Presented below are the sales and cash receipts journals for Wyrick Co. for its first month of operations.

In addition, the following transactions have not been journalized for February 2008.

Instructions

(a) Open the following accounts in the general ledger.

(b) Journalize the transactions that have not been journalized in a one-column purchases journal and the cash payments journal (see Illustration 7-16).

(c) Post to the accounts receivable and accounts payable subsidiary ledgers. Follow the sequence of transactions as shown in the problem.

(d) Post the individual entries and totals to the general ledger.

(e) Prepare a trial balance at February 28, 2008.

(f) Determine that the subsidiary ledgers agree with the control accounts in the general ledger.

(g) The following adjustments at the end of February are necessary.

(1) A count of supplies indicates that $300 is still on hand.

(2) Depreciation on equipment for February is $200.
Prepare the adjusting entries and then post the adjusting entries to the general ledger.

(h) Prepare an adjusted trial balance at February 28, 2008.

Illustration 7-16

Transcribed Image Text:

SALES JOURNAL S1 Accounts Receivable Dr. Date 225 12 Account Debited Feb. 3 S. Arndt 9 C. Boyd F. Catt 26 M. Didde Ref. Sales Cr. Cost of Goods Sold Dr. Merchandise Inventory Cr. 5,500 3,630 6,500 4,290 8,000 5,280 7,000 4,620 27,000 17,820 CASH RECEIPTS JOURNAL CR1 Sales Accounts Other Cash Discounts Receivable Sales Accounts Date Account Credited Ref. Dr. Dr. Cr. Cr. Cr. Cost of Goods Sold Dr. Merchandise Inventory Cr. Feb. 1 A. Wyrick, Capital 30,000 30,000 2 6,500 6.500 4,290 13 S. Arndt 5,445 55 55 5,500 18 Merchandise Inventory 150 150 26 C. Boyd 6,500 6,500 48,595 55 12,000 6,500 30,150 4,290