College Accounting: CP2 TJ's Specialty Shop, Part 1 (SPECIAL JOURNALS Full month Dec 20-1)

(REQUIRED SPECIAL JOURNALS ONLY - Full month of Dec 20-1)
College Accounting
Comprehensive Problem 2: Accounting Cycle with Subsidiary Ledgers, Part 1 During the month of December 20-1, TJ's Specialty Shop engaged in the following transactions:
Dec. 1 Sold merchandise on account to Anne Clark, $2,000, plus tax of $100. Saleno. 637.
2 Issued check no. 806 to Owen Enterprises in payment of December 1 balance of $1,600, less 2% discount.
3 Issued check no. 807 to Nathen Co. in payment of December 1 balance of $3,000, less 2% discount.
4 Purchased merchandise on account from Owen Enterprises, $1,550. Invoice no. 763, dated December 4, terms 2/10, n/30.
4 Issued check no. 808 in payment of telephone expense for the month of November, $180.
6 Purchased merchandise on account from Evans Essentials, $2,350. Invoice no. 621, dated December 5, terms net 30.
8 Sold merchandise for cash, $4,840, plus tax of $242.
9 Received payment from Heather Waters in full settlement of account, $490.
9 Sold merchandise on account to Lucy Greene, $800, plus tax of $40.Saleno. 638.
10 Issued check no. 809 to West Wholesalers in payment of December 1 balance of $1,000.
11 Issued check no. 810 in payment of advertising expense for the month of December, $400.
12 Sold merchandise on account to Martha Boyle, $1,260, plus tax of $63.Saleno. 639.
12 Received payment from Anne Clark on account, $1,340.
13 Issued check no. 811 to Owen Enterprises in payment of December 4 purchase. Invoice no. 763, less 2% discount.
13 Martha Boyle returned merchandise for a credit, $740, plus sales tax of $37.
15 Issued check no. 812 in payment of wages (Wages Expense) for the two-week period ending December 14, $1,100.
15 Received payment from Lucy Greene on account, $1,960. 16 Sold merchandise on account to Kim Fields, $160, plus sales tax of $8.Saleno. 640.
17 Returned merchandise to Evans Essentials for credit, $150.
18 Issued check no. 813 to Evans Essentials in payment of December 1 balance of $1,250, less the credit received on December 17.
19 Sold merchandise on account to Lucy Greene, $620, plus tax of $31.Saleno. 641.
22 Received payment from John Dempsey on account, $1,560.
23 Issued check no. 814 for the purchase of supplies, $120. (Debit Supplies)
Dec. 24 Purchased merchandise on account from West Wholesalers, $1,200. Invoice no. 465, dated December 24, terms net 30.
26 Purchased merchandise on account from Nathen Co., $800. Invoice no. 817, dated December 26, terms 2/10, n/30. 27 Issued check no. 815 in payment of utilities expense for the month of November, $630.
27 Sold merchandise on account to John Dempsey, $2,020, plus tax of $101. Sale no. 642.
29 Received payment from Martha Boyle on account, $2,473.
29 Issued check no. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $1,100.
30 Issued check no. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $200.
As of December 1, TJ's account balances were as follows: Account Account No. Debit Credit Cash 101 11,500 Accounts Receivable 122 8,600 Merchandise Inventory 131 21,800 Supplies 141 1,035 Prepaid Insurance 145 1,380 Land 161 8,700 Building 171 52,000 Accum. Depr.-Building 171.1 9,200 Store Equipment 181 28,750 Accum. Depr.-Store Equipment 181.1 9,300 Accounts Payable 202 6,850 Wages Payable 219 Sales Tax Payable 231 970 Mortgage Payable 251 12,525 Tom Jones, Capital 311 90,000 Tom Jones, Drawing 312 8,500 Income Summary 313 Sales 401 116,000 Sales Returns and Allowances 401.1 690 Purchases 501 60,500 Purchases Returns and Allowances 501.1 460 Purchases Discounts 501.2 575 Freight-In 502 175 Wages Expense 511 25,000 Advertising Expense 512 4,300 Supplies Expense 524 Telephone Expense 525 2,000 Utilities Expense 533 6,900 Insurance Expense 535 Depr. Expense-Building 540 Depr. Expense-Store Equipment 541 Miscellaneous Expense 549 2,700 Interest Expense 551 1,350 $245,880 $245,880 TJ's also had the following subsidiary ledger balances as of December 1: Accounts Receivable Ledger CUSTOMER BALANCE Martha Boyle 12 Jude Lane Hartford,CT06117 3,250 Anne Clark 52 Juniper Road Hartford,CT06118 1,340 John Dempsey 700 Hobbes Dr. Avon,CT06108 1,560 Kim Fields 5200 Hamilton Ave. Hartford,CT06117 - Lucy Greene 236 Bally Lane Simsbury,CT06123 1,960 Heather Waters 447 Drury Lane West Hartford,CT06107 490 Accounts Payable Ledger VENDOR BALANCE Evans Essentials 34 Harry Ave. East Hartford,CT05234 1,250 Nathen Co. 1009 Drake Rd. Farmington,CT06082 3,000 Owen Enterprises 43 Lucky Lane Bristol,CT06007 1,600 West Wholesalers 888 Anders Street Newington,CT06789 1,000
At the end of the year, the following adjustments (a)-(g) need to be made: (a, b) Merchandise inventory as of December 31, $19,700.
(c) Unused supplies on hand, $525.
(d ) Unexpired insurance on December 31, $1,000.
(e) Depreciation expense on the building for the year, $800.
(f) Depreciation expense on the store equipment for the year, $450.
(g) Wages earned but not paid as of December 31, $330. Requirements and working papers for this problem are special journals based.

REQUIRED: SPECIAL JOURNALS
1. If you are not using the working papers, open a general ledger, an accounts receivable ledger, and an accounts payable ledger as of December 1. Enter the December 1 balance of each of the accounts, with a check mark in the Posting Reference column.
2. Enter transactions for the month of December in the proper journals. Post immediately to the accounts receivable and accounts payable ledgers.
3. Post from the journals to the general ledger. Post the journals in the following order: general, sales, purchases, cash receipts, and cash payments.
4. Prepare schedules of accounts receivable and accounts payable.
5. Prepare a year-end work sheet, an income statement, a statement of owner's equity, and a balance sheet. The mortgage payable includes $600 that is due within one year.
6. Journalize and post adjusting entries.
7. Journalize and post closing entries. (HINT: Close all expense and revenue account balances listed in the Income Statement columns of the work sheet. Then, close Income Summary and Tom Jones, Drawing to Tom Jones, Capital.)
8. Prepare a post-closing trial balance. 9. Journalize and post reversing entries for the adjustments where appropriate, as of January 1, 20-2.
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