ACC 121 Project

(Usetheworkingpapersprovidedbyyourinstructortoworkthispracticesetproject.)

BlumaCo.usesaperpetualinventorysystemandbothanaccountsreceivableandanaccountspayable
subsidiaryledger.BalancesrelatedtoboththegeneralledgerandthesubsidiaryledgerforBlumaareindicated
intheworkingpapers.BelowareaseriesoftransactionsforBlumaCo.forthemonthofJanuary.Creditsales
termsare2/10,n/30.Thecostofallmerchandisesoldwas62%ofthesalesprice.
Jan.3 SellmerchandiseonaccounttoB.Richey$3,100,invoiceno.510,andtoJ.Forbes$1,800,invoice
no.511.
5 PurchasemerchandisefromS.Vogel$5,000andD.Lynch$2,200,termsn/30.
7 ReceivechecksfromS.LaDew$4,000andB.Garcia$2,000afterdiscountperiodhaslapsed.
8 Payfreightonmerchandisepurchased$235.
9 SendcheckstoS.Hoytfor$9,000less2%cashdiscount,andtoD.Omarafor$11,000less1%cash
discount.
9 Issuecreditof$300toJ.Forbesformerchandisereturned.
10 Summarydailycashsalestotal$15,500.
11 SellmerchandiseonaccounttoR.Dvorak$1,600,invoiceno.512,andtoS.LaDew$900,invoice
no.513.
12 Payrentof$1,000forJanuary.
13 ReceivepaymentinfullfromB.RicheyandJ.Forbeslesscashdiscounts.
15 Withdraw$800cashbyM.Blumaforpersonaluse.
15 Postallentriestothesubsidiaryledgers.
16 PurchasemerchandisefromD.Omara$18,000,terms1/10,n/30;S.Hoyt$14,200,terms2/10,n/30;
andS.Vogel$1,500,termsn/30.
17 Pay$400cashforofficesupplies.
18 Return$200ofmerchandisetoS.Hoytandreceivecredit.
20 Summarydailycashsalestotal$20,100.
21 Issue$15,000note,maturingin90days,toR.Mosesinpaymentofbalancedue.
21 ReceivepaymentinfullfromS.LaDewlesscashdiscount.
22 SellmerchandiseonaccounttoB.Richey$2,700,invoiceno.514,andtoR.Dvorak$1,300,invoice
no.515.
22 Postallentriestothesubsidiaryledgers.
23 SendcheckstoD.OmaraandS.Hoytinfullpaymentlesscashdiscounts.
25 SellmerchandiseonaccounttoB.Garcia$3,500,invoiceno.516,andtoJ.Forbes$6,100,invoice
no.517.
27 PurchasemerchandisefromD.Omara$14,500,terms1/10,n/30;D.Lynch$1,200,termsn/30;and
S.Vogel$5,400,termsn/30.
27 Postallentriestothesubsidiaryledgers.
28 Pay$200cashforofficesupplies.
31 Summarydailycashsalestotal$21,300.

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 31 Paytotalsalariesof$8,100.
(continued)

Instructions
(a)RecordtheJanuarytransactionsinasalesjournal,asinglecolumnpurchasesjournal,acashreceipts
journal,acashpaymentsjournal,andatwocolumngeneraljournal.

(bPostthejournalstothegeneralledger.
)
(c)PrepareatrialbalanceatJanuary31,2016,inthetrialbalancecolumnsoftheworksheet.Completethe
worksheetusingthefollowingadditionalinformation.

1 OfficesuppliesatJanuary31total$900.
.
2 InsurancecoverageexpiresonOctober31,2016.
.
3 Annualdepreciationontheequipmentis$1,500.
.
4 Interestof$50hasaccruedonthenotepayable.
.

(dPrepareamultiplestepincomestatementandanowner'sequitystatementforJanuaryandaclassified
)balancesheetattheendofJanuary.

(ePrepareandpostadjustingandclosingentries.
)
(f)Prepareapostclosingtrialbalance,anddeterminewhetherthesubsidiaryledgersagreewiththecontrol
accountsinthegeneralledger.

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