Mar. 1. Issued Check No. 205 for March rent, $2,450.
2. Purchased a vehicle on account from McIntyre Sales Co., $26,900.
3. Purchased office equipment on account from Office Mate Inc., $1,570.
5. Issued Invoice No. 91 to Ellis Co., $7,000.
6. Received check for $7,950 from Chavez Co. in payment of invoice.
7. Issued Invoice No. 92 to Trent Co., $9,840.
9. Issued Check No. 206 for fuel expense, $820.
10. Received check for $10,000 from Sajeev Co. in payment of invoice.
10. Issued Check No. 207 to Office City in payment of $450 invoice.
Mar. 10. Issued Check No. 208 to Bastille Co. in payment of $1,890 invoice.
11. Issued Invoice No. 93 to Jarvis Co., $7,200.
11. Issued Check No. 209 to Porter Co. in payment of $415 invoice.
12. Received check for $7,000 from Ellis Co. in payment of March 5 invoice.
13. Issued Check No. 210 to McIntyre Sales Co. in payment of $26,900 invoice of March 2.
16. Cash fees earned for March 1–16, $26,800.
16. Issued Check No. 211 for purchase of a vehicle, $28,500.
17. Issued Check No. 212 for miscellaneous administrative expense, $4,680.
18. Purchased maintenance supplies on account from Bastille Co., $2,430.
18. Received check for rent revenue on office space, $900.
19. Purchased the following on account from Master Supply Co.: maintenance supplies, $2,640, and office supplies, $1,500.
20. Issued Check No. 213 in payment of advertising expense, $8,590.
20. Used maintenance supplies with a cost of $4,400 to repair vehicles.
21. Purchased office supplies on account from Office City, $990.
24. Issued Invoice No. 94 to Sajeev Co., $9,200.
25. Received check for $14,000 from Chavez Co. in payment of invoice.
25. Issued Invoice No. 95 to Trent Co., $6,300.
26. Issued Check No. 214 to Office Mate Inc. in payment of $1,570 invoice of March 3.
27. Issued Check No. 215 to J. Wu as a personal withdrawal, $4,000.
30. Issued Check No. 216 in payment of driver salaries, $33,300.
31. Issued Check No. 217 in payment of office salaries, $21,200.
31. Issued Check No. 218 for office supplies, $600.
31. Cash fees earned for March 17–31, $29,400.
Instructions
1. Enter the following account balances in the general ledger as of March 1:
11 Cash $ 65,200 32 J. Wu, Drawing —
12 Accounts Receivable 31,950 41 Fees Earned —
14 Maintenance Supplies 7,240 42 Rent Revenue —
15 Office Supplies 3,690 51 Driver Salaries Expense —
16 Office Equipment 17,300 52 Maintenance Supplies Expense —
17 Accum. Depr.—Office Equip. 4,250 53 Fuel Expense —
18 Vehicles 62,400 61 Office Salaries Expense —
19 Accum. Depr.—Vehicles 17,800 62 Rent Expense —
21 Accounts Payable 2,755 63 Advertising Expense —
31 J. Wu, Capital 162,975 64 Miscellaneous Administrative Exp. —
2. Journalize the transactions for March 2014, using the following journals similar to those illustrated in this chapter: single-column revenue journal (p. 35), cash receipts journal (p. 31), purchases journal (p. 37, with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), 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
Mar. 1 Balance √ 65,200
31 CR31 96,050 161,250
31 CP34 135,365 25,885
Account: Accounts Receivable Account No. 12
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 1 Balance √ 31,950
31 R35 39,540 71,490
31 CR31 38,950 32,540
Account: Maintenance Supplies Account No. 14
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 1 Balance √ 7,240
20 J1 4,400 2,840
31 P37 5,070 7,910
Account: Office Supplies
Account: Office Equipment
Account No. 15
Account No. 16
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 1 Balance √ 17,300
3 P37 1,570 18,870
Account: Accumulated Depreciation—Office Equipment Account No. 17
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 1 Balance √ 4,250
Account: Vehicles Account No. 18
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 1 Balance √ 62,400
2 P37 26,900 89,300
16 CP34 28,500 117,800
Account: Accumulated Depreciation—Vehicles Account No. 19
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 1 Balance √ 17,800
Account: Accounts Payable Account No. 21
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 1 Balance √ 2,755
31 P37 36,030 38,785
31 CP34 31,225 7,560
Account: J. Wu, Capital Account No. 31
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 1 Balance √ 162,975
Account: J. Wu, Drawing Account No. 32
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 27 CP34 4,000 4,000
Account: Fees Earned Account No. 41
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 16 CR31 26,800 26,800
31 CR31 29,400 56,200
31 R35 39,540 95,740
Account: Rent Revenue Account No. 42
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 18 CR31 900 900
Account: Driver Salaries Expense Account No. 51
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 30 CP34 33,300 33,300
Account: Maintenance Supplies Expense Account No. 52
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 20 J1 4,400 4,400
Account: Fuel Expense Account No. 53
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 9 CP34 820 820
Account: Office Salaries Expense Account No. 61
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 31 CP34 21,200 21,200
Account: Rent Expense Account No. 62
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 1 CP34 2,450 2,450
Account: Advertising Expense
Account: Miscellaneous Administrative Expense
Account No. 63
Account No. 64
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Mar. 17 CP34 4,680 4,680
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
Mar. 2 McIntyre Sales Co. √ 26,900 Vehicles 18 26,900
3 Office Mate Inc. √ 1,570 Office Equipment 16 1,570
18 Bastille Co. √ 2,430 2,430
19 Master Supply Co. √ 4,140 2,640 1,500
21 Office City √ 990 990
31 36,030 5,070 2,490 28,470
(21) (14) (15) (√)
CASH RECEIPTS JOURNAL Page 31
Date Account Credited
Post.
Ref.
Other
Accounts
Cr.
Accounts
Receivable
Cr.
Cash
Dr.
2014
Mar. 6 Chavez Co. √ 7,950 7,950
10 Sajeev Co. √ 10,000 10,000
12 Ellis Co. √ 7,000 7,000
16 Fees Earned 41 26,800 26,800
18 Rent Revenue 42 900 900
25 Chavez Co. √ 14,000 14,000
31 Fees Earned 41 29,400 29,400
57,100 38,950 96,050
(√) (12) (11)
2. and 4.
REVENUE JOURNAL Page 35
Date
Invoice
No. Account Debited
Post.
Ref.
Accounts Rec. Dr.
Fees Earned Cr.
2014
Mar. 5 91 Ellis Co. √ 7,000
7 92 Trent Co. √ 9,840
11 93 Jarvis Co. √ 7,200
24 94 Sajeev Co. √ 9,200
25 95 Trent Co. √ 6,300
31 39,540
(41) (12)
CASH PAYMENTS JOURNAL Page 34
Date
Ck.
No. Account Debited
Post.
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Cash
Cr.
2014
Mar. 1 205 Rent Expense 62 2,450 2,450
9 206 Fuel Expense 53 820 820
10 207 Office City √ 450 450
10 208 Bastille Co. √ 1,890 1,890
11 209 Porter Co. √ 415 415
13 210 McIntyre Sales Co. √ 26,900 26,900
16 211 Vehicles 18 28,500 28,500
17 212 Misc. Admin. Expense 64 4,680 4,680
20 213 Advertising Expense 63 8,590 8,590
26 214 Office Mate Inc. √ 1,570 1,570
27 215 J. Wu, Drawing 32 4,000 4,000
30 216 Driver Salaries Expense 51 33,300 33,300
31 217 Office Salaries Expense 61 21,200 21,200
31 218 Office Supplies 15 600 600
31 104,140 31,225 135,365
(√) (21) (11)
3. JOURNAL Page 1
Date Description
Post.
Ref. Debit Credit
2014
Mar. 20 Maintenance Supplies Expense 52 4,400
Maintenance Supplies 14 4,400
5.
AM EXPRESS COMPANY
Unadjusted Trial Balance
March 31, 2014
Debit
Balances
Credit
Balances
Cash 25,885
Accounts Receivable 32,540
Maintenance Supplies 7,910
Office Supplies 6,780
Office Equipment 18,870
Accumulated Depreciation—Office Equipment 4,250
Vehicles 117,800
Accumulated Depreciation—Vehicles 17,800
Accounts Payable 7,560
J. Wu, Capital 162,975
J. Wu, Drawing 4,000
Fees Earned 95,740
Rent Revenue 900
Driver Salaries Expense 33,300
Office Salaries Expense 21,200
Advertising Expense 8,590
Maintenance Supplies Expense 4,400
Rent Expense 2,450
Fuel Expense 820
Miscellaneous Administrative Expense 4,680
289,225 289,225