Reference no: EM132468927

Abbey Ellen opened Abby's Toy House . As her newly hired accountant, your task are to:

Question 1. Journalize the transactions for the month of March.

Question 2. Record to subsidiary ledgers and post to the general ledger as appropriate.

Question 3. Total and rule the journals.

Question 4. Prepare a schedule of accounts receivable and a schedule of accounts payable. (Check Figures: Total of Schedule of accounts receivable $7, 600 Total of schedule of accounts payable $9,000)

The following is the partial chart of accounts fro Abby's Toy House:

Abby's Toy House Chart of Accounts

 Revenue                           Assets   

110                                    Cash

410                              Toy Sales

112                                 Accounts Receivable

412                                Sales Returns and Allowances

114                                Prepaid Rent

414                                Sales Discounts

121                               Delivery Truck

Cost of Goods

Assets                                                Revenue   

Liabilities                                         510

Toy Purchases                                  210

Accounts Payable                               512

Purchases Returns and Allowances

Owner's Equity                                    514

Purchases Discount                              310

A. Ellen, Capital

Expense                                             610

Salaries Expense                                   612

Cleaning Expense                                 200X

Mar.

• Abbey Ellen invested $8,000 in the toy store.
• Paid three months' rent in advance, check no. 1, $3,000.
• Purchased merchandise from Earl Miller Company on account, $4,000,
• invoice no. 410, dated March 2, terms 2/10, n/30.

3

• Sold merchandise to Bill Burton on account, $1,000, invoice no. 1, terms
• 2/10, n/30.

6

• Sold merchandise to Jim Rex on account, $700, invoice no. 2, terms 2/10, n/30.
• Purchased merchandise from Earl Miller Co. on account, $1,200, invoice no. 415,
• dated March 9, terms 2/10, n/30.

9

• Sold merchandise to Bill Burton on account, $600, invoice no. 3, terms 2/10, n/30.

9

• Paid cleaning service, check no. 2, $300.

10

• Jim Rex returned merchandise that cost $300 to Abby's Toy House. Abby issued credit memorandum no. 1 to Jim Rex for $300.
• 10 Purchased merchandise from Minnie Katz on account, $4,000, invoice no. 311, dated March 11, terms 1/15, n/60.
• 12 Paid Earl Miller co. invoice no. 410, dated March 2, check no. 3.