Etienne Martin, the owner of the Family Shoe Store, has hired you as the bookkeeper. (a) Set up ledger accounts in the order stated below. The Bank account will require two ledger sheets; all others...

1 answer below »

Etienne Martin, the owner of the Family Shoe Store, has hired you as the bookkeeper.


(a) Set up ledger accounts in the order stated below. The Bank account will require two ledger sheets; all others will require only one each. Assign an appropriate account number to each account using the account classification guide shown in the Chart of Accounts section of this chapter. Bank; A/R W.A. Crow; A/R R.G. Dragovic; A/R W.F. Lobato; Delivery Truck; Store Fixtures; A/P Canada Auto Sales; A/P Dominion Shoe Co.; A/P Royal Stationery; Capital, E. Martin; Sales; Purchases; General Expense; Rent Expense; and Supplies Expense.


(b) Record the following transactions in the General Journal. All payments are to be made by cheque, beginning with Cheque #1. Record the cheque number issued in the explanation portion of the entry. 20— May 1 Martin invested $35,000 cash in his business.


2 Signed rental agreement today with Pelletier Properties for the use of store space for $1,600 per month. (No entry will be made until the rent is paid because no values have yet been exchanged.) The first rent cheque will be issued on May 7.


3 Bought store fixtures from O’Connor & Day for $16,500. Paid by cheque.


3 Bought wrapping materials from Business Warehouse, $145. Paid by cheque.


4 Bought office supplies for $186.70 from Royal Stationery, Sales Invoice #223; terms net 30 days.


4 Bought used delivery truck for $12,000 from Canada Auto Sales. Purchase Invoice #773; terms net 30 days.


5 Bought merchandise from Dominion Shoe Co., $2,450. Purchase Invoice #523; terms net 10 days.


6 Cash sales, $624.75. 7 Issued cheque to pay rent for May.


9 Sold shoes on account to W.A. Crow, $69.95. Sales Invoice #1; terms net 15 days.


10 Cash sales, $924.75.


11 Shoe sales on credit: W.A. Crow, $47.65; R.G. Dragovic, $63.50; W.F. Lobato, $40. Sales Invoice #2, 3, and 4; terms net 15 days. (Record this as a compound entry.)


13 Bought additional merchandise on account from Dominion Shoe Co., $1,500. Purchase Invoice #587; terms net 30 days.


15 Issued cheque for $2,450 to Dominion Shoe Co. in payment of Invoice #523.


16 Cash sales, $1,027.50.


17 Shoe sales on credit: W.F. Lobato, $53.50; R.G. Dragovic, $42.40; W.A. Crow, $39.98. Sales Invoices #5, 6, and 7; terms net 15 days.


18 Received cheque from W.F. Lobato in partial payment of his account, $35.


19 Issued cheque as partial payment to Canada Auto Sales, $6,000.


20 Cash sales, $946.98.


23 Paid Dominion Shoe Co. $850 on account.


23 Received cheques on account from W.F. Lobato, $35; W.A. Crow, $69.95; and R.G. Dragovic, $63.50.


25 Sales on credit: R.G. Dragovic, $72.98; and W.F. Lobato, $44.65. Sales Invoices #8 and 9; terms net 15 days.


31 Received cheque from W.A. Crow on account, $20.


(c) Post all transactions to the ledger accounts.


(d) Prepare a trial balance in proper form.




Answered 127 days AfterMay 19, 2022

Answer To: Etienne Martin, the owner of the Family Shoe Store, has hired you as the bookkeeper. (a) Set up...

Casumano answered on Sep 23 2022
63 Votes
General Journal
                GENERAL JOURNAL            PAGE
                            $1.00    $2.00
                    DOC.    POST.    GENERAL
        DATE        ACCOUNT TITLE    NO.    REF.    DEBIT    CREDIT
    1    1-May        Bank            $35,000.00                            Bank
    2            Capital - E. Martin                $35,000.00                        Accounts Receivable
                For the capital invested by E.Mart
in on May 1st                                        Lobato - Delivery Truck
    3    3-May        Stores Fixtures            $16,500.00                            Store Fixtures
    4            Bank - O-Conner & Day - Cheque No 1                $16,500.00                        Accounts Payable
                For purchase of Fixtures from O'Conner - paid by cheque                                        Stationery
    5    3-May        General Expense - Wrapping Materials            $145.00                            Capital - E. Martin
    6            Bank - Business Warehouse - Cheque No 2                $145.00                        Sales
                For purchase of Wrapping Materials - Paid by cheque                                         Purchases
    7    4-May        Office Supplies            $186.70                            General Expenses
    8            A/P - Royal Stationeries                $186.70                        Rent Expenses
                For purchase of office Supplies wide Invoice #223 - Net 30 days                                        Suppliers Expenses
    9    4-May        Delivery Truck            $12,000.00
    10            A/P - Canada Auto Sales                $12,000.00
                For purchase of Delivery Truck wide Invoice #773 - Net 30 days
    11    5-May        Purchases            $2,450.00
    12            A/P - Dominion Shoe Company                $2,450.00
                For purchase of Merchandise from Dominion Shoe Company wide Invoice #523 - Net 10 days
    13    7-May        Rent Expenses            $1,600.00
    14            Bank - Pelletier Properties - Bank - Cheque No 3                $1,600.00
                For Rent paid for the month of May - Paid by cheque
    15    9-May        A / R - WA Crow            $69.95
    16            Sale of Shoes - Credit                $69.95
                For Sales of shoes on account - Net credit 15 days
    17    10-May        Bank             $924.75
    18            Sale of Shoes - Cash                $924.75
                For Sales of shoes on Cash
    15    9-May        A / R - WA Crow            $47.65
    16            A / R - R.G. Dragovic            $63.50
    17            A / R - W.F. Lobato            $40.00
    18            Sale of Shoes - On Credit                $151.15
                For Sales of shoes on account - wide invoice no's 2, 3 & 4 - Net credit 15 days
    19    13-May        Purchases - Credit            $1,500.00
    20            A/P - Dominion Shoe Company                $1,500.00
                For purchase of Merchandise from Dominion Shoe Company wide Invoice #587 - Net 30 days
    21    15-May        A/P - Dominion Shoe Company            $2,450.00
    22            Bank - Dominion Shoe Co - Bank - Cheque No 4                $2,450.00
                For the payment of purchases on account - wide cheque no 4
    23    16-May        Bank             $1,027.50
    24            Sale of Shoes - Cash                $1,027.50
                For Sales of shoes on Cash
    25    17-May        A / R - WA Crow            $39.98
    26            A / R - R.G. Dragovic            $42.40
    27            A / R - W.F. Lobato            $53.50
    28            Sale of Shoes - Credit                $135.88
                For Sales of shoes on account - wide invoice no's 5, 6 & 7 - Net credit 15 days
    29    18-May        Bank - W.F. Lobato            $35.00
    30            A / R - W.F. Lobato                $35.00
                For receipt of payment from W.F....
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here