Jan. 3. Totals on cash register dials are as follows: groceries, $200; meats, $50; vegetable and fruits, $20. (Note: Enter the sales for each day on one line. The sales tax is "running up" as sales.) Check issued to the manager for December salary, $200. Meat received from Armour & Co. on account, $75.
Jan. 4. Deposit in bank, $270. Cash register dial readings: groceries, $500; meats, $100; vegetables and fruits, $50. Vegetables purchased from farmer for cash, $10. Fruits received from Blake Commission House on account, $15.
Jan. 5. Deposit in bank, $640. Cash register dial readings: groceries, $160; meats, $40; vegetables and fruits, $15. Check issued to Newbrook Co., for January rent, $200. Groceries received from Lee & Cady on account, $300. Meats received from Armour & Co. on account, $50.
Jan. 6. Deposit in bank, $215, Cash register dial readings: groceries, $140; meats, $30; vegetables and fruits, $20, an advertising contract for the year is placed with the Daily News at 50¢ per column inch.
Jan. 7. Deposit in bank, $190. Cash register dial readings: groceries, $130; meats, $28; vegetables and fruits, $18. Vegetables purchased from farmer for cash, $8. Fruits received from Blake Commission House on account, $10. Insurance premium paid by check to Kuebler & Son Co., $60. Checks issued to three clerks for weekly wages, $120.
Jan. 8. Deposit in bank, $176. Cash register dial readings: groceries, $150; meats, $30; vegetables and fruits, $20.
Jan. 10. Deposit in bank, $200. Cash register dial readings: groceries, $180; meats, $35; vegetables and fruits, $25. Groceries received from Lee & Cady, $800. Meat received from Armour & Co., $80. Checks for December bills are issued as follows: Lee& Cady, $1,100; Armour& Co., $600; Blake Commission House, $200; Western Union Telegraph Co., $10; Detroit Edison Co., $20; Daily News, $70. Dividend checks are issued and mailed to six stockholders, $480. Check is issued for December sales tax, $200.
Jan. 11. Deposit in bank, $220. Cash register dial readings: Groceries, $480; meats, $90; vegetables and fruits, $45. Vegetables bought from farmer for cash, $10. Fruits received from Blake Commission House, on account, $15. Part of the shipment of meat received on the 10th spoils because of failure to keep it refrigerated, $50. No claim can be made for the item.
Jan. 12-31. Deposit in bank, $5,435. Cash register dial readings: groceries, $3,610; meats, $800; vegetables and fruits, $450. Vegetables bought from farmer for cash, $60. Fruits bought from Blake Commission House on account, $100. Meat bought from Armour & Co. on account, $375. Checks are issued as follows: three clerks' wages, $360; manager's salary, $200. Cash paid for postage and other incidental office costs, $20. Check issued to C. I. Clark Co. for payment on store equipment contract, $200, plus interest at 6% for 30 days. The books are not closed until the following bills are received and entered for the month of January: Western Union Telegraph Co., $13; Artificial Ice Co. (for coal), $30; Detroit Edison Co., $25; General Supply Co. (for store supplies), $50; Daily News (90 Inches of advertising). Dividends are declared but not paid in January, $140, Jan. 31. Record the following adjustments: Inventories are taken and found to be as follows: groceries, $2,400; meats, $200; vegetables and fruits, $50; supplies, $110; unexpired insurance, $120. Depreciation of store equipment is estimated at $30 per month. Sales tax for month is estimated at $300. Income tax for January is estimated at $250.
Question 1)
Record the transactions of Jan 3 - 31 including the necessary end of period entries for January. Assume that the first cheque issued in January is #985. Foot and prove the special journals.
Question 2)
Post the information recorded in Assignment I
to the general ledger accounts and the accounts payable subsidiary ledger accounts.
Question 3)
Prepare a trial balance and prepare a schedule of the subsidiary-ledger accounts.