During the second half of December 20-1, TJ’s Specialty Shop…
Question Answered step-by-step During the second half of December 20-1, TJ’s Specialty Shop… During the second half of December 20-1, TJ’s Specialty Shop engaged in the following transactions:Dec. 16Received payment from Lucy Greene on account, $1,960.16Sold merchandise on account to Kim Fields, $160, plus sales tax of $8. Sale No. 640.17Returned merchandise to Evans Essentials for credit, $150.18Issued Check No. 813 to Evans Essentials in payment of December 1 balance of $1,250, less the credit received on December 17.19Sold merchandise on account to Lucy Greene, $620, plus tax of $31. Sale No. 641.22Received payment from John Dempsey on account, $1,560.23Issued Check No. 814 for the purchase of supplies, $120. (Debit Supplies)24Purchased merchandise on account from West Wholesalers, $1,200. Invoice No. 465, dated December 24, terms n/30.26Purchased merchandise on account from Nathen Co., $800. Invoice No. 817, dated December 26, terms 2/10, n/30.27Issued Check No. 815 to KC Power & Light (Utilities Expense) for the month of December, $630.27Sold merchandise on account to John Dempsey, $2,020, plus tax of $101. Sale No. 642.29Received payment from Martha Boyle on account, $2,473.29Issued Check No. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $1,100.30Issued Check No. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $200.As of December 16, TJ’s account balances were as follows:AccountAccount No.DebitCreditCash101$ 9,705 Accounts Receivable12210,256 Merchandise Inventory13121,800 Estimated Returns Inventory135250 Supplies1411,035 Prepaid Insurance1451,380 Land1618,750 Building17152,000 Accumulated Depreciation-Building171.1 $ 9,200Store Equipment18128,750 Accumulated Depreciation-Store Equipment181.1 9,300Accounts Payable202 3,600Customer Refunds Payable203 300Wages Payable219 Sales Tax Payable231 1,378Mortgage Payable251 12,525Tom Jones, Capital311 90,000Tom Jones, Drawing3128,500 Income Summary313 Sales401 124,900Sales Returns and Allowances401.11,430 Purchases50164,400 Purchases Returns and Allowances501.1 460Purchases Discounts501.2 698Freight-In502175 Wages Expense51126,100 Advertising Expense5124,700 Supplies Expense524 Phone Expense5252,180 Utilities Expense5336,900 Insurance Expense535 Depreciation Expense-Building540 Depreciation Expense-Store Equipment541 Miscellaneous Expense5492,700 Interest Expense5511,350 $252,361$252,361TJ’s also had the following subsidiary ledger balances as of December 16: Accounts Receivable LedgerCustomerBalanceMartha Boyle, 12 Jude Lane Hartford, CT 06117$3,796Anne Clark, 52 Juniper Road Hartford, CT 061182,100John Dempsey, 700 Hobbes Dr. Avon, CT 061081,560Kim Fields, 5200 Hamilton Ave. Hartford, CT 06117Lucy Greene, 236 Bally Lane Simsbury, CT 061232,800 Accounts Payable LedgerVendorBalanceEvans Essentials, 34 Harry Ave. East Hartford, CT 05234$3,600Nathen Co., 1009 Drake Rd. Farmington, CT 06082Owen Enterprises, 43 Lucky Lane Bristol, CT 06007West Wholesalers, 888 Anders Street Newington, CT 06789 At the end of the year, the following adjustments (a)-(j) need to be made: (a, b) Merchandise inventory as of December 31, $19,700.(c, d, e) Jones estimates that customers will be granted $400 in refunds of this year’s sales next year, and the merchandise expected to be returned will have a cost of $300.(f) Unused supplies on hand, $525.(g) Unexpired insurance on December 31, $1,000.(h) Depreciation expense on the building for the year, $800.(i) Depreciation expense on the store equipment for the year, $450.(j) Wages earned but not paid as of December 31, $330. Required: 1. If you are not using the working papers, open a general ledger, an accounts receivable ledger, and an accounts payable ledger as of December 16. Enter the December 16 balance of each of the accounts, with a check mark in the Posting Reference column. 2. Enter transactions for the second half of December in the general journal. Post immediately to the accounts receivable and accounts payable ledgers. 3. Post from the journal to the general ledger. 4. Prepare schedules of accounts receivable and accounts payable. 6. Journalize and post adjusting entries. Chart of AccountsCHART OF ACCOUNTSTJ’s Specialty ShopGeneral Ledger ASSETS101Cash122Accounts Receivable131Merchandise Inventory135Estimated Returns Inventory141Supplies145Prepaid Insurance161Land171Building171.1Accumulated Depreciation-Building181Store Equipment181.1Accumulated Depreciation-Store Equipment LIABILITIES202Accounts Payable203Customer Refunds Payable219Wages Payable231Sales Tax Payable251Mortgage Payable EQUITY311Tom Jones, Capital312Tom Jones, Drawing313Income Summary REVENUE401Sales401.1Sales Returns and Allowances EXPENSES501Purchases501.1Purchases Returns and Allowances501.2Purchases Discounts502Freight-In511Wages Expense512Advertising Expense524Supplies Expense525Phone Expense533Utilities Expense535Insurance Expense540Depreciation Expense-Building541Depreciation Expense-Store Equipment549Miscellaneous Expense551Interest Expense Subsidiary Ledgers Accounts Receivable Ledger122.1Martha Boyle122.2Anne Clark122.3John Dempsey122.4Kim Fields122.5Lucy Greene Accounts Payable Ledger202.1Evans Essentials202.2Nathen Co.202.3Owen Enterprises202.4West Wholesalers Accounting Business Financial Accounting ACC 201 Share QuestionEmailCopy link Comments (0)
