Refer to Problem 7-1B and assume that Alcorn uses the periodic inventory system.

Required

1. Prepare a general journal, a purchases journal like that in Exhibit 7A.3, and a cash disbursements journal like that in Exhibit 7A.4. Number all journal pages as page 3. Review the July transactions of Alcorn Company (Problem 7-1B) and enter those transactions that should be journalized in the general journal, the purchases journal, or the cash disbursements journal. Ignore any transaction that should be journalized in a sales journal or cash receipts journal.

2. Open the following general ledger accounts: Cash, Inventory, Office Supplies, Store Supplies, Store Equipment, Accounts Payable, Long-Term Notes Payable, R. Alcorn, Capital, Purchases, Purchases Returns and Allowances, Purchases Discounts, Sales Salaries Expense, and Advertising Expense. Enter the June 30 balances of Cash ($100,000), Inventory ($200,000), Long-Term Notes Payable ($200,000), and R. Alcorn, Capital ($100,000). Also open accounts payable subsidiary ledger accounts for Tahoe Company, Pryor, Inc., Caro’s Supply, and Dixon Company.

3. Complete parts 3 and 4 of Problem 7-3B using the results of parts 1 and 2 of this problem.