Grassley Company completes these transactions during November of the current year (terms for all its credit sales are 2/10, n/30). Nov. 1 Purchased $5,058 of office equipment on credit from Brun Supply, terms n/30. 2 Borrowed $88,500 cash from Wisconsin Bank by signing a long-term note payable. 4 Purchased $33,500 of merchandise from BLR Industries, terms 2/10, n/30. 5 Purchased $1,040 of store supplies on credit from Grebe Company, terms n/30. 8 Sold merchandise on credit to Cyd Rounder, Invoice No. 439, for $6,550 (cost is $3,910). 10 Sold merchandise on credit to Carlos Mantel, Invoice No. 440, for $13,500 (cost is $8,500). 11 Purchased $2,557 of merchandise from Lo Company, terms 2/10, n/30. 12 Sent BLR Industries Check No. 633 in payment of its November 4 purchase less the discount of $670. 15 Issued Check No. 634 for $6,585; payee is Payroll, in payment of sales salaries expense for the first half of the month. 15 Cash sales for the first half of the month are $18,170 (cost is $9,000). These cash sales are recorded in the cash receipts journal on November 15. 15 Sold merchandise on credit to Tori Tripp, Invoice No. 441, for $5,250 (cost is $2,450). 16 Purchased $459 of office supplies on credit from Grebe Company, terms n/30. 17 Returned $557 of unsatisfactory merchandise purchased on November 11 to Lo Company. Grassley reduces Accounts Payable by that amount. 18 Received payment from Cyd Rounder for the November 8 sale less the discount of $131. 19 Received payment from Carlos Mantel for the November 10 sale less the discount of $270. 19 Issued Check No. 635 to Lo Company in payment of its November 11 purchase less the return and the $40 discount. 22 Sold merchandise on credit to Carlos Mantel, Invoice No. 442, for $3,695 (cost is $2,060). 24 Sold merchandise on credit to Tori Tripp, Invoice No. 443, for $4,280 (cost is $2,130). 25 Received payment from Tori Tripp for the sale of November 15 less the discount of $105. 26 Returned $922 of office equipment purchased on November 1 to Brun Supply. Grassley reduces Accounts Payable by that amount. 30 Issued Check No. 636 for $6,585; payee is Payroll, in payment of sales salaries expense for the last half of the month. 30 Cash sales for the last half of the month are $16,703 (cost is $10,200). These cash sales are recorded in the cash receipts journal on November 30. 30 Verify that amounts impacting customer and creditor accounts were posted and that any amounts that should have been posted as individual amounts to the general ledger accounts were posted. Foot and crossfoot the journals and make the month-end postings. Required 1. Open the following general ledger accounts: Cash; Accounts Receivable; Inventory (Nov. 1 beg. bal. is $40,000); Office Supplies; Store Supplies; Office Equipment; Accounts Payable; Long-Term Notes Payable; C. Grassley, Capital (Nov. 1 beg. bal. is $40,000); Sales; Sales Discounts; Cost of Goods Sold; and Sales Salaries Expense. Open the following accounts receivable subsidiary ledger accounts: Carlos Mantel, Tori Tripp, and Cyd Rounder. Open the following accounts payable subsidiary ledger accounts: Grebe Company, BLR Industries, Brun Supply, and Lo Company. 2. Enter these transactions in a sales journal, purchases journal, cash receipts journal, cash payments journal, or general journal. Number all journal pages as page 2. 3. (a) Prepare a trial balance of the general ledger. (b) Prove the accuracy of the subsidiary ledgers by preparing schedules of both accounts receivable and accounts payable.
Grassley Company completes these transactions during November of the current year (terms for all its
credit sales are 2/10, n/30).
Nov. 1 Purchased $5,058 of office equipment on credit from Brun Supply, terms n/30.
2 Borrowed $88,500 cash from Wisconsin Bank by signing a long-term note payable.
4 Purchased $33,500 of merchandise from BLR Industries, terms 2/10, n/30.
5 Purchased $1,040 of store supplies on credit from Grebe Company, terms n/30.
8 Sold merchandise on credit to Cyd Rounder, Invoice No. 439, for $6,550 (cost is $3,910).
10 Sold merchandise on credit to Carlos Mantel, Invoice No. 440, for $13,500 (cost is $8,500).
11 Purchased $2,557 of merchandise from Lo Company, terms 2/10, n/30.
12 Sent BLR Industries Check No. 633 in payment of its November 4 purchase less the discount of
$670.
15 Issued Check No. 634 for $6,585; payee is Payroll, in payment of sales salaries expense for the
first half of the month.
15 Cash sales for the first half of the month are $18,170 (cost is $9,000). These cash sales are recorded
in the cash receipts journal on November 15.
15 Sold merchandise on credit to Tori Tripp, Invoice No. 441, for $5,250 (cost is $2,450).
16 Purchased $459 of office supplies on credit from Grebe Company, terms n/30.
17 Returned $557 of unsatisfactory merchandise purchased on November 11 to Lo Company.
Grassley reduces Accounts Payable by that amount.
18 Received payment from Cyd Rounder for the November 8 sale less the discount of $131.
19 Received payment from Carlos Mantel for the November 10 sale less the discount of $270.
19 Issued Check No. 635 to Lo Company in payment of its November 11 purchase less the return
and the $40 discount.
22 Sold merchandise on credit to Carlos Mantel, Invoice No. 442, for $3,695 (cost is $2,060).
24 Sold merchandise on credit to Tori Tripp, Invoice No. 443, for $4,280 (cost is $2,130).
25 Received payment from Tori Tripp for the sale of November 15 less the discount of $105.
26 Returned $922 of office equipment purchased on November 1 to Brun Supply. Grassley reduces
Accounts Payable by that amount.
30 Issued Check No. 636 for $6,585; payee is Payroll, in payment of sales salaries expense for the
last half of the month.
30 Cash sales for the last half of the month are $16,703 (cost is $10,200). These cash sales are recorded
in the cash receipts journal on November 30.
30 Verify that amounts impacting customer and creditor accounts were posted and that any
amounts that should have been posted as individual amounts to the general ledger accounts
were posted. Foot and crossfoot the journals and make the month-end postings.
Required
1. Open the following general ledger accounts: Cash;
is $40,000); Office Supplies; Store Supplies; Office Equipment; Accounts Payable; Long-Term Notes
Payable; C. Grassley, Capital (Nov. 1 beg. bal. is $40,000); Sales; Sales Discounts; Cost of Goods
Sold; and Sales Salaries Expense. Open the following accounts receivable subsidiary ledger accounts: Carlos Mantel, Tori Tripp, and Cyd Rounder. Open the following accounts payable subsidiary ledger
accounts: Grebe Company, BLR Industries, Brun Supply, and Lo Company.
2. Enter these transactions in a sales journal, purchases journal, cash receipts journal, cash payments
journal, or general journal. Number all journal pages as page 2.
3. (a) Prepare a
preparing schedules of both accounts receivable and accounts payable.
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