General Ledger Account Number Account Title January 1 Opening Balance

McBride Company has the following opening account balances in its general and subsidiary ledgers on January 1
and uses the periodic inventory system. All accounts have normal debit and credit balances.
GENERAL LEDGER
Account Number Account Title January 1 Opening Balance
101 Cash ₱ 32,750.00

112 Accounts Receivable 13,000
115 Notes Receivable 39,000
120 Inventory 20,000
126 Supplies 1,000
130 Prepaid Insurance 2,000
157 Equipment 6,450
158 Accumulated Depreciation - Equip 1,500
201 Accounts Payable 34,000
301 Owner's Capital 78,700
Schedule of Accounts Receivable (from accounts Schedule of Accounts Payable (from accounts
receivable subsidiary ledger) payable subsidiary ledger)
Customer January 1 Opening Balance Creditor January 1 Opening Balance
R. Kotsay ₱ 1,500.00 S. Otero ₱ 9,000.00
B. Boxberger 7,500.00 R. Rasmus 15,000.00
S. Andrus 4,000.00 D. Baroni 10,000.00
In addition, the following transactions have not been journalized for January 2017.
Jan. 3 Sell merchandise on account to B. Berg ₱3,600, invoice no. 510, and J. Lutz ₱1,800, invoice no.
511.
5 Purchase merchandise on account from S. Colt ₱5,000 and D. Kahn ₱2,700.
7 Receive checks for ₱4,000 from S. Andrus and ₱2,000 from B. Boxberger.
8 Pay freight on merchandise purchased ₱180.
9 Send checks to S. Otero for ₱9,000 and D. Baroni for ₱10,000.
9 Issue credit of ₱300 to J. Lutz for merchandise returned.
10 Cash sales from January 1 to January 10 total ₱15,500. Make one journal entry for these sales.
11 Sell merchandise on account to R. Kotsay for ₱2,900, invoice no. 512, and to S. Andrus ₱900,
invoice no. 513. Post all entries to the subsidiary ledgers.
12 Pay rent of ₱1,000 for January.
13 Receive payment in full from B. Berg and J. Lutz.
15 Withdraw ₱800 cash by I. McBride for personal use.
16 Purchase merchandise on account from D. Baroni for ₱12,000, from S. Otero for ₱13,900, and
from S. Colt for ₱1,500.
17 Pay ₱400 cash for supplies.
18 Return ₱200 of merchandise to S. Otero and receive credit.
21 Issue ₱15,000 note to R. Rasmus in payment of balance due.
21 Receive payment in full from S. Andrus. Post all entries to the subsidiary ledgers.
22 Sell merchandise on account to B. Berg for ₱3,700, invoice no. 514, and to R. Kotsay for ₱800,
invoice no. 515.
23 Send checks to D. Baroni and S. Otero in full payment.
25 Sell merchandise on account to B. Boxberger for ₱3,500, invoice no. 516, and to J. Lutz for ₱6,100,
invoice no. 517.
27 Purchase merchandise on account from D. Baroni for ₱12,500, from D. Kahn for ₱1,200, and from
S. Colt for ₱2,800.
22 Sell merchandise on account to B. Berg for ₱3,700, invoice no. 514, and to R. Kotsay for ₱800,
invoice no. 515.
23 Send checks to D. Baroni and S. Otero in full payment.
25 Sell merchandise on account to B. Boxberger for ₱3,500, invoice no. 516, and to J. Lutz for ₱6,100,
invoice no. 517.
27 Purchase merchandise on account from D. Baroni for ₱12,500, from D. Kahn for ₱1,200, and from
S. Colt for ₱2,800.
28 Pay ₱200 cash for office supplies.

31 Pay sales salaries of ₱4,300 and office salaries of ₱3,600.
Instructions
a. Record the January transactions in the appropriate journal—sales, purchases, cash receipts, cash
payments, and general.
b. Post the journals to the general and subsidiary ledgers. Add and number new accounts in an orderly fashion
as needed.
c. Prepare a trial balance at January 31, 2017, using a worksheet. Complete the worksheet using the following
additional information.
1. Supplies at January 31 total ₱700.

2. Insurance coverage expires on October 31, 2017.
3. Annual depreciation on the equipment is ₱1,500.
4. Interest of ₱30 has accrued on the note payable.
5. Inventory at January 31 is ₱15,000.
d. Prepare a multiple-step income statement and an owner’s equity statement for January and a classified
balance sheet at the end of January.
e. Prepare and post the adjusting and closing entries.
f. Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control
accounts in the general ledger.
ers on January 1
e (from accounts
ledger)
Opening Balance
00.00
00.00
00.00
z ₱1,800, invoice no.
ry for these sales.

to S. Andrus ₱900,
ero for ₱13,900, and
ntry for these sales.
ers.
R. Kotsay for ₱800,
to J. Lutz for ₱6,100,
for ₱1,200, and from

R. Kotsay for ₱800,
to J. Lutz for ₱6,100,
for ₱1,200, and from
al entry for these sales.
s, cash receipts, cash
nts in an orderly fashion
sheet using the following
January and a classified
rs agree with the control

(a)
Sales Journal
S1
Accounts COGS Dr.
Account Invoice Receiv. Dr. Merchandise
Date Debited No. Ref. Sales Cr. Inventory Cr.
1 3-Jan B. Berg 510 3,600 1
2 3-Jan J. Lutz 511 1,800 2
3 11-Jan R. Kotsay 512 2,900 3
4 11-Jan S. Andrus 513 900 4
5 22-Jan B. Boxberger 514 3,700 5
6 22-Jan R. Kotsay 515 800 6
7 25-Jan B. Boxberger 516 3,500 7
8 25-Jan J. Lutz 517 6,100 8
9 9
10 10
11 TOTAL 23,300 11
Purchases Journal
P1
Merchandise
Account Inventory (Dr.)
Date Credited Terms Ref. Acc. Pay (Cr.)
1 5-Jan S. Colt 5,000 1
2 5-Jan D. Kahn 2,700 2
3 16-Jan D. Baroni 12,000 3
4 16-Jan S. Otero 13,900 4
5 16-Jan S. Colt 1,500 5
6 27-Jan D. Baroni 12,500 6
7 27-Jan D. Kahn 1,200 7
8 27-Jan S. Colt 2,800 8
9 9
10 10
11 TOTAL 51,600 11
Cash Receipts Journal
Sales Accounts
Account Cash Discounts Receivable
Date Credited Ref. Dr. Dr. Cr.
1 7-Jan S. Andrus 4000 4000
2 7-Jan B. Boxberger 2000 2000
3 10-Jan Collected cash sales 15500
4 13-Jan B. Berg 3600 3600
5 13-Jan J. Lutz 1500 1500
7 21-Jan S. Andrus 900 900
9
10
11
12
13
14
15 TOTAL 67920 12000
CR1
Other COGS Dr.
Sales Accounts Inventory
Cr. Cr. Cr.
1
2
15500 3
4
5
17500 6
7
22920 8
9
10
11
12
13
14
55920 15
Cash Payments Journal
Other Accounts Office

Account Accounts Payable Supplies
Date Debited Ref. Dr. Dr. Dr.
1 8-Jan Freight-In 180
2 9-Jan S. Otero 9000
3 9-Jan D. Baroni 10000
4 12-Jan rent expense 1000
5 15-Jan I. McBride, Withdrawal 800
6 17-Jan paid suppplies 400
7 23-Jan D. Baroni 12000
8 23-Jan S. Otero 13700
9 28-Jan paid suppplies 200
10 31-Jan paid salaries 7900
11
12
13
14
15 TOTAL 9880 44700 600
CP1
Merchandise
Inventory Cash
Cr. Cr.
180 1
9000 2
10000 3
1000 4
800 5
400 6
12000 7
13700 8
200 9
7900 10
11
12
13
14
55180 15
General Journal G1
Date Account Titles Ref Debit Credit

1 9-Jan Sales Return and Allowances 300 1
2 Accounts Receivable 300 2
3 To record sales return 3
4 4
5 18-Jan Accounts Payable 200 5
6 Purchase Returns and Allowances 200 6
7 To record purchase return 7
8 8
9 21-Jan Accounts Payable 15000 9
10 Notes Payable 15000 10
11 To record accounts payable to notes payable 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
General Journal G2
Date Account Titles and Explanation Ref Debit Credit

1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
General Ledger
Cash No. 101

Date Explanation Ref. Debit Credit Balance
1-Jan beginning balance GL 32750 32,750
31-Jan
total cash receipts CRJ 67920 100,670
31-Jan
total cash credit CPJ 55,180 45,490
Accounts Receivable No. 112

31-Jan sales on account SJ 23300 36,300
31-Jan cash collection from account CP 12,000 24,300
9-Jan return of sales GL 200 24,100
Notes Receivable No. 115

Merchandise Inventory No. 120

31-Jan purchase on account PJ 51600 71,600
Purchase Return and Allowances No.

300 300
Office Supplies No. 125

1-Jan beginning balance 1000 1,000
31-Jan additional purchase 600 1,600
Prepaid Insurance No. 130

Equipment No. 157
Accumulated Depreciation - Equipment No. 158

1-Jan beginning balance GL 1,500 1,500
Notes Payable No. 200

21-Jan accounts payable to notes payabl GJ 15,000 15,000
Accounts Payable No. 201

31-Jan purchases on account PJ 51,600 85,600
31-Jan total cash payment on account CPJ 44700 40,900
18-Jan purchase return 200 40,700
21-Jan accounts payable to notes payabl GJ 15000 25,700
Interest Payable No. 230

M. Bluma, Capital No. 301

M. Bluma, Withdrawal No. 306

15-Jan withdrawal from the owner CPJ 800 800
Income Summary No. 350
Sales No. 401

31-Jan sales on account SJ 23,300 23,300
31-Jan total cash sales CRJ 55,920 79,220
Sales Returns and Allowances No. 412

9-Jan sales returns GL 200 200
Sales Discounts No. 414

Cost of Goods Sold No. 505

Sales Salaries Expense No. 627

31-Jan paid salaries 4300 4,300
Depreciation Expense No. 711

Interest Expense No. 718
Insurance Expense No. 722

Office Salaries Expense No. 727

31-Jan paid salaries CPJ 3600 3,600
Office Supplies Expense No. 728

Rent Expense No. 729

12-Jan paid rent expense CPJ 1000 1,000
Freight-In No.
8-Jan paid freight-in CPJ 180 180
Accounts Receivable Subsidiary Ledger
R. Kotsay
Date Explanation Ref. Debit Credit
1-Jan beginning balance GL 1500
11-Jan
sales on account SJ 2900
22-Jan sales on account SJ 800
B. Boxberger
7-Jan payment collected CRJ 2,000
22-Jan sales on account 3700
25-Jan sales on account 3500
S. Andrus
7-Jan
payment collected CRJ 4,000
11-Jan
sales on account 900
21-Jan payment collection 900
J. Lutz
9-Jan return of merchandise GJ 300

21-Jan payment collection CRJ 1,500
B. Berg
13-Jan payment collected CRJ 3,600
TOTAL BALANCE
Balance
1,500
4,400
5,200
Balance
7,500
5,500
9,200
12,700
Balance
4,000
-
900
-
Balance
1,800
1,500
-
6,100
Balance
3,600
-
24,000
Accounts Payable Subsidiary Ledger
S. Otero
9-Jan
payment on account CPJ 9000 -
16-Jan
purchase on account PJ 13,900 13,900
18-Jan
purchase return 200 13,700
23-Jan
R. Rasmus
21-Jan
accounts payable to note GJ 15000 -
D. Baroni
9-Jan
16-Jan
23-Jan
27-Jan
S. Colt
5-Jan purchase on account PJ 5,000 5,000
D. Khan
TOTAL 25,700
(c)
Work Sheet
For the Month Ended January
Trial Balance Adjustments

Account Titles Dr. Cr. Dr.
1 Cash 45,490
4 Merchandise Inventory 71,600
5 Purchase Return and Allowances 200
6 Office Supplies 1,600
8 Equipment 6,450
9 Accumulated Depreciation - Equipment 1,500
10 Notes Payable 15,000
12 Interest Payable -
14 M. Bluma, Capital 78,700
15 M. Bluma, Drawing 800
16 Sales 79,220
17 Sales Returns and Allowances 300
18 Sales Discounts -
19 Cost of Goods Sold 56,600
20 Sales Salaries Expense 4,300
21 Office Salaries Expense 3,600
23 Rent Expense 1,000
25 Totals
26 Office Supplies Expense 900
27 Insurance Expense 222
28 Depreciation Expense 125
30 Freight-In 180
31 Interest Expense 30
32 Totals
33 Net Income
Totals 200,320 200,320 57,877
Work Sheet
For the Month Ended January 31,2008
Adjusted
Adjustments Trial Balance Income Statement Balance Sheet
Cr. Dr. Cr Dr. Cr Dr.
45,490 45,490
24,000 24,000
39,000 39,000
56,600 15,000 15,000
200 200
900 700 700
222 1,778 1,778
6,450 6,450
125 1,625
15,000
25,700
30 30
78,700
800 800
79,220 79,220
300 300
-
56,600 56,600
4,300 4,300
3,600 3,600
1,000 1,000
900 900
222 222
125 125
180 180
30 30
67,257 79,420 133,218
12,163
57,877 200,475 200,475 79,220 79,220 133,218
Balance Sheet
Cr.
1
2
3
4
5
6
7
8
1,625 9
15,000 10
25,700 11
30 12
78,700 14
15
16
17
18
19
20
21
23
25
26
27
28
30
31
121,055 32
12,163 33
133,218
(d)
Income Statement
For the Month Ended January 31, 2008
1 Sales 79,220
2 Less:
3 Sales Returns and Allowances 300
4 Sales Discount 0 300
5 Net Sales 78,920
6 Cost of Goods Sold 56,600
7 Purchase Returns and Allowances 200
8 Gross Margin 22,520
9 Operating Expenses
10 Sales Salaries 4,300
11 Office Salaries Expense 3,600
12 Rent Expense 1,000
13 Total Selling Expense 8,900
14 General Administrative Expense
15 Office Supplies Expense 900
16 Depreciation Expense 125
17 Insurance Expense 222
18 Freight-in 180
19 Total General Administrative Expense 1,427 10,327
20 Total Operating Expense 12,193
21 Income Statement
22 Other Revenue and Expenses
23 Interest Revenue 0
24 Interest Expense 30
25 Total Revenue and Expense 30
26 Net Income 12,163
27
28
29
30
31
32
33
34
35
36
37
38
39
40
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
(d) (Continued)
Owner's Equity Statement

For the Month Ended January 31, 2008
1 Owner's Capital, January 01
2 Add: Investments 78,700
3 Net Income 12,163
4 Total 90,863
5 Less: Drawings 800
6 Owner's Capital, January 31 Total 90,063
Balance Sheet
January 31, 2008
1 Assets
2 Cash 45,490
5 Merchandise Inventory 15,000
6 Office Supplies 700
8 Equipment 6,450
9 Less: Accumulated Depreciation - Equipment 1,625 4,825
10 Total Assets 130,793
11
12
13
14
15
16 Liabilities and Owner's Equity
17 Liabilities
18 Notes Payable 15,000
20 Interest Payable 30
21 Total Liabilities 40,730
22 Owner's Equity
23 Owner's Capital 90,063
24 Total Liabilities and Owner's Equity 130,793
25
26
27
28
29
30
Statement of Cash Flows
January 31, 2008
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4
5
6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Prepare Vertical Analysis
Compute for the following ratios:
1. Current Ratio
2. Profit Margin
3. Asset Turnover
4. Return on Asset
5. Return on Equity
6. Debt to Equity Ratio
7. Debt to Total Asset Ratio
Show Computations
(f)
Post-Closing Trial Balance

January 31, 2008
Debit Credit
1 Cash 1
2 Notes Receivable 2
3 Accounts Receivable 3
4 Merchandise Inventory 4
5 Office Supplies 5
6 Prepaid Insurance 6
7 Equipment 7
8 Accumulated Depreciation - Equipment 8
9 Notes Payable 9
10 Accounts Payable 10
11 Interest Payable 11
12 M. Bluma, Capital 12
13 13
14 14
15 15
1 Accounts Receivable balance: 1

2 2
3 Subsidiary account balances: 3
4 4
5 5
6 6
7 7
8 8
9 9
10 Accounts Payable balance: 10
11 11
12 Subsidiary account balances: 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19

General Ledger Account Number Account Title January 1 Opening Balance

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

General Ledger Account Number Account Title January 1 Opening Balance

Uploaded by

Copyright:

Available Formats

McBride Company has the following opening account balances in its general and subsidiary ledgers on January 1

101 Cash ₱ 32,750.00

28 Pay ₱200 cash for office supplies.

1. Supplies at January 31 total ₱700.

z ₱1,800, invoice no.

ry for these sales.

ero for ₱13,900, and

ntry for these sales.

to J. Lutz for ₱6,100,

for ₱1,200, and from

to J. Lutz for ₱6,100,

for ₱1,200, and from

al entry for these sales.

s, cash receipts, cash

nts in an orderly fashion

sheet using the following

January and a classified

rs agree with the control

Other Accounts Office

Date Account Titles Ref Debit Credit

Date Account Titles and Explanation Ref Debit Credit

Cash No. 101

Accounts Receivable No. 112

Notes Receivable No. 115

Merchandise Inventory No. 120

Purchase Return and Allowances No.

Office Supplies No. 125

Prepaid Insurance No. 130

Accumulated Depreciation - Equipment No. 158

Notes Payable No. 200

Accounts Payable No. 201

Interest Payable No. 230

M. Bluma, Capital No. 301

M. Bluma, Withdrawal No. 306

Sales No. 401

Sales Returns and Allowances No. 412

Sales Discounts No. 414

Cost of Goods Sold No. 505

Sales Salaries Expense No. 627

Depreciation Expense No. 711

Insurance Expense No. 722

Office Salaries Expense No. 727

Office Supplies Expense No. 728

Rent Expense No. 729

9-Jan return of merchandise GJ 300

Trial Balance Adjustments

Owner's Equity Statement

Post-Closing Trial Balance

1 Accounts Receivable balance: 1

You might also like