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Refer To The Information For Problem On Pages 468 469: Unlock Answers Here Solutiondone - Online

The document provides transactions completed by Hammond Auto Supply during January. It includes purchases and sales on account, cash receipts and payments, payroll expenses, and owner investments and withdrawals. The required tasks are to: 1. Record the transactions in special journals and the general journal. 2. Post transactions to customer and creditor accounts receivable/payable ledgers. 3. Post entries from the journals and general journal to the general ledger. 4. Add journal columns and prove equality of debits and credits.

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47 views1 page

Refer To The Information For Problem On Pages 468 469: Unlock Answers Here Solutiondone - Online

The document provides transactions completed by Hammond Auto Supply during January. It includes purchases and sales on account, cash receipts and payments, payroll expenses, and owner investments and withdrawals. The required tasks are to: 1. Record the transactions in special journals and the general journal. 2. Post transactions to customer and creditor accounts receivable/payable ledgers. 3. Post entries from the journals and general journal to the general ledger. 4. Add journal columns and prove equality of debits and credits.

Uploaded by

trilocksp Singh
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Refer to the information for Problem on pages 468 469

Refer to the information for Problem on pages 468– 469. In Problem The following transactions
were completed by Hammond Auto Supply during January, which is the first month of this fiscal
year. Terms of sale are 2/ 10, n/ 30. The balances of the accounts as of January 1 have been
recorded in the general ledger in your Working Papers or in CengageNow. Jan. 2 Issued Ck.
No. 6981 for monthly rent, $ 775. 2 J. Hammond, the owner, invested an additional $ 3,500 in
the business. 4 Bought merchandise on account from Valencia and Company, invoice no. A691,
$ 2,930; terms 2/ 10, n/ 30; dated January 2. 4 Received check from Vega Appliance for $ 980
in payment of $ 1,000 invoice less discount. 4 Sold merchandise on account to L. Paul, invoice
no. 6483, $ 850. 6 Received check from Petty, Inc., $ 637, in payment of $ 650 invoice less
discount. 7 Issued Ck. No. 6982, $ 588, to Fischer and Son, in payment of invoice no. C1272 for
$ 600 less discount.Jan. 7 Bought supplies on account from Doyle Office Supply, invoice no.
1906B, $ 108; terms net 30 days. 7 Sold merchandise on account to Ellison and Clay, invoice
no. 6484, $ 787. 9 Issued credit memo no. 43 to L. Paul, $ 54, for merchandise returned. 11
Cash sales for January 1 through January 10, $ 4,863.20. 11 Issued Ck. No. 6983, $ 2,871.40,
to Valencia and Company, in payment of $ 2,930 invoice less discount. 14 Sold merchandise on
account to Vega Appliance, invoice no. 6485, $ 2,050. 18 Bought merchandise on account from
Costa Products, invoice no. 7281D, $ 4,854; terms 2/ 10, n/ 60; dated January 16; FOB
shipping point, freight prepaid and added to the invoice, $ 147 ( total $ 5,001). 21 Issued Ck.
No. 6984, $ 194, to M. Miller for miscellaneous expenses not recorded previously. 21 Cash
sales for January 11 through January 20, $ 4,591. 23 Issued Ck. No. 6985 to Forbes Freight, $
96, for freight charges on merchandise purchased on January 4. 23 Received credit memo no.
163, $ 376, from Costa Products for merchandise returned. 29 Sold merchandise on account to
Bruce Supply, invoice no. 6486, $ 1,835. 31 Cash sales for January 21 through January 31, $
4,428. 31 Issued Ck. No. 6986, $ 53, to M. Miller for miscellaneous expenses not recorded
previously. 31 Recorded payroll entry from the payroll register: total salaries, $ 6,200;
employees’ federal income tax withheld, $ 872; FICA taxes withheld, $ 350.30. 31 Recorded
the payroll taxes: FICA taxes, $ 474.30; state unemployment tax, $ 334.80; federal
unemployment tax, $ 49.60. 31 Issued Ck. No. 6987, $ 4,977.70, for salaries for the month. 31
J. Hammond, the owner, withdrew $ 1,000 for personal use, Ck. No. 6988.Required 1. Record
the transactions for January using a sales journal, page 73; a purchases journal, page 56; a
cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page
100. Assume the periodic inventory method is used. 111 Cash 113 Accounts Receivable 114
Merchandise Inventory 115 Supplies 116 Prepaid Insurance 121 Equipment 212 Accounts
Payable 215 Salaries Payable 216 Employees’ Federal Income Tax Payable 217 FICA Taxes
Payable 218 State Unemployment Tax Payable 219 Federal Unemployment Tax Payable311 J.
Hammond, Capital 312 J. Hammond, Drawing 411 Sales 412 Sales Returns and Allowances
413 Sales Discounts 511 Purchases 512 Purchases Returns and Allowances 513 Purchases
Discounts 514 Freight In 621 Salary Expense 622 Payroll Tax Expense 627 Rent Expense 631
Miscellaneous Expense2. Post daily all entries involving customer accounts to the accounts
receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable
ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal
to the general ledger. Write the owner’s name in the Capital and Drawing accounts. 5. Add the
columns of the special journals and prove the equality of the debit and credit totals on scratch

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