Big Country Ski Shop is a retail store that sells ski equipment and clothing. Bi
ID: 2399375 • Letter: B
Question
Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow:
Purchased ski boots for $4,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.
Purchased skis for $10,200 from Alaska Supply Company, Invoice 5916; terms 2/10, n/30.
Received Credit Memorandum 165 for $800 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
Purchased ski jackets for $3,000 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
Purchased ski poles for $2,760 plus a freight charge of $220 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
Purchased ski pants for $1,250 from Swenson Ski Goods, Invoice 528, terms n/30.
Received Credit Memorandum 245 for $200 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
Purchased ski sweaters for $4,600 plus a freight charge of $200 from Colorado Ski Shop, Invoice 6722, terms n/30.
Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.
Required:
Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balance of Cash as of September 1, 2019.
Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts payable ledger.
Prepare a schedule of accounts payable.
GENERAL LEDGER ACCOUNTS
ACCOUNTS PAYABLE LEDGER ACCOUNTS
Alaska Supply Company
Cold Mountain Clothing Company
Colorado Ski Shop
Swenson Ski Goods
Analyze:
What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.
Purchased ski boots for $4,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.
3Purchased skis for $10,200 from Alaska Supply Company, Invoice 5916; terms 2/10, n/30.
7Received Credit Memorandum 165 for $800 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
11Purchased ski jackets for $3,000 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
12Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
22Purchased ski poles for $2,760 plus a freight charge of $220 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
23Purchased ski pants for $1,250 from Swenson Ski Goods, Invoice 528, terms n/30.
25Received Credit Memorandum 245 for $200 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
27Purchased ski sweaters for $4,600 plus a freight charge of $200 from Colorado Ski Shop, Invoice 6722, terms n/30.
30Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.
Explanation / Answer
Journal Entry Debit Credit 02.09.2019 Purchase A/c 4600 Freight Expense A/c 310 To Colorado Ski Shop 4910 03.09.2019 Purchase A/c 10200 To Alaska Supply Company A/c 10200 07.09.2019 Colorado Ski Shop A/c 800 To Purchase Return 800 11.09.2019 Purchase A/c 3000 To Cold mountain clothing company 3000 12.09.2019 Alaska Supply Company A/c 10200 To Cash 9996 To cash discount 204 10200*2% 22.09.2019 Purchase A/c 2760 Freight A/c 220 To Alaska Supply Company A/c 2980 23.09.2019 Purchase A/c 1250 To Swenson Ski Goods A/c 1250 25.09.2019 Swenson Ski Goods A/c 200 To Purchase Return 200 27.09.2019 Purchase A/c 4600 Freight A/c 200 To Colorado Ski Shop A/c 4800 30.09.2019 Colorado Ski Shop A/c 4110 To Cash 4110 4910-800 Ledger Account Cash Account No : 101 Date Debit Credit Balance Sept 1,2019 23000 23000 Sept 12,2019 9996 13004 Sept 30,2019 4110 8894 Accounts Payable Account No : 201 Date Debit Credit Balance 2-Sep-19 4910 4910 3-Sep-19 10200 15110 Sept 7,2019 800 14310 Sept 11,2019 3000 17310 Sept 12,2019 10200 7110 Sept 22,2019 2980 10090 Sept 23,2019 1250 11340 Sept 25,2019 200 11140 Sept 27,2019 4800 15940 Sept 30,2019 4110 11830 Purchases Account No : 501 Date Debit Credit Balance 2-Sep-19 4600 4600 3-Sep-19 10200 14800 Sept 11,2019 3000 17800 Sept 22,2019 2760 20560 Sept 23,2019 1250 21810 Sept 27,2019 4600 26410 Freight In Account No : 502 Date Debit Credit Balance 2-Sep-19 310 310 Sept 22,2019 220 530 Sept 27,2019 200 730 Purchases Returns and Allowances Account No : 503 Date Debit Credit Balance 7-Sep-19 800 800 25-Sep-19 200 1000 Purchases Discounts Account No : 504 Date Debit Credit Balance 12-Sep-19 204 204 Alaska Supply Company Terms: 3/10,n/30 Date Debit Credit Balance 3-Sep-19 10200 10200 12-Sep-19 10200 0 22-Sep-19 2980 2980 Cold Mountain Clothing Company Terms: n/30 Date Debit Credit Balance 11-Sep-19 3000 3000 Colorado Ski Shop Terms: n/30 Date Debit Credit Balance 2-Sep-19 4910 4910 7-Sep-19 800 4110 27-Sep-19 4800 8910 30-Sep-19 4110 4800 Swenson Ski Goods Terms: n/30 Date Debit Credit Balance 23-Sep-19 1250 1250 25-Sep-19 200 1050 BIG COUNTRY SKI SHOP Schedule of Accounts Payable 30-Sep-19 Alaska Supply Company 2980 Cold Mountain Clothing Company 3000 Colorado Ski Shop 4800 Swenson Ski Goods 1050 Total 11830 What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item. Portion of clothing items purchased 4600+3000+1250+4600 13450
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