Question

Banh Company (buyer) and Santoni, Inc. (seller), engaged in the following transactions during February 2016:

Banh Company
DATE TRANSACTIONS
2016
Feb. 8 Issued Check 2001 for $5,880 on account to Santoni, Inc., in payment of Invoice 1985 dated January 30, 2016, less cash discount of $120.
9 Purchased merchandise for $3,800 from Santoni, Inc., Invoice 1990; terms 2/10, n/30.
15 Received Credit Memorandum 220 from Santoni, Inc., for damaged merchandise totaling $400 that was returned; the goods were purchased on Invoice 1990, dated February 9.
18 Paid amount due to Santoni, Inc., for Invoice 1990 of February 9, less the return of February 15 and less the cash discount, Check 2009.
28 Purchased merchandise for $6,200 from Santoni, Inc., Invoice 2008; terms 2/10, n/30.

Santoni, Inc.
DATE TRANSACTIONS
2016
Feb. 8 Received payment of $5,880 on account from Banh Company in payment of Invoice 1985 dated January 30, 2016, less cash discount of $120.
9 Sold merchandise for $3,800 on account to Banh Company, Invoice 1990, terms 2/10, n/30.
15 Issued Credit Memorandum 220 to Banh Company for damaged merchandise totaling $400 that was returned; the goods were purchased on Invoice 1990, dated February 9.
18 Received payment from Banh Company for Invoice 1990 of February 9, less the return of February 15 and less the cash discount.
28 Sold merchandise for $6,200 to Banh Company, Invoice 2008; terms2/10, n/30.

INSTRUCTIONS
1. Open the accounts payable ledger account and accounts receivable ledger account indicated on the next page for both Banh Company and Santoni, Inc. Enter the balances as of February 1, 2016.
2. Journalize the transactions above in a general journal for both Banh Company and Santoni, Inc. Begin the journals for both companies with page 12.
3. Post the transactions to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger for Banh Company.
4. Post the transactions to the appropriate accounts in the general ledger and the accounts
receivable subsidiary ledger for Santoni, Inc.
GENERAL LEDGER ACCOUNTS—BANH COMPANY
201 Accounts Payable, $6,000 Cr.
ACCOUNTS PAYABLE LEDGER ACCOUNT—BANH COMPANY
Santoni, Inc., $6,000
GENERAL LEDGER ACCOUNTS—SANTONI, INC.
111 Accounts Receivable, $6,000 Dr.
ACCOUNTS RECEIVABLE LEDGER ACCOUNT—SANTONI, INC.
Banh Company, $6,000
Analyze: What is the balance of the accounts payable for Santoni, Inc., in the Banh Company accounts payable subsidiary ledger? What is the balance of the accounts receivable for Banh Company in the Santoni, Inc., accounts receivable subsidiary ledger?



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  • CreatedAugust 08, 2014
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