Problem

The cash payments of Royalty Jewelry Store, a retail business, for June are listed below....

The cash payments of Royalty Jewelry Store, a retail business, for June are listed below. The general ledger accounts used to record these transactions appear below.

INSTRUCTIONS

1. Open the general ledger accounts and enter the balances as of June 1.

2. Record all payments by check in a cash payments journal; use 8 as the page number.

3. Record all payments from the petty cash fund on a petty cash analysis sheet; use 8 as the sheet number.

4. Post the individual entries from the Other Accounts Debit section of the cash payments journal to the proper general ledger accounts.

5. Total, prove, and rule the petty cash analysis sheet as of June 30. Record the replenishment of the fund and the final balance on the sheet.

6. Total, prove, and rule the cash payments journal as of June 30.

7. Post the column totals from the cash payments journal to the proper general ledger accounts.

GENERAL LEDGER ACCOUNTS

101

Cash

$42,840 Dr.

105

Petty Cash Fund

 

129

Supplies

1,060 Dr.

201

Notes Payable

3,200 Cr.

205

Accounts Payable

18,880 Cr.

231

Sales Tax Payable

4,200 Cr.

302

Larry Jennings, Drawing

 

451

Sales Returns and Allowances

 

504

Purchases Discounts

 

611

Delivery Expense

 

620

Rent Expense

 

623

Salaries Expense

 

626

Telephone Expense

 

634

Interest Expense

 

635

Miscellaneous Expense

 

DATE

TRANSACTIONS

June 1

Issued Check 4121 for $2,500 to pay the monthly rent.

2

Issued Check 4122 for $4,200 to remit the state sales tax.

3

Issued Check 4123 for $2,780 to Perfect Timing Watch Company, a creditor, in payment of Invoice 6808, dated May 5.

4

Issued Check 4124 for $200 to establish a petty cash fund. (After journalizing this transaction, be sure to enter it on the first line of the petty cash analysis sheet.)

5

Paid $30 from the petty cash fund for office supplies, Petty Cash Voucher 1.

7

Issued Check 4125 for $3,328 to Perry Corporation in payment of a $3,200 promissory note and interest of $128.

8

Paid $20 from the petty cash fund for postage stamps, Petty Cash Voucher 2.

10

Issued Check 4126 for $594 to a customer as a cash refund for a defective watch that was returned; the original sale was made for cash.

June 12

Issued Check 4127 for $276 to pay the telephone bill.

14

Issued Check 4128 for $5,880 to International Jewelry Company, a creditor, in payment of Invoice 8629, dated May 6 ($6,000), less a cash discount ($120).

15

Paid $18 from the petty cash fund for delivery service, Petty Cash Voucher 3.

17

Issued Check 4129 for $860 to purchase store supplies.

20

Issued Check 4130 for $3,430 to Nelson’s Jewelry and Accessories, a creditor, in payment of Invoice 1513, dated June 12 ($3,500), less a cash discount ($70).

22

Paid $24 from the petty cash fund for a personal withdrawal by Larry Jennings, the owner, Petty Cash Voucher 4.

25

Paid $30 from the petty cash fund to have the store windows washed and repaired, Petty Cash Voucher 5.

27

Issued Check 4131 for $3,650 to Classy Creations, a creditor, in payment of Invoice 667, dated May 30.

30

Paid $24 from the petty cash fund for delivery service, Petty Cash Voucher 6.

30

Issued Check 4132 for $7,675 to pay the monthly salaries.

30

Issued Check 4133 for $5,000 to Larry Jennings, the owner, as a withdrawal for personal use.

30

Issued Check 4134 for $146 to replenish the petty cash fund. (Foot the columns of the petty cash analysis sheet in order to determine the accounts that should be debited and the amounts involved.)

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