Sunday, April 28, 2019

The transactions completed by AM Express Company during March, the first month of the fiscal year, were as follows:

The transactions completed by AM Express Company during March, the first month of the fiscal year, were as follows:

Mar.
  1. Issued Check No. 205 for March rent, $2,450.
  2. Purchased a vehicle on account from McIntyre Sales Co., $26,900.
  3. Purchased office equipment on account from Office Mate Inc., $1,570.
  5. Issued Invoice No. 91 to Ellis Co., $7,000.
  6. Received check for $7,950 from Chavez Co. in payment of invoice.

Mar.
  7. Issued Invoice No. 92 to Trent Co., $9,840.
  9. Issued Check No. 206 for fuel expense, $820.
 10. Received check for $10,000 from Sajeev Co. in payment of invoice.
 10. Issued Check No. 207 to Office City in payment of $450 invoice.
 10. Issued Check No. 208 to Bastille Co. in payment of $1,890 invoice.
 11. Issued Invoice No. 93 to Jarvis Co., $7,200.
 11. Issued Check No. 209 to Porter Co. in payment of $415 invoice.
 12. Received check for $7,000 from Ellis Co. in payment of March 5 invoice.
 13. Issued Check No. 210 to McIntyre Sales Co. in payment of $26,900 invoice of March 2.
 16. Cash fees earned for March 1–16, $26,800.
 16. Issued Check No. 211 for purchase of a vehicle, $28,500.
 17. Issued Check No. 212 for miscellaneous administrative expense, $4,680.
 18. Purchased maintenance supplies on account from Bastille Co., $2,430.
 18. Received check for rent revenue on office space, $900.
 19. Purchased the following on account from Master Supply Co.: maintenance supplies, $2,640, and office supplies, $1,500.
 20. Issued Check No. 213 in payment of advertising expense, $8,590.
 20. Used maintenance supplies with a cost of $4,400 to repair vehicles.
 21. Purchased office supplies on account from Office City, $990.
 24. Issued Invoice No. 94 to Sajeev Co., $9,200.
 25. Received check for $14,000 from Chavez Co. in payment of invoice.
 25. Issued Invoice No. 95 to Trent Co., $6,300.
 26. Issued Check No. 214 to Office Mate Inc. in payment of $1,570 invoice of March 3.
 27. Issued Check No. 215 to J. Wu as a personal withdrawal, $4,000.
 30. Issued Check No. 216 in payment of driver salaries, $33,300.
 31. Issued Check No. 217 in payment of office salaries, $21,200.
 31. Issued Check No. 218 for office supplies, $600.
 31. Cash fees earned for March 17–31, $29,400.

Instructions
1. Enter the following account balances in the general ledger as of March 1:

11 Cash $  65,200 
32 J. Wu, Drawing —
12 Accounts Receivable 31,950 
41 Fees Earned —
14 Maintenance Supplies 7,240 
42 Rent Revenue —
15 Office Supplies 3,690 
51 Driver Salaries Expense —
16 Office Equipment 17,300 
52 Maintenance Supplies Expense —
17 Accum. Depr.—Office Equip. 4,250 
53 Fuel Expense —
18 Vehicles 62,400 
61 Office Salaries Expense —
19 Accum. Depr.—Vehicles 17,800 
62 Rent Expense —
21 Accounts Payable 2,755 
63 Advertising Expense —
31 J. Wu, Capital 162,975 
64 Miscellaneous Administrative Exp. —

2. Journalize the transactions for March, using the following journals similar to those illustrated in this chapter: single-column revenue journal (p. 35), cash receipts journal (p. 31), purchases journal (p. 37, with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), cash payments journal (p. 34), and two-column general journal (p. 1). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
3. Post the appropriate individual entries to the general ledger.
4. Total each of the columns of the special journals and post the appropriate totals to the general ledger; insert the account balances.
5. Prepare a trial balance.


Answer:



1., 3., and 4.
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
1 Balance  65,200
31 CR31 96,050 161,250
31 CP34 135,365 25,885
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
1 Balance  31,950
31 R35 39,540 71,490
31 CR31 38,950 32,540
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
1 Balance  7,240
20 J1 4,400 2,840
31 P37 5,070 7,910
Account No. 15
Post.
Item Ref. Debit Credit Debit Credit
1 Balance  3,690
31 CP34 600 4,290
31 P37 2,490 6,780
Account No. 16
Post.
Item Ref. Debit Credit Debit Credit
1 Balance  17,300
3 P37 1,570 18,870
Account No. 17
Post.
Item Ref. Debit Credit Debit Credit
1 Balance 4,250
Account No. 18
Post.
Item Ref. Debit Credit Debit Credit
1 Balance  62,400
2 P37 26,900 89,300
16 CP34 28,500 117,800
Account No. 19
Post.
Item Ref. Debit Credit Debit Credit
1 Balance 17,800
Account No. 21
Post.
Item Ref. Debit Credit Debit Credit
1 Balance 2,755
31 P37 36,030 38,785
31 CP34 31,2257,560
Account No. 31
Post.
Item Ref. Debit Credit Debit Credit
1 Balance 162,975
Account No. 32
Post.
Item Ref. Debit Credit Debit Credit
27 CP34 4,000 4,000
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
16 CR31 26,800 26,800
31 CR31 29,400 56,200
31 R35 39,540 95,740
Account No. 42
Post.
Item Ref. Debit Credit Debit Credit
18 CR31 900 900
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
30 CP34 33,300 33,300
Account No. 52
Post.
Item Ref. Debit Credit Debit Credit
20 J1 4,400 4,400
Account No. 53
Post.
Item Ref. Debit Credit Debit Credit
9 CP34 820 820
Account No. 61
Post.
Item Ref. Debit Credit Debit Credit
31 CP34 21,200 21,200
Account No. 62
Post.
Item Ref. Debit Credit Debit Credit
1 CP34 2,450 2,450
Account No. 63
Post.
Item Ref. Debit Credit Debit Credit
20 CP34 8,590 8,590
Account No. 64
Post.
Item Ref. Debit Credit Debit Credit
17 CP34 4,680 4,680
2. and 4.
 Mar. 2918 26,900
3916 1,570
189
199 1,500
219 990
312,49028,470
(15)(9)
Page 31
 Mar. 6 Chavez Co. 9 7,950
10 Sajeev Co. 9 10,000
12 Ellis Co. 9 7,000
16 Fees Earned 4126,800
18 Rent Revenue42900
25 Chavez Co. 9 14,000
31 Fees Earned 4129,400
96,050
(11)
2. and 4.
Page 35
5 91 Ellis Co. 
7 92 Trent Co. 
11 93 Jarvis Co. 
24 94 Sajeev Co. 
25 95 Trent Co. 
31
Page 34
1 205 Rent Expense 622,450
9 206 Fuel Expense 53820
10 207 Office City  450 450
10 208 Bastille Co.  1,890 1,890
11 209 Porter Co.  415 415
13 210 McIntyre Sales Co.  26,900 26,900
16 211 Vehicles 1828,500
17 212 Misc. Admin. Expense 644,680
20 213 Advertising Expense 638,590
26 214 Office Mate Inc.  1,570 1,570
27 215 J. Wu, Drawing 324,000
30 216 Driver Salaries Expense 5133,300
31 217 Office Salaries Expense 6121,200
31 218 Office Supplies 15600
3131,225 135,365
(21) (11)
3.Page 1
 Mar. 20 Maintenance Supplies Expense 52 4,400
Maintenance Supplies 14 4,400
5.
Account Debit Credit
No. Balances Balances
Cash11 25,885
Accounts Receivable12 32,540
Maintenance Supplies 14 7,910
Office Supplies15 6,780
Office Equipment16 18,870
Accumulated Depreciation—Office Equipment 17 4,250
Vehicles18 117,800
Accumulated Depreciation—Vehicles 19 17,800
Accounts Payable21 7,560
J. Wu, Capital31 162,975
J. Wu, Drawing32 4,000
Fees Earned41 95,740
Rent Revenue42 900
Driver Salaries Expense 51 33,300
Maintenance Supplies Expense 52 4,400
Fuel Expense53 820
Office Salaries Expense 61 21,200
Rent Expense62 2,450
Advertising Expense63 8,590
Miscellaneous Administrative Expense 64 4,680

289,225 289,225

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