Dearly disconnected

Narrative and Instructions

Rockford Corporation is a wholesale plumbing sup- ply distributor. The corporation was organized in 1981, under the laws of the State of Illinois, with an authorized capitalization of 10,000 shares of no-par common stock with a stated value of $30 per share. The common stock is sold over the counter in the local area. You have been hired as of Wednesday, December 26, 2018, to replace the controller, who has resigned. As controller, you are responsible for the corporation’s accounting records, preparation of the financial statements, safeguarding the corpo- rate assets, and providing management with finan- cial information to set prices and to monitor and control operations. You have an assistant who keeps the payroll records, the plant asset ledger, and the perpetual inventory. There is an inventory sub- sidiary ledger that is posted to daily for purchases and sales. This ledger is not included in this prac- tice set. The corporation secretary maintains the stockholder records, and the receptionist/secretary acts as the petty cashier.

Rockford Corporation closes its books annually on December 31 but prepares financial statements quarterly. Adjusting entries are posted to the gener- al ledger only at year-end; at the end of the first, second, and third quarter the adjustments are entered only on a ten-column work sheet, not in the general ledger. Therefore, the adjusting entries to be recorded on December 31 are annual adjust- ments that you must journalize and then post to the general ledger accounts before preparing the finan- cial statements.

Rockford Corporation maintains a perpetual inventory system and takes a physical count each year to adjust the inventory carrying amount. Purchases are recorded at the gross amount (discounts taken are recognized at the date of payment) of the supplier’s invoice, and the terms vary with each supplier. Sales on account are subject to terms of 2/10, n/30. Discounts are taken and granted only when the terms are met. The cost of all inventory sold in December was 80% of the

sales price. The corporation uses the following journals and ledgers:

JOURNALS

1. A sales journal (S)–to record sales of merchandise on account.

2. A purchases journal (P)–to record purchases of merchandise on account.

3. A cash receipts journal (CR)–to record all cash receipts.

4. A cash disbursements journal (CD)–to record all cash payments.

5. A general journal (J)–to record all transactions that cannot be recorded in the other journals.

LEDGERS

1. A general ledger. 2. An accounts receivable subsidiary ledger. 3. An accounts payable subsidiary ledger.

In recording sales transactions, each sale should be posted on the day of the sale directly to the customer’s account in the subsidiary ledger, using the invoice number as the posting reference number in the subsidiary account. Also, cash receipts from customers should be posted to the subsidiary ledger on the day they are received. The purchase order number should be used as the posting reference number in the subsidiary ledger for purchases on account from suppliers. Purchases from suppliers and payments to them should be posted daily. All other individual posting may be made weekly or at the month-end. Account numbers should be used as posting reference numbers in the journals.

Officers and office personnel are salaried employ- ees and are paid monthly on the last day of each month. The delivery truck drivers and warehouse employees are hourly wage employees and are paid biweekly. Each biweekly pay period ends Friday. On the following Monday your assistant, who maintains

ROCKFORD CORPORATION

A PRACTICE SET TO ACCOMPANY Intermediate Accounting, by Kieso, Weygandt, and Warfield

PERPETUAL INVENTORY

77

the payroll records, provides you with a payroll summary from which you prepare general journal entries to record the biweekly payroll and the employer’s taxes on the payroll. The biweekly employees’ paychecks are distributed on the follow- ing day (Tuesday).

The general ledger chart of accounts is shown below:

CHART OF ACCOUNTS

Account Accounts Number

Cash 101 Petty Cash 105 Accounts Receivable 112 Allowance for Doubtful Accounts 113 Notes Receivable 115 Interest Receivable 118 Inventory 120 Supplies 126 Prepaid Insurance 130 Prepaid Rent 131 Other Assets 135 Land 140 Buildings 145 Accum. Depr.–Buildings 146 Equipment 151 Accum. Depr.–Equip. 152 Trucks 163 Accum. Depr.–Trucks 164 Notes Payable 200 Accounts Payable 201 Salaries and Wages Payable 212 FICA Taxes Payable 214 Income Taxes Payable 215 Federal Withholding Taxes Payable 216 State Withholding Taxes Payable 218 FUTA Taxes Payable 224 SUTA Taxes Payable 226 Interest Payable 230 Dividends Payable 250 Notes Payable (LT Liability) 268 Bonds Payable 270 Discount on Bonds Payable 273 Common Stock 311 Paid-in Capital in Excess of Stated Value 317 Retained Earnings 320 Treasury Stock 330 Dividends 332 Income Summary 350 Sales Reveue 401

Sales Returns and Allowances 412 Sales Discounts 414 Cost of Goods Sold 505 Advertising Expense 610 Bad Debt Expense 612 Supplies Expense 631 Freight-out 644 Miscellaneous Expense 649 Depreciation Expense 711 Insurance Expense 722 Salaries and Wages Expense 726 Rent Expense 729 Payroll Tax Expense 730 Utilities Expense 732 Interest Revenue 820 Gain on Disposal of Plant Assets 826 Interest Expense 905 Loss on Disposal of Plant Assets 921 Income Tax Expense 999

The January 1, 2018, balances appear in the gen- eral ledger accounts as well as the November 30, 2018, balances, for those accounts whose balances have changed. All transactions affecting the non- current accounts from January 1, 2018, through November 30, 2018, with explanations, appear in these accounts to facilitate the preparation of the statement of cash flows.

Subsidiary ledger account balances as of November 30, 2018, are as follows (the balances appear in the appropriate subsidiary ledger accounts):

ACCOUNTS RECEIVABLE

Boecker Builders $ 62,920 The Potts Company 50,300 Swanson Brothers Construction 24,050 Trudy’s Plumbing 15,100 Coconino Contractors, Inc. 27,800 Rankin Plumbing Corp. 74,350 Beverly’s Building Products 14,000 Bilder Construction Company 45,200 Iwanaga Plumbing and Heating 3,700

Total accounts receivable $317,420

ACCOUNTS PAYABLE

Phoenix Plastics $ 17,450 Edward’s Plumbing Supplies, Inc. 20,050 Oxenford Copperworks 26,400

78

Smith Pipe Company 38,100 Ron & Rod’s Plumbing Products 14,850 Khatan Steel Corp. 10,000

Total accounts payable $126,850

The transactions through December 24 have already been recorded by the former controller. You are to begin your work by entering the transaction of December 26 for the payment of cash to repurchase stock.

DECEMBER 2018

S M T W T F S 1

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

79

NARRATIVE OF THE DECEMBER TRANSACTIONS

NOTE: All transactions from Dec. 3 thru Dec. 24 have already been recorded

December

3 Received a check in the amount of $23,569 from Swanson Brothers Construction in full payment of invoice No. 1120 dated November 26 in the amount of $24,050.

3 Sold sewer and drainage pipe to Beverly’s Building Products on account, invoice No. 1201 for $13,150.

3 Purchased copper tubing and fittings from Edward’s Plumbing Supplies Inc. on account, purchase order No. 315 for $24,320, terms n/60.

3 Issued check No. 1580 for $26,400 to Oxenford Copperworks in settlement of the balance owed on purchase order No. 280.

3 A court notice indicates that Iwanaga Plumbing and Heating is bankrupt and payment of its account improbable; the president orders the account to be written off as a bad debt (invoice No. 780).

3 Sold bathroom fixtures to Bilder Construction Company on account, invoice No.1202 for $44,900.

4 Received a check in the amount of $49,294 from The Potts Company in full payment of invoice No. 1128 dated November 27 for $50,300.

4 Sold plumbing supplies and plastic pipe to Coconino Contractors, Inc. on account, invoice No. 1203 for $10,300.

4 Issued check No. 1581 for $810 to Standard Oil Co. in payment of gas, oil, and truck repair from Tierney’s Standard Service.

5 Issued check No. 1582 for $9,900 to Khatan Steel Corp. in full settlement of purchase order No. 312 for $10,000.

5 Issued check No. 1583 for $10,486 to Phoenix Plastics in full payment of Phoenix’s invoice dated November 28 in the amount of $10,700, for purchase order No. 313, terms 2/10, n/30.

5 Received a check in the amount of $72,863 from Rankin Plumbing Corp. in full payment of invoice No. 1129 dated November 28 for $74,350.

6 Sold cast pipe to Trudy’s Plumbing on account, invoice No. 1204 for $29,300.

6 Received a check in the amount of $27,800 from Coconino Contractors, Inc. in full payment of invoice No. 1091 dated October 20.

6 Purchased bathroom fixtures from Phoenix Plastics, on account, purchase order No. 316 for $52,700 terms 1/10, n/30.

7 Received a check in the amount of $29,000 from Boecker Builders in partial payment of balance outstanding covering invoice Nos. 1050 and 1071.

7 Issued check No. 1584 for $600 to Scooter Gordon for lettering and sign painting on some delivery trucks.

80

7 Issued check No. 1585 for $6,750 to Phoenix Plastics, in payment of Phoenix’s invoice dated November 12 in the amount of $6,750, our purchase order No. 299.

10 Issued check No. 1586 for $37,719 to Smith Pipe Company in full payment of their invoice dated November 28, terms 1/15, n/60, our purchase order No. 314.

10 Received a check in the amount of $15,100 from Trudy’s Plumbing in full settlement of invoice No. 1106 dated November 7.

10 Sold pipe, fixtures, and accessories to Trudy’s Plumbing on account, invoice No. 1205 for $33,850.

11 The payroll summary for the biweekly pay period ended Friday, December 7 contained the following information:

Delivery and warehouse wages.............................. $4,860 FICA taxes withheld ................................................ 350 Federal income taxes withheld .............................. 900 State income taxes withheld .................................. 190

Net pay.............................................................. $3,420

Employer’s payroll taxes: FICA tax ............................................................ $ 350 Federal unemployment tax.............................. – State unemployment tax .................................. –

Issued check No. 1587 for the amount of the net pay and deposited it in the payroll bank account. Individual payroll checks were then prepared for distribution to the biweekly employees on Tuesday, December 11.

11 Sold plumbing supplies and copper tubing to The Potts Company on account, invoice No. 1206 for $31,450

11 Received a check in the amount of $33,920 from Boecker Builders in full payment of invoice No. 1071.

11 Cash sales to date totaled $12,292.

12 Received a check in the amount of $28,714 from Trudy’s Plumbing in payment of invoice No. 1204.

12 Sold plumbing fixtures and supplies to Boecker Builders, on account, invoice No. 1207 for $24,730.

13 The Potts Company returned defective copper tubing that it purchased on December 10. A credit memo in the amount of $4,680 is issued relative to invoice No. 1206. The cop- per tubing had a cost of $3,550.

13 The defective copper tubing is returned to Edward’s Plumbing Supplies, Inc. along with a debit memo in the amount of $3,550 in reduction of purchase order No. 315.

13 Issued check No. 1588 for $399 in payment of November telephone bill to Northern Illinois Communications.

14 Issued check No. 1589 in the amount of $11,360 in payment of federal withholding taxes, $9,573, and FICA taxes, $1,787, payable on November salaries and wages; the check is remitted to the Winnebago County Bank as the depository.

14 Issued check No. 1590 for $52,173 to Phoenix Plastics, Inc. in payment of purchase order No. 316.

81

17 The president informs you that Bilder Construction Company agrees to convert the $45,200 overdue account receivable (invoice No. 1120) to an 8% note due six months from today.

17 Purchased plumbing materials from Smith Pipe Company on account, purchase order No. 317 for $60,800 terms 1/15, n/60.

18 Sold drain tile, plastic pipe, and copper tubing to A & B Hardware on account, invoice No. 1208 for $7,920.

18 Sold fixtures and materials to Coconino Contractors, Inc. on account, invoice No. 1209 for $42,780.

19 An invoice in the amount of $1,021 was received from S. White Trucking Company for freight on purchase order No. 317 and paid by issuing check No. 1591.

19 Received a check in the amount of $33,173 from Trudy’s Plumbing in payment of invoice No. 1205.

20 Purchased office supplies from the Pen & Pad, issuing check No. 1592 in the amount of $1,360. (Note: Debit asset account).

20 Purchased a new Faith computer for $6,100 from Business Basics, Inc., purchase order No. 318, paying $600 down through Check No. 1593 with the balance due in thirty days (n/30). The computer has an estimated life of five years with a salvage value of $1,300. Use subsidiary account No. 16. Journalize the entire entry in the cash disbursements journal.

21 Purchased bathroom and kitchen fixtures from Phoenix Plastics, on account, purchase order No. 319 for $48,330, terms 1/10, n/30.

21 Received a bill from DeKalb Transport for $2,300 for freight costs incurred during the last 30 days, terms n/30.

24 The payroll summary for the biweekly pay period ended Friday, December 21, con- tained the following information:

Delivery and warehouse wages.............................. $5,770 FICA taxes withheld ................................................ 415 Federal income taxes withheld .............................. 1,067 State income taxes withheld .................................. 225

Net pay.............................................................. $4,063

Employer’s payroll taxes: FICA tax ............................................................ $ 415 Federal unemployment tax.............................. – State unemployment tax .................................. –

Issued check No. 1594 for the amount of the net pay and deposited it in the payroll bank account. Individual payroll checks were then prepared for distribution to the biweekly employees on Monday, December 24.

NOTE: Transactions up to this point have been recorded. At this point you became con- troller and are responsible for recording all further transactions.

26 The board of directors voted to purchase 1,000 shares of its own stock from stockholder Dionne Schivone at $75 per share and issued check No. 1595 in payment. Stock repur- chases are recorded at cost. Rockford is purchasing these shares because Ms. Schivone had been a valuable employee.

82

26 The board of directors declared a $2.90 per-share cash dividend payable on January 14 to stockholders of record on December 26 (after purchase of stock).

26 The president informs you that Beverly’s Building Products agrees to convert the $14,000 overdue accounts receivable (invoice No. 1119) balance to a 9% note due six months from today.

27 A half-acre parcel of land adjacent to the building is acquired in exchange for 500 shares of unissued common stock. The land has a fair value of $50,000 and will be used imme- diately as an outside storage lot and parking lot.

27 An invoice in the amount of $2,500 is received from Wayne McManus, lawyer, for legal services involved in the acquisition of the adjacent parcel of land; check No. 1596 is issued in payment.

27 Sold pipe and plumbing materials to Boecker Builders on account, invoice No. 1210 for $48,600.

28 Issued check No. 1597 in the amount of $845 to the Northern Star for advertisement run in the home building supplement of December 13.

28 Issued check No. 1598 in the amount of $1,160 to Standard Oil Co. in payment of gas, oil, and truck repairs from Standard Oil Co. (use Freight-out).

28 Purchased copper and cast iron pipe from Oxenford Copperworks on account, purchase order No. 320 for $62,830, terms 1/10, n/30.

28 Check No. 1599 for $15,500 is issued to the bond sinking fund trustee, Chicago Trust Co., for deposit in the sinking fund. (Use Other Assets).

28 Sold plumbing supplies to Swanson Brothers Construction on account, invoice No. 1211

31 Received a check for $24,730 from Boecker Builders in payment of invoice No. 1207.

31 Issued check No. 1600 for $60,192 to Smith Pipe Company in payment of purchase

31 The custodian of the petty cash fund submits the following receipts for reimbursement and reports a cash-on-hand count of $8.

Postage stamps used (supplies expense)................... $95 United Parcel (freight-out) .................................... 40 C.O.D. postage (inventory cost)................................. 57

Check No. 1601 is issued and cashed to reimburse the fund.

31 Sold an electric truck-lift to Leila Stierman Co. for $5,500 cash. The original cost was $11,000 with salvage value of $1,000, a life of 10 years, and accumulated depreciation

recorded through 12/31/17 of $3,500. The straight-line method is used. (Note: the company follows the practice of recording a half year’s depreciation in the year of acquisition and a half year in the year of disposal.) First, bring the depreciation expense up to date in the general journal. Then journalize the entire entry for the sale in the cash receipts journal.

31 Sold bathroom fixtures and plumbing supplies to Trudy’s Plumbing on account, invoice No. 1212 for $48,500.

83

for $33,340.

order No. 317.

31 Because for some time the petty cash fund has been smaller than required for monthly expenditures, the fund is increased by $75 by cashing check No. 1602 and placing the money in the petty cash fund.

31 The payroll summary for the monthly paid employees is submitted so that December checks can be distributed before the year-end; the details are as follows:

Office and administrative salaries.......................... $44,550 Federal income taxes withheld .............................. 6,350 State income taxes withheld .................................. 1,850 FICA taxes withheld ................................................ 3,408

Net pay.............................................................. $ 32,942

Issued check No. 1603 for the amount of the net pay and deposited it in the payroll bank account. Individual payroll checks were prepared for distribution to all monthly employees by the end of the day.

Employer’s payroll taxes: FICA tax (all office and administrative).......... $3,408 Federal unemployment tax.............................. – State unemployment tax .................................. –

31 Cash sales since December 14 total $49,640.

INSTRUCTIONS

1. Make the entries in the appropriate journals for December 26 through December 31.

2. Post any amounts to be posted as individual amounts from the journals to the general ledger and any amounts to be posted to the subsidiary ledger accounts. (If the normal practice of daily posting were followed, the postings would be in chronological order; proper date sequence for this practice set is not necessary.)

3. Foot and cross-foot the columnar journals and complete the month-end postings of all books of original entry.

4. Prepare a trial balance by entering the account balances from the general ledger in the first two columns of the ten-column work sheet (list all accounts, including those with zero balances).

5. From the following information prepare adjusting entries in the general journal and enter them in the “adjustments” columns of the work sheet and cross-reference the amounts using the related alphabetic characters (round all calculations to the nearest dollar).

a. The annual provision for doubtful accounts receivable is recorded in an amount equal to 2.8% of gross accounts receivable less the ending Allowance account balance.(This entry should be entered below the middle of General Journal page 10.)

b. An inventory count of the office supplies revealed $630 of supplies on hand at year- end.

c. The insurance premium outstanding on January 1, 2018, covers the period January 1 through August 31, 2018. The insurance premium of $9,300 recorded in August covers the period of September 1, 2018 through August 31, 2019.

84

d. The payroll summary for the employees who are paid biweekly shows the following information at December 31, 2018:

Delivery and Warehouse Wages ............................ $8,200 FICA Taxes Payable ................................................ 627 Federal Withholding Taxes .................................... 1,250 State Withholding Taxes.......................................... 285

Net pay.............................................................. $6,038

e. The employer’s share of the FICA tax ($627) must be accrued; no state or federal unemployment tax is incurred during the fourth quarter because all wages and salaries earned during the last quarter exceed the maximum subject to unemployment tax.

f. Interest has accrued at 7% on the long-term notes payable since July 1, 2018. The next six-month interest payment at 6.9% on the bonds is due on March 1, 2019. The original discount on bonds payable was $15,800. No portion of the discount has been amortized for any part of 2018; the bonds are 10-yr maturity. (Use straight-line.)

g. The interest accrued to 12/31/18 on notes receivable is composed of the following: Platteville Plumbers, 10%, 6 months, due March 31, 2019 $1,250 Bilder Construction, 8%, 6 months, due June 17, 2019 120 Beverly’s Building, 9%, 6 months, due June 26, 2019 80

$1,450

The interest accrued at 12/31/18 on the note payable of $15,000 @ 6% is $900. Interest is payable on January 2, 2019. (The note is due in 2019.)

h. A warehouse lease payment of $21,000 was made on September 1, 2018, for rental through February 28, 2019. (The Prepaid Rent account is for advance lease payments on the warehouse. This is the only outstanding lease agreement at year end.)

i. $600 is owed to Northern Electric Co. and $225 is owed to City of Rockford for utility services provided during December 2018.

j. Plant and equipment depreciation expense is composed of the following:

Accumulated Depreciation-Buildings $17,550 Accumulated Depreciation-Equipment $ 5,825 Accumulated Deprecation-Trucks $ 8,750

85

6. Income Tax expense for 2018 is $119,450 in total. Prepare the journal entry for the income tax. (Take into consideration what has already been recognized in 2018 as income tax expense.)

7. Post all adjusting entries.

8. Prepare schedules of subsidiary accounts receivable and accounts payable and deter- mine that the total per each subsidiary schedule agrees with the related control account.

9. Prepare an income statement (assume the weighted-average number of shares out- standing for the year 2018 is 5,000 shares for EPS). Assume that bad debt expense and depreciation expense are operating expenses. Use a multi-step format.

10. Prepare a statement of retained earnings.

11.Prepare a classified balance sheet. (Hint: combine Petty Cash with Cash for balance sheet purposes.)

12.

13.

Prepare and post closing entries.

Prepare a post-closing trial balance.

86

91

JOURNALS

GENERAL JOURNAL PURCHASES JOURNAL SALES JOURNAL CASH RECEIPTS JOURNAL CASH DISBURSEMENTS JOURNAL

DATE Account Titles and Explanation REF. DEBIT CREDIT2018

12 3 Allowance for Doubtful Accounts 113 3 7 0 0

Accounts Receivable–Iwanaga Plumbing and Heating 112/190 3 7 0 0

To record the write-off of an

account due to bankruptcy.

12 11 Payroll Tax Expense 730 3 5 0

FICA Taxes Payable 214 3 5 0

To record employer’s portion of

FICA taxes on biweekly payroll.

12 13 Sales Returns and Allowances 412 4 6 8 0

Accounts Receivable–The Potts Company 112/122 4 6 8 0

To record defective copper tubing returned

by customer.

Inventory 120 3 5 5 0

Cost of Goods Sold 505 3 5 5 0

To record cost of goods returned by customer

12 13 Accounts Payable–Edward’s Plumbing Supplies, Inc. 201/18 3 5 5 0

Inventory 120 3 5 5 0

To record defective copper tubing returned

to supplier.

12 17 Notes Receivable 115 4 5 2 0 0

Accounts Receivable–Bilder Construction 112/180 4 5 2 0 0

To record receipt of a 10%, 6-month

note for an overdue accounts receivable

12 21 Inventory 120 2 3 0 0

Accounts Payable–DeKalb Transport 201/20 2 3 0 0

To record freight costs for December, 2018.

12 21 Payroll Tax Expense 730 4 1 5

FICA Taxes Payable 214 4 1 5

To record employer’s portion of

FICA taxes on biweekly payroll

GENERAL JOURNAL Page 9

Copyright © 2016 by John Wiley & Sons, Inc. 92

93

DATE Account Titles and Explanation REF. DEBIT CREDIT2018

12 27 Land 210 5 4 0 0 0

Common Stock 400 1 8 0 0 0

Additional Paid-In Capital 410 3 6 0 0 0

To record purchase of land with 600 shares of stock

12 29 Sinking Fund Cash 201 8 8 7 0

Bond Sinking Fund Income 810 8 8 7 0

To record income earned by bond sinking fund

during period July 1 through December 30, 1994

12 30 Depreciation Expense–Trucks and Lifts 650 3 5 0

Accumulated Depreciation–Trucks and Lifts 231 3 5 0

To record depreciation on lift sold

($7,900 - $900 = $7,000; $7,000 ÷ 10 yrs 1/2 = $350

12 30 Payroll Taxes Expense–Office and Administrative 711 2 1 2 0

FICA Taxes Payable 333 2 1 2 0

To record payroll tax expense on monthly

payroll

ADJUSTING ENTRIES AT 12/31/18

GENERAL JOURNAL Page 10

DATE Account Titles and Explanation REF. DEBIT CREDIT2018

GENERAL JOURNAL Page 11

Copyright © 2016 by John Wiley & Sons, Inc. 94

DATE Account Titles and Explanation REF. DEBIT CREDIT2018

GENERAL JOURNAL Page 12

95

DATE Account Titles and Explanation REF. DEBIT CREDIT2018

CLOSING ENTRIES AT 12/31/18

GENERAL JOURNAL Page 13

Copyright © 2016 by John Wiley & Sons, Inc. 96

DATE Account Titles and Explanation REF. DEBIT CREDIT2018

GENERAL JOURNAL Page 14

97

PUR.DATE ORDER ACCOUNT CREDITED ACCT. AMOUNT 2018 NO. NO.

12 3 315 Edward’s Plumbing Supplies, Inc. n/60 18 24 320

6 316 Phoenix Plastics 1/10, n/30 14 52 700

17 317 Smith Pipe Company 1/15, n/60 39 60 800

20 318 (see Cash Disbursements Journal)

21 319 Phoenix Plastics 1/10, n/30 14 48 330

Copyright © 2016 by John Wiley & Sons, Inc.

PURCHASES JOURNAL PAGE 12

98

DATE INVOICE ACCOUNT DEBITED ACCT. ACCT. REC. DR COST OF GOODS SOLD DR 2018 NO. NO. SALES REV. CR INVENTORY CR

12 3 1201 Beverly’s Building Products 175 13 150 10 520

3 1202 Bilder Construction Co. 180 44 900 35 920

4 1203 Coconino Contractors, Inc. 160 10 300 8 240

6 1204 Trudy’s Plumbing 155 29 300 23 440

10 1205 Trudy’s Plumbing 155 33 850 27 080

11 1206 The Potts Company 122 31 450 25 160

12 1207 Boecker Builders 117 24 730 19 784

17 1208 A & B Hardware 143 7 920 6 336

18 1209 Coconino Contractors, Inc. 160 42 780 34 224

SALES JOURNAL PAGE 12

99

Copyright © 2016 by John Wiley & Sons, Inc.

SUNDRY ACCOUNTS SALES ACCOUNTS

DATE DESCRIPTION CASH DISCOUNTS REF RECEIVABLE SALES ACCT. 2018 DR DR CR REVENUE CR NO. � DR CR

12 3 Swanson Brothers Construction 23569 481 133 24050

4 The Potts Company 49294 1006 122 50300

5 Rankin Plumbing Corp. 72863 1487 166 74350

6 Coconino Contractors, Inc. 27800 160 27800

6 Boecker Builders 29000 117 29000

10 Trudy's Plumbing 15100 155 15100

11 Boecker Builders 33920 117 33920

11 Cash sales 12292 12292

505 � 9834

120 � 9834

12 Trudy's Plumbing 28714 586 155 29300

19 Trudy's Plumbing 33173 677 155 33850

CASH RECEIPTS JOURNAL Page 12

100

SUNDRY ACCOUNTS ACCOUNTS

DATE CHECK PAYEE CASH REF PAYABLE INVENTORY ACCT. 2018 NO. CR DR CR NO. � DR CR

12 3 1580 Oxenford Copperworks 26400 35 26400

4 1581 Standard Oil Company 810 644 � 810

5 1582 Khatan Steel Corp. 9900 57 10000 100

5 1583 Phoenix Plastics 10486 14 10700 214

7 1584 Scooter Gordon 600 610 � 600

7 1585 Phoenix Plastics 6750 14 6750

10 1586 Smith Pipe Company 37719 39 38100 381

11 1587 Payroll Bank Account 3420 726 � 4860

214 � 350

216 � 900

218 � 190

13 1588 N. Ill. Communications 399 732 � 399

14 1589 Winnebago County Bank 11360 216 � 9573

214 � 1787

14 1590 Phoenix Plastics 52173 14 52700 527

19 1591 S. White Trucking 1021 120 � 1021

20 1592 Pen & Pad 1360 126 � 1360

20 1593 Business Basics, Inc. 600 151 � 6100 201/16 � 5500

24 1594 Payroll Bank Account 4063 726 � 5770

214 � 415

216 � 1067

218 � 225

CASH DISBURSEMENTS JOURNAL Page 18

Copyright © 2016 by John Wiley & Sons, Inc.101

103

GENERAL LEDGER

BALANCE

2 5 3 6 4 3

3 1 7 4 2 0

3 1 3 7 2 0

3 0 9 0 4 0

2 6 3 8 4 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

11/30 Balance �

12/3 J 9 3 7 0 0

12/13 J 9 4 6 8 0

12/17 J 9 4 5 2 0 0

ACCOUNT: Accounts Receivable 112

BALANCE

3 8 9 1 0

2 4 9 9 3 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

11/30 Balance �

GENERAL LEDGER ACCOUNTS

ACCOUNT: Cash 101

Copyright © 2016 by John Wiley & Sons, Inc.

BALANCE

1 5 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

ACCOUNT: Petty Cash 105

104

GENERAL LEDGER ACCOUNTS

Copyright © 1992 by John Wiley & Sons, Inc.

BALANCE

1 3 5 2 0

4 5 8 0

8 8 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

11/30 Balance �

12/3 J 9 3 7 0 0

ACCOUNT: Allowance for Doubtful Accounts 113

BALANCE

4 0 0 0 0

4 5 0 0 0

9 0 2 0 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

11/30 Balance–Platteville Plumbers �

12/17 Bilder Construction J 9 4 5 2 0 0

ACCOUNT: Notes Receivable 115

105

BALANCE

5 8 0

- 0 -

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

11/30 Balance �

ACCOUNT: Interest Receivable 118

BALANCE

3 2 2 0

1 1 0 2 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

11/30 Balance �

ACCOUNT: Prepaid Insurance 130

GENERAL LEDGER ACCOUNTS

Copyright © 2016 by John Wiley & Sons, Inc. 106

BALANCE

4 5 0 9 6 0

5 3 1 9 6 0

5 2 2 1 2 6

5 2 5 6 7 6

5 2 2 1 2 6

5 2 3 1 4 7

5 2 5 4 4 7

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

11/30 Balance �

12/11 CR 12 9 8 3 4

12/13 J 9 3 5 5 0

12/13 J 9 3 5 5 0

12/19 CD 18 1 0 2 1

12/21 J 9 2 3 0 0

ACCOUNT: Inventory 120

BALANCE

1 6 5 0

2 3 2 0

3 6 8 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

11/30 Balance �

12/20 CD 18 1 3 6 0

ACCOUNT: Supplies 126

BALANCE

1 3 0 0 0 0

1 4 5 0 0 0

GENERAL LEDGER ACCOUNTS

Copyright © 1992 by John Wiley & Sons, Inc.

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

7/1 CD 15 1 5 0 0 0

ACCOUNT: Other Assets 135

BALANCE

3 0 6 0 0 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

ACCOUNT: Buildings 145

BALANCE

4 3 0 0 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

ACCOUNT: Land 140

107

BALANCE

3 5 0 0

2 5 4 1 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

11/30 Balance �

ACCOUNT: Prepaid Rent 131

BALANCE

1 3 2 0 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

ACCOUNT: Accum. Depr.–Equip. 152

BALANCE

3 2 8 0 0

3 8 9 0 0

BALANCE

7 3 0 4 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

GENERAL LEDGER ACCOUNTS

ACCOUNT: Accum. Depr.–Buildings 146

Copyright © 2016 by John Wiley & Sons, Inc.

BALANCE

7 8 4 0 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

ACCOUNT: Trucks 163

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

12/20 CD 18 6 1 0 0

ACCOUNT: Equipment 151

108

GENERAL LEDGER ACCOUNTS

Copyright © 1992 by John Wiley & Sons, Inc.

BALANCE

1 5 0 0 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance–renewed 12/31/17 �

ACCOUNT: Notes Payable 200

BALANCE

8 6 3 5 2

1 2 6 8 5 0

1 2 3 3 0 0

1 2 8 8 0 0

1 3 1 1 0 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

11/30 Balance �

12/13 J 9 3 5 5 0

12/20 CD 18 5 5 0 0

12/21 J 9 2 3 0 0

ACCOUNT: Accounts Payable 201

BALANCE

3 9 5 4 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

ACCOUNT: Accum. Depr.–Trucks 164

109

BALANCE

7 8 1

1 7 8 7

2 1 3 7

2 4 8 7

7 0 0

1 1 1 5

1 5 3 0

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

11/30 Balance �

12/11 CD 18 3 5 0

12/11 J 9 3 5 0

12/14 CD 18 1 7 8 7

12/24 J 9 4 1 5

12/24 CD 18 4 1 5

ACCOUNT: FICA Taxes Payable 214

BALANCE

1 9 0 6

- 0 -

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �

11/30 Balance �

GENERAL LEDGER ACCOUNTS

ACCOUNT: Salaries and Wages Payable 212

Copyright © 2016 by John Wiley & Sons, Inc. 110

BALANCE

1 5 7 8 9

- 0 -

DATE EXPLANATION REF. DEBIT CREDIT

2018

1/1 Balance �