Question: Appendix II Assignment Review the opening account balances in Coach Company's general and subsidiary ledgers on January 1, 2021. All accounts have normal debit and
Appendix II Assignment
Review the opening account balances in Coach Company's general and subsidiary ledgers on January 1, 2021. All accounts have normal debit and credit balances. Coach uses a perpetual inventory system. The cost of all merchandise sold was 40% of the sales price.
| General Ledger | ||
|---|---|---|
| Account No. | Account Title | January 1, 2021 Opening Balance |
| 101 | Cash | $35,050 |
| 112 | Accounts receivable | 14,000 |
| 115 | Notes receivable | 39,000 |
| 120 | Merchandise inventory | 20,000 |
| 125 | Supplies | 1,000 |
| 130 | Prepaid insurance | 2,000 |
| 140 | Land | 50,000 |
| 145 | Building | 100,000 |
| 146 | Accumulated depreciationbuilding | 25,000 |
| 157 | Equipment | 6,450 |
| 158 | Accumulated depreciationequipment | 1,500 |
| 201 | Accounts payable | 36,000 |
| 275 | Mortgage payable | 125,000 |
| 301 | A. Coach, capital | 80,000 |
| Accounts Receivable Subsidiary Ledger | |
| Customer | January 1, 2021 Opening Balance |
| Life Co. | $1,500 |
| Great Co. | 7,500 |
| Stang | 5,000 |
| Accounts Payable Subsidiary Ledger | |
| Creditor | January 1, 2021 Opening Balance |
| Brush | $10,000 |
| Angiolina | 15,000 |
| Thai Co. | 11,000 |
Coach' January transactions follow:
| Jan.3 | Sold merchandise on credit to Lola $3,100, invoice no. 510, and Mickey $1,800, invoice no. 511. |
| 5 | Purchased merchandise on account from Dollarama for $3,000 and Minnie for $2,700. |
| 7 | Received cheques for $5,000 from Stang and $2,000 from Great Co. on accounts. |
| 8 | Paid freight on merchandise purchased, $180. |
| 9 | Sent cheques to Brush for $10,000 and Thai Co. for $11,000 in full payment of accounts. |
| 9 | Issued credit memo for $400 to Mickey for merchandise returned. The merchandise was restored to inventory. |
| 10 | Summary cash sales totalled $16,500. |
| 11 | Sold merchandise on credit to Life Co. for $1,900, invoice no. 512, and to Stang for $900, invoice no. 513. |
| 15 | Withdrew $2,000 cash for Coach's personal use. |
| 16 | Purchased merchandise on account from Thai Co. for $15,000, from Brush for $13,900, and from Dollarama for $1,500. |
| 17 | Purchased supplies on account from Minnie, $400. |
| 18 | Returned $500 of merchandise to Brush and received credit. |
| 20 | Summary cash sales totalled $17,500. |
| 21 | Issued $15,000 note to Angiolina in payment of balance due. The note bears an interest rate of 10% and is due in three months. |
| 21 | Received payment in full from Stang. |
| 22 | Sold merchandise on credit to Lola for $1,700, invoice no. 514, and to Life Co. for $800, invoice no. 515. |
| 23 | Sent cheques to Thai Co. and Brush in full payment of accounts. |
| 25 | Sold merchandise on credit to Great Co. for $3,500, invoice no. 516, and to Mickey for $6,100, invoice no. 517. |
| 27 | Purchased merchandise on account from Thai Co. for $14,500, from Minnie for $1,200, and from Dollarama for $2,800. |
| 28 | Purchased supplies on account from Minnie, $800. |
| 31 | Summary cash sales totalled $19,920. |
| 31 | Paid salaries of $6,900. |
| 31 | Received payment in full from Lola and Mickey on account. |
In addition to the accounts identified in the trial balance, the chart of accounts shows the following: No. 200 Notes Payable, No. 230 Interest Payable, No. 300 Income Summary, No. 310 A. Coach, Drawings, No. 401 Sales, No. 410 Sales Returns and Allowances, No. 505 Cost of Goods Sold, No. 711 Depreciation Expense, No. 718 Interest Expense, No. 722 Insurance Expense, No. 725 Salaries Expense, and No. 728 Supplies Expense.
Instructions
Please use the Templates included with this assignment. Some check figures have been provided to you on the Templates. You can use Excel if you wish.
- Record the January transactions in the appropriate journalsales, purchases, cash receipts, cash payments, and general.
- Enter the opening balances in general and subsidiary ledger accounts. Post the journals to the general and subsidiary ledgers. New accounts should be added and numbered in an orderly fashion as needed.
- Prepare an unadjusted trial balance at January 31, 2021. Determine whether the subsidiary ledgers agree with the control accounts in the general ledger.
- Prepare and post adjusting journal entries. Prepare an adjusted trial balance, using the following information:
- Supplies at January 31 total $700.
- Insurance coverage expires on September 30, 2021.
- Annual depreciation on the building is $6,000 and on the equipment is $1,500.
- Interest of $45 has accrued on the note payable.
- A physical count of merchandise inventory has found $44,850 of goods on hand.
- Prepare a multiple-step income statement and a statement of owner's equity for January, and a classified balance sheet at the end of January.
- Prepare and post the closing entries.
- Prepare a post-closing trial balance.
a.
Sales Journal S1
| Date | Account Debited | Invoice No. | Ref. | Accounts Receivable Dr. Sales Cr. | Cost of Goods Sold Dr. Merch. Inventory Cr. | ||||
| 19,800 | 7,920 | ||||||||
a. (Continued)
Cash Receipts Journal CR1
| Date | Account Credited | Ref. | Cash Dr. | Accounts Receivable Cr. | Sales Cr. | COGS Dr. Merch. Inv. Cr. | Other Accounts Dr. | |||||||||||||||||
| 53,920 | 21,568 | |||||||||||||||||||||||
a. (Continued)
Cash Payments Journal CP1
| Date | Payee | Cash Cr. | Merch. Invent. Dr. | Accts. Payable Dr. | Account Debited | Ref. | Other Accts. Dr. | |
| 58,480 | 49,400 |
a. (Continued)
Purchases Journal P1
| Date | Account Credited | Terms | Ref. | Accounts Payable Cr. | Merchandise Inventory Dr. | Supplies Dr. | Other Accounts | ||
| Account Debited | Ref. | Amount | |||||||
| 55,800 | 54,600 | ||||||||
- (Continued)
General Journal J1
Date | Account Titles and Explanations | Ref. | Debit | Credit | |||||||||||||
d. Adjusting Journal Entries
General Journal J1
Date | Account Titles and Explanations | Ref. | Debit | Credit |
f. Closing Journal Entries
General Journal J2
Date | Account Titles and Explanations | Ref. | Debit | Credit |
General Ledger
b. and f.
Cash No. 101
Date | Explanation | Ref. | Debit | Credit | Balance | ||||||
| Jan. 31 | 50,690 | ||||||||||
Accounts Receivable No. 112
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Notes Receivable No. 115
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Merchandise Inventory No. 120
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
b. and f. (Continued)
Supplies No. 125
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Prepaid Insurance No. 130
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Land No. 140
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Building No. 145
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Accumulated DepreciationBuilding No. 146
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
b. and f. (Continued)
Equipment No. 157
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Accumulated DepreciationEquipment No. 158
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Notes Payable No. 200
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Accounts Payable No. 201
Date | Explanation | Ref. | Debit | Credit | Balance | ||||||||||||||
Interest Payable No. 230
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Mortgage Payable No. 275
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
b. and f. (Continued)
Income Summary No. 300
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
A. Coach, Capital No. 301
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
A. Coach, Drawings No. 310
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Sales No. 401
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Sales Returns and Allowances No. 410
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
b. and f. (Continued)
Cost of Goods Sold No. 505
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Depreciation Expense No. 711
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Interest Expense No. 718
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Insurance Expense No. 722
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Salaries Expense No. 725
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Supplies Expense No. 728
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
b. (Continued)
Accounts Receivable Subsidiary Ledger
Life Co.
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Mickey
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Great Co.
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Stang
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Lola
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
b. (Continued)
Accounts Payable Subsidiary Ledger
Minnie
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Brush
Date | Explanation | Ref. | Debit | Credit | Balance | |||||||||
Thai Co.
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Nguyen & Son
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
Dollarama
Date | Explanation | Ref. | Debit | Credit | Balance | |||||
c. and d. COACH COMPANY
Trial Balance
January 31, 2021
| Unadjusted | Adjusted | |||||
| Debit | Credit | Debit | Credit | |||
| Totals | $347,120 | $347,120 | $347,790 | $347,790 |
c. (Continued)
Accounts Receivable control account balance: $13,200
Subsidiary ledger account balances
Accounts Payable control account balance: $26,900
Subsidiary ledger account balances
CUMULATIVE COVERAGE (Continued)
e.
COACH COMPANY
Income Statement
Month Ended January 31, 2021
Net Profit $34,598
COACH COMPANY
Statement of Owner's Equity
Month Ended January 31, 2021
(e) (Continued)
COACH COMPANY
Balance Sheet
January 31, 2021
Total liabilities and owner's equity $279,543
g.
COACH COMPANY
Post-Closing Trial Balance
January 31, 2021
| Debit | Credit | |||
| < |
