Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month of October 2014 are as follows:

Oct. 2.   Issued Invoice No. 512 to Albany Co., $670.        4.   Received cash from CMI Inc., on account, for$215.        8.   Issued Invoice No. 513 to Gabriel Co., $275.      12.   Issued Invoice No. 514 to Ells Inc.,$840.      19.   Received cash from Ells Inc., on account, $475.      22.   Issued Invoice No. 515 to Electronic Central Inc.,$150.      27.   Received cash from Marshall Inc. for services provided, $145.      29.   Received cash from Albany Co. for invoice of October 2.      31.   Received cash from McCleary Co. for services provided,$90.

Prepare a single-column revenue journal and a cash receipts journal to record these transactions. Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. Place a check mark in the Post. Ref. column to indicate when the accounts receivable subsidiary ledger should be posted.

The transactions completed by AM Express Company during March 2014, the first month of the fiscal year, were as follows:

Mar. 1.   Issued Check No. 205 for March rent, $2,450.         2.   Purchased a vehicle on account from McIntyre Sales Co.,$26,900.         3.   Purchased office equipment on account from Office Mate Inc., $1,570.         5.   Issued Invoice No. 91 to Ellis Co.,$7,000.         6.   Received check for $7,950 from Chavez Co. in payment of invoice.         7.   Issued Invoice No. 92 to Trent Co.,$9,840.         9.   Issued Check No. 206 for fuel expense, $820.       10.   Received check for$10,000 from Sajeev Co. in payment of invoice.       10.   Issued Check No. 207 to Office City in payment of $450 invoice.       10.   Issued Check No. 208 to Bastille Co. in payment of$1,890 invoice.       11.   Issued Invoice No. 93 to Jarvis Co., $7,200.       11.   Issued Check No. 209 to Porter Co. in payment of$415 invoice.       12.   Received check for $7,000 from Ellis Co. in payment of March 5 invoice.       13.   Issued Check No. 210 to McIntyre Sales Co. in payment of$26,900 invoice of March 2.       16.   Cash fees earned for March 1–16, $26,800.       16.   Issued Check No. 211 for purchase of a vehicle,$28,500.       17.   Issued Check No. 212 for miscellaneous administrative expense, $4,680.       18.   Purchased maintenance supplies on account from Bastille Co.,$2,430.       18.   Received check for rent revenue on office space, $900.       19.   Purchased the following on account from Master Supply Co.: maintenance supplies,$2,640, and office supplies, $1,500.       20.   Issued Check No. 213 in payment of advertising expense,$8,590.       20.   Used maintenance supplies with a cost of $4,400 to repair vehicles.       21.   Purchased office supplies on account from Office City,$990.       24.   Issued Invoice No. 94 to Sajeev Co., $9,200.       25.   Received check for$14,000 from Chavez Co. in payment of invoice.       25.   Issued Invoice No. 95 to Trent Co., $6,300.       26.   Issued Check No. 214 to Office Mate Inc. in payment of$1,570 invoice of March 3.       27.   Issued Check No. 215 to J. Wu as a personal withdrawal, $4,000.       30.   Issued Check No. 216 in payment of driver salaries,$33,300.       31.   Issued Check No. 217 in payment of office salaries, $21,200.       31.   Issued Check No. 218 for office supplies,$600.       31.   Cash fees earned for March 17–31, $29,400.

Instructions

1. Enter the following account balances in the general ledger as of March 1:

$$\begin{array}{llrlllr} \text{11}&\text{Cash}&\$\hspace{5pt}65,200&&\text{32}&\text{J. Wu, Drawing}&{-}\\ \text{12}&\text{Accounts Receivable}&{31,950}&&\text{41}&\text{Fees Earned}&{-}\\ \text{14}&\text{Maintenance Supplies}&{7,240}&&\text{42}&\text{Rent Revenue}&{-}\\ \text{15}&\text{Office Supplies}&{3,690}&&\text{51}&\text{Driver Salaries Expense}&{-}\\ \text{16}&\text{Office Equipment}&{17,300}&&\text{52}&\text{Maintenance Supplies Expense}&{-}\\ \text{17}&\text{Accum. Depr.—Office Equip.}&{4,250}&&\text{53}&\text{Fuel Expense}&{-}\\ \text{18}&\text{Vehicles}&{62,400}&&\text{61}&\text{Office Salaries Expense}&{-}\\ \text{19}&\text{Accum. Depr.—Vehicles}&{17,800}&&\text{62}&\text{Rent Expense}&{-}\\ \text{21}&\text{Accounts Payable}&{2,755}&&\text{63}&\text{Advertising Expense}&{-}\\ \text{31}&\text{J. Wu, Capital}&{162,975}&&\text{64}&\text{Administrative Expense}&{-}\\ \end{array}$$

2. Journalize the transactions for March 2014, using the following journals similar to those illustrated in this chapter: single-column revenue journal (p. 35), cash receipts journal (p. 31), purchases journal (p. 37, with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), cash payments journal (p. 34), and two-column general journal (p. 1). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
3. Post the appropriate individual entries to the general ledger.
4. Total each of the columns of the special journals, and post the appropriate totals to the general ledger; insert the account balances.
5. Prepare a trial balance.

Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October 2016 are as follows:

$$\begin{array}{rl} \text{Oct. 2.}&\text{Purchased office supplies on account from Meade Co., $\$ 400$.}\\ 5.&\text{Purchased office equipment on account from Peach Computers Co., $\$ 3,980$.}\\ 9.&\text{Purchased office supplies on account from Executive Office Supply Co., \$320.}\\ 13.&\text{Purchased field supplies on account from Yamura Co., $\$ 1,420$.}\\ 14.&\text{Purchased field supplies on account from Omni Co., \$2,940.}\\ 17.&\text{Purchased field supplies on account from Yamura Co., $\$ 1,890$.}\\ 24.&\text{Purchased field supplies on account from Omni Co., \$3,880.}\\ 29.&\text{Purchased office supplies on account from Executive Office Supply Co., $\$ 310$.}\\ 31.&\text{Purchased field supplies on account from Omni Co., $\$ 1,800$.}\\ \end{array}$$

Instructions

1. Insert the following balances in the general ledger as of October 1:

$$\begin{array}{llr} 14 & \text { Field Supplies } & \$ 5,920 \\ 15 & \text { Office Supplies } & 750 \\ 18 & \text { Office Equipment } & 12,300 \\ 21 & \text { Accounts Payable } & 1,170 \end{array}$$

2. Insert the following balances in the accounts payable subsidiary ledger as of October 1:

$$\begin{array}{lr} \text{Executive Office Supply Co.}&\$390\\ \text{Meade Co.}&780\\ \text{OmniCo.}&-\\ \text{Peach Computers Co.}&-\\ \text{Yamura Co.}&-\\ \end{array}$$

3. Journalize the transactions for October, using a purchases journal (p. 30$)$ similar to the one illustrated in this chapter. Prepare the purchases journal with columns for Accounts Payable, Field Supplies, Office Supplies, and Other Accounts. Post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry.
4. Post the purchases journal to the accounts in the general ledger.
5. a. What is the sum of the creditor balances in the subsidiary ledger at October 31 ? b. What is the balance of the accounts payable controlling account at October 31 ?
6. What type of e-commerce application would be used to plan and coordinate transactions with suppliers?

Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October are as follows:

Oct. 2. Purchased office supplies on account from Meade Co., $\$ 400$.
5. Purchased office equipment on account from Peach Computers Co., $\$ 3,980$.
9. Purchased office supplies on account from Executive Office Supply Co., $\$ 320$.
13. Purchased field supplies on account from Yamura Co., $\$ 1,420$.
14. Purchased field supplies on account from Omni Co., $\$ 2,940$.
17. Purchased field supplies on account from Yamura Co., $\$ 1,890$.
24. Purchased field supplies on account from Omni Co., $\$ 3,880$.
29. Purchased office supplies on account from Executive Office Supply Co., $\$ 310$.
31. Purchased field supplies on account from Omni Co., $\$ 1,800$.

Instructions

1. Insert the following balances in the general ledger as of October 1 :

$$\begin{array}{llr}14 & \text { Field Supplies } & \$ 5,920 \\ 15 & \text { Office Supplies } & 750 \\ 18 & \text { Office Equipment } & 12,300 \\ 21 & \text { Accounts Payable } & 1,170\end{array}$$

2. Insert the following balances in the accounts payable subsidiary ledger as of October 1

$$\begin{array}{lr} \text { Executive Office Supply Co. } & \$ 390 \\ \text { Meade Co. } & 780 \\ \text { Omni Co. } & - \\ \text { Peach Computers Co. } & - \\ \text { Yamura Co. } & - \end{array}$$

3. Journalize the transactions for October, using a purchases journal (p. 30) similar to the one illustrated in this chapter. Prepare the purchases journal with columns for Accounts Payable, Field Supplies, Office Supplies, and Other Accounts. Post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry.
4. Post the purchases journal to the accounts in the general ledger.
5. a. What is the sum of the creditor balances in the subsidiary ledger at October 31 ? b. What is the balance of the accounts payable controlling account at October 31 ?
6. What type of e-commerce application would be used to plan and coordinate transactions with suppliers?

West Texas Exploration Co. was established on October 15 to provide oil-drilling services. West Texas uses field equipment (rigs and pipe) and field supplies (drill bits and lubricants) in its operations. Transactions related to purchases and cash payments during the remainder of October are as follows:

Oct. 16. Issued Check No. 1 in payment of rent for the remainder of October, $7,000.
16. Purchased field equipment on account from Petro Services Inc.,$32,600.
Oct. 17. Purchased field supplies on account from Midland Supply Co., $9,780.
18. Issued Check No. 2 in payment of field supplies,$4,570, and office supplies, $650.
20. Purchased office supplies on account from A-One Office Supply Co.,$1,320.
Post the journals to the accounts payable subsidiary ledger.
24. Issued Check No. 3 to Petro Services Inc., in payment of October 16 invoice.
26. Issued Check No. 4 to Midland Supply Co. in payment of October 17 invoice.
28. Issued Check No. 5 to purchase land, $240,000.
28. Purchased office supplies on account from A-One Office Supply Co.,$3,670.
Post the journals to the accounts payable subsidiary ledger.
30. Purchased the following from Petro Services Inc. on account: field supplies, $25,300 and office equipment,$5,500.
30. Issued Check No. 6 to A-One Office Supply Co. in payment of October 20 invoice.
30. Purchased field supplies on account from Midland Supply Co., $12,450.
31. Issued Check No. 7 in payment of salaries,$32,000.
31. Rented building for one year in exchange for field equipment having a cost of $15,000.
Post the journals to the accounts payable subsidiary ledger.

Instructions

1. Journalize the transactions for October. Use a purchases journal and a cash payments journal similar to those illustrated in this chapter and a two-column general journal. Set debit columns for Field Supplies, Office Supplies, and Other Accounts in the purchases journal. Refer to the following partial chart of accounts:

$$\begin{array}{llll}11 & \text { Cash } & 18 & \text { Office Equipment } \\ 14 & \text { Field Supplies } & 19 & \text { Land } \\ 15 & \text { Office Supplies } & 21 & \text { Accounts Payable } \\ 16 & \text { Prepaid Rent } & 61 & \text { Salary Expense } \\ 17 & \text { Field Equipment } & 71 & \text { Rent Expense }\end{array}$$

At the points indicated in the narrative of transactions, post to the following subsidiary accounts in the accounts payable ledger:

A-One Office Supply Co.
Midland Supply Co.
Petro Services Inc.

2. Post the individual entries (Other Accounts columns of the purchases journal and the cash payments journal; both columns of the general journal) to the appropriate general ledger accounts.
3. Total each of the columns of the purchases journal and the cash payments journal, and post the appropriate totals to the general ledger. (Because the problem does not include transactions related to cash receipts, the cash account in the ledger will have a credit balance.)
4. Sum the balances of the accounts payable creditor balances.
5. Why might West Texas consider using a subsidiary ledger for the field equipment?

The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2016:

$$\begin{array}{lrlr} \text { Cash } & \$ 92,000 & \text { Gerri Faber, Drawing } & \$ 300,000 \\ \text { Accounts Receivable } & 450,000 & \text { Sales } & 8,925,000 \\ \text { Merchandise Inventory } & 375,000 & \text { Cost of Merchandise Sold } & 5,620,000 \\ \text { Office Supplies } & 10,000 & \text { Sales Salaries Expense } & 850,000 \\ \text { Prepaid Insurance } & 12,000 & \text { Advertising Expense } & 420,000 \\ \text { Office Equipment } & 220,000 & \text { Depreciation Expense- } \\ \text { Accumulated Depreciation- } & & \text { Store Equipment } \\ \text { Office Equipment } & 58,000 & \text { Miscellaneous Selling Expense } & 18,000 \\ \text { Store Equipment } & 650,000 & \text { Office Salaries Expense } & 540,000 \\ \text { Accumulated Depreciation- } & & \text { Rent Expense } & 48,000 \\ \text { Store Equipment } & 87,500 & \text { Insurance Expense } & 24,000 \\ \text { Accounts Payable } & 48,500 & \text { Depreciation Expense- } \\ \text { Salaries Payable } & 4,000 & \text { Office Equipment } & 10,000 \\ \text { Note Payable } & & \text { Office Supplies Expense } & 4,000 \\ \text { (final payment due 2032) } & 140,000 & \text { Miscellaneous Administrative Exp. } & 6,000 \\ \text { Gerri Faber, Capital } & 431,000 & \text { Interest Expense } & 12,000 \end{array}$$

Instructions

1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $\$ 7,000$.
4. Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ.

West Texas Exploration Co. was established on October 15,2016, to provide oil-drilling services, West Texas uses field equipment (rigs and pipe) and field supplies (drill bits and lubricants) in its operations. Transactions related to purchases and cash payments during the remainder of October are as follows:

$$\begin{array}{rl} \text{Oct. 16.}&\text{Issued Check No. 1 in payment of rent for the remainder of October, $\$ 7,000$.}\\ 16.&\text{Purchased field equipment on account from Petro Services Inc., \$32,600.}\\ 17.&\text{Purchased field supplies on account from Midland Supply Co., $\$ 9,780$.}\\ 18.&\text{Issued Check No, 2 in payment of field supplies, $\$ 4,570$, and office supplies, $\$ 650$.}\\ 20.&\text{Purchased office supplies on account from A-One Office Supply Co., \$1,320. Past tbe journals to the accotmts payable subsidiary ledger.}\\ 24.&\text{Issued Check No. 3 to Petro Services Inc., in payment of October 16 invoice.}\\ \text{Oct. 26.}&\text{Issued Check No. 4 to Midland Supply Co, in payment of October 17 invoice.}\\ 28.&\text{Issued Check No. 5 to purchase land, $\$ 240,000$.}\\ 28.&\text{Purchased office supplies on account from A-One Office Supply Co., \$3,670. Post the journals to the accounts payable subsidiary ledger:}\\ 30.&\text{Purchased the following from Petro Services Inc, on account: field supplies, $\$ 25,300$ and office equipment, $\$ 5,500$.}\\ 30.&\text{Issued Check No. 6 to $\mathrm{A}$-One Office Supply Co, in payment of October 20 invoice.}\\ 30.&\text{Purchased field supplies on account from Midland supply Co., \$12,450.}\\ 31.&\text{Issued Check No, 7 in payment of salaries, $\$ 32,000$.}\\ 31.&\text{Rented building for one year in exchange for field equipment having a cost of $\$ 15,000$.}\\ \end{array}$$

Post the journals to the accounts payable subsidiary ledger. Instructions

1. Journalize the transactions for October. Use a purchases journal and a cash payments journal, similar to those illustrated in this chapter, and a two-column general journal. Set debit columns for Field Supplies, Office Supplies, and Other Accounts in the purchasca journal. Refer to the following partial chart of accounts.

$$\begin{array}{llll} 11&\text{Cash}&18&\text{Office Equipment}\\ 14&\text{Field Supplies}&19&\text{Land}\\ 15&\text{Office Supplies}&21&\text{Accounts Payable}\\ 16&\text{Prepaid Rent}&61&\text{Salary Expense}\\ 17&\text{Field Equipment}&71&\text{Rent Expense}\\ \end{array}$$

At the points indicated in the narrative of transactions, post to the following subsidiary accounts in the accounts payable ledger:

$$\begin{array}{l} \text{A-One Office Supply Co.}\\ \text{Midland Supply Co.}\\ \text{Petro Services Inc.}\\ \end{array}$$

2. Post the individual entries (Other Accounts columns of the purchases journal and the cash payments journal; both columns of the general journal) to the appropriate general ledger accounts.
3. Total each of the columns of the purchases journal and the cash payments journal, and post the appropriate totals to the general ledger. (Because the problem close not include transactions related to cash receipts, the cash account in the ledger will have a credit balance.)
4. Sum the balances of the accounts payable creditor balances.
5. Why might West Texas consider using a subsidiary ledger for the field equipment?

Now suppose that the jury concludes that Elaine was partly at fault for the accident. Under what theory might her damages be reduced in proportion to the degree to which her actions contributed to the accident and her resulting injuries?

Suppose that the court concludes that the statute applies only to skiing and not to snow tubing. Will Elaine’s lawsuit be successful? Explain.

The transactions completed by Revere Courier Company during December 2014, the first month of the fiscal year, were as follows:

Dec. 1.   Issued Check No. 610 for December rent, $4,500.         2.   Issued Invoice No. 940 to Capps Co.,$1,980.         3.   Received check for $5,100 from Trimble Co. in payment of account.         5.   Purchased a vehicle on account from Boston Transportation,$39,500.         6.   Purchased office equipment on account from Austin Computer Co., $4,800.         6.   Issued Invoice No. 941 to Dawar Co.,$5,680.         9.   Issued Check No. 611 for fuel expense, $800.       10.   Received check from Sing Co. in payment of$4,850 invoice.       10.   Issued Check No. 612 for $360 to Office To Go Inc. in payment of invoice.       10.   Issued Invoice No. 942 to Joy Co.,$2,140.       11.   Issued Check No. 613 for $3,240 to Essential Supply Co. in payment of account.       11.   Issued Check No. 614 for$650 to Porter Co. in payment of account.       12.   Received check from Capps Co. in payment of $1,980 invoice of December 2.       13.   Issued Check No. 615 to Boston Transportation in payment of$39,500 balance of December 5.       16.   Issued Check No. 616 for $40,900 for cash purchase of a vehicle.       16.   Cash fees earned for December 1–16,$21,700.       17.   Issued Check No. 617 for miscellaneous administrative expense, $600.       18.   Purchased maintenance supplies on account from Essential Supply Co.,$1,750.       19.   Purchased the following on account from McClain Co.: maintenance supplies, $1,500; office supplies,$325.       20.   Issued Check No. 618 in payment of advertising expense, $1,990.       20.   Used$3,600 maintenance supplies to repair delivery vehicles.       23.   Purchased office supplies on account from Office To Go Inc., $440.       24.   Issued Invoice No. 943 to Sing Co.,$6,400.       24.   Issued Check No. 619 to S. Holmes as a personal withdrawal, $3,200.       25.   Issued Invoice No. 944 to Dawar Co.,$5,720.       25.   Received check for $4,100 from Trimble Co. in payment of balance.       26.   Issued Check No. 620 to Austin Computer Co. in payment of$4,800 invoice of December 6.       30.   Issued Check No. 621 for monthly salaries as follows: driver salaries, $16,900; office salaries,$7,600.       31.   Cash fees earned for December 17–31, $19,700.       31.   Issued Check No. 622 in payment for office supplies,$310.

Instructions

1. Enter the following account balances in the general ledger as of December 1:

$$\begin{array}{llrlllr} \text{11}&\text{Cash}&\$\hspace{5pt}160,900&&\text{32}&\text{Holmes, Drawing}&{-}\\ \text{12}&\text{Accounts Receivable}&{14,050}&&\text{41}&\text{Fees Earned}&{-}\\ \text{14}&\text{Maintenance Supplies}&{10,850}&&\text{51}&\text{Driver Salaries Expense}&{-}\\ \text{15}&\text{Office Supplies}&{4,900}&&\text{52}&\text{Maintenance Supplies Expense}&{-}\\ \text{16}&\text{Office Equipment}&{28,500}&&\text{53}&\text{Fuel Expense}&{-}\\ \text{17}&\text{Accum. Depr.—Office Equip.}&{6,900}&&\text{61}&\text{Office Salaries Expense}&{-}\\ \text{18}&\text{Vehicles}&{95,900}&&\text{62}&\text{Rent Expense}&{-}\\ \text{19}&\text{Accum. Depr.—Vehicles}&{14,700}&&\text{63}&\text{Advertising Expense}&{-}\\ \text{21}&\text{Accounts Payable}&{4,250}&&\text{64}&\text{Administrative Expense}&{-}\\ \text{31}&\text{S. Holmes, Capital}&{289,250}\\ \end{array}$$

2. Journalize the transactions for December 2014, using the following journals similar to those illustrated in this chapter: cash receipts journal (p. 31), purchases journal (p. 37, with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), single-column revenue journal (p. 35), cash payments journal (p. 34), and two-column general journal (p. 1). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
3. Post the appropriate individual entries to the general ledger.
4. Total each of the columns of the special journals, and post the appropriate totals to the general ledger; insert the account balances.
5. Prepare a trial balance.

The transactions completed by Revere Courier Company during December, the first month of the fiscal year, were as follows:

Dec. 1. Issued Check No. 610 for December rent, $4,200.
2. Issued Invoice No. 940 to Clifford Co.,$1,740.
3. Received check for $4,800 from Ryan Co. in payment of account.
5. Purchased a vehicle on account from Platinum Motors,$37,300.
6. Purchased office equipment on account from Austin Computer Co., $4,500.
6. Issued Invoice No. 941 to Ernesto Co.,$3,870.
9. Issued Check No. 611 for fuel expense, $600.
10. Received check from Sing Co. in payment of$4,040 invoice.
10. Issued Check No. 612 for $330 to Office To Go Inc. in payment of invoice.
10. Issued Invoice No. 942 to Joy Co.,$1,970.
11. Issued Check No. 613 for $3,090 to Essential Supply Co. in payment of account.
11. Issued Check No. 614 for$500 to Porter Co. in payment of account.
12. Received check from Clifford Co. in payment of $1,740 invoice of December 2.
13. Issued Check No. 615 to Platinum Motors in payment of$37,300 balance of December 5.
16. Issued Check No. 616 for $39,800 for cash purchase of a vehicle.
16. Cash fees earned for December 1–16,$20,300.
17. Issued Check No. 617 for miscellaneous administrative expense, $500.
18. Purchased maintenance supplies on account from Essential Supply Co.,$1,750.
19. Purchased the following on account from McClain Co.: maintenance supplies, $1,500; office supplies,$375.
20. Issued Check No. 618 in payment of advertising expense, $1,780.
20. Used$3,200 maintenance supplies to repair delivery vehicles.
23. Purchased office supplies on account from Office To Go Inc., $400.
24. Issued Invoice No. 943 to Sing Co.,$6,100.
24. Issued Check No. 619 to S. Holmes as a personal withdrawal, $3,000.
25. Issued Invoice No. 944 to Ernesto Co.,$5,530.
25. Received check for $4,100 from Ryan Co. in payment of balance.
26. Issued Check No. 620 to Austin Computer Co. in payment of$4,500 invoice of December 6.
30. Issued Check No. 621 for monthly salaries as follows: driver salaries, $16,900; office salaries,$7,100.
Dec. 31. Cash fees earned for December 17–31, $18,900.
31. Issued Check No. 622 in payment for office supplies,$340.

Instructions

1. Enter the following account balances in the general ledger as of December 1 :

$$\begin{array}{llrll}11 & \text { Cash } & \$ 161,680 & 32 & \text { S. Holmes, Drawing } \\ 12 & \text { Accounts Receivable } & 12,940 & 41 & \text { Fees Earned } \\ 14 & \text { Maintenance Supplies } & 10,850 & 51 & \text { Driver Salaries Expense } \\ 15 & \text { Office Supplies } & 4,900 & 52 & \text { Maintenance Supplies Exp. } \\ 16 & \text { Office Equipment } & 28,500 & 53 & \text { Fuel Expense } \\ 17 & \text { Accum. Depr.-Office Equip. } & 6,900 & 61 & \text { Office Salaries Expense } \\ 18 & \text { Vehicles } & 95,900 & 62 & \text { Rent Expense } \\ 19 & \text { Accum. Depr.-Vehicles } & 14,700 & 63 & \text { Advertising Expense } \\ 21 & \text { Accounts Payable } & 3,920 & 64 & \text { Miscellaneous Administrative Expense } \\ 31 & \text { S. Holmes, Capital } & 289,250 & & \end{array}$$

2. Journalize the transactions for December, using the following journals similar to those illustrated in this chapter: cash receipts journal (p. 31), purchases journal (p. 37, with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), singlecolumn revenue journal (p. 35), cash payments journal (p. 34), and two-column general journal (p. 1). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
3. Post the appropriate individual entries to the general ledger.
4. Total each of the columns of the special journals and post the appropriate totals to the general ledger; insert the account balances.
5. Prepare a trial balance.

The transactions completed by Revere Courier Company during December 2016 , the first month of the fiscal year, were as follows:

Dec. 1. Issued Check No. 610 for December rent, $4,500. 2. Issued Invoice No. 940 to Capps Co.,$1,980. 3. Received check for $5,100 from Trimble Co, in payment of account. 5. Purchased a vehicle on account from Boston Transportation,$ 39,500. 6. Purchased office equipment on account from Austin Computer Co., $4,800. 6. Issued Invoice No. 941 to Dawar Co.,$ 5,680. 9. Issued Check No. 611 for fuel expense, $800. 10. Received check from Sing Co. in payment of$ 4,850$invoice. 10. Issued Check No, 612 for$ 360 to Office To Go Inc. in payment of invoice. 10. Issued Invoice No, 942 to Joy Co., $2,140. 11. Issued Check No. 613 for$ 3,240 to Essential Supply Co. in payment of account. 11. Issued Check No, 614 for $650 to Porter Co. in payment of account. 12. Received check from Capps Co, in payment of$ 1,980 invoice of December 2. 13. Issued Check No. 615 to Boston Transportation in payment of $39,500 balance of December 5. 16. Issued Check No. 616 for$ 40,900 for cash purchase of a vehicle. 16. Cash fees earned for December 1-16, $21,700. 17. Issued Check No. 617 for miscellaneous administrative expense,$ 600. 18. Purchased maintenance supplies on account from Essential Supply Co., $1,750. 19. Purchased the following on account from McClain Co.: maintenance supplies,$ 1,500; office supplies, $325. 20. Issued Check No. 618 in payment of advertising expense,$ 1,990. 20. Used $3,600 maintenance supplies to repair delivery vehicles. 23. Purchased office supplies on account from Office To Go Inc.,$ 440. 24. Issued Invoice No, 943 to Sing, $6,400. 24. Issued Check No. 619 to$. Holmes as a personal withdrawal, $3,200. 25. Issued Invoice No. 944 to Dawar Co.,$ 5,720. 25. Received check for $4,100 from Trimble Co. in payment of balance. 26. Issued Check No. 620 to Austin Computer Co. in payment of$ 4,800 invoice of December 6. 30. Issued Check No. 621 for monthly salaries as follows: driver salaries, $16,900; office salaries,$ 7,600. 31. Cash fees earned for December $17-31,$ 19,700. 31. Issued Check No. 622 in payment for office supplies, $310.

Instructions

1. Enter the following account balances in the general ledger as of December 1:$

$$\begin{array}{llrlll} 11 & \text { Cash } & \$ 160,900 & 32 & \text { S. Holmes, Drawing } & - \\ 12 & \text { Accounts Receivable } & 14,050 & 41 & \text { Fees Earned } & - \\ 14 & \text { Maintenance Supplies } & 10,850 & 51 & \text { Driver Salaries Expense } & - \\ 15 & \text { Office Supplies } & 4,900 & 52 & \text { Maintenance Supplies Exp. } & - \\ 16 & \text { Office Equipment } & 28,500 & 53 & \text { Fuel Expense } & - \\ 17 & \text { Accum. Depr.-Office Equip. } & 6,900 & 61 & \text { Office Salaries Expense } & - \\ 18 & \text { Vehicles } & 95,900 & 62 & \text { Rent Expense } & - \\ 19 & \text { Accum. Depr,-Vehicles } & 14,700 & 63 & \text { Advertising Expense } & - \\ 21 & \text { Accounts Payable } & 4,250 & 64 & \text { Miscellaneous Administrative Expense } & - \\ 31 & \text { S. Holmes, Capital } & 289,250 & & & \end{array}$$

$ 2. Journalize the transactions for December 2016 , using the following journals similar to those illustrated in this chapter: cash receipts journal, purchases journal , with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts, singlecolumn revenue journal , cash payments journal , and two-column general journal . Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made. 3. Post the appropriate individual entries to the general ledger. 4. Total each of the columns of the special journals, and post the appropriate totals to the general ledger; insert the account balances. 5. Prepare a trial balance.

The central question in this case is whether the state statute establishing that skiers assume the risks inherent in the sport bars Elaine’s suit. What would your decision be on this issue? Why?

What defense will Ragged Mountain probably assert?