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You have just taken over the accounting for Choi Enterprises, whose annual accounting period ends

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You have just taken over the accounting for Choi Enterprises, whose annual accounting period ends;December 31. The company?s previous accountant journalized its transactions through December 15;and posted all items that required posting as individual amounts (see the journals and ledgers in the;Working Papers). The company?s transactions beginning on December 16 follow (terms for all its;credit sales are 210, n30);Dec. 16 Sold merchandise on credit to Hanna Seppa, Invoice No. 916, for $7,700 (cost is $4,600).;17 Received a $1,040 credit memorandum from Funk Company for the return of merchandise;received on December 15.;17 Purchased $615 of office supplies on credit from KK?s Supply Company, invoice dated;December 16, terms n10 EOM.;18 Received a $40 credit memorandum from KK?s Supply Company for the return of office;supplies received on December 17.;20 Issued a $500 credit memorandum to Bo Brown for defective (worthless) merchandise sold;on December 15 and returned for credit.;21 Purchased $6,700 of store equipment on credit from KK?s Supply Company, invoice dated;December 21, terms n10 EOM.;22 Received payment from Hanna Seppa for the December 12 sale less the discount.;23 Issued Check No. 623 to Crossland Company in payment of its December 15 invoice less;the discount.;24 Sold merchandise on credit to Shilo Jones, Invoice No. 917, for $1,200 (cost is $600).;24 Issued Check No. 624 to Funk Company in payment of its December 15 invoice less the;return and the discount.;25 Received payment from Bo Brown for the December 15 sale less the return and the discount.;26 Purchased $8,100 of merchandise from Crossland Company, invoice dated December 25;terms 210, n60.;29 Sold a neighboring merchant five boxes of file folders (office supplies) at their cost of $50;cash.;30 Ken Choi, the sole owner of Choi Enterprises, used Check No. 625 to withdraw $2,500 in;cash from the business for personal use.;31 Issued Check No. 626 to Jamie Inman, the company?s only sales employee, in payment of;her $2,020 salary for the last half of December.;31 Issued Check No. 627 to Access Electric Company in payment of its $710 December electric;bill.;31 Cash sales for the last half of the month are $29,600 (cost is $11,200). (Cash sales are;recorded daily but are recorded only twice in this problem to reduce repetitive entries.);Required;1. Record these transactions in the journals provided in the working papers.;2. Verify that amounts that should be posted as individual amounts to the general ledger accounts;have been posted, including posting to the customer and creditor accounts. (Such items are immediately;posted.) Foot and crossfoot the journals and make the month-end postings.;3. Prepare a December 31 trial balance and prove the accuracy of the subsidiary ledgers by preparing;4. Prepare the sales journal, purchase journal,cash reciepts journal, cash disbursement journal, general journal, general ledger, Accounts recieveable ledger, accounts payable, trial balance,schedule of accounts recievable.

 

Paper#25520 | Written in 18-Jul-2015

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