ACC 121 Project (Use the working papers provided by your instructor to work this
ID: 2556500 • Letter: A
Question
ACC 121 Project (Use the working papers provided by your instructor to work this practice set project.) Colorado Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Colorado Co. are indicated in the working papers. Below are a series of transactions for the company for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 62% of the sales price.
Jan.3? Sell merchandise on account to B. Richey $2,900, invoice no. 510, and to J. Forbes $1,800, invoice no. 511.
5 Purchase merchandise from S. Vogel $5,000 and D. Lynch $2,200, terms n/30.
7 Receive checks from S. LaDew $4,000 and B. Garcia $2,000 after discount period has lapsed.
8 Pay freight on merchandise purchased $235. 9 Send checks to S. Hoyt for $9,000 less 2% cash discount, and to D. Omara for $11,000 less 1% cash discount.
9 Issue credit of $300 to J. Forbes for merchandise returned.
10 Summary daily cash sales total $15,500.
11 Sell merchandise on account to R. Dvorak $1,600, invoice no. 512, and to S. LaDew $900, invoice no. 513.
12 Pay rent of $1,000 for January.
13 Receive payment in full from B. Richey and J. Forbes less cash discounts.
15 Withdrawal of $800 cash by J. Colorado for her personal use.
15 Post all entries to the subsidiary ledgers.
16 Purchase merchandise from D. Omara $18,000, terms 1/10, n/30; S. Hoyt $14,200, terms 2/10, n/30; and S. Vogel $1,500, terms n/30.
17 Pay $600 cash for office supplies.
18 Return $200 of merchandise to S. Hoyt and receive credit.
20 Summary daily cash sales total $20,100.
21 Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due.
21 Receive payment in full from S. LaDew less cash discount.
22 Sell merchandise on account to B. Richey $2,700, invoice no. 514, and to R. Dvorak $2,800, invoice no. 515.
22 Post all entries to the subsidiary ledgers. 23 Send checks to D. Omara and S. Hoyt in full payment less cash discounts.
25 Sell merchandise on account to B. Garcia $3,500, invoice no. 516, and to J. Forbes $6,100, invoice no. 517.
27 Purchase merchandise from D. Omara $14,500, terms 1/10, n/30; D. Lynch $1,200, terms n/30; and S. Vogel $5,400, terms n/30.
27 Post all entries to the subsidiary ledgers.
28 Pay $200 cash for office supplies.
31 Summary daily cash sales total $21,300.
31 Pay total salaries of $8,100.
Prepare the ajdusting and closing entires.
Explanation / Answer
Accounts receivables Date Particulars $ Date Particulars $ 03.Jan B.Richey A/C - credit sales 2900 09.Jan J.Forbes A/C 300 03.Jan J.Forbes A/C - credit sales 1800 13.jan cash &bank a/c 2842 11.Jan R. Dvorak- credit sales 1600 13.jan discount allowed a/c 58 11.jan S. LaDew - credit sales 900 13.jan cash &bank a/c 1764 22. jan B.Richey A/C - credit sales 2700 13.jan discount allowed a/c 36 22. jan R. Dvorak- credit sales 2800 21.jan cash &bank a/c 882 25.jan B. Garcia -credit sales 3500 21.jan discount allowed a/c 18 25.jan J.Forbes A/C - credit sales 6100 31. jan closing balance 16400 total 22300 total 22300 Accounts Payables Date Particulars $ Date Particulars $ 18.jan S. Hoyt credit purchases 200 05.Jan S.Vogel credit purchases 5000 23.jan cash&bank a/c D. Omara 17820 05.Jan D.Lynch credit purchases 2200 23.jan discount received 180 16.jan D. Omara credit purchases 18000 23.jan cash&bank a/c S. Hoyt 13916 16.jan S. Hoyt credit purchases 14200 23.jan discount received 84 16.jan S. Vogel credit purchases 1500 21 .Jan Bilis paybles 15000 27.jan D. Omara credit purchases 14500 27.jan D.Lynch credit purchases 1200 27.jan S. Vogel credit purchases 5400 31. jan closing balance 44800 total 77000 total 77000 Cash & bank Date Particulars $ Date Particulars $ 07.Jan S.Ladew 4000 08.Jan Fright 235.9 07.Jan B.Garcia 2000 08.Jan S. Hoyt $ 9,000@ 2% Disc 8820 10.Jan Cash Sales 15500 08.Jan D. Omara $ 11,000@ 2% Disc 10890 13.jan accounts receivables - B .richey 2842 11.Jan Rent 1000 13.jan accounts receivables - B .richey 1764 15.jan J. Colorado - withdraw 800 20. jan Cash Sales 20100 17.jan office expenses 600 31. jan Cash Sales 21300 23.jan Accounts Payables -d.omara 17820 23.jan Accounts Payables -s.hoyt 13916 28.jan office suppliers 200 31. jan salaries 8100 31. jan closing balance in hand 5124.1 total 67506 total 67506
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