Question

Put-A-Wrench-In-It sells tools. During the month of October 2018, the following transactions occurred.

Oct 3                         Purchased inventory for $6,300 on account from Block and Deck

Oct 7                         Paid salaries for $2,100 with Check #256

Oct 10                      Purchased inventory for $4,100 cash from Malida Inc. with Check #257

Oct 17                      Paid the full amount owing to Block and Deck from the Oct 3 transaction with Check #258

Oct 24                      Purchased inventory for $7,700 on account from Debolt Inc.

Assume zero opening balances for the subledger and general ledger accounts. Assume no entries were made directly to the accounts payable general ledger from the general journal.

Use the following selected accounts to complete the posting references.

Account Description                         Account #             Account Description                         Account #

Cash                                                              101                           Owner’s Withdrawals                          310

Accounts Receivable                            110                            Sales Revenue                                          400

Merchandise Inventory                      120                            Sales Discount                                         405

Office Supplies                                         130                            Interest Revenue                                    410

Accounts Payable                                   200                            Cost of Goods Sold                                 500

Notes Payable                                          220                            Salaries Expense                                    520

Owners Capital                                        300                            Telephone Expense                               525

Post the appropriate transactions in the sales journal and the cash receipts journal. At the end of the month, total the journals and update the accounts receivable controlling account.

Account: Accounts Receivable                                                                                              GL No.
Date	Description	PR	DR	CR	Balance

Account: Block and Deck
Date	PR	DR	CR	Balance

Account: Debolt Inc.
Date	PR	DR	CR	Balance

Answer 1