Question

Abby Ellen opened Abby’s Toy House. As her newly hired accountant, your tasks are to do the following:
1. Journalize the transactions for the month of March. Abby uses special journals for sales on account, purchases on account, cash receipts and cash payments, as well as a general journal.
2. Record to subsidiary ledgers and post to the general ledger as appropriate.
3. Total and rule the journals.
4. Prepare a schedule of accounts receivable and a schedule of accounts payable.
5. Ignore Sales Tax.
The following is the partial chart of accounts for Abby’s Toy House:


201X
Mar. 1 Abby Ellen invested $8,000 in the toy store.
1 Paid three months’ rent in advance, check no. 1, $3,000.
1 Purchased merchandise from Earl Miller Company on account, $4,000, invoice no. 410, dated March 2; terms 2/10, n/30.
3 Sold merchandise to Bill Burton on account, $1,000, invoice no. 1; terms 2/10, n/30.
6 Sold merchandise to Jim Rex on account, $700, invoice no. 2; terms 2/10, n/30.
8 Purchased merchandise from Earl Miller Co. on account, $1,200, invoice no. 415, dated March 9; terms 2/10, n/30.
9 Sold merchandise to Bill Burton on account, $600, invoice no. 3; terms 2/10, n/30.
9 Paid cleaning service, check no. 2, $300.
10 Jim Rex returned merchandise that cost $300 to Abby’s Toy House. Abby issued credit memorandum no. 1 to Jim Rex for $300.
10 Purchased merchandise from Minnie Katz on account, $4,000, invoice no. 311, dated March 11; terms 1/15, n/60.
12 Paid Earl Miller Co. invoice no. 410, dated March 2, check no. 3.
13 Sold $1,300 of toy merchandise for cash.
13 Paid salaries, $600, check no. 4.
14 Returned merchandise to Minnie Katz in the amount of $1,000. Abby’s Toy House issued debit memorandum no. 1 to Minnie Katz.
15 Sold merchandise for $4,000 cash.
16 Received payment from Jim Rex, invoice no. 2 (less returned merchandise) less discount.
16 Bill Burton paid invoice no. 1.
16 Sold toy merchandise to Amy Rose on account, $4,000, invoice no. 4; terms 2/10, n/30.
20 Purchased delivery truck on account from Sam Katz Garage, $3,000, invoice no. 111, dated March 21 (no discount).
22 Sold to Bill Burton merchandise on account, $900, invoice no. 5; terms 2/10, n/30.
23 Paid Minnie Katz balance owed, check no. 5.
24 Sold toy merchandise on account to Amy Rose, $1,100, invoice no. 6; terms 2/10, n/30.
25 Purchased toy merchandise, $600, check no. 6.
26 Purchased toy merchandise from Woody Smith on account, $4,800, invoice no. 211, dated March 27; terms 2/10, n/30.
28 Bill Burton paid invoice no. 5, dated March 22.
28 Amy Rose paid invoice no. 6, dated March 24.
28 Abby invested an additional $5,000 in the business.
28 Purchased merchandise from Earl Miller Co., $1,400, invoice no. 436, dated March 29; terms 2/10, n/30.
30 Paid Earl Miller Co. invoice no. 436, check no. 7.
30 Sold merchandise to Bonnie Flow Company on account, $3,000, invoice no. 7; terms 2/10,n/30.


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  • CreatedApril 24, 2014
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