Special Journals Bedrock Company completed these transactions during February of
ID: 2562826 • 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
02-Feb Debit Dale Dent 800 Credit Sales 800 Debit Inventory 500 Credit Cost of Sales 500 Invoice No.711 2/10, n/60 03-Feb Debit Inventory 17500 Credit Able Company 17500 Purchases 2/10, n/60 04-Feb Debit Gary Glen 1250 Sales 1250 Invoice No.712 2/10, n/60 07-Feb Debit Bank 5000 Credit Notes Payable 5000 Borrowed 09-Feb Debit Office Equipment 625 Credit More Company 625 Invoice dated Feb 6 n/10, EOM 09-Feb Debit Able Company 17500 Credit Bank 15750 Credit Discount Earned 1750 Payment by cheque No. 414 less discount 11-Feb Debit Carl Cole 1650 Credit Sales 1650 Invoice No.713 2/10, n/60 Debit Inventory 1000 Credit Cost ofSales 1000 Invoice No.713 12-Feb Debit Bank 1250 Credit Dale Dent 1250 Invoice Debit Discount Allowed 80 Credit Dale Dent 80 Discount allowed on Invoice 711 14-Feb Debit Bank 1250 Credit Gary Glen 1250 Invoice 711 collected 14-Feb Debit Inventory 1985 Credit Old Company 1985 Invoice dared Feb 11 2/10, n/60 14-Feb Debit Cash 855 Credit Bank 855 Cheque 415 cashed Debit Wages 855 Credit Cash 855 Wages 1 Feb to 15 Feb 14-Feb Debit Cost of Sales 11000 Debit Inventory 11000 Debit Cash 18460 Debit Sales 18460 Cash Sales Feb 1 to Feb 15 16-Feb Debit Inventory 9100 Debit Store Supplies 45 Debit Office Supplies 30 Credit Best Company 9175 Invoice dated Feb 12 n/10,EOM 17-Feb Debit Sales 85 Credit Old Company 85 Inventory 51 Cost of Sales 51 Goods received back from Old Company 21-Feb Debit Bank 1650 Debit Discount Allowed 165 Credit Carl Cole 1485 Payment of Invoice 713 less discount 21-Feb Debit Old Company 1985 Credit Bank 1786.5 Credit Discount Earned 198.5 Payment of their invoice less discount 24-Feb Debit Carl Cole 835 Credit Sales 835 Debit Cost of Sales 500 Credit Inventory 500 Invoice 714 28-Feb Debit Cash 855 Credit Bank 855 Cheque 417 cashed Debit Wages 855 Credit Cash 855 Wages 16 Feb to 28 Feb 28-Feb Debit Bank 20215 Credit Sales 20215 Debit Cost of Sales 12000 Credit Inventory 12000 Cash sales for the second half of Feb
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