The post-closing trial balance for Perrault Music Co. follows: The subsidiary ledgers contain the following information: 1.
Question:
The post-closing trial balance for Perrault Music Co. follows:
The subsidiary ledgers contain the following information:
1. Accounts Receivable?S. Armstrong, $6,500; R. Goge, $30,000; B. Lu, $1,500
2. Accounts Payable?Denomme Corp., $4,000; Harms Distributors, $16,000; Watson & Co., $14,200 Perrault Music Co. uses a perpetual inventory system and reports under ASPE. The transactions for January 2021 are as follows:
Jan. 3 Sold merchandise to B. Rohl, $3,000. The cost of goods sold was $1,250.
5 Purchased merchandise from Warren Parts, $2,900.
7 Received a cheque from S. Armstrong, $4,000, in partial payment of its account.
11 Paid Lindon Co. freight on merchandise purchased, $350.
13 Received payment of account in full from B. Rohl.
14 Issued a credit memo to R. Goge for $6,000 as a sales allowance for a previous sale on account.
Jan. 15 Sent Harms Distributors a cheque in full payment of account.
17 Purchased merchandise from Voyer Co., $4,900.
18 Paid salaries of $3,900.
20 Gave Watson & Co. a 60-day note for $14,000 as a partial payment of account payable.
23 Total cash sales amounted to $7,700. The cost of goods sold was $4,840.
24 Sold merchandise on account to B. Lu, $7,800. The cost of goods sold was $3,300.
27 Sent Warren Parts a cheque for $1,150 in partial payment of the account.
29 Received payment on a note receivable of $35,000 from S. Lava.
30 Returned merchandise costing $400 to Voyer Co. for credit.
31 M. Perrault withdrew $1,300 cash for personal use.
Instructions
a. Open general and subsidiary ledger accounts and record December 31, 2020, balances.
b. Record the January transactions in a sales journal, a purchases journal, a cash receipts journal, a cash payments journal, and a general journal, as illustrated in this appendix.
c. Post the appropriate amounts to the subsidiary and general ledger accounts.
d. Prepare a trial balance at January 31, 2021.
e. Determine whether the subsidiary ledgers agree with control accounts in the general ledger.
Step by Step Answer:
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak