The December 1 account balances for the general and subsidiary ledgers are given in the Working Papers.
Instructions:
Journalize the following transactions completed during December of the current year. Use page 12 of a sales journal, page 12 of a purchases journal, page 12 of a general journal, page 12 of a cash receipts journal, and page 23 of a cash payments journal. MSC offers sales terms of 2/10, n/30. The sales tax rate is 6%. Source documents are abbreviated as follows: check, C; memorandum, M; purchase invoice, P; receipt, R; sales invoice, S; terminal summary, TS; debit memorandum, DM; credit memorandum, CM.
Dec. 1. Paid cash for rent, $1,200.00. C372.
2. Paid cash for electric bill,$346.20. C373.
2. Received cash on account from Clegg Medical Center, covering S64 for $413.40, less 2% sales discount. R92.
3. Paid cash for miscellaneous expense,$72.00. C374.
3. Paid cash on account to Spencer Industries, covering P73 for $580.00, less 2% discount. C375.
4. Sold merchandise on account to Bratton Clinic,$450.00, plus sales tax, $27.00; total,$477.00. S67.
5. Recorded cash and credit card sales, $5,796.00, plus sales tax,$347.76; total, $6,143.76. TS45.
Posting. Post the items that are to be posted individually. Post the journals in this order: sales journal, purchases journal, general journal, cash receipts journal, and cash payments journal.
7. Sold merchandise on account to Glenmore School,$462.00. Glenmore School is exempt from sales tax. S68.
7. Received cash on account from Treet Retirement Home, $432.48, covering S65. R93.
8. Bought office supplies on account from Cross Office Supply,$351.60. M43.
9. Purchased merchandise on account from Ogden Instruments, $2,250, less a 40% trade discount. P77.
9. Bought store supplies on account from Ziegler, Inc.,$330.00. M44.
10. Paid cash for office supplies, $174.00. C376.
11. Paid cash on account to Evans Supply,$1,170.00, covering P74. C377.
11. Purchased merchandise on account from Spencer Industries, $1,032.00. P78.
12. Paid cash for store supplies,$264.00. C378.
12. Recorded cash and credit card sales, $7,125.00, plus sales tax,$427.50; total, $7,552.50. TS46.
Posting. Post the items that are to be posted individually.
14. Purchased merchandise on account from Evans Supply,$3,276.00. P79.
14. Sold merchandise on account to Odom Daycare, $170.00, plus sales tax,$10.20; total, $180.20. S69.
14. Paid cash for advertising,$415.00. C379.
15. Returned $226.00 of merchandise to Evans Supply from P79,$226.00. DM4.
15. Paid cash on account to Armstrong Medical, $1,272.00, covering P75. C380.
15. Received cash on account from Jamacus Clinic,$821.50, covering S66. R94.
15. Sold merchandise on account to Clegg Medical Center, $490.00, plus sales tax,$29.40; total, $519.40. S70.
15. Paid cash for liability for employee income tax,$342.00, social security tax, $767.00, and Medicare tax,$179.38; total, $1,288.38. C381.
15. Paid cash for semimonthly payroll,$2,313.85 (total payroll, $2,930.00, less deductions: employee income tax,$162.00; social security tax, $181.66; Medicare tax,$42.49; health insurance, $170.00; U.S. Savings Bonds,$30.00; United Way donations, $30.00). C382.
15. Recorded employer payroll taxes,$248.95, for the semimonthly pay period ended December 15. Taxes owed are: social security tax, $181.66; Medicare tax,$42.49; federal unemployment tax, $3.20; and state unemployment tax,$21.60. M45.
19. Recorded cash and credit card sales, $6,925.00, plus sales tax,$415.50; total, $7,340.50. TS47.
Posting. Post the items that are to be posted individually.
23. Paid cash on account to Ogden Instruments,$2,200.00, covering P76. C383.
24. Received cash on account from Odom Daycare, covering S69 for $180.20, less 2% discount. R95.
24. Granted credit to Clegg Medical Center for merchandise returned,$120.00, plus sales tax, $7.20, from S70; total,$127.20. CM5.
26. Recorded cash and credit card sales, $6,980.00, plus sales tax,$418.80; total, $7,398.80. TS48.
Posting. Post the items that are to be posted individually.