ACG$2011$ Milestone Assignment #$2$ Instructions

Version $23.$A

Chart of Accounts

$\backslash$table$[[111,$Cash,$311,$Common stock$],[112,$Accounts receivable,$312,$PIC in excess of par, cS$],[114,$Inventory,$314,$Retained earnings$],[115,$Prepaid rent,$321,$Treasury stock$],[116,$Supplies,$322,$Paid$-$in capital, TS$],[126,$Equipment,$411,$Sales$],[127,$Acc. depr. $-$ Equip.,$412,$Sales returns and allowances$],[128,$Furniture,$511,$Cost of merchandise sold$],[129,$Acc. depr. $-$ Furniture,$513,$Rent expense$],[211,$Notes payable,$514,$Supplies expense$],[212,$Accounts payable,$515,$Depreciation expense$],[221,$Cash dividends payable,$519,$Miscellaneous expense$],[,,911,$Income summary$]]$

Step $1$: Journalize the following transactions for a new corporate retail company, Boats & More, Inc. for $205.$

Enter the following on page $1$ of the general journal.

$\frac{1}{1}$ Issued $40,000$ shares of $$4$ par value common stock for $$10$ per share.

$\frac{1}{1},$ Paid rent for the January through December, $$12,000.$

$2/1$ Purchased equipment on credit, $$2,600.$

$2/15$ Purchased inventory, paying $$220,500.$

$3/1$ Paid cash for furniture for the office, $$6,500.$

$4/20$ Paid cash for supplies, $$720.$

$\frac{6}{30}$ Received cash for inventory sold, $$65,000.$ The cost of the sold inventory was $$39,600.$

$\frac{8}{17}$ Sold inventory on credit, $$121,000.$ The cost of the inventory sold was $$84,000.$

$9/2$ Received a partial return of $$14,000$ of merchandise. Credit of $$21,200$ was granted to the customer.

Enter the following on page $2$ of the general journal.

$9/30$ Declared a dividend of $$\mathrm{.}20$ per share.

$10/5$ Paid off a portion of the equipment purchased on $\frac{2}{1},$$$1,400.$

$10/30$ Paid the dividend declared on $9/30.$

$\frac{11}{15}$ Purchased $3,000$ shares of their own stock for $$12.$

$\frac{11}{30}$ Received a cash payment from a customer for a prior purchase on credit, $$20,800.$

$12/15$ Paid $$50$ for miscellaneous expenses.

$12/31$ Declared a dividend of $$\mathrm{.}25$ per share.

Sten $2$: Post the iournal entries in Step $1$ to a four$-$column qeneral ledqer.