Presented below are the sales and cash receipts journals for Wicked Co. for its first month of…

Presented below are the sales and cash receipts journals for Wicked Co. for its first month of operations.

SALES JOURNAL

Date

Account Debited

Accounts Receivable Dr.Sales Cr.

Cost of Goods Sold Dr.
Merchandise Inventory Cr.

Feb. 3

C. Lion

4,000

2,400

9

S. Crow

5,000

3,000

12

T. Mann

6,500

3,900

26

W. Oz

5,500

3,300

21,000

12,600

CASH RECEIPTS JOURNAL

Cash
Dr.

Sales
Discounts
Dr.

Accounts
Receivable
Cr.

Sales
Cr.

Other
Accounts
Cr.

Cost of Goods Sold Dr.
Merchandise Inventory Cr.

Date

Account Credited

23,000

Feb. 1

B.Wicked, Capital

23,000

2

4,500

4,500

2,700

13

C. Lion

3,960

40

4,000

18

Merchandise Inventory

120

120

26

S. Crow

5,000

5,000

36,580

40

9,000

4,500

23,120

2,700

In addition, the following transactions have not been journalized for February 2010.

Feb. 2

Purchased merchandise on account from J. Garland for $3,600, terms 2/10, n/30.

7

Purchased merchandise on account from B. Lahr for $23,000, terms 1/10, n/30.

9

Paid cash of $980 for purchase of supplies.

12

Paid $3,528 to J. Garland in payment for $3,600 invoice, less 2% discount.

15

Purchased equipment for $5,500 cash.

16

Purchased merchandise on account from D. Gale $1,900, terms 2/10, n/30.

17

Paid $22,770 to B. Lahr in payment of $23,000 invoice, less 1% discount.

20

B.Wicked withdrew cash of $800 from business for personal use.

21

Purchased merchandise on account from Kansas Company for $6,000, terms 1/10, n/30.

28

Paid $1,900 to D. Gale in payment of $1,900 invoice.

Instructions

(a) Open the following accounts in the general ledger.

101 Cash

120 Merchandise Inventory

112 Accounts Receivable

126 Supplies

157 Equipment

401 Sales

158 Accumulated Depreciation—Equipment

414 Sales Discounts

201 Accounts Payable

505 Cost of Goods Sold

301 B.Wicked, Capital

631 Supplies Expense

306 B.Wicked, Drawing

711 Depreciation Expense

(b) Journalize the transactions that have not been journalized in a one-column purchases journal and the cash payments journal.

(c) Post to the accounts receivable and accounts payable subsidiary ledgers. Follow the sequence of transactions as shown in the problem.

(d) Post the individual entries and totals to the general ledger.

(e) Prepare a trial balance at February 28, 2010.

(f) Determine that the subsidiary ledgers agree with the control accounts in the general ledger.

(g) The following adjustments at the end of February are necessary.

(1) A count of supplies indicates that $200 is still on hand.

(2) Depreciation on equipment for February is $150.

Prepare the adjusting entries and then post the adjusting entries to the general ledger.

(h) Prepare an adjusted trial balance at February 28, 2010.

"We Offer Paper Writing Services on all Disciplines, Make an Order Now and we will be Glad to Help"