SJSALES JOURNALPage No. 6INVOICEPOSTACCTS. REC. DR.COST OF SALE DR.DATENO.ACCOUNT DEBITEDREFSALES CR.INVENTORY CR.112233445566 CRJCASH RECEIPTS JOURNALPage No. 4POSTOTHERACCOUNTSCOST/SOLD DR.SALESCASHDATEACCOUNT CREDITEDREFACCTS - CR.SALES - CRREC. - CR.INVENTORY CR.DISC. - DR.DR.112233445566778899 PJPURCHASES JOURNALPage No. 11POSTOTHERACCOUNTSSTOREMERCH.DATEACCOUNT CREDITEDREF(SUNDRY)PAYABLESUPPLIESINVENORYACCTS - DR.CR.DR.DR.1122334455667788 CPJCASH PAYMENTS JOURNALPage No.8CK.POSTOTHERACCOUNTSMERCH.DATENO.ACCOUNT DEBITEDREF(SUNDRY)PAYABLEINVENTORYCASHACCTS - DR.DR.CR.CR.1122334455667788991010111112121313141415151616 JournalJOURNALPage No. 53POSTDATEDESCRIPTIONREFDEBITCREDIT11223344556677889910101111121213131414151516161717181819192020212122222323242425252626272728282929303031313232333334343535363637373838393940404141JOURNALPage No. 54POSTDATEDESCRIPTIONREFDEBITCREDIT11223344556677889910101111121213131414151516161717181819192020212122222323242425252626272728282929303031313232333334343535363637373838393940404141 InventoryInventory Control SheetTV A:52 inch Flat Screen TelevisionPurchasesCost of Goods Sold (Sales)INVENTORYDateUnitscost per unitAmountUnitscost per unitAmountUnitscost per unitAmount11/30/1220$2,000$40,000TV B:68 inch Flat Screen TelevisionPurchasesCost of Goods Sold (Sales)INVENTORYDateUnitscost per unitAmountUnitscost per unitAmountUnitscost per unitAmount11/30/1210$3,000$30,000TV C:72 inch Flat Screen TelevisionPurchasesCost of Goods Sold (Sales)INVENTORYDateUnitscost per unitAmountUnitscost per unitAmountUnitscost per unitAmount11/30/128$3,500$28,000PS D:6 foot x 10 foot Projector SystemPurchasesCost of Goods Sold (Sales)INVENTORYDateUnitscost per unitAmountUnitscost per unitAmountUnitscost per unitAmount11/30/125$5,180$25,900Ending Inventory Value: AR-SUBACCOUNTS RECEIVABLE SUBSIDIARY LEDGER(CUSTOMERS)Customer Name: Albert Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDITBALANCE11/20/12SJ 55,8005,800Customer Name: Marie Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDITBALANCE11/20/12SJ 57,5007,500Customer Name: Cameron Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDITBALANCE11/15/12SJ 58,7008,700Customer Name: McKenzie Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDITBALANCE11/27/12SJ 512,25012,250Customer Name: Randall Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDITBALANCE12/30/12sj624,50024,500 AP-SUBACCOUNTS PAYABLE SUBSIDIARY LEDGER(VENDERS)Vendor Name: Prince Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDITBALANCE11/26/12PJ 109,7009,700Vendor Name: Joseph Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDITBALANCE11/16/12PJ 106,1006,100Vendor Name: Elisha Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDITBALANCE11/29/12PJ 105,6505,650Vendor Name: Matt Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDITBALANCE12/11/12580580Vendor Name:POSTRUNNINGDATETRANSACTIONREFDEBITCREDITBALANCE SCH-SUBSchedule of Accounts ReceivableTotal Accounts ReceivableSchedule of Accounts PayableTotal Accounts Payable B-S LedgerGENERAL LEDGERBalance Sheet AccountsCashACCOUNT NO.110POSTBAL.

1. SJSALES JOURNALPage No. 6INVOICEPOSTACCTS. REC.
DR.COST OF SALE DR.DATENO.ACCOUNT
DEBITEDREFSALES CR.INVENTORY CR.112233445566
CRJCASH RECEIPTS JOURNALPage No.
4POSTOTHERACCOUNTSCOST/SOLD
DR.SALESCASHDATEACCOUNT CREDITEDREFACCTS -
CR.SALES - CRREC. - CR.INVENTORY CR.DISC. -
DR.DR.112233445566778899
PJPURCHASES JOURNALPage No.
11POSTOTHERACCOUNTSSTOREMERCH.DATEACCOUNT
CREDITEDREF(SUNDRY)PAYABLESUPPLIESINVENORYA
CCTS - DR.CR.DR.DR.1122334455667788
CPJCASH PAYMENTS JOURNALPage
No.8CK.POSTOTHERACCOUNTSMERCH.DATENO.ACCOUN
T
DEBITEDREF(SUNDRY)PAYABLEINVENTORYCASHACCT
S -
DR.DR.CR.CR.1122334455667788991010111112121313141415
151616
JournalJOURNALPage No.
53POSTDATEDESCRIPTIONREFDEBITCREDIT11223344556
67788991010111112121313141415151616171718181919202021
21222223232424252526262727282829293030313132323333343
43535363637373838393940404141JOURNALPage No.
54POSTDATEDESCRIPTIONREFDEBITCREDIT11223344556
67788991010111112121313141415151616171718181919202021
21222223232424252526262727282829293030313132323333343
43535363637373838393940404141
InventoryInventory Control SheetTV A:52 inch Flat Screen
TelevisionPurchasesCost of Goods Sold
(Sales)INVENTORYDateUnitscost per unitAmountUnitscost per
unitAmountUnitscost per
unitAmount11/30/1220$2,000$40,000TV B:68 inch Flat Screen
TelevisionPurchasesCost of Goods Sold

2. (Sales)INVENTORYDateUnitscost per unitAmountUnitscost per
unitAmountUnitscost per
unitAmount11/30/1210$3,000$30,000TV C:72 inch Flat Screen
TelevisionPurchasesCost of Goods Sold
(Sales)INVENTORYDateUnitscost per unitAmountUnitscost per
unitAmountUnitscost per
unitAmount11/30/128$3,500$28,000PS D:6 foot x 10 foot
Projector SystemPurchasesCost of Goods Sold
(Sales)INVENTORYDateUnitscost per unitAmountUnitscost per
unitAmountUnitscost per
unitAmount11/30/125$5,180$25,900Ending Inventory Value:
AR-SUBACCOUNTS RECEIVABLE SUBSIDIARY
LEDGER(CUSTOMERS)Customer Name: Albert
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/20/12SJ 55,8005,800Customer Name: Marie
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/20/12SJ 57,5007,500Customer Name: Cameron
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/15/12SJ 58,7008,700Customer Name: McKenzie
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/27/12SJ 512,25012,250Customer Name: Randall
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE12/30/12sj624,50024,500
AP-SUBACCOUNTS PAYABLE SUBSIDIARY
LEDGER(VENDERS)Vendor Name: Prince
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/26/12PJ 109,7009,700Vendor Name: Joseph
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/16/12PJ 106,1006,100Vendor Name: Elisha
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/29/12PJ 105,6505,650Vendor Name: Matt
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE12/11/12580580Vendor
Name:POSTRUNNINGDATETRANSACTIONREFDEBITCRED
ITBALANCE
SCH-SUBSchedule of Accounts ReceivableTotal Accounts

3. ReceivableSchedule of Accounts PayableTotal Accounts
Payable
B-S LedgerGENERAL LEDGERBalance Sheet
AccountsCashACCOUNT
NO.110POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITAccounts ReceivableACCOUNT
NO.112POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITAllowance for Doubtful AccountsACCOUNT
NO.113POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITMerchandise InventoryACCOUNT
NO.115POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITPrepaid InsuranceACCOUNT
NO.116POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITStore SuppliesACCOUNT
NO.117POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITStore EquipmentACCOUNT
NO.123POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITAccumulated Depreciation-Store EquipmentACCOUNT
NO.124POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITAccounts PayableACCOUNT
NO.210POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITSalaries PayableACCOUNT
NO.211POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITInterest PayableACCOUNT
NO.218POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITNote PayableACCOUNT
NO.220POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITD. Williams, CapitalACCOUNT
NO.310POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITD. Williams, DrawingACCOUNT
NO.311POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITIncome SummaryACCOUNT
NO.312POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDIT
I-S LedgerGENERAL LEDGERIncome Statement
AccountsSalesACCOUNT

4. NO.410POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDIT11/30/12853,44512/31/12s90,125943,57012.31/12cr18,
000961,570Sales Returns and AllowancesACCOUNT
NO.411POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDIT11/30/1220,02012/26/1260020,62012/14/123,50024,120
Sales DiscountsACCOUNT
NO.412POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDIT11/30/1213,20012/31/1293614,136Cost of Merchandise
SoldACCOUNT
NO.510POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDIT11/30/12414,57512/31/1251,700466,27512/31/1210,360
476,63512.14/122,000474,635Sales Salaries ExpenseACCOUNT
NO.520POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITAdvertising ExpenseACCOUNT
NO.521POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITDepreciation ExpenseACCOUNT
NO.522POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITStore Supplies ExpenseACCOUNT
NO.523POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITMiscellaneous Selling ExpenseACCOUNT
NO.529POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITOffice Salaries ExpenseACCOUNT
NO.530POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITRent ExpenseACCOUNT
NO.531POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITInsurance ExpenseACCOUNT
NO.532POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITBad Debt ExpenseACCOUNT
NO.533POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITMiscellaneous Administrative ExpenseACCOUNT
NO.539POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITInterest ExpenseACCOUNT
NO.550POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDIT
WkSheetWorksheetUnadjustedAdjustedIncomeEquity
StatementAccount TitleTrial BalanceAdjustmentsTrial

5. BalanceStatementand Balance
SheetDr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.1Cash12Accounts
Receivable23Allow for Doubtful Accts34Merchandise
Inventory45Prepaid Insurance56Store Supplies67Store
Equipment78Accm. Deprec-Store Eq.89Accounts
Payable910Salaries Payable1011Interest Payable1112Note
Payable (Due 2017)1213D. Williams, Capital1314D. Williams,
Drawing1415Sales1516Sales Returns & Allow.1617Sales
Discounts1718Cost of Merchandise Sold1819Sales Salaries
Exp.1920Advertising Exp.2021Depreciation Exp.2122Store
Supplies Exp.2223Misc. Selling Exp.2324Office Salaries
Exp.2425Rent Exp.2527Insurance Exp.2726Bad Debt
Exp.2628Misc. Administrative Exp.2829Interest
Expense293030272728282929
Income StmtIncome Statement
Stmt EquityStatement of Owner's Equity
Bal SheetBalance Sheet
Post TrialPost-Closing Trial BalanceACCOUNT
TITLEDEBITCREDIT
Sheet1
Check Figures for Accounting Project:
Cash Receipts Journal; Cash Column: 97,939
Unadjusted Trial Balance Total: 1,080,620
Net Income: 264,350
Post Closing Trial Balance: 347,490
Foundations of Accounting I
Accounting Project

6. Written by: Karen Pitsch
David’s Entertainment is a merchandising business. Their
account balances as of November 30, 2012 (unless otherwise
indicated), are as follows:
110
Cash
$ 73,920
112
Accounts Receivable
34,250
113
Allowance for Doubtful Accounts
11,000
115
Merchandise Inventory

7. 123,900
116
Prepaid Insurance
3,750
117
Store Supplies
2,850
123
Store Equipment
100,800
124
Accumulated Depreciation-Store Equipment
20,160

8. 210
Accounts Payable
21,450
211
Salaries Payable
0
218
Interest Payable
0
220
Note Payable (Due 2017)
15,000

9. 310
D. Williams, Capital (January 1, 2012)
73,260
311
D. Williams, Drawing
50,000
312
Income Summary
0
410
Sales
853,445

10. 411
Sales Returns and Allowances
20,020
412
Sales Discounts
13,200
510
Cost of Merchandise Sold
414,575
520
Sales Salaries Expense
74,400
521
Advertising Expense

11. 18,000
522
Depreciation Expense
0
523
Store Supplies Expense
0
529
Miscellaneous Selling Expense
2,800
530
Office Salaries Expense
40,500

12. 531
Rent Expense
18,600
532
Insurance Expense
0
533
Bad Debt Expense
0
539
Miscellaneous Administrative Expense
1,650
550
Interest Expense

13. 1,100
David’s Entertainment uses the perpetual inventory system and
the First-in, First-out costing method. Transportation-in and
purchase discounts should be added to the Inventory Control
Sheet, but since this will complicate the computation of the
First-in, First-out costing method, please ignore this step in the
process. They also use the Allowance Method for bad debt.
The Accounts Receivable and Accounts Payable Subsidiary
Ledgers along with the Inventory Control Sheet should be
updated as each transaction affects them (daily).
David’s Entertainment sells four types of television
entertainment units.
The sale prices of each are:
TV A: $3,500
TV B: $5,250
TV C: $6,125
PS D: $9,000
During December, the last month of the accounting year, the
following transactions were completed:
Dec.
1. Issued check number 2632 for the December rent, $2,600.
3. Purchased three TV C units on account from Prince Co.,

14. terms 2/10, n/30, FOB shipping point, $11,100.
4. Issued check number 2633 to pay the transportation changes
on purchase of December 3, $400. (NOTE: Do not include
shipping and purchase discounts to the Inventory Control sheet
for this project.)
6. Sold four TV A and four TV B on account to Albert Co.,
invoice 891, terms 2/10, n/30, FOB shipping point.
10. Sold two projector systems for cash.
11. Purchased store supplies on account from Matt Co., terms
n/30, $580.
13. Issued check to Prince Co. number 2634 for the full amount
due, less discount allowed.
14. Issued credit memo for one TV A unit returned on sale of
December 6.
15. Issued check number 2635 for advertising expense for last
half of December, $1,500.
16. Received cash from Albert Co. for the full amount due (less
return of December 14 and discount).
19. Issued check number 2636 to buy two TV C units, $7,600.
19. Issued check number 2637 for $6,100 to Joseph Co. on
account.
20. Sold five TV C units on account to Cameron Co., invoice
number
892, terms 1/10, n/30, FOB shipping point.

15. 20. For the convenience of the customer, issued check number
2638 for shipping charges on sale of December 20, $700.
21. Received $12,250 cash from McKenzie Co. on account, no
discount.
21. Purchased three projector systems on account from Elisha
Co., terms 1/10, n/30, FOB destination, $15,600.
24. Received notification that Marie Co. has been granted
bankruptcy with no
amount of recovery. We are to write-off her amount due.
(Note: See page
402 for entry required.)
25. Issued a debit memo for return of $5,200 because of a
damaged projection
system purchased on December 21, receiving credit from
the seller.
26. Issued check number 2639 for refund of cash on sales made
for cash, $600. (Customer was going to return goods until an
allowance was arranged.)
27. Issued check number 2640 for sales salaries of $1,750 and
office
salaries of $950.
28. Purchased store equipment on account from Matt Co., terms
n/30, FOB

16. destination, $1,200.
29. Issued check number 2641 for store supplies, $470.
30. Sold four TV C units on account to Randall Co., invoice
number 893,
terms 2/10, n/30, FOB shipping point.
30. Received cash from sale of December 20, less discount,
plus transportation
paid on December 20. (Round calculations to the nearest
dollar.)
30. Issued check number 2642 for purchase of December 21,
less return
of December 25 and discount.
30. Issued a debit memo for $300 of the purchase returned from
December 28.
Instructions:
1. Enter the balances of each of the accounts in the appropriate
balance column of a four-column account (General Ledger).
Write Balance in the item section, and place a check mark (x) in
the Post Reference column.
2. Journalize the transactions in a sales journal, purchases
journal, cash receipts journal, cash payments journal, or general
journal as illustrated in chapter 7. Also post to the Accounts
Receivable and Accounts Payable Subsidiary ledgers and
Inventory Control Sheet as needed.

17. 3. Total each column on the special journals and prove the
journal.
4. Post the totals of the account named columns and
individually post the “other” columns as well to the General
Ledger.
5. Prepare the Schedule of Accounts Receivable and the
Schedule of Accounts Payable (their total amount must equal
the amount in their controlling general ledger account).
6. Prepare the unadjusted trial balance on the worksheet.
7. Complete the worksheet for the year ended December 31,
2012, using the following adjustment data:
a. Merchandise inventory on December 31
$90,800
b. Insurance expired during the year
1,250
c. Store supplies on hand on December 31
975
d. Depreciation for the current year needs to be calculated.
The business uses
the Straight-line method, the store equipment has a

18. useful life of 10 years
with no salvage value. (NOTE: the purchase and
return will not be included
as the dates of the transactions were after the 15th
of the month).
e. Accrued salaries on December 31:
Sales salaries
$1,400
Office salaries
760
2,160
f. The note payable terms are at 8%, payment is not being
made until Jan. 3, 2013. Interest must be recognized for one
month.
g. Net realizable value of Accounts Receivable is determined to
be $27,950.
8. Prepare a multiple-step income statement, a statement of
owner’s equity, and a
classified balance sheet in good form. (Recommend review of

19. “Current Liabilities” on pages 166 & 167 and “Current
Maturities of Long-term Debt” on page 480.)
9. Journalize and post the adjusting entries.
10. Journalize and post the closing entries. Indicate closed
accounts by inserting a line
in both balance columns opposite the closing entry.
11. Prepare a post-closing trial balance.