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:
11 Cash $160,900 32 S. Holmes, Drawing —
12 Accounts Receivable 14,050 41 Fees Earned —
14 Maintenance Supplies 10,850 51 Driver Salaries Expense —
15 Office Supplies 4,900 52 Maintenance Supplies Exp. —
16 Office Equipment 28,500 53 Fuel Expense —
17 Accum. Depr.—Office Equip. 6,900 61 Office Salaries Expense —
18 Vehicles 95,900 62 Rent Expense —
19 Accum. Depr.—Vehicles 14,700 63 Advertising Expense —
21 Accounts Payable 4,250 64 Miscellaneous Administrative Expense —
31 S. Holmes, Capital 289,250
2. Journalize the transactions for December 2014, 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), singlecolumn 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.
Answer:
1., 3., and 4.
Account: Cash
GENERAL LEDGER
Account No. 11
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 1 Balance √ 160,900
31 CR31 57,430 218,330
31 CP34 125,350 92,980
Account: Accounts Receivable Account No. 12
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 1 Balance √ 14,050
31 R35 21,920 35,970
31 CR31 16,030 19,940
Account: Maintenance Supplies Account No. 14
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 1 Balance √ 10,850
20 J1 3,600 7,250
31 P37 3,250 10,500
Account: Office Supplies
Account: Office Equipment
Account No. 15
Account No. 16
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 1 Balance √ 28,500
6 P37 4,800 33,300
Account: Accumulated Depreciation—Office Equipment Account No. 17
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 1 Balance √ 6,900
Account: Vehicles Account No. 18
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 1 Balance √ 95,900
5 P37 39,500 135,400
16 CP34 40,900 176,300
Account: Accumulated Depreciation—Vehicles Account No. 19
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 1 Balance √ 14,700
Account: Accounts Payable Account No. 21
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 1 Balance √ 4,250
31 P37 48,315 52,565
31 CP34 48,550 4,015
Account: S. Holmes, Capital Account No. 31
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 1 Balance √ 289,250
Account: S. Holmes, Drawing Account No. 32
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 24 CP34 3,200 3,200
Account: Fees Earned Account No. 41
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 16 CR31 21,700 21,700
31 CR31 19,700 41,400
31 R35 21,920 63,320
Account: Driver Salaries Expense Account No. 51
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 30 CP34 16,900 16,900
Account: Maintenance Supplies Expense Account No. 52
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 20 J1 3,600 3,600
Account: Fuel Expense Account No. 53
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 9 CP34 800 800
Account: Office Salaries Expense Account No. 61
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 30 CP34 7,600 7,600
Account: Rent Expense Account No. 62
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 1 CP34 4,500 4,500
Account: Advertising Expense
Account: Miscellaneous Administrative Expense
Account No. 63
Account No. 64
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Dec. 17 CP34 600 600
2. and 4.
PURCHASES JOURNAL Page 37
Date Account Credited
Post.
Ref.
Accounts
Payable
Cr.
Maintenance
Supplies Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
Post.
Ref. Amount
2014
Dec. 5 Boston Transportation √ 39,500 Vehicles 18 39,500
6 Austin Computer Co. √ 4,800 Office Equipment 16 4,800
18 Essential Supply Co. √ 1,750 1,750
19 McClain Co. √ 1,825 1,500 325
23 Office To Go Inc. √ 440 440
31 48,315 3,250 765 44,300
(21) (14) (15) (√)
CASH RECEIPTS JOURNAL Page 31
Date Account Credited
Post.
Ref.
Other
Accounts
Cr.
Accounts
Receivable
Cr.
Cash
Dr.
2014
Dec. 3 Trimble Co. √ 5,100 5,100
10 Sing Co. √ 4,850 4,850
12 Capps Co. √ 1,980 1,980
16 Fees Earned 41 21,700 21,700
25 Trimble Co. √ 4,100 4,100
31 Fees Earned 41 19,700 19,700
31 41,400 16,030 57,430
(√) (12) (11)
2. and 4.
REVENUE JOURNAL Page 35
Date
Invoice
No. Account Debited
Post.
Ref.
Accounts Rec. Dr.
Fees Earned Cr.
2014
Dec. 2 940 Capps Co. √ 1,980
6 941 Dawar Co. √ 5,680
10 942 Joy Co. √ 2,140
24 943 Sing Co. √ 6,400
25 944 Dawar Co. √ 5,720
31 21,920
(12) (41)
CASH PAYMENTS JOURNAL Page 34
Date
Ck.
No. Account Debited
Post.
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Cash
Cr.
2014
Dec. 1 610 Rent Expense 62 4,500 4,500
9 611 Fuel Expense 53 800 800
10 612 Office To Go Inc. √ 360 360
11 613 Essential Supply Co. √ 3,240 3,240
11 614 Porter Co. √ 650 650
13 615 Boston Transportation √ 39,500 39,500
16 616 Vehicles 18 40,900 40,900
17 617 Misc. Admin. Expense 64 600 600
20 618 Advertising Expense 63 1,990 1,990
24 619 S. Holmes, Drawing 32 3,200 3,200
26 620 Austin Computer Co. √ 4,800 4,800
30 621 Driver Salaries Exp. 51 16,900 16,900
Office Salaries Exp. 61 7,600 7,600
31 622 Office Supplies 15 310 310
31 76,800 48,550 125,350
(√) (21) (11)
3. JOURNAL Page 1
Date Description
Post.
Ref. Debit Credit
2014
Dec. 20 Maintenance Supplies Expense 52 3,600
Maintenance Supplies 14 3,600
5.
REVERE COURIER COMPANY
Unadjusted Trial Balance
December 31, 2014
Debit
Balances
Credit
Balances
Cash 92,980
Accounts Receivable 19,940
Maintenance Supplies 10,500
Office Supplies 5,975
Office Equipment 33,300
Accumulated Depreciation—Office Equipment 6,900
Vehicles 176,300
Accumulated Depreciation—Vehicles 14,700
Accounts Payable 4,015
S. Holmes, Capital 289,250
S. Holmes, Drawing 3,200
Fees Earned 63,320
Driver Salaries Expense 16,900
Office Salaries Expense 7,600
Rent Expense 4,500
Maintenance Supplies Expense 3,600
Advertising Expense 1,990
Fuel Expense 800
Miscellaneous Administrative Expense 600
378,185 378,185