Question

PAT Comprehensive Problem 2: Accounting Cycle with Subsidiary Ledgers, Part 1 During the second half of December 20-1, TJs Specialty Shop engaged in the follo transactions Dec. 16 Received payment from Lucy Greene on account, $1,960. 16 Sold merchandise on account to Kim Fields, $160, plus sales tax of S8. 17 Returned merchandise to Evans Essentials for credit, $150. 18 Issued Check No. 813 to Evans Essentials in payment of December 1 Sale No. 640. balance of $1,250, less the credit received on December 17. 19 Sold merchandise on account to Lucy Greene, $620, plus tax of $31. 22 23 Sale No. 641, Received payment from John Dempsey on account, $1,560 Issued Check No. 814 for the purchase of supplies, $120. (Debit Supplies) Purchased merchandise on account from West Wholesalers, $1,200. Invoice No, 465, dated December 24, terms n/30. Purchased merchandise on account from Nathen Co., $800. Invoice No. 817, dated December 26, terms 2/10, n/30. 24 26 27 Issued Check No. 815 to KC Power&Light (Uilities Expense) for the 27 29 29 30 month of December, $630. Sold merchandise on account to John Dempsey, $2,020, plus tax of $101. Sale No. 642. Received payment from Martha Boyle on account, $2,473. Issued Check No. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $1,100. Issued Check No. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $200. As of December 16, TJ's account balances were as follows: Account No. Debit Credit Account Cash Accounts Receivable Merchandise Inventory Supplies 101 122 131 141 145 161 S 9,705 10,256 21,800 1,035 1,380 8,700 Prepaid Insurance Land Building Accum. Depr-Building Store Equipment Accum. Depr-Store Equipment $ 9,200 28,750 181.1 9,300

Answer 1

Ans: TJ's Specialty shops

General ledger

Date	Account	Debit($)	Account	Credit($)
16.Dec	Balance B/F	252,061	Balance B/F	252,061
16.Dec	Cash	1,960	Lucy Greene	!,960
16.Dec	Kim Fields	8	Sales tax	8
16.Dec	Kim Fields	160	Sales	160
17. Dec	Even Essentials	150	Purchases return and allowances	150
18. Dec	Even Essentials	1,100	Bank	1,100
19.Dec	Lucy Greene	620	Sales	620
19.Dec	Lucy Greene	31	Sales Tax	31
22.Dec	Cash	1,560	John Dempsey	1,560
23.Dec	Supplies Expenses	120	Bank	120
24.Dec	Purchases	1,200	West Wholesalers	1,200
26.Dec	Purchases	800	Nathen & co.	800
27.Dec	KC Power & Light	630	Bank	630
27.Dec	John Dempsey	2,020	Sales	2,020
27.Dec	John Dempsey	101	Sales Tax	101
29.Dec	Cash	2,473	Martha Boyle	2,473

29.Dec	Wages	1,100	Bank	1,100
30.Dec	Purchases	200	Cash	200
31.Dec	Depreciation	800	Accum. Depreciation on Building	800
31.Dec	Insurance expense	380	Prepaid Insuraence	380
31.Dec	Depreciation	450	Accum. Depreciation on Equipment	450
31. Dec	Wages	1,100	Wages Payable	!,100
27.Dec	Electricity Expenses	630	KC Power & Light	630
	Total	269,654	Total	269,654

2)    Account Receivable

Date	Account	Debit($)	Account	Credit($)
16. Dec	Balance B/F	10,256
16.Dec			Cash ( Amount received from Lucy Greene)	1,560
16.Dec	Sales ( sales made to Kim Fields)	160
16.Dec	Sales Tax	8
19.Dec	Sales ( sales made to Lucy Greene)	620
19.Dec	Sales Tax	31
22.Dec			Cash (Amount received from John Dempsey)	1,560
27.Dec	Sales ( sales made to John Dempsey)	2,020
27,Dec	Sales Tax ( sales made to Lucy Greene)	101
29,Dec			Cash ( Amount Received From Martha Boyle)	2,473
31.Dec			Balance C/f	7063
	Total	12,656	Total	12,656

Account Payable

Date	Account	Debit($)	Account	Credit($)
16.Dec			Balance B/f	3,600
17.Dec	Purchase return and Allowances ( Merchandise returned to Even Essentials)	150
18.Dec	Bank (Payment made to Even Essential through check no.- 813)	1,100
24.Dec			Purchases ( Purchases from West Wholesalers)	1,200
26.Dec			Purchases (Purchases from Nathen & co.)	800
31.Dec	Balance C/f	4,350
	Total	5,600	Total	5,600