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Given P07-01

You have just taken over the accounting for Choi Enterprises, whose annual accounting period ends December 31.
The company’s previous accountant journalized its transactions through December 15 and posted all items that required posting as individual amounts (see the journals and ledgers). The company’s transactions beginning on December 16 follow (terms for all its credit sales are 2/10, n/30):
CHOI ENTERPRISES Required:
Inv. No. Check Date Description Name or Date No. Terms Amount 1. Record the transactions in the Dec. 16 Merchandise sold on account (cost $4,600) Hanna Seppa 916 2/10, n/30 $ 7,700 journal.
17 Received credit memo on returned merch. Funk Company Dec. 15 1,040 2. Verify that amounts which should 17 Purchased office supplies KK’s Supply Company Dec. 16 n/10 EOM 615 be posted as individual amounts
18 Received credit memo on returned merch. KK’s Supply Company Dec. 17 40 to the general ledger accounts 20 Issued credit memo on returned merch. Bo Brown Dec. 15 500 have been posted, including 21 Purchased store equipment KK’s Supply Company Dec. 21 n/10 EOM 6,700 posting to the customer and 22 Received payment less discount Hanna Seppa Dec. 12 creditor accounts. (Such items 23 Paid invoice less discount Crossland Company Dec. 15 623 are immediately posted.) Foot 24 Sold merchandise on credit (cost $600) Shilo Jones 917 2/10, n/30 1,200 and crossfoot the journals and 24 Paid inv. less discount and return Funk Company Dec. 15 624 make the month-end postings.
25 Received payment less discount and return Bo Brown Dec. 15 3. Prepare a December 31 trial

Enter appropriate data in yellow cells. Your entries for “Totals” will be verified.
Enter appropriate data in yellow cells. Your entries for “Totals” will be verified.
Enter appropriate data in yellow cells. Your entries for “Totals” will be verified.
Enter appropriate data in yellow cells. Your Credit entries will be verified.
Enter appropriate data in yellow cells. Your ending balances will be verified.
Enter appropriate data in yellow cells. Your ending balances will be verified.
Enter appropriate data in yellow cells. Your entries for “Totals” will be verified.
Enter appropriate data in yellow cells. Your totals will be verified.