Manual Special Journals, SubLedgers & General Ledger Hadhad…

Question Answered step-by-step Manual Special Journals, SubLedgers & General Ledger Hadhad… Manual Special Journals, SubLedgers & General LedgerHadhad Wholesalers Company InformationThe chart of accounts of Hadhad Wholesalers includes the following selected accounts, along with their account numbers:Cash 110Owner’s Withdrawals 320Accounts Receivable 120Sales Revenue410Notes Receivable 125  Sales Discounts420Inventory 130Sales Returns and Allowances 430Supplies 140Cost of Goods Sold505Building 170Salaries Expense 510Accounts Payable210 Supplies Used512Mortgage Payable220 Utilities Expense 515 Owner’s Equity 310Telephone Expense 525  Required: Using the company information for Hadhad Wholesalers (see below), complete the following: 1. Use the appropriate journal to record the business transactions for June: sales journal, cash receipts journal, purchases journal, cash payments journal or a general journal. Hadhad Wholesalers records sales returns and allowances in the general journal. AND if required, immediately post transactions to the Accounts Receivable and Accounts Payable Sub-ledger.  2. At the end of the month, total each column of the special journals. AND show that total debits equal total credits for the following journals: cash receipts, purchases, cash payments and general.  3. Post the month end totals that you calculated in step 2 to the General Ledger. (Tip: The journal entries in the general journal are posted individually – not the total.)  4. Demonstrate (show) that the Accounts Receivable Sub-ledger agrees with (matches) the Accounts Receivable control account in the General Ledger. You can prepare the reconciliation beside the accounts in the Accounts Receivable Sub-Ledger. 5. Demonstrate (show that the Accounts Payable Sub-ledger agrees with (matches) the Accounts Payable control account in the General Ledger. You can prepare the reconciliation beside the accounts in the Accounts Payablee Sub-Ledger.  6. Using the blank space provided below, answer the following questions: a. Examining the Sales Revenue Account #410:  i. What Sales Revenue would be reported for the month of June? $________________ ii. Using only the general ledger account: was it primarily cash or credit sales? And how can you tell?  b. Examining the Inventory Account #130: i. What Inventory Balance would appear on the June 30th Balance Sheet? $_________________ ii. Do you think we should buy more? Why?  C.  Explain how special journals and sub-ledgers are different and how they are connected to each other.  D. what connection does this assignment have with your study of Receivables in FAP2? E. Based on what you experienced share your thoughts about recording business transactions with special journals and sub-ledgers. The following is a few suggestions on what you could say: I didn’t know ____________ I was surprised by ________ I made a mistake by ________ and caught it because ________. This made merealize__________. I found this difficult because ____________________. I think using special journals is more___________ because___________. I learned that________________. Note this is not a fill in the blank exercise, these are examples to help you reflect on you.  All credit sales are on the company’s standard terms of 2/10, n/30. The transactions that occurred in June were as follows:  June 1 Sold inventory on credit to Manley Inc., $5,700. Hadhad’s cost of these goods was $3,420. June 3 Cash sales of inventory for the week totaled $9,510 (cost, $5,706). June 6 Purchased inventory on account from A.M. Thornton, $46,000. Terms were 2/10 n/30. June 10 As a favour to a competitor, sold supplies at cost, $4,300, receiving cash. June 10 Sold inventory on account to Sloan Forge Ltd., $14,416 (cost, $8,650). June 11 Cash sales of inventory for the week were $8,424 (cost $6,120). June 11 Received cash from Manley Inc. in full settlement of its account receivable from June 1. June 14 Sold inventory on credit to the partnership of Blinn & Browne, $20,600 (cost, $12,360). June 15 Issued cheque no 235 to pay A.M. Thornton, $45,080. June 16 Sold inventory on account to Sloan Forge Ltd., $2,526 (cost, $1,800). June 18 Cash sales of inventory for the week were $3,960 (cost $2,760). June 18 Purchased supplies for cash, $4,367, issuing cheque no. 236 to pay Supplies R Us. June 22 Purchased inventory on credit terms of net 30 from Burgess Distributing Ltd. $12,282. June 23 Received cash from Blinn & Browne for its account receivable from June 14.June  24 Sold inventory on account to Olsen Inc., $6,080 (cost, $4,200). June 25 Cash sales of inventory for the week were $15,096 (cost $9,840). June 28 Collected $10,500 on a note receivable. June 29 Sold inventory on account to new customer, R.O. Bankston Inc., $2,968 (cost, $1,780). June 30 Received goods sold on  24 to Olsen Inc. for $160. The wrong items were shipped. The cost of the goods was $100. June 31 The month end count of supplies resulted in $5,000 being on hand.  Business Accounting ACCOUTING 1014 Share QuestionEmailCopy link Comments (0)