James Schroeder uses sales, purchases, cash receipts, cash payments and general journals along with subsidiary ledgers for

Question:

James Schroeder uses sales, purchases, cash receipts, cash payments and general journals along with subsidiary ledgers for accounts receivable and accounts payable in the accounts of his business. The business has adopted the perpetual inventory system. The post-closing trial balance as at 31May 2017 and the subsidiary ledger schedules follow. Ignore GST.


Post-closing Trial Balance

as at 31 May 2017


Debit

Credit

Cash at bank

Accounts receivable control

Inventory

Equipment

Accumulated depreciation – equipment

Accounts payable control

J. Schroeder, Capital


$15 120

7 560

12 600

25 200









$  2 520

10 080

47 880




$60 480



$60 480



Schedule of Accounts Receivable

as at 31 May 2017


Slatter Ltd        

Thorne Ltd

B. Walker


$2 270

  3 530

1 760





$7 560



Schedule of Accounts Payable

as at 31 May 2017


Abdul-Ahad Ltd

P. Bengasi

Cavallaro Ltd


$2 520

  3 530

  4 030





$10 080



The following transactions took place during June 2017:



June

1

2

3

4

6


9

10

11

12

14

16

18

19

22

23

26

28

30


Received a cheque from B. Walker for payment on account, $1760.

Sold inventory to Cheng Ltd on credit, invoice 534, $2270, terms 2/10, n/30. The inventory sold had cost $1260.

Paid rent for June, $1890, internet transfer to Property Management Ltd.

Paid Abdul-Ahad Ltd for goods purchased previously, $2520, by interbank transfer.

Purchased inventory on credit from J. Dabrowski, $2650, invoice 776, terms 2/10, n/30.

Received payment from Cheng Ltd for full settlement of invoice 534.

Received a credit note from J. Dabrowski for inventory returned, $120.

Paid J. Dabowski the amount due on invoice 776 by issuing cheque no. 235.

Paid sales commissions, $5170 by interbank transfer.

Received a cheque from Thorne Ltd in part payment of the account, $1760.

Issued cheque no. 236 for new office equipment, $7560.

Cash sales, $1410. Cost of the goods sold was $980.

Sold inventory on credit to B. Walker, $2400, invoice 535, terms 2/10, n/30. Cost of the inventory sold amounted to $1400.

Sold inventory on credit to Grifoni Ltd, $1130, invoice 536, terms 2/10, n/30. Cost of sales, $890.

Paid Cavallaro Ltd for goods purchased in May, $4030 by interbank transfer.

Cash sales, $1575. Cost of the goods sold amounted to $1040.

Issued cheque no. 237 to cover sundry expenses, $690.

Received an interbank credit from Slatter Ltd, $2270, for payment on account.

Received a cheque from Grifoni Ltd for payment of account.



Required

A. Enter the transactions in the appropriate journals.

B. Make all necessary postings for the month to both the general and subsidiary ledgers.

C. Prepare schedules of accounts receivable and accounts payable as at 30 June 2017.

D. Prepare the trial balance as at 30 June 2017.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For  answer-question

Accounting

ISBN: 978-1118608227

9th edition

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

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