Special Journals Bedrock Company completed these transactions during February of
ID: 2510438 • Letter: S
Question
Special Journals
Bedrock Company completed these transactions during February of the current year using a perpetual inventory system. Purchases are recorded as of the invoice date to set the discount period.
Required:
You are to enter the February transactions in one of five journals.
All transactions in the general journal
All amounts in the “other accounts” columns
Individual amounts affecting the accounts receivable subsidiary ledger
Individual amounts affecting the accounts payable subsidiary ledger
Prepare a trial balance from the general ledger balances
Complete Financial Statements in good form
Prepare a schedule of accounts receivable and accounts payable
Date
Transaction from Source Document
Feb. 2
Sold merchandise on credit to Dale Dent, invoice No. 711, $800 (cost, $500).
(Terms of all credit sales are 2/10, n/60)
3
Received merchandise and an invoice dated February 1 from Able Company, $17,500. Terms are 2/10, n/60.
4
Sold merchandise on credit to Gary Glen, Invoice No. 712, $1,250 (cost, $750).
(Terms of all credit sales are 2/10, n/60)
7
Borrowed $5,000 by giving First National Bank a promissory note payable.
9
Purchased office equipment on credit from More Company, invoice dated February 6, terms n/10, EOM, $625.
9
Sent Able Company Check No. 414 in payment of its February 1 invoice less the discount.
11
Sold merchandise on credit to Carl Cole, Invoice No. 713, $1,650 (cost, $1,000). (Terms of all credit sales are 2/10, n/60)
12
Received payment from Dale Dent of the February 2 sale less the discount.
14
Received payment from Gary Glen of the February 4 sale less the discount.
14
Received merchandise and an invoice dated February 11, terms 2/10, n/60, from Old Company, $1,985.
14
Issued check No. 415, payable to Payroll, in payment of sales salaries for the first half of the month, $855. Cashed the check and paid the employees.
14
Cash sales for the first half of the month, $18,460 (cost, $11,000)[1].
16
Purchased merchandise on credit from Best Company, $9,100; store supplies, $45; and office supplies, $30. Invoice dated February 12, terms n/10, EOM.
17
Received a credit memo from Old Company for unsatisfactory merchandise received on February 14th and returned for credit, $85.
21
Received payment from Carl Cole for the sale of February 11 less the discount.
21
Issued check No. 416 to Old Company in payment of its invoice of February 11 less the return and the discount.
24
Sold merchandise on credit to Carl Cole, Invoice No. 714, $835 (cost, $500).
28
Issued check No. 417, payable to Payroll, in payment of sales salaries for the second half of the month, $855. Cashed the check and paid the employees
28
Cash sales for the last half of the month, $20,215 (cost, $12,000).
[1] Normally cash sales are recorded daily, these are representative to reduce the number of repetitive entries.
Required:
You are to enter the February transactions in one of five journals.
Post the following items ongoing:All transactions in the general journal
All amounts in the “other accounts” columns
Individual amounts affecting the accounts receivable subsidiary ledger
Individual amounts affecting the accounts payable subsidiary ledger
Prepare a trial balance from the general ledger balances
Complete Financial Statements in good form
Prepare a schedule of accounts receivable and accounts payable
Explanation / Answer
Journal Entry for all Transaction :; Date Particulars Debit Credit Feb-03 Purchase 17500 Accounts Payables (Able Company) 17500 Feb-02 Accounts Receivables (dale Dent) 800 Sales 800 Feb-04 Accounts Receivables (Grey Glen) 1250 Sales 1250 Feb-07 Bank 5000 To Note Payable 5000 Feb-09 Office Equipment 625 To Creditor for Fixed Assets (More Company) 625 Feb-09 Accounts Payables (Able Company) 17500 To Bank 17150 To Discount 350 Feb-11 Accounts Receivables (Carl Cole) 1650 Sales 1650 Feb-12 BAnk 784 Discount 16 Accounts Receivables (dale Dent) 800 Feb-14 BAnk 1225 Discount 25 Accounts Receivables (Grey Glen) 1250 Feb-11 Purchase 1985 Account Payable (Old Company) 1985 Feb-14 Cash 855 To Bank 855 Salary 855 To Cash 855 Feb-14 Cash 18460 To Sales 18460 Feb-12 Purchase 9175 Account Payable (Best Company) 9175 Feb-17 Account Payable (Old Company) 85 To Purchse Return 85 Feb-21 BAnk 1617 Discount 33 Accounts Receivables (Carl Cole) 1650 Feb-21 Accounts Payables (Old Company) 1900 To Bank 1862 To Discount 38 Feb-24 Accounts Rececivables (Carl Cole) 835 To Sales 835 Feb-28 Cash 855 To BAnk 855 Salary 855 To Cash 855 Feb-28 Cash 20215 To Sales 20215 Income Statement Purchase 28660 Sales 43210 Less : Purchse Return -85 Closing Stock 2910 Discount (Net ) -314 Salary 1710 Profit 16149 46120 46120 Bank Statement Liabilities Amount Assets Amount Retained Earnings 16149 Office Equipment 625 Notes Payable 5000 Accounts receivables 835 Accounts Payables 9175 Closing Stock 2910 Creditors for Fixed assets 625 Cash Balance 38675 Bank Balance -12096 30949 30949
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