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Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615

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Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615
Textbook Problem
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All journals and general ledger; trial balance

The transactions completed by Revere Courier Company during December 2016, the first month of the fiscal year, were as follows:

Dec. 1. Issued Check No. 610 for December rent, $4,500.

2. Issued Invoice No. 940 to Capps Co., $1,980.

3. Received check for $5,100 from Trimble Co. in payment of account.

5. Purchased a vehicle on account from Boston Transportation, $39,500.

6. Purchased office equipment on account from Austin Computer Co., $4,800.

6. Issued Invoice No. 941 to Dawar Co., $5,680.

9. Issued Check No. 611 for fuel expense, $800.

10. Received check from Sing Co. in payment of $4,850 invoice.

10. Issued Check No. 612 for $360 to Office To Go Inc. in payment of invoice.

10. Issued Invoice No. 942 to Joy Co., $2,140.

11. Issued Check No. 613 for $3,240 to Essential Supply Co. in payment of account.

11. Issued Check No. 614 for $650 to Porter Co. in payment of account.

12. Received check from Capps Co. in payment of $1,980 invoice of December 2.

13. Issued Check No. 615 to Boston Transportation in payment of $39,500 balance of

December 5.

16. Issued Check No. 616 for $40,900 for cash purchase of a vehicle.

16. Cash fees earned for December 1-16, $21,700.

17. Issued Check No. 617 for miscellaneous administrative expense, $600.

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, $325.

20. Issued Check No. 618 in payment of advertising expense, $1,990.

20. Used $3,600 maintenance supplies to repair delivery vehicles.

23. Purchased office supplies on account from Office To Go Inc., $440.

24. Issued Invoice No. 943 to Sing Co., $6,400.

24. Issued Check No. 619 to S. Holmes as a personal withdrawal, $3,200.

25. Issued Invoice No. 944 to Dawar Co., $5,720.

25. Received check for $4,100 from Trimble Co. in payment of balance.

26. Issued Check No. 620 to Austin Computer Co. in payment of $4,800 invoice of December 6.

30. Issued Check No. 621 for monthly salaries as follows: driver salaries, $16,900; office salaries, $7,600.

31. Cash fees earned for December 17-31, $19,700.

31. Issued Check No. 622 in payment for office supplies, $310.

Instructions

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

Chapter 5, Problem 5.5APR, All journals and general ledger; trial balance The transactions completed by Revere Courier Company

2. Journalize the transactions for December 2016, using the following journals similar to those illustrated in this chapter: cash receipts journal (p. 31), 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. 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.

1, 3 and 4.

To determine

General Ledger

General ledger refers to the ledger that records all the transactions of the business related to the company’s assets, liabilities, owners’ equities, revenues, and expenses. Each subsidiary ledger is represented in the general ledger by summarizing the account.

Purchase journal:

Purchase journal refers to the journal that is used to record all purchases on account. In the purchase journal, all purchase transactions are recorded only when the business purchased the goods on account. For example, the business purchased cleaning supplies on account.

Cash receipts journal:

Cash receipts journal refers to the journal that is used to record all transaction which involves the cash receipts. For example, the business received cash from rent.

Cash payments journal:

Cash payments journal refers to the journal that is used to record all transaction which involves the cash payments. For example, the business paid cash to employees (salary paid to employees).

Revenue journal:

Revenue journal refers to the journal that is used to record the fees earned on account. In the revenue journal, all revenue transactions are recorded only when the business performed service to customer on account (credit).

To post: The account balances and individual entries to the appropriate general ledger accounts.

Explanation

Prepare the general ledger for given accounts as follows:

Account:         Cash                                                              Account no. 11
Date Item Post. Ref

Debit

 ($)

Credit ($) Balance

Debit

($)

Credit ($)
2016            
Dec. 1 Balance     1,60,900  
  31   CR31 57,430   2,18,330  
  31   CP34   1,25,350 92,980  

Table (1)

Account: Accounts receivable

Account no. 12
Date Items Post Ref.

Debit

($)

Credit

($)

Balance

Debit

($)

Credit

($)

2016
Dec. 1 Balance 14,050
31 R35 21,920 35,970
31 CR31 16,030 19,940

Table (2)

Account: Maintenance Supplies Account no. 14
Date Items Post Ref.

Debit

($)

Credit

($)

Balance

Debit

($)

Credit

($)

2016
Dec. 1 Balance 10,850
20 J1 3,600 7,250
31 P37 3,250 10,500

Table (3)

Account: Office Supplies Account no. 15
Date Items Post Ref.

Debit

($)

Credit

($)

Balance

Debit

($)

Credit

($)

2016
Dec. 1 Balance 4,900
31 CP34 310 5,210
31 P37 765 5,975

Table (4)

Account: Office Equipment Account no. 16
Date Items Post Ref.

Debit

($)

Credit

($)

Balance

Debit

($)

Credit

($)

2016
Dec. 1 Balance 28,500
6 P37 4,800 33,300

Table (5)

Account: Accumulated Depreciation-Office Equip.

Account no. 17
Date Items Post Ref. Debit  ($) Credit ($) Balance
Debit ($) Credit ($)
2016
Dec. 1 Balance 6,900

Table (6)

Account: Vehicles Account no.18
Date Items Post Ref. Debit  ($) Credit ($) Balance
Debit ($) Credit ($)
2016
Dec. 1 Balance 95,900
5 P37 39,500 1,35,400
16 CP34 40,900 1,76,300

Table (7)

Account: Accumulated Depreciation -Vehicles

Account no. 19
Date Items Post Ref. Debit  ($) Credit ($) Balance
Debit ($) Credit ($)
2016
Dec. 1 Balance 14,700

Table (8)

Account: Accounts Payable Account Number 21
Date Items Post Ref...

2 and 4.

To determine

To Prepare: Purchase journal, Cash receipts journal, single column revenue journal, cash payments journal and two column general journal

3.

To determine

To Prepare: Two column general journal to record individual entry of RC Company.

5.

To determine

To Prepare: Unadjusted Trial balances of RC Company at December 31, 2016.

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