Question

Allison Cooper opened Allison’s Toy House. As her newly hired accountant, your tasks are to do the following:

a. Journalize the transactions for the month of October, 201X.

b. Record to subsidiary ledgers and post to the general ledger as appropriate.

c. Prepare a schedule of accounts receivable and a schedule of accounts payable.

The following is the partial chart of accounts for Allison’s Toy House:

Allison’s Toy House Chart of Accounts

Assets	Revenue
110 Cash	410 Toy Sales
112 Accounts Receivable	412 Sales Returns and Allowances
114 Prepaid Rent	414 Sales Discounts
121 Delivery Truck	Cost of Goods
Liabilities	510 Toy Purchases
211 Accounts Payable	512 Purchases Returns and Allowances
Owner Equity	514 Purchase Discounts
319 A, Cooper, Capital	Expenses
	610 Salaries Expenses
	612 Cleaning Expenses

Oct. 1 Allison Cooper invested $8,200 in the toy store.

Oct. 1 Paid three months’ rent in advance, check no. 1, $3,000.

Oct. 1 Purchased merchandise from Sarah Harmitz Company on account, $3,800, invoice no. 410, dated October 2; terms 7/10, n/30.

Oct. 3 Sold merchandise to Robert Gibbs on account, $1,100, invoice no. 1; terms 7/10, n/30.

Oct. 6 Sold merchandise to Inez Tenenbaum on account, $700, invoice no. 2; terms 7/10, n/30.

Oct. 8 Purchased merchandise from Sarah Harmitz Co. on account, $1,500, invoice no. 415, dated October 9; terms 7/10, n/30.

Oct. 9 Sold merchandise to Robert Gibbs on account, $600, invoice no. 3; terms 7/10, n/30.

Oct. 9 Paid cleaning service, check no. 2, $200.

Oct. 10 Inez Tenenbaum returned merchandise that cost $300 to Allison’s Toy House. Allison issued credit memorandum no. 1 to Inez Tenenbaum for $300.

Oct. 10 Purchased merchandise from Lane Chipkin on account, $4,000, invoice no. 311, dated October 11; terms 6/15, n/60.

Oct. 12 Paid Sarah Harmitz Co. invoice no. 410, dated October 2, check no. 3.

Oct. 13 Sold $1,600 of toy merchandise for cash.

Oct. 13 Paid salaries, $900, check no. 4.

Oct. 14 Returned merchandise to Lane Chipkin in the amount of $1,500. Allison’s Toy House issued debit memorandum no. 1 to Lane Chipkin.

Oct. 15 Sold merchandise for $3,800 cash.

Oct. 16 Received payment from Inez Tenenbaum, invoice no. 2 (less returned merchandise) less discount.

Oct. 16 Robert Gibbs paid invoice no. 1.

Oct. 16 Sold toy merchandise to Amanda Reader on account, $3,900, invoice no. 4; terms 7/10, n/30.

Oct. 20 Purchased delivery truck on account from Sam Katz Garage, $3,100, invoice no. 111, dated October 21 (no discount).

Oct. 22 Sold to Robert Gibbs merchandise on account, $1,000, invoice no. 5; terms 7/10, n/30.

Oct. 23 Paid Lane Chipkin balance owed, check no. 5.

Oct. 24 Sold toy merchandise on account to Amanda Reader, $1,700, invoice no. 6; terms 7/10, n/30.

Oct. 25 Purchased toy merchandise, $500, check no. 6.

Oct. 26 Purchased toy merchandise from William Smith on account, $4,600, invoice no. 211, dated October 27; terms 7/10, n/30.

Oct. 28 Robert Gibbs paid invoice no. 5, dated October 22.

Oct. 28 Amanda Reader paid invoice no. 6, dated October 24.

Oct. 28 Allison invested an additional $5,500 in the business.

Oct. 28 Purchased merchandise from Sarah Harmitz Co., $1,600, invoice no. 436, dated October 29; terms 7/10, n/30.

Oct. 30 Paid Sarah Harmitz Co. invoice no. 436, check no. 7.

Oct. 30 Sold merchandise to Bonnie Flow Company on account, $2,400, invoice no. 7; terms 7/10, n/30.

Answer 1

B Journal Entries Debit ($) | Credit ($) $ 8,200 Date Account Titles 1-Oct Cash A, Cooper, Capital |(To record the investment) 8,200 1-Oct Prepaid Rent $ 3,000 Cash 3,000 (To record the rent advance paid) $ 3.800 1-Oct Toy Purchases Accounts Payable |(To record the purchases) 3-Oct Accounts Receivable Toys Sales (To record the sales) 3,800 10 11 $ 1,100 12 13 1,100 14 6-Oct Accounts Receivable 700 15 Toys Sales (To record the sales) 8-Oct Toy Purchases 700 16 17 $ 1,500 18 Accounts Payable |(To record the purchases) 9-Oct Cleaning Expense 1,500 19 20 21 200 Cash 200 22 |(To record the cleaning paid) 23 10-Oct Sales Returns and Allownaces 300 24 Accounts Receivable 300 25 (To record the sales returns) 26 %24 %24 %24

B D 10-Oct Toy Purchases $ 4,000 27 Accounts Payable |(To record the purchases) 4,000 28 29 12-Oct Accounts Payable $ 3,800 30 Purchase Discounts 266 31 Cash 32 3,534 (To record the cash paid) 33 13-Oct Cash $ 1,600 34 Toys Sales (To record the sales) 13-Oct Salaries Expense 35 1.600 36 37 900 Cash 900 38 |(To record the salaries paid) 39 14-Oct Accounts Payable $ 1,500 40 Purchase Returns and Allowances 1,500 41 (To record the purchases returned) 42 15-Oct Cash $ 3,800 43 Toys Sales (To record the sales) 3,800 44 45 16-Oct Cash 651 46 Sales Discounts 47 49 Accounts Receivable 700 48 |(To record the cash received) 49 $ 1,023 16-Oct Cash 50 Sales Discounts 77 51 Accounts Receivable 52 1,100 |(To record the cash received) 53 %24 %24

D 15-Oct Cash $ 3,800 43 Toys Sales |(To record the sales) 3,800 44 45 16-Oct Cash 651 46 Sales Discounts 2$ 47 49 Accounts Receivable 700 48 (To record the cash received) 49 16-Oct Cash $ 1,023 50 Sales Discounts 2$ 77 51 Accounts Receivable 1,100 52 |(To record the cash received) 53 16-Oct Accounts Receivable Toys Sales |(To record the sales) 20-Oct Delivery Truck $ 3,900 54 3,900 55 56 $ 3,100 57 Accounts Payable |(To record the truck purchase) 3,100 58 59 22-Oct Accounts Receivable $ 1,000 60 Toys Sales |(To record the sales) 23-Oct Accounts Payable 1,000 61 62 $ 2,500 63 Purchase Discounts 150 64 Cash 2,350 65 |(To record the cash paid) 24-Oct Accounts Receivable Toys Sales |(To record the sales) 66 $ 1,700 67 1,700 68 69 %24

A B D 25-Oct Toy Purchases 500 70 Cash 500 71 |(To record the purchases) 72 $ 4,600 26-Oct Toy Purchases 73 Accounts Payable (To record the purchases) 4,600 74 75 28-Oct Cash 930 76 Sales Discounts 77 70 Accounts Receivable 1,000 78 (To record the cash received) 79 $ 1,581 28-Oct Cash 80 Sales Discounts 81 119 Accounts Receivable 1,700 82 (To record the cash received) 83 $ 5,500 28-Oct Cash 84 A, Cooper, Capital (To record the additional investment) 5,500 85 86 $ 1,600 28-Oct Toy Purchases 87 Accounts Payable (To record the purchases) 88 1,600 89 30-Oct Accounts Payable $ 1.600 90 Purchase Discounts 112 91 Cash 1,488 92 (To record the cash paid) 30-Oct Accounts Receivable Toys Sales (To record the sales) 93 $ 2,400 94 2,400 95 96 97 %24 %24

G Н K Accounts Payable - Sarah Harmitz $ 3,800 $ 1,500 $ 1,600 Accounts Receivable - Robert Gibbs Accounts Payable - Sarah Harmitz $ 3,800 $ 1,500 $ 2,500 $ 1,600 Accounts Receivable - Robert Gibbs $ 3,800 $ 1,600 1-Oct 3-Oct $ 1,100 $ 1,100 12-Oct $ 1,100 $ 1,000 12-Oct 3,800 3-Oct 1-Oct 16-Oct 10-Oct 300 9-Oct $ 1,100 8-Oct 30-Oct 600 22-Oct 14-Oct 8-Oct 1,500 6-Oct 700 16-Oct 3 $ 1,000 22-Oct 23-Oct 28-Oct 10-Oct 4,000 9-Oct 600 16-Oct 400 4 $ 3,900 $ 1,000 $ 1,700 $ 2,400 16-Oct $ 1,000 $ 1,700 30-Oct 20-Oct 22-Oct 3,100 $ 1,500 31-Oct 2$ 26-Oct 31-Oct 600 4,600 22-Oct 28-Oct 6. 2$ 1,600 24-Oct 28-Oct Accounts Payable - Lane Chipkin $ 1,500 $ 2,500 Accounts Receivable - Inez Tenenbaum 30-Oct 8 14-Oct $ 4,000 10-Oct 10-Oct 2$ 6-Oct 700 300 $ 6.900 16-Oct 23-Oct 400 31-Oct 9,200 31-Oct 10 11 31-Oct 2$ 31-Oct 12 13 Accounts Payable - Sam Katz Garage $ 3,100 Accounts Receivable - Amanda Reader 14 $ 3,900 $ 1,700 $ 1,700 16-Oct 20-Oct 28-Oct 15 24-Oct 16 17 $ 3,900 $ 3,100 31-Oct 31-Oct 18 19 Accounts Payable - William Smith $ 4,600 Accounts Receivable - Bonie Flow 20 $ 2,400 30-Oct 26-Oct 21 22 $ 4,600 $ 2,400 31-Oct 31-Oct 23

AA AB Schedule of Accounts Payable Sarah Harmitz Lane Chipkin Sam Katz Garage William Smith 2$ 1,500 3 3,100 4,600 6. Total 9,200 8 Schedule of Accounts Receivable 10 Robert Gibbs Inez Tenenbaum Amanda Reader Bonnie Flow 600 11 12 3,900 13 2,400 14 15 Total 6,900 16 17 2.

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