Big Country Ski Shop is a retail store that sells ski equipment and clothing. Bi
ID: 2413576 • Letter: B
Question
Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm's purchases, purchase returns and allowances, and cash payments on account during September 2019 follow DATE TRANSACTIONS 2019 Sept. 2 Purchased ski boots for $6,200 plus a freight charge of $270 from colorado Ski Shop, Invoice 6672, terms n/30. 3 Purchased skis for $11,800 from Alaska Supply Company, Invoice 5916; terms 1/10, n/30. 7 Received Credit Memorandum 165 for $960 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672 11 Purchased ski jackets for $4,600 from Cold Mountain Clothing Company, Invoice 4091, terms n/30 12 Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount 22 Purchased ski poles for $4,360 plus a freight charge of $150 from Alaska Supply Company 23 Purchased ski pants for $2,850 from Swenson Ski Goods, Invoice 528, terms n/30 Invoice 5950, terms 3/10, n/30. 25 Received Credit Memor andum 245 for $360 from Swenson ski Goods for return of defective ski 27 Purchased ski sweaters for $3,200 plus a freight charge of $130 from Colorado Ski Shop, Invoice 30 Issued Check 110 to colorado Ski Shop in payment of Invoice 6672, dated September 2, less the pants: the pants were originally purchased September 23 on Invoice 528. 6722, terms n/30. return of September 7. Required 1. Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balance of Cash as of September 1, 2019. 2. Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts payable ledger 3. Prepare a schedule of accounts payableExplanation / Answer
1 & 2.
As the cash balance on Sept.1 is not provided, the cash account is without the beginning balance and hence shows a negative amount as the balance at September 30.
3.
Cash Account No.101 Alaska Supply Company Date Debit Credit Balance Date Debit Credit Balance Beg.Bal. Sept.3 11800 11800 Sept.12 11682 -11682 Sept.12 11800 0 Sept.30 5510 -17192 Sept.22 4510 4510 Accounts Payable Account No.201 Cold Mountain clothing Company Date Debit Credit Balance Date Debit Credit Balance Sept.30 18630 33560 14930 Sept.11 4600 4600 4600 Purchases Account No.501 Colarado Ski Shop Date Debit Credit Balance Date Debit Credit Balance Sept.2 6200 6200 Sept.2 6470 6470 Sept.3 11800 18000 Sept.7 960 5510 Sept.11 4600 22600 Sept.27 3330 8840 Sept.22 4360 26960 Sept.30 5510 3330 Sept.23 2850 29810 Sept.27 3200 33010 Swenson Ski goods Date Debit Credit Balance Sept.23 2850 2850 Freight in Account No.502 Sept.25 360 2490 Date Debit Credit Balance Sept.2 270 270 Sept.22 150 420 Sept.27 130 550 Purchases Returns and Allowances Account No.503 Date Debit Credit Balance Sept.7 960 960 Sept.25 360 1320 Purchase Discounts Account No.504 Date Debit Credit Balance Sept.12 118 118Related Questions
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