Accounting theory and practice, Volume 1 (of 3)

by Roy B. Kester

Use plain paper with “T” accounts for the ledger.

Problem 3. Use three-column journal paper. Rule in additional lines to make it conform with [Form 9 on page 144]. Follow carefully the illustration on that page in making the entries.

Use plain paper with “T” accounts for the ledger.

XIX

1. Close C. H. Wyss’ ledger, taking account of the adjustments mentioned in [Assignment XVIII]. Use the profit and loss statement already drawn up to show the order in which the accounts should be closed.

Take a post-closing trial balance, recording it on a piece of journal paper, and compare it with the balance sheet.

2. The following transactions are to be entered in a sales journal. Make daily postings to customers’ accounts and a summary posting at the end of the month to Sales account.

April
3.	Sold on account to Mrs. A. K. Foster: 3 waists @ $1.50;
	1 suit $45; and 6 pairs hosiery @ $1.10.
	Cash sales were $175.
7.	Sold on account to Mrs. R. F. Burns: 1 evening dress $75;
	1 evening cloak $125; 3 pairs hosiery @ $3.30.
	To Mrs. B. J. Scott: 1 riding habit $65; 1 pair riding
	boots $20; 1 riding crop $7.50; 1 riding hat $12.
	Cash sales were $225.
15.	Sold to Miss Alice Hanna, on account: 1 pair 18-button
	gloves $7.50; 1 evening dress $45; 1 pair cut-steel
	buckles $25; 1 pair evening slippers $16.
	Cash sales $376.
21.	Sold to Mrs. W. S. Jordan, on account: 1 evening dress
	$97.50; 1 afternoon dress $72.50; 1 business suit
	$45; 1 pair sandals $8.50; 1 pair evening slippers
	$16; four pair hosiery $20.
	Cash sales $413.
28.	Sold to Mrs. Franklin Perry, on account: 1 bathing suit
	$13.50; 1 pair hose $1.50; 1 pair bathing shoes $2.50;
	1 rubber cap $1.75.
	Cash sales, $365.

3. The following transactions are to be entered in a sales journal ruled for two departments—Prescription and General. Make daily postings to customers’ accounts. Summarize and post at end of month.

May
2.	Sold to Alhambra Pharmacy, Invoice #325, 1/30, n/60:
	Prescription, $325; General $215.
	To Alpha Drug Co., Invoice #326, 1/30, n/60: General $165.
	Cash sales: Prescription $614; General $528.90.
6.	Sold to Ambassador Pharmacy, Invoice #350, 1/20, n/30:
	Prescription, $235; General $129.
	To Anglo-American Drug Co., Invoice #352, 1/10, n/30:
	Prescription $12; General $137.25.
	Cash sales: Prescription $562; General $489.
10.	Sold to Arcade Drug Store, Invoice #375, 1/20, n/30:
	Prescription $27; General $439.
	Cash sales: Prescription $281; General $314.
18.	Sold to Boston Pharmacy, Invoice #401, 1/30, n/60:
	Prescription $426; General $237.
	To Boyer-Gordon Drug Co., Invoice #402, 1/30, n/60:
	Prescription $374; General $472.
	Cash sales: Prescription $489; General $654.
24.	Sold to Bronx Pharmacy, Invoice #431, 1/30, n/60:
	Prescription $256; General $416.
	Cash sales: Prescription $617; General $529.
28.	Sold to Terminal Drug Co., Invoice #465, 1/20, n/30:
	Prescription $10; General $438.
	Cash sales: Prescription $675; General $981.