May’s Beauty Store records sales and purchase transactions in the general journal. In addition to a general ledger, May’s Beauty Store also uses an accounts receivable ledger and an accounts payable ledger. Transactions for January related to the sales and purchase of merchandise are as follows: Jan. 2 Bought nine Matte Nail Color Kits from Mejia, Inc., $450, invoice no. 4521, dated January 1; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, $87.50 (total $537.50). 5 Bought 30 Perfume Cocktail Rings from Braun, Inc., $1,200, invoice no. 37A, dated January 3; terms 2/10, n/30; FOB destination. 8 Sold two Matte Nail Color Kits on account to J. Herbert, sales slip no. 113, $110, plus sales tax of $8.80, total $118.80. 11 Received credit memo no. 455 from Braun, Inc., for merchandise returned, $315.25. 18 Bought 15 Eye Palettes from Vargas, Inc., $660, invoice no. 910, dated January 14; terms net 30; FOB destination. 23 Sold four Eye Palettes on account to T. Cantrell, sales slip no. 114, $200, plus sales tax of $16, total $216. 26 Issued credit memo no. 12 to T. Cantrell for merchandise returned, $50 plus $4 sales tax, total $54. Required 1. If using Working Papers, open the following accounts in the accounts receivable ledger and record the balances as of January 1: T. Cantrell, $86.99; J. Hebert, $63.47. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 2. If using Working Papers, open the following accounts in the accounts payable ledger and record the balances as of January 1: Braun, Inc., $513.20; Mejia, Inc., $113.40; Vargas, Inc., $67.15. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 3. If using Working Papers, record the January 1 balances in the general ledger as given: Accounts Receivable 113 controlling account, $150.46; Accounts Payable 212 controlling account, $693.75; Sales Tax Payable 214, $237.89. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 4. Record the transactions in the general journal. If using Working Papers, begin on page 17. 5. Post the entries to the general ledger and accounts receivable ledger or accounts payable ledger as appropriate. 6. Prepare a schedule of accounts receivable. 7. Prepare a schedule of accounts payable. 8. Compare the totals of the schedules with the balances of the controlling accounts.

BuyFind

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570
BuyFind

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570

Solutions

Chapter
Section
Chapter 9, Problem 3PB
Textbook Problem

May’s Beauty Store records sales and purchase transactions in the general journal. In addition to a general ledger, May’s Beauty Store also uses an accounts receivable ledger and an accounts payable ledger. Transactions for January related to the sales and purchase of merchandise are as follows:

Jan. 2    Bought nine Matte Nail Color Kits from Mejia, Inc., $450, invoice no. 4521, dated January 1; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, $87.50 (total $537.50).

5    Bought 30 Perfume Cocktail Rings from Braun, Inc., $1,200, invoice no. 37A, dated January 3; terms 2/10, n/30; FOB destination.

8    Sold two Matte Nail Color Kits on account to J. Herbert, sales slip no. 113, $110, plus sales tax of $8.80, total $118.80.

11    Received credit memo no. 455 from Braun, Inc., for merchandise returned, $315.25.

18    Bought 15 Eye Palettes from Vargas, Inc., $660, invoice no. 910, dated January 14; terms net 30; FOB destination.

23    Sold four Eye Palettes on account to T. Cantrell, sales slip no. 114, $200, plus sales tax of $16, total $216.

26    Issued credit memo no. 12 to T. Cantrell for merchandise returned, $50 plus $4 sales tax, total $54.

Required

  1. 1. If using Working Papers, open the following accounts in the accounts receivable ledger and record the balances as of January 1: T. Cantrell, $86.99; J. Hebert, $63.47. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow.
  2. 2. If using Working Papers, open the following accounts in the accounts payable ledger and record the balances as of January 1: Braun, Inc., $513.20; Mejia, Inc., $113.40; Vargas, Inc., $67.15. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow.
  3. 3. If using Working Papers, record the January 1 balances in the general ledger as given: Accounts Receivable 113 controlling account, $150.46; Accounts Payable 212 controlling account, $693.75; Sales Tax Payable 214, $237.89. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow.
  4. 4. Record the transactions in the general journal. If using Working Papers, begin on page 17.
  5. 5. Post the entries to the general ledger and accounts receivable ledger or accounts payable ledger as appropriate.
  6. 6. Prepare a schedule of accounts receivable.
  7. 7. Prepare a schedule of accounts payable.
  8. 8. Compare the totals of the schedules with the balances of the controlling accounts.

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Chapter 9 Solutions

College Accounting (Book Only): A Career Approach
Ch. 9 - What is the difference between a wholesale...Ch. 9 - For each of the following accounts, identify...Ch. 9 - What is the purpose of each of the following? a....Ch. 9 - Why is an accounts receivable ledger or an...Ch. 9 - Why is it a good practice to post daily to the...Ch. 9 - With regard to goods sold and purchased, explain...Ch. 9 - Explain the meaning and importance of the shipping...Ch. 9 - Describe the four procedures that most companies...Ch. 9 - Describe the posting procedures to the general...Ch. 9 - Describe the procedure for posting each of the...Ch. 9 - Who issues a credit memorandum and why?Ch. 9 - What is the difference between a periodic...Ch. 9 - Record the following transactions in general...Ch. 9 - Post the following entry to the general ledger and...Ch. 9 - Record the following transactions in general...Ch. 9 - Journalize the following transactions in general...Ch. 9 - Post the following entry to the general ledger and...Ch. 9 - Record the following transactions in general...Ch. 9 - Record the following transactions for a perpetual...Ch. 9 - Toby Company had the following sales transactions...Ch. 9 - Williams Corporation had the following purchases...Ch. 9 - Kelley Company has completed the following October...Ch. 9 - Bell Florists sells flowers on a retail basis....Ch. 9 - Berrys Pet Store records purchase transactions in...Ch. 9 - Shirleys Beauty Store records sales and purchase...Ch. 9 - The following transactions relate to Hawkins,...Ch. 9 - Gomez Company sells electrical supplies on a...Ch. 9 - Patterson Appliance uses a three-column purchases...Ch. 9 - Abbott Florists sells flowers on a retail basis....Ch. 9 - Lowerys Pet Depot records purchase transactions in...Ch. 9 - Mays Beauty Store records sales and purchase...Ch. 9 - The following transactions relate to Khan, Inc., a...Ch. 9 - R. J. Hinton Company sells electrical supplies on...Ch. 9 - West Bicycle Shop uses a three-column purchases...Ch. 9 - Jax Mercantile Co. has been northern Colorados...Ch. 9 - You are the bookkeeper at a small merchandising...Ch. 9 - Following is a trial balance prepared just before...Ch. 9 - Sales and Purchases Ms. Valli of All About You Spa...

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