During the month of October 20--, The Pink Petal flower shop engaged in the following transactions:

Oct. 1 Sold merchandise on account to Elizabeth Shoemaker, $1,000, plus tax of $50. Sale No. 222.

2 Issued Check No. 190 to Jill Hand in payment of October 1 balance of $500, less 2% discount.

2 Purchased merchandise on account from Flower Wholesalers, $4,000. Invoice No. 500, dated October 2, terms 2/10, n/30.

4 Purchased merchandise on account from Seidl Enterprises, $700. Invoice No. 527, dated October 4, terms 2/15, n/30.

5 Issued Check No. 191 in payment of telephone expense for the month of September, $150.

7 Sold merchandise for cash, $3,500, plus tax of $175.

9 Received payment from Leigh Summers in full settlement of account, $2,000.

11 Issued Check No. 192 to Flower Wholesalers in payment of October 1 balance of $1,500.

12 Sold merchandise on account to Leigh Summers, $2,000, plus tax of $100. Sale No. 223.

12 Received payment from Meg Johnson on account, $3,100.

13 Issued Check No. 193 to Seidl Enterprises in payment of October 4 purchase. Invoice No. 527, less 2% discount.

14 Meg Johnson returned merchandise for a credit, $300, plus sales tax of $15.

17 Returned merchandise to Vases Etc. for credit, $900.

24 Received payment from David's Decorating on account, $2,135.

27 Sold merchandise on account to David's Decorating, $3,000, plus tax of $150. Sale No. 224.

29 Issued Check No. 194 in payment of wages (Wages Expense) for the four-week period ending October 30, $900.

Selected account balances as of October 1 were as follows:

The Pink Petal also had the following subsidiary ledger balances as of October 1:
Accounts Receivable:
Customer Accounts Receivable Balance
David's Decorating
12 Jude Lane
Hartford, CT 06117 $3,340.00
Elizabeth Shoemaker
52 Juniper Road
Hartford, CT 06118 279.00
Meg Johnson
700 Hobbes Dr.
Avon, CT 06108 4,000.00
Leigh Summers
5200 Hamilton Ave.
Hartford, CT 06111 2,000.00
Accounts Payable:
Vendor Accounts Payable Balance
Vases Etc.
34 Harry Ave.
East Hartford, CT 05234 $3,120.00
Jill Hand
1009 Drake Rd.
Farmington, CT 06082 500.00
Flower Wholesalers
43 Lucky Lane
Bristol, CT 06007 1,500.00
Seidl Enterprises
888 Anders Street
Newington, CT 06789 '
REQUIRED
1. Record the transactions in a sales journal (page 7), cash receipts journal (page 10), purchases journal (page 6), cash payments journal (page 11), and general journal (page 5). Total, verify, and rule the columns where appropriate at the end of the month.
2. Post from the journals to the general ledger, accounts receivable ledger, and accounts payable ledger accounts. Use account numbers as shown in thechapter.

Transcribed Image Text:

Account No. Credit Account Cash Accounts Receivable Accounts Payable Debit 101 122 202 $18,225.00 9,619.00 $5,120.00