1. Examine the business papers that follow. They consist of sales invoices, rental invoices, purchase invoices, duplicate deposits
slips, credit memoranda and interoffice memoranda. They appear in the order in which they come to the bookkeeper’s attention. The actions you as bookkeeper should take regarding these are:
a. Sales Invoices—Enter the information in the Sales Journal. Post to the Subsidiary Accounts Subsidiary Ledger.
b. Rental Invoices—Enter the information in the Sales Journal. Post to the Subsidiary Accounts Subsidiary Ledger.
c. Purchases Invoices—Enter the information in the Purchases Journal on the date the invoice is received for each purchase of merchandise inventory or supplies. Post to the Subsidiary Accounts Payable Ledger. Mr. Stephens will send you an interoffice memorandum when he wants you to prepare checks for payment of these invoices.
d. Credit Memoranda—Enter the information in the General Journal.
e. Duplicate Deposit Tickets—Write the amount of the deposit in the checkbook provided and record the information in the Cash Receipts Journal. All cash deposits are from cash sales of camping equipment and should be recorded as a credit to Sales. The checks listed on the deposit ticket are receipts from customers who have made payments on their accounts and should be recorded as credits to Accounts Receivable and posted to the Subsidiary Accounts Receivable Ledger.
f. Interoffice Memoranda—The owner sends information to you, the bookkeeper, instructing you to do certain tasks, such as prepare checks for his signature, establish a new account, or reclassify a previously recorded purchase. When Mr. Stephens asks you to prepare checks for his signature, the steps you should take are as follows: (1) write the check in the checkbook and (2) record the information in the Cash Disbursements Journal. You are not authorized to sign checks.
2. Remember to post daily the following:
a. All transactions you record in the General Journal.
b. Amounts for the Accounts Receivable debit column in the Sales Journal to each individual customer’s account in the Subsidiary Accounts Receivable Ledger.
c. Amounts for the Accounts Payable credit column in the Purchases Journal to each individual creditor’s account in the Subsidiary Accounts Payable Ledger.
d. Amounts for the Accounts Receivable credit column in the Cash Receipts Journal to each individual customer’s account in the Subsidiary Accounts Receivable Ledger.
e. Amounts for the Accounts Payable debit column in the Cash Disbursements Journal to each individual creditor’s account in the Subsidiary Accounts Payable Ledger.
3. At the end of the month, do the following:
a. Foot and crossfoot the special journals and post to the General Ledger.
b. To verify the accuracy of the subsidiary ledgers prepare a schedule of accounts receivable and a schedule of accounts payable, and compare the totals to the balances of the control accounts in the General Ledger.
c. Compare the balance in the checkbook with the balance in the Cash account.
d. Prepare a bank reconciliation as of June 30, 20XX.
e. Record in the General Journal the adjustment(s) to the Cash account as required by the bank reconciliation.
f. Prepare a trial balance in the Trial Balance columns of the work sheet.
g. Complete the worksheet after using the following supplementary data:
1. Accrue the interest on the Emory Company note.
2. Depreciation expense for the month June is: building, $1,500; office equipment, $1,150; store equipment, $3,600; and camping rental equipment, $2,670.
3. Bad debts are estimated to be .5 percent of total net credit sales (do not include rentals).
4. Insurance expense for the month is $250.
5. Office supplies on hand are $480.
6. Store supplies on hand are $275.
7. Accrue salaries for 3 working days at $180 per day.
8. Accrue one months’ (30 days) interest on the mortgage note.
h. Record and post the adjusting entries.
i. Prepare an income statement, statement of owner’s equity, and a balance sheet.
j. Record and post the closing entries.
k. Prepare a post-closing trial balance.
A Chart of General Ledger Accounts appears on the following page. Beginning with Business Paper #1, begin your work recording and filing the business papers as you have been instructed to do.