Please see the attached files and complete the work.
NARRATIVE OF TRANSACTIONS
The transactions in this final were completed by Top Ten Sporting Goods Company, owned and operated by Jack Newman, during the month of October of the current year. Although the transactions deal with the operations of a sporting goods business, the exam is designed to test you on the general principles of accounting that we covered this semester.
BOOKS OF ACCOUNT
All entries are to make in the books of original entry. October's transactions should be recorded in a sales journal, a purchase journal, a cash receipts journal, a cash payments journal, or the general journal, as appropriate.
In the general ledger, all accounts have been opened and the account balances as of October 1, the beginning of a new fiscal period, have been entered.
TRANSACTIONS FOR OCTOBER
NOTE; Top Ten Sporting Goods Company is on the periodic method of inventory. This means that the company will record all merchandise inventory purchase to an expense account titled purchases and when recording a sale you will not record the cost of merchandise sold nor reduce the merchandise inventory.
Oct 2 Received a check from Pierre's Style Center for October rent. $850.
3 Issued Check No.2303 for $14,658.00 to Klett Trophy Company in payment of its invoice of September 16 for $14,658.00. No discount.
5 Sold merchandise on account, Invoice No. 904, to Crawford Athletic Club, $6,750.00.
5 Received a check for $4,272.80 from Marlowe Business College in payment of our invoice of September 27 for $4,360.00 less discount.
5 Issued Check No. 2304 for $24,625.44 to Halling Mfg. in payment of its invoice of September 26 for $25,128.00 less 2% discount.
6 purchased the following from Arnold Athletics: Merchandise $24,989.00; supplies to be charged to Miscellaneous General Expense, $28.00; total, $25,017.00
6 Cash sales for October 1-6 were $20,545.36
9 Purchased merchandise on account from Kennedy Supply, $2,756.80 terms 2/10, net/30.
9 Sold merchandise on account, Invoice No. 905 to Martin High School, $5,805.00.
9 received a check for $5,559.54 from Rencher Gym in payment of our invoice of September 30 for $5,673.00, less discount.
10 Purchased on account from Klett Trophy: Store Supplies $68.00; polishing materials (charge to misc. general expense), $96.00; merchandise, $3,500.00; total, $3,664.00.
Oct 11 Issued Credit Memorandum No. 107 to Martin High for merchandise returned on Invoice No 905 of Oct 9, $250.00
11 Issued Check No. 2305 for $286.00 to Jack Newman for customer entertainment (charge to misc. selling expense).
13 Received a check for $6,615.00 from Crawford Athletic in payment of Invoice No. 904 for $6,750.00, less discount.
13 Issued Check No. 2306 for $6,858.00 to Payroll for biweekly salaries: Sales salaries, $4,860.00; office salaries, $1,998.00.
17 Sold merchandise on account, Invoice No. 906, to West Academy, $4,418.00.
18 Purchased merchandise on account from Arnold Athletics, $945.00.
31 Cash sales for October 7-31 were $17,105.60.
POSTING TO THE GENERAL LEDGER
1. Total each column of the various special journals. Prove the equality of debits and credits in each journal.
2. Post all items that need to be posted individually to the general ledger. The general ledger account balances need not to be determined until the posting is completed. Use the printed page numbers in your post references.
3. Rule the special journals and post the totals to the appropriate accounts in the general ledger, determine the balance of each general ledger account.
4. Prepare a Trial Balance to prove the equality of the debits and credits of the individual general ledger accounts.
See attached file for full problem description.