The post closing trial balance for Bugeja Co. is show.
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BUGEJA CO. |
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Post Closing Trial Balance |
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December 31, 2012 |
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Debit |
Credit |
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Cash |
$ 41,500 |
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Accounts Receivable |
15,000 |
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Notes Receivable |
45,000 |
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Inventory |
23,000 |
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Equipment |
6,450 |
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Accumulated Depreciation—Equipment |
$ 1,500 |
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Accounts Payable |
43,000 |
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Owner’s Capital |
86,450 |
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Cash |
$130,950 |
$130,950 |
The subsidiary ledgers contain the following information: (1) accounts receivable— B. Cordelia $2,500, I. Togo $7,500, T. Dudley $5,000; (2) accounts payable—T. Igawa $10,000, D. Miranda $18,000, and K. Inwood $15,000. The cost of all merchandise sold was 60% of the sales price.
The transactions for January 2013 are as follows.
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Jan. |
3 |
Sell merchandise to M. Rensing $5,000, terms 2/10, n/30. |
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5 |
Purchase merchandise from E. Vietti $2,000, terms 2/10, n/30. |
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7 |
Receive a check from T. Dudley $3,500. |
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11 |
Pay freight on merchandise purchased $300. |
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12 |
Pay rent of $1,000 for January. |
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13 |
Receive payment in full from M. Rensing. |
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14 |
Post all entries to the subsidiary ledgers. Issued credit of $300 to B. Cordelia for |
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returned merchandise. |
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15 |
Send K. Inwood a check for $14,850 in full payment of account, discount $150. |
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17 |
Purchase merchandise from G. Marley $1,600, terms 2/10, n/30. |
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18 |
Pay sales salaries of $2,800 and office salaries $2,000. |
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20 |
Give D. Miranda a 60 day note for $18,000 in full payment of account payable. |
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23 |
Total cash sales amount to $9,100. |
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24 |
Post all entries to the subsidiary ledgers. Sell merchandise on account to I. Togo $7,400, |
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terms 1/10, n/30. |
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27 |
Send E. Vietti a check for $950. |
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29 |
Receive payment on a note of $40,000 from B. Lemke. |
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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.
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101 |
Cash |
301 |
Owner’s Capital |
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112 |
Accounts Receivable |
401 |
Sales Revenue |
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115 |
Notes Receivable |
412 |
Sales Returns and Allowances |
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120 |
Inventory |
414 |
Sales Discounts |
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157 |
Equipment |
505 |
Cost of Goods Sold |
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158 |
Accumulated Depreciation—Equipment |
726 |
Salaries and Wages Expense |
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200 |
Notes Payable |
729 |
Rent Expense |
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201 |
Accounts Payable |
301 |
Owner’s Capital |
(b) Record the January transactions in a sales journal, a single column purchases journal, a cash receipts journal (see Illustration 7 9), 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, 2013.
(e) Determine whether the subsidiary ledgers agree with controlling accounts in the general ledger.