Prepare a trial balance for the selected general ledger accounts and prove the accuracy of subsidiary ledgers by preparing schedules of accounts receivable and accounts payable. Pepper Company completed the following selected transactions and events during March of this year. (Terms of allcreditsales for the company are 2/10, n/30.)Mar.Sold merchandise on credit to Jennifer Nelson, Invoice No. 954, for P16,800 (cost isP12,200).46Purchased P1,220 of office supplies on credit from Mack Company. Invoice datedMarch 3, termsny30.Sold merchandise on credit to Dennie Hoskins, Invoice No. 955, for P10,200 (cost is6P8,100).Purchased P52,600 of merchandise, invoice dated March 6, terms 2y10, ny30, from11Defore Industries.12Borrowed P26,000 cash by giving Commerce Bank a long-term promissory notepayable.Received cash payment from Jennifer Nelson for the March 4 sale less the discount(Invoice No. 954).1416Received a P200 credit memorandum from Defore Industries for unsatisfactorymerchandise Pepper purchased on March 11 and later returned.Received cash payment from Dennie Hoskins for the March 6 sale less the discount16(Invoice No. 955).Purchased P22,850 of store equipment on credit from Schmidt Supply, invoice dated18March 15, terms ny30.Sold merchandise on credit to Marjorie Allen, Invoice No. 956, for P5,600 (cost isP3,800).Sent Defore Industries Check No. 516 in payment of its March 6 dated invoice less the21return and the discount.22Purchased P41,625 of merchandise, invoice dated March 18, terms 2y10, ny30, fromWelch Company.Issued a P600 credit memorandum to Marjorie Allen for defective merchandise26Pepper sold on March 20 and Allen later returnedIssued Check No. 517, payable to Payroll, in payment of P15,900 sales salaries for the31month.Cashed the check and paid the employees.31Cash sales for the month are P134,680 (cost is P67,340). (Cash sales are recorded dailybut are recorded only once here to reduce repetitive entries.)Required1. Open the following selected general ledger accounts: Cash (101), Accounts Receivable (106), Office Supplies (124),Store Equipment (165), Accounts Payable (201), Long-Term Notes Payable (251), Sales (413), Sales Returns andAllowances (414), Sales Discounts (415), Purchases (505), Purchases Returns and Allowances (506), Purchases Discounts(507), and Sales Salaries Expense (621). Open the following accounts receivable ledger accounts: Marjorie Allen, DennieHoskins, and Jennifer Nelson. Open the following accounts payable ledger accounts: Defore Industries, Mack Company,Schmidt Supply, and Welch Company.2. Enter the transactions using a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal,and a general journal similar to the ones illustrated in Appendix 7A. Regularly post to the individual customer andcreditor accounts. Also, post any amounts that should be posted as individual amounts to general ledger accounts. Footand crossfoot the journals and make the month end postings.Pepper Co. uses the periodic inventory system in this problem.20 General Ledger (Partial Listing)CashAcct. No. 101SalesAcct. No. 413Date PR DebitMar. 31 5231 I RIDatePR DebitCredit BalanceCredit BalanceMar. 31 RI 187,140I87,14032.60032,4003167,252119,888134,680167,280Accounts ReceivableAcct. No. 106Sales Returns and Allowances Acet. No. 414DatePRDebitCreditBalanceDatePRDebitCreditBalanceMar. 26 G2600(600)Mar. 26G260060031$232,60032.000Sales DiscountsAcct. No. 41531R327,0005,000DatePRDebitCredit BalanceOffice SuppliesAcct. No. 124Mar. 31R3540540DatePRDebitCreditBalancePurchasesAcct. No. 505Mar. 311.2201,220DatePRDebitCreditBalanceStore EquipmentAcct. No. 165Mar. 31P394,22594,225DatePRDebitCredit BalancePurchases ReturnsMar. 18P322,85022,850and AllowancesAcct. No. 506Accounts PayableAcct. No. 201DatePRDebitCreditBalanceDatePRDebitCreditBalanceMar. 16 | G2200200Mar. 16 G2200(200)Purchases DiscountsAcct. No. 50731P3118,295118,095DatePR DebitCredit Balance31D352,40065,695Mar. 31D31,0481,048Long-Term Notes PayableAcct. No. 251Sales Salaries ExpenseAcct. No. 621DatePR DebitCreditBalanceDatePRDebitCreditBalanceMar. 12 | R326.00026,000Mar. 31 D3 I 15,90015,900Accounts Receivable LedgerAccounts Payable LedgerMarjorie AllenDefore IndustriesDatePR DebitCreditBalanceDatePRDebitCreditBalanceMar. 2026 | G2S25,6005,600Mar. IIP352,60052.60016 G221 I D36005,00020052,40052,400Dennie HoskinsMack CompanyDatePRDebitCreditBalanceMar. 6S210.20010,200DatePRDebitCreditBalance16RI10,200Mar. 6P31,2201,220Jennifer NelsonSchmidt SupplyDatePRDebitCreditBalanceDatePRDebitCreditBalanceMar. 4S216,80016,800Mar. 18P322,85022.85014 | R)16,800Welch CompanyDatePRDebitCreditBalanceMar. 22P341,62541,675

Name: Prepare a trial balance for the selected general ledger accounts and p
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Prepare a trial balance for the selected general ledger accounts and prove the accuracy of subsidiary ledgers by preparing schedules of accounts receivable and accounts payable. Pepper Company completed the following selected transactions and events

Question

Accepted Answer

Trial Balance -:A trial balance is a simple schedule of all the common ledger accounts (both income…