sh ?198906 Trial talance tota 512,256 Chapter 9 - Take Home Assignment It is Oct
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sh ?198906 Trial talance tota 512,256 Chapter 9 - Take Home Assignment It is October 16, 2014, and you have just taken over the accounting work of China Moon Products whose annual account annual accounting period ends October 31. The company's previous accountant journalized its transactions through October 15 and posted all items that required posting as individual amounts examination of the journals and ledgers in the Working Papers will show The com are 2/10, n/30. pany compieted these transactions beginning on October 16, 2014. Terms of all credit sales Oct 16 Purchased office supplies on credit from Green Supply Company, 51,470. Invoice dated October 16, terms n/10 EOM. 16 Sold merchandise on credit to Heather Flatt, invoice #916, s.100. Cost, ss,270 18 Issued a credit memorandum to Amy lzon for defective merchandise sold on October 15 and returned for credit, $400. The returned merchandise was scrapped. 19 Received a 1,280 credit memorandum from Walters Company for merchandise received on October 15 and returned for credit 20 Received a $286 credit memorandum from Green Supply Company for office supplies received on October 16 and returned for credit 20 Purchased store equipment on credit from Green Supply Company, invoice dated October 19, terms n/10 EOM, $14,800. 21 Soid merchandise on credit to jan Wildman, invoice #917, $10,900. 22 25 Cost, 36,320 Received payment from Heather Flatt for the October 12 sale 25 25 28 28 29 30 30 31 Received payment from Amy lzon for the October 15 saie. Issued cheque #623 to Walters Company in payment of its invoice. issued Cheque #624 to Sunshine Company in payment of its October 15 invoice Received merchandise with an invoice dated October 28, terns 2/10, n/60, from Sunshine Company, $12,950 Sold a neighbouring merchant a carton of calculator tape (store supplies) for cash at cost, $116. Marlee Levin, the owner of China Moon Products, used cheque 0625 to withdraw $8,000 cash from the business for personal use. issued cheque #626 to Midwest Electric Company in payment of the October electric bill, $1,240 issued Cheque #627 to lamie Ford, the company's only sales employee, in payment of her salary for the last half of October, $3,260. Cash sales for the last half of the month were $132,256. Cost, $76,700. Cash saies are usually recorded daily but are recorded only twice in this probiem to reduce the repetitive tranisactions October 15 Required 1. Record the transactions in the journals provided. 2. Post to the customer and creditor accounts and also post any amounts that should be posted as in- dividual amounts to the General Ledger accounts. Normally, these amounts are posted daily, but they are posted only once by you in this problem because they are few in mumber 3. Foot and crossfoot the journals and make the month-end postings 4. Prepare an October 31 trial balance and prepare schedtules of accounts receivable and payable.Explanation / Answer
1.
To record the journal entries:
Date
Account titles and explanation
Debit
Credit
October
16
Office supplies
1470
GS Company
1470
(To record the purchase)
16
Heather
9100
Sales
9100
(To record the sale)
18
Sales returns
400
Inventory
400
(To record the return of sales)
19
Purchases
1280
Company W
1280
(To record the credit memo)
20
Purchases
286
Green supply
286
(To record the credit memo)
20
Store equipment
14800
Company W
14800
(To record the credit memo)
21
Wildman
10900
Sales
10900
(To record the sale)
22
No information
25
No information
25
No information
28
Purchases
12950
Company S
12950
(To record the purchase)
28
Cash
116
Sale
116
(To record cash sale)
29
Drawings
8000
Cash
8000
(To record the drawings )
30
Electricity charges
1240
Cash
1240
(To record the charges)
30
Salaries
3260
Cash
3260
(To record salary expense)
31
Cash
132256
Sales
132256
(To record the cash sales)
Date
Account titles and explanation
Debit
Credit
October
16
Office supplies
1470
GS Company
1470
(To record the purchase)
16
Heather
9100
Sales
9100
(To record the sale)
18
Sales returns
400
Inventory
400
(To record the return of sales)
19
Purchases
1280
Company W
1280
(To record the credit memo)
20
Purchases
286
Green supply
286
(To record the credit memo)
20
Store equipment
14800
Company W
14800
(To record the credit memo)
21
Wildman
10900
Sales
10900
(To record the sale)
22
No information
25
No information
25
No information
28
Purchases
12950
Company S
12950
(To record the purchase)
28
Cash
116
Sale
116
(To record cash sale)
29
Drawings
8000
Cash
8000
(To record the drawings )
30
Electricity charges
1240
Cash
1240
(To record the charges)
30
Salaries
3260
Cash
3260
(To record salary expense)
31
Cash
132256
Sales
132256
(To record the cash sales)
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