Quick Networking Systems adjusts and closes its books and then prepares financial statements monthly. Quick uses the perpetual inventory system. The company completed the following transactions during August:

Aug. 1 Issued check no. 682 for August office rent of $2,000.

2 Issued check no. 683 to pay the salaries payable of $1,250 from July 31.

2 Issued invoke no. 503 for sale on account to R. T. Lowe, $600. Quick's cost of this merchandise inventory was $190.

3 Purchased merchandise inventory on credit terms of 1/15, n/60 from Goodman, Inc., $1,400.

4 Received net amount of cash on account from Finnish Company, $2,156, within the discount period.

4 Sold merchandise inventory for cash, $330 (cost, $104).

5 Received from Parkland, Inc. merchandise inventory that had been sold earlier for 4550 (cost, $174).

5 Issued check no. 684 to purchase office supplies for cash, $780.

7 Issued invoke no. 504 for sale on account to K. D. Statesman, $2,400 (cost, S759).

8 Issued check no. 685 to pay French Company $2,600 of the amount owed at July 31. This payment occurred after the end of the discount period.

11 Issued check no. 686 to pay Goodman, Inc. the net amount owed from August 3. s

12 Received cash from R. T. Lowe in full settlement of her account receivable from August 2.

16 Issued check no. 687 to pay salaries expense of $1,240.

19 Purchased merchandise inventory for cash, 4850, issuing check no. 688.

22 Purchased furniture on credit terms of 3/15, n/60 from Boxman Corporation, 4510.

23 Sold merchandise inventory on account to Finnish Company, issuing invoice no. 505 for $9,966 (cost, 43,152).

24 Received half the July 31 amount receivable from K. D. Statesman-after the end of the discount period.

26 Purchased office supplies on credit terms of 2/10, n/30 from French Company, $180.

30 Returned damaged merchandise inventory to the company from whom Quick made the cash purchase on August 19, receiving cash of $850.

31 Purchased merchandise inventory on credit terms of 1/10, n/30 from Sammy Supply, $8,330.

31 Issued check no. 689 to Liam McGinnis, owner of the business, for personal withdrawal, 4500.

Requirements

1. Open these four-column accounts with their account numbers and July 31 balances in the various ledgers.

General Ledger:

Accounts Receivable Subsidiary Ledger: Finnish Company $2,200; R. T. Lowe,
$0; Parkland, Inc., $11,590; K. D. Statesman, $8,770.
Accounts Payable Subsidiary Ledger: Boxman Corporation, $0; French Company,
$12,600; Goodman, Inc., $0; Sammy Supply, $0.
2. Journalize the August transactions using a sales journal (page 4), a cash receipts journal (page 11), a purchases journal (page 8), a cash payments journal (page 5), and a general journal (page 9). Quick makes all credit sales on terms of 2/10, n/30.
3. Post daily to the accounts receivable subsidiary ledger and the accounts payable subsidiary ledger. On August 31, post to the general ledger.
4. Prepare an unadjusted trial balance for the month ended August 31.
5. Journalize and post the following adjusting entries:
a. Office supplies on hand, $990.
b. Prepaid insurance expired, $550.
c. Depreciation expense, $230.
d. Accrued salaries expense, $1,030.
6. Prepare an adjusted trial balance.
7. Prepare a multistep income statement, statement of owner's equity, and classified balance sheet.
8. Journalize closing entries and post.
9. Prepare a post-closing trial balance.

Debit 4,490 22,560 41,800 1,340 2,200 37,270 Credit Nbr 101 102 105 109 160 161 201 204 220 301 302 400 401 402 403 501 510 513 514 516 519 Account Name Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Furniture Accumulated Depreciation- Furniture Accounts Payable Salaries Payable Note Payable, Long-term Liam McGinnis, Capital Liam McGinnis, Withdrawals Income Summary Sales Revenue Sales Discounts Sales Returns and Allowances Cost of Goods Sold Salaries Expense Rent Expense Depreciation Expense-Furniture Insurance Expense Supplies Expense 10,550 12,600 1,250 31,000 54,260