Question

Allison Cooper opened Allison’s Toy House. As her newly hired accountant, your tasks are to do the following:
1. Journalize the transactions for the month of October.
2. Record to subsidiary ledgers and post to the general ledger as appropriate.
3. Prepare a schedule of accounts receivable and a schedule of accounts payable.
The following is the partial chart of accounts for Allison’s Toy House:


201X
Oct. 1 Allison Cooper invested $8,200 in the toy store.
1 Paid three months’ rent in advance, check no. 1, $3,000.
1 Purchased merchandise from Sarah Harmitz Company on account, $3,800, invoice no. 410, dated October 2; terms 7/10, n/30.
3 Sold merchandise to Robert Gibbs on account, $1,100, invoice no. 1; terms 7/10, n/30.
6 Sold merchandise to Inez Tenenbaum on account, $700, invoice no. 2; terms 7/10, n/30.
8 Purchased merchandise from Sarah Harmitz Co. on account, $1,500, invoice no. 415, dated October 9; terms 7/10, n/30.
9 Sold merchandise to Robert Gibbs on account, $600, invoice no. 3; terms 7/10, n/30.
9 Paid cleaning service, check no. 2, $200.
10 Inez Tenenbaum returned merchandise that cost $300 to Allison’s Toy House.
Allison issued credit memorandum no. 1 to Inez Tenenbaum for $300.
10 Purchased merchandise from Lane Chipkin on account, $4,000, invoice no. 311, dated October 11; terms 6/15, n/60.
12 Paid Sarah Harmitz Co. invoice no. 410, dated October 2, check no. 3.
13 Sold $1,600 of toy merchandise for cash.
13 Paid salaries, $900, check no. 4.
14 Returned merchandise to Lane Chipkin in the amount of $1,500. Allison’s Toy House issued debit memorandum no. 1 to Lane Chipkin.
15 Sold merchandise for $3,800 cash.
16 Received payment from Inez Tenenbaum, invoice no. 2 (less returned merchandise) less discount.
16 Robert Gibbs paid invoice no. 1.
16 Sold toy merchandise to Amanda Reader on account, $3,900, invoice no. 4; terms 7/10, n/30.
20 Purchased delivery truck on account from Sam Katz Garage, $3,100, invoice no. 111, dated October 21 (no discount).
22 Sold to Robert Gibbs merchandise on account, $1,000, invoice no. 5; terms 7/10, n/30.
23 Paid Lane Chipkin balance owed, check no. 5.
24 Sold toy merchandise on account to Amanda Reader, $1,700, invoice no. 6; terms 7/10, n/30.
25 Purchased toy merchandise, $500, check no. 6.
26 Purchased toy merchandise from William Smith on account, $4,600, invoice no. 211, dated October 27; terms 7/10, n/30.
28 Robert Gibbs paid invoice no. 5, dated October 22.
28 Amanda Reader paid invoice no. 6, dated October 24.
28 Allison invested an additional $5,500 in the business.
28 Purchased merchandise from Sarah Harmitz Co., $1,600, invoice no. 436, dated October 29; terms 7/10, n/30.
30 Paid Sarah Harmitz Co. invoice no. 436, check no. 7.
30 Sold merchandise to Bonnie Flow Company on account, $2,400, invoice no. 7; terms 7/10,n/30.


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  • CreatedApril 24, 2014
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