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During September 2019, Interior Designs Specialty Shop, a retail store, had the transactions listed below. The general ledger accounts used to record these transactions are also provided below. GENERAL LEDGER ACCOUNTS 101 Cash 109 Notes Receivable 111 Accounts Receivable 121 Supplies 131 Inventory 201 Notes Payable 205 Accounts Payable 231 Sales Tax Payable 301 Sergio Cortez, Capital 401 Sales $ 18,945 Dr. 451 501 6,140 Dr. 502 710 Dr. 503 29,365 Dr. 504 611 9,560 Cr. 614 617 45,600 Cr. 619 Sales Returns and Allowances Purchases Freight In Purchases Returns and Allowances Purchases Discounts Cash Short or Over Rent Expense Salaries Expense Utilities Expense DATE TRANSACTIONS Sept. 1 Received a check for $1,050 from David Prater to pay his account. 1 Issued Check 1401 for $1,940 to Sadler Floor Coverings, a creditor, in payment of Invoice 6325 dated August 3. 2 Issued Check 1402 for $2,500 to pay the monthly rent. 3 Sold a table on credit for $650 plus sales tax of $52.00 to Pam Lawrence, Sales Slip 1850. 5 Sergio Cortez, the owner, invested an additional $15,000 cash in the business in order to expand operations. 6 Had cash sales of $3,900 plus sales tax of $312 during the period September 1-6; there was a cash shortage of $20. 6 Purchased carpeting for $4,450 from Reed Millings Company, Invoice 827, dated September 3; terms of 2/10, n/30. 6 Issued Check 1403 for $158 to Tri-City Trucking Company to pay the freight charge on goods received from Reed Millings Company. 8 Purchased store supplies for $370 from Rocker Company, Invoice 4204, dated September 6, net amount due in 30 days. 8 Sold chairs on credit for $950 plus sales tax of $76.00 to Henry Tolliver, Sales Slip 1851. 11 Accepted a two-month promissory note for $2,100 from Jason Williams to settle his overdue account; the note has an interest rate of 10 percent. 11 Issued Check 1484 for $4,361 to Reed Millings Company, a creditor, in payment of Invoice 827 dated September 3 ($4,450) less a cash discount ($89). 13 Had cash sales of $3,850 plus sales tax of $308 during the period September 8-13. 14 Purchased carpeting for $3,700 plus a freight charge of $84 from Wells Products, Invoice 9453, dated September 11, net due and payable in 30 days. 15 Collected $1,260 on account from Mesia Davis. 17 Gave a two-month promissory note for $5,500 to Mcknight Corporation, a creditor, to settle an overdue balance; the note bears interest at 12 percent. 19 Sold a lamp on credit to Rachel Carter for $250 plus sales tax of $20, Sales Slip 1852. 20 Had cash sales of $4,100 plus sales tax of $328 during the period September 15-20; there was a cash shortage of $9.00. 21 Purchased area rugs for $2,800 from Nelson Craft Products, Invoice 677, dated September 18; the terms are 2/10, n/30. 22 Issued Check 1405 for $306 to pay the monthly utility bill. 23 Granted an allowance to Rachel Carter for scratches on the lamp that she bought on Sales Slip 1852 of September 19; issued Credit Memorandum 151 for $54, which includes a price reduction of $50 and sales tax of $4. 24 Received Credit Memorandum 110 for $300 from Nelson Craft Products for a damaged rug that was returned; the original purchase was made on Invoice 677 dated September 18. 24 Robert Kent sent a check for $1,730 to pay the balance he owes. 25 Issued Check 1406 for $3,600 to make a cash purchase of merchandise. 26 Issued Check 1407 for $2,450 to Nelson Craft Products, a creditor, in payment of Invoice 677 of September 18 ($2,800), less a return ($300) and a cash discount ($50). 27 Purchased hooked rugs for $4,200 plus a freight charge of $128 from Booker, Inc., Invoice 1368, dated September 23, net payable in 45 days. 27 Had cash sales of $4,800 plus sales tax of $384 during the period September 22-27. 28 Issued Check 1408 for $2,120 to Wells Products, a creditor, in payment of Invoice 8984 dated August 30. 29 Sold a cabinet on credit to Mesia Davis for $1,200 plus sales tax of $96, Sales Slip 1853. 30 Had cash sales of $1,500 plus sales tax of $120 for September 29-30; there was a ash overage of $10. 30 Issued Check 1409 for $6,800 to pay the monthly salaries of the employees. Required: 1. Open the general ledger accounts and enter the balances as of September 1, 2019. 2. Record the transactions in a sales journal, a cash receipts journal, a purchases journal, a cash payments journal, and a general journal. 3. Post the entries from the general journal to the proper general ledger accounts. 4. Post the entries from the Other Accounts Credit section of the cash receipts journal to the proper general ledger accounts. 5. Post the entries from the Other Accounts Debit section of the cash payments journal to the proper general ledger accounts. 6. Total, prove, and rule the special journals as of September 30. 7. Post the column totals from the special journals to the proper general ledger accounts. 8. Set up an accounts receivable ledger for Interior Designs Specialty Shop. Open an account for each of the customers listed below and enter the balances as of September 1. All of these customers have terms of n/30. Credit Customers Balance Name 9/01/19 Rachel Carter Mesia Davis $1,260.00 Robert Kent 1,730.00 Pam Lawrence David Prater 1,050.00 Henry Tolliver Jason Williams 2,100.00 9. Post the individual entries from the sales journal, the cash receipts journal, and the general journal to the accounts receivable subsidiary ledger. 10. Prepare a schedule of accounts receivable for September 30, 2019. 11. Check the total of the schedule of accounts receivable against the balance of the Accounts Receivable account in the general ledger. The two amounts should be the same. Creditors Balance Name 9/01/19 Booker, Inc. McKnight Corporation $5,500 Nelson Craft Products Rocker Company Reed Millings Company Sadler Floor Coverings 1,940 Wells Products 2,120 Terms n/45 1/10, n/30 2/10, n/30 n/30 2/10, n/30 n/30 n/30 12. Set up an accounts payable subsidiary ledger for Interior Designs Specialty Shop. Open an account for each of the creditors listed above and enter the balances as of September 1, 2019. 13. Post the individual entries from the purchases journal, the cash payments journal, and the general journal to the accounts payable subsidiary ledger 14. Prepare a schedule of accounts payable for September 1, 2019. 15. Check the total of the schedule of accounts payable against the balance of the Accounts Payable account in the general ledger. The two amounts should be the same. Complete this question by entering your answers in the tabs below. General Ledgers Sales Journal Cash Receipts Purchases Journal Cash Payments General Journal Acct Rec Ledgers Schedule of Acct Rec Acct Pay Ledgers Schedule of Acct Pay Record the transactions in a sales journal. SALES JOURNAL Customer's Accounts Date Sales Slip No. Name Receivable Debit Sept. 1, 2019 Sales Tax Payable Credit Sales Credit Sept. 30, 2019 Totals S 0 S 0 $ General Ledgers Sales Journal Cash Receipts Purchases Journal Cash Payments General Journal Acct Rec Ledgers Schedule of Acct Rec Acct Pay Ledgers Schedule of Acct Pay Record the transactions in a cash receipts journal. (Negative amounts should be indicated with a minus sign.) CASH RECEIPTS JOURNAL Other Accounts Credit Accounts Sales Tax Date Description Receivable Payable Sales Credit Credit Credit Account Name Amount Cash Debit Sept. 30, 2019 Totals S 0 S 0 S 0 $ 0 S Sales Journal Purchases Journal > Complete this question by entering your answers in the tabs below. General Ledgers Sales Journal Cash Receipts Purchases Journal Cash Payments General Journal Acct Rec Schedule of Ledgers Acct Rec Acct Pay Ledgers Schedule of Acct Pay Record the transactions in a purchases journal. PURCHASES JOURNAL Date Purchased From Invoice Number Invoice Date Terms Accounts Payable Credit Purchases Freight-In Debit Debit Sept. 30, 2019 Totals 0 S 0 $ 0 Complete this question by entering your answers in the tabs below. General Ledgers Sales Journal Cash Receipts Purchases Journal Cash Payments General Journal Acct Rec Schedule of Ledgers Acct Rec Acct Pay Ledgers Schedule of Acct Pay Record the transactions in a cash payments journal. CASH PAYMENTS JOURNAL Other Accounts Debit Account Date CK. No. Description Payable Account Name Amount Debit Purchases Discounts Credit Cash Credit Sept. 30, 2019 Totals S 0 S 0 S S 0 Purchases Journal General Journal > General Sales Cash Purchases Cash General Acct Rec Schedule of Acct Pay Schedule of Ledgers Journal Receipts Journal Payments Journal Ledgers Acct Rec Ledgers Acct Pay Post the individual entries from the sales journal, cash receipts journal, and the general journal to the accounts receivable su balances as of September 1 are listed below. All of these customers have terms of n/30. Rachel Carter Terms n/30 Mesia Davis Terms n/30 Date Debit Credit Balance Date Debit Credit Balance Sep 01, 2019 1,260 Pam Lawrence Robert Kent Date Debit Sep 01, 2019 Terms n/30 Credit Balance 1,730 Terms n/30 Credit Balance Date Debit David Prater Terms n/30 Terms n/30 Henry Tolliver Date Debit Date Debit Credit Balance Credit Balance Sep 01, 2019 1,050 Terms n/30 Jason Williams Date Debit Sep 01, 2019 Credit Balance 2,100 Post the individual entries from the purchases journal, the cash payments journal, and the general journal to the accounts payable subsidiary ledger. Opening balances as of September i are listed below. Booker, Inc. Date Debit Terms n/45 Credit Balance McKnight Corporation Date Debit Sep 01, 2019 Terms 1/10, n/30 Credit Balance 5,500 Nelson Craft Products Date Debit Terms 2/10, n/30 Credit Balance Reed Millings Company Date Debit Terms 2/10, n/30 Credit Balance Rocker Company Date Debit Terms n/30 Credit Balance Sadler Floor Coverings Date Debit Sep 01, 2019 Terms n/30 Credit Balance 1,940 Terms n/30 Wells Products Date Debit Sep 01, 2019 Credit Balance 2,120 Prepare a schedule of accounts payable for September 30, 2019. INTERIOR DESIGNS SPECIALTY SHOP Schedule of Accounts Payable September 30, 2019 Booker, Inc. McKnight Corporation Nelson Craft Products Reed Millings Company Rocker Company Sadler Floor Coverings Wells Products Total S 0

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