Prepare a trial balance of the general ledger

Reference no: EM13165528

Franklin s Tower Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30):

Apr. 2 Purchased $15,400 of merchandise on credit from Garcia Company, invoice dated April 2, terms 2/10, n/60.

3 Sold merchandise on credit to M. Jagger, Invoice No. 760, for $3,500 (cost is $2,000).

3 Purchased $880 of office supplies on credit from Paper Clips, Inc. Invoice dated April 2, terms n/10 EOM.

4 Issued Check No. 587 to NewLook Magizine for advertising expense, $750.

5 Sold merchandise on credit to C. Watts, Invoice No. 761, for $6,000 (cost is $4,400).

6 Received an $75 credit memorandum from Paper Clips, Inc., for some of the office supplies received on April 3 and returned for credit.

9 Purchased $11,000 of store equipment on credit from Jane s Junk, invoice dated April 9, terms n/10 EOM.

11 Sold merchandise on credit to K. Richards, Invoice No. 762, for $12,800 (cost is $6,900).

12 Issued Check No. 588 to Garcia Company in payment of its April 2 invoice, less the discount.

13 Received payment from M. Jagger for the April 3 sale, less the discount.

13 Sold $4,200 of merchandise on credit to M. Jagger (cost is $2,100), Invoice No. 763.

14 Received payment from C. Watts for the April 5 sale, less the discount.

16 Issued Check No. 589, payable to Payroll, in payment of sales salaries for the first half of the month, $8,850. Cashed the check and paid employees.

16 Cash sales for the first half of the month are $42,420 (cost is $20,070). (Cash sales are recorded daily from cash register readings but are recorded only twice in this problem to reduce repetitive entries.)

17 Purchased $16,600 of merchandise on credit from Lesh Company, invoice dated April 16, terms 2/10, n/30.

18 Borrowed $50,000 cash from Second National Bank by giving a long-term note payable.

20 Received payment from K. Richards for the April 11 sale, less the discount.

20 Purchased $690 of store supplies on credit from Jane s Junk, invoice dated April 19, terms n/10 EOM.

23 Received a $600 credit memorandum from Lesh Company for defective merchandise received on April 17 and returned for credit.

23 Received payment from M. Jagger for the April 13 sale, less the discount.

25 Purchased $9,470 of merchandise on credit from Garcia Company, invoice dated April 24, terms 2/10, n/60.

26 Issued Check No. 590 to Lesh Company in payment of its April 17 invoice, less the return and the discount.

27 Sold $2,880 of merchandise on credit to C. Watts, Invoice No. 764 (cost is $2,120).

27 Sold $1,700 of merchandise on credit to K. Richards, Invoice No. 765 (cost is $810).

30 Issued Check No. 591, payable to Payroll, in payment of the sales salaries for the last half of the month, $12,000.

30 Cash sales for the last half of the month are $69,690 (cost is $45,500).

Required

1. Prepare a sales journal like Exhibit 7.5 and a cash receipts journal like Exhibit 7.7. Number both journal pages as page 3. Then review the transactions of Franklin s Tower Company and enter those that should be journalized in the sales journal and those that should be journalized in the cash receipts journal. Ignore any transactions that should be journalized in a purchases journal, a cash disbursements journal, or a general journal.

2. Open the following general ledger accounts: Cash, Accounts Receivable, Inventory, Long-Term Notes Payable, Cost of Goods Sold, Sales, and Sales Discounts. Enter the March 31 balances for Cash ($55,000), Inventory ($101,000), and Long-Term Notes Payable ($156,000). Also open accounts receivable subsidiary ledger accounts for C. Watts, M. Jagger, and K. Richards.

3. Verify that amounts that should be posted as individual amounts from the journals have been posted. (Such items are immediately posted.) Foot and crossfoot the journals and make the month-end postings.

4. Prepare a trial balance of the general ledger and prove the accuracy of the subsidiary ledger by preparing a schedule of accounts receivable.

Analysis Component

5. Assume that the total for the schedule of Accounts Receivable does not equal the balance of the controlling account in the general ledger. Describe steps you would take to discover the error(s).

Reference no: EM13165528

Questions Cloud

Which type of bond has one pair of electrons shared : which type of bond has one pair of electrons shared between atoms? a) single covalent b) coordinate covalent c) double covalent d) metallic

Explain what concentration of nh : what concentration of NH4+ must be present in a 0.20M aqueous ammonia solution to prevent the percipitation of Mg(OH)2 if the ammonia solution

State what mass of the corresponding sodium salt : Which of the acids in question #3 would be the best choice to create a buffer with pH = 7.35? If you had 250.0 mL of a 0.20 M solution of the acid, what mass of the corresponding sodium salt of the conjugate base would be required to make the buff..

What has happened to the atmospheric pressure : Now you find yourself on an airplane headed for Israel to visit the Dead Sea, which is below sea level. You have always wanted to visit there and now is your chance. What has happened to the atmospheric pressure?

Prepare a trial balance of the general ledger : Prepare a trial balance of the general ledger and prove the accuracy of the subsidiary ledger by preparing a schedule of accounts receivable.

What is the reactant in excess : Benzene, C6H6, is reacted with bromine, Br2, to produce bromobenzene, C6H5Br, and hydrogen bromide, HBr, as shown below. When 40.0 g of benzene are reacted with 95.0 g of bromine, 65.0 g of bromobenzene is produced.

Wave steepness is the ratio of wave height : Wave steepness is the ratio of wave height (WH) to wave length(WL) and is an indicator of wave stability. When wave steepness exceeds a 1/7 ratio; the wave becomes unstable and begins to break. Assume a data file exits with the following header

What is the longest wavelength of light : The third ionization energy of {rm Fe} is E_{rm i3} = +2952 kJ/mol What is the longest wavelength of light that could ionize Fe^(2+) to Fe^(3+)?

What is the ratio of oxygen atoms to hydrogen atoms : What is the ratio of oxygen atoms to hydrogen atoms in the mineral cacoxenite, Fe4(PO4)3(OH)3 • 12H2O?

User Account

All Pages