Chapter 7, Problem P7.29BPGB

Using all Journals, posting, and balancing the ledgers

Learning objectives 2, 3
Trial balance, total debits $47,950

Atlanta Computer Security uses the perpetual inventory system and makes all credit sales on terms of n/30. During March, Atlanta completed these transactions:

Mar. 2 Issued invoice no. 191 for sale on account to L. E. Kingston, $3.000 (cost, $800).
3 Purchased merchandise inventory on credit terms of 3/10, n/60 from High. $2.500.
4 Sold merchandise inventory for cash. $1,100 (cost, $300).
5 Issued check no. 473 to purchase furniture for cash $2,450,
8 Collected interest revenue of $1,150.

9 Issued invoice no. 192 for sale on account to Common Co., $5,700 (cost. $2,200).
10 Purchased merchandise inventory for cash, $1.400. issuing check no. 474.
12 Received cash from L. E. Kingston in full settlement of her account receivable
from the sale of March 2.

13 Issued check no. 475 to pay High net amount owed from March 3. Round to
the nearest dollar.

13 Purchased office supplies on account from Mann Corp.. $350. Terms were n1EOM.
15 Sold merchandise inventory on account to Suarez Co., issuing invoice no. 193
for $700 (cost, $250).

18 Issued invoice no. 194 for credit sale to L. E. Kingston, $400 (cost, $200).
19 Received cash from Common Co. in full settlement of its account receivable
from March 9.

20 Purchased merchandise inventory on credit terms of n130 from James Swenson, $2,200
22 Purchased furniture on credit terms of 3/10, n160 from High, $400.

22 Issued check no, 476 to pay for insurance coverage, debiting Prepaid Insurance
for $1,800.

24 Sold office supplies to an employee for cash of $100, which was Atlanta’s cost.

25 Received bill and issued check no, 477 to pay utilities, $550.

28 Purchased merchandise inventory on credit terms of 2/10, n/30 from Mann
Corp., $550.
29 Returned damaged merchandise inventory to Mann Corp., issuing a debit
memo for $550.

29 Sold merchandise inventory on account to Common Co.., issuing invoice no. 195
for $2,800 (cost. $1,400).
30 Issued check no. 478 to pay Mann Corp. in full for March 13 purchase
31 Received cash in full from L. E. Kingston on credit sale of march 18.
31 issued check no.479 to pay monthly salaries of $1,550.

Requirements
1. Open four-column general Iedger accounts using Atlanta Computer Security’s account numbers and balances as of March 1, 2018,
that follow. All accounts have normal balances.

Number     Account                                                                                     Bal.

111                Cash	$ 15,800
112                Accounts Receivable	1,900
114                Merchandise Inventory                                                                 6,500
116                 Office Supplies                                                                        600
117                   Prepaid Insurance                                                                    0
151                   Furniture                                                                             2,000
211                   Accounts Payable                                                                         900
311                   Diaz, Capital                                                                         20,600
411                   Sales Revenue                                                                         7,600
419                   Interest Revenue                                                                      1,400
511                   Cost of Goods Sold                                                                    2,100
531                   Salaries Expense                                                                      1,300 
541                   Utilities Expense                                                                   	300

2 Open tour-column accounts m the subsidiary ledgers with beginning balances as of March 1 any Accounts receivable subsidiary ledger. Arrundel Co. $1,900, Common Co., $O, L E Kingston, SO, and Suarez, SO. Accounts payable subsidiary ledger High, $o; Mann Corp, S0 James Swenson SO, and Young Co $900.
3 Enter the transactions m a sales journal (page 8), a cash receipts journal (page 3, omit Sales Discounts Forfeited column), a purchases journal (page 6). a cash payments journal (page 9). and a general journal (page 4), as appropriate.
4 Post daily to the accounts receivable subsidiary ledger and to the accounts payable subsidiary ledger.

5. Total each column of the special journals. Show that total debits equal total credits in each special journal On March 31 post to the general ledger
6 Prepare a trial balance as 01March31 2018, verify the equality of the general ledger Balance the total of the customer account ending balances in the accounts receivable subsidiary ledger against Accounts Receivable in the general ledger Do the same for the accounts payable subsidiary ledger and Accounts Payable in the general ledger.