Chapter 5, Problem 5.5APR

All journals and general ledger; trial balance

The transactions completed by Revere Courier Company during December, the first month of the fiscal year, were as follows:

Dec. 1.	Issued Check No. 610 for December rent, $4,200.
2.	Issued Invoice No. 940 to Clifford Co., $1,740.
3.	Received check for $4,800 from Ryan Co. in payment of account.
5.	Purchased a vehicle on account from Platinum Motors, $37,300.
6.	Purchased office equipment on account from Austin Computer Co., $4,500.
6.	Issued Invoice No. 941 to Ernesto Co., $3,870.
9.	Issued Check No. 611 for fuel expense, $600.
10.	Received check from Sing Co. in payment of $4,040 invoice.
10.	Issued Check No. 612 for $330 to Office To Go Inc. in payment of invoice.
10.	Issued Invoice No. 942 to Joy Co., $1,970.
11.	Issued Check No. 613 for $3,090 to Essential Supply Co. in payment of account.
11.	Issued Check No. 614 for $500 to Porter Co. in payment of account.
12.	Received check from Clifford Co. in payment of $1,740 invoice of December 2.
13.	Issued Check No. 615 to Platinum Motors in payment of $37,300 balance of December 5.
16.	Issued Check No. 616 for $39,800 for cash purchase of a vehicle.
16.	Cash fees earned for December 1-16, $20,300.
I7.	Issued Cheek No. 617 for miscellaneous administrative expense, $500.
18.	Purchased maintenance supplies on account from Essential Supply Co., $1,750.
19.	Purchased the following on account from McClain Co.: maintenance supplies, $1,500; office supplies, $375.
20.	Issued Check No. 618 in payment of advertising expense, $1,780.
20.	Used $3,200 maintenance supplies to repair delivery vehicles.
23.	Purchased office supplies on account from Office To Go Inc., $400.
24.	Issued Invoice No. 943 to Sinn Co., $6,100.
24.	Issued Check No. 619 to S. Holmes as a personal withdrawal, $3,000.
25.	Issued Invoice No. 944 to Ernesto Co., $5,530.
25.	Received check for $4,100 from Ryan Co. in payment of balance.
26.	Issued Check No. 620 to Austin Computer Co. in payment of $4,500 invoice of December 6.
30.	Issued Check No. 621 for monthly salaries as follows: driver salaries, $16,900; office salaries, $7,100.
Dec. 31.	Cash fees earned for December 17-31, S 18,900.
31.	Issued Check No. 622 in payment for office supplies, $340.

Instructions

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

11	Cash	$161,680
12	Accounts Receivable	12,940
14	Maintenance Supplies	10,850
15	Office Supplies	4,900
16	Office Equipment	28,500
17	Accum. Depr.—Office Equip.	6,900
18	Vehicles	95,900
19	Accum. Depr.—Vehicles	14,700
21	Accounts Payable	3,920
31	S. Holmes, Capital	289,250
32	S. Holmes, Drawing	—
41	Fees Earned	—
51	Driver Salaries Expense	—
52	Maintenance Supplies Exp.	—
53	Fuel Expense	—
61	Office Salaries Expense	—
62	Rent Expense	—
63	Advertising Expense	—
64	Miscellaneous Administrative Expense	—

2. Journalize the transactions for December, using the following journals similar to those illustrated in this chapter cash receipts journal (p. 30, purchases journal (p. 37, with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), single-column revenue journal (p. 35). cash payments journal (p. 3i). 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.