|
$130,950 |
$130,950 |
The subsidiary ledgers contain the following information: (1) accounts receivable— J. Anders $2,500, F. Cone $7,500, T. Dudley $5,000; (2) accounts payable—J. Feeney $10,000, D. Goodman $18,000, and K. Inwood $15,000. The cost of all merchandise sold was 60% of the sales price. The transactions for January 2011 are as follows.
|
Jan. 3 |
Sell merchandise to M. Rensing $5,000, terms 2/10, n/30. |
|
5 |
Purchase merchandise from E.Vietti $2,000, terms 2/10, n/30. |
|
7 |
Receive a check from T. Dudley $3,500. |
|
11 |
Pay freight on merchandise purchased $300. |
|
12 |
Pay rent of $1,000 for January. |
|
13 |
Receive payment in full from M. Rensing. |
|
14 |
Post all entries to the subsidiary ledgers. Issued credit of $300 to J. Anders for returned merchandise. |
|
15 |
Send K. Inwood a check for $14,850 in full payment of account, discount $150. |
|
17 |
Purchase merchandise from G. Marley $1,600, terms 2/10, n/30. |
|
18 |
Pay sales salaries of $2,800 and office salaries $2,000. |
|
20 |
Give D. Goodman a 60 day note for $18,000 in full payment of account payable. |
|
23 |
Total cash sales amount to $9,100. |
|
24 |
Post all entries to the subsidiary ledgers. Sell merchandise on account to F. Cone $7,400,terms 1/10, n/30. |
|
27 |
Send E.Vietti a check for $950. |
|
29 |
Receive payment on a note of $40,000 from B. Lemke. |
|
30 |
Post all entries to the subsidiary ledgers. Return merchandise of $300 to G. Marley for credit. |
Instructions
(a) Open general and subsidiary ledger accounts for the following.
|
101 Cash |
301 B. Cortez, Capital |
|
112 Accounts Receivable |
401 Sales |
|
115 Notes Receivable |
412 Sales Returns and Allowances |
|
120 Merchandise Inventory |
414 Sales Discounts |
|
157 Equipment |
505 Cost of Goods Sold |
|
158 Accumulated Depreciation—Equipment |
726 Sales Salaries Expense |
|
200 Notes Payable |
727 Office Salaries Expense |
|
201 Accounts Payable |
729 Rent Expense |
(b) Record the January transactions in a sales journal, a single column purchases journal, a cash receipts journal, a cash payments journal, and a general journal.
(c) Post the appropriate amounts to the general ledger.
(d) Prepare a trial balance at January 31, 2011.
(e) Determine whether the subsidiary ledgers agree with controlling accounts in the general ledger.