Assignment 2

Accounting Information Systems

Selected accounts from the chart of accounts of Salah Company are shown below.

112 Accounts Receivable

201 Accounts Payable

120 Merchandise Inventory

401 Sales Revenue

157 Equipment

505 Cost of Goods Sold

Salah Company uses special journals and a general journal. The following transaction occurred during September 2017.

Sept. 2 Sold merchandise on account to Ali, invoice no. 101, $620, terms n/30. The cost of the merchandise sold was $420.

10 Purchased merchandise on account from Tarek $650, terms 2/10, n/30.

21 Sold merchandise on account to Salim, invoice no. 102 for $800, terms 2/10, n/30. The cost of the merchandise sold was $480.

25 Purchased merchandise on account from Meriem $860, terms n/30.

26 Sold merchandise on account to Ali, invoice no. 103, $310, terms n/30. The cost of the merchandise sold was $210.

27 Sold merchandise to Ahmed for $700 cash. The cost of the merchandise sold was $400.

29 Purchased office equipment on account from Meriem $6,500.

Instructions:

(a) Record the transaction(s) for September that should be journalized in the sales journal , the purchases journal and the general journal.

(b) Post to both the general and Subsidiary ledger accounts (assume that all accounts have zero beginning balance).

(c) Prove the equality of the posting from the special journals.