1

The general ledger accounts and subsidiary ledgers, along with their beginning balances, have been opened for you. Journalize the August transactions using , a cash receipts journal, a purchases journal, a cash payments journal, and a general journal.
makes all credit sales on terms of 22 /10,n/30.

2.

Post daily to the accounts receivable subsidiary ledger and the accounts payable subsidiary ledger. On August 31, post to the general ledger.

3.

Prepare an unadjusted trial balance for the month ended August 31.

4.

Journalize and post the following adjusting entries:

a. Office supplies on hand,

$ 950$950.

b. Prepaid insurance expired,

$ 450$450.

c. Depreciation expense,

$ 270$270.

d. Accrued salaries expense,

$ 1 comma 080$1,080.

  
 
 

Aug. 1 Issued check no. 682 for August office rent of $1,200. Issued check no. 683 to pay the salaries payable of $1,250 from July 31. Issued invoice no. 503 for sale on account to R. Lamey, $900. A Plus's cost of this merchandise inventory was $270. 2 3 Purchased merchandise inventory on credit terms of 1/15, n/60 from Grant, Inc., $1,600. 4 Received net amount of cash on account from Farley Company, $2,548, within the discount period. Sold merchandise inventory for cash, $310 (cost, $93). Received from Pride, Inc. merchandise inventory that had been sold earlier for $650 (cost, $195). Issued check no. 684 to purchase office supplies for cash, $740. 4 7 Issued invoice no. 504 for sale on account to K. Skipper, $2,400 (cost, $720). Issued check no. 685 to pay Fillman Company $2,900 of the amount owed at July 31. This payment occurred after the end of the discount period. 8 11 Issued check no. 686 to pay Grant, Inc. the net amount owed from August 3. 12 Received cash from R. Lamey in full settlement of her account receivable from August 2. 16 Issued check no. 687 to pay salaries expense of $1,240. 19 Purchased merchandise inventory for cash, $860, issuing check no. 688. 22 Purchased furniture on credit terms of 3/15, n/60 from Beaver Corporation, $520. Sold merchandise inventory on account to Farley Company, issuing invoice no. 505 for $9,600 (cost, $2,880). 23