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    Understanding general ledgers

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    How would I go about opening the following general ledger accounts using the following account numbers:

    cash 111 sales revenue 411

    accounts receivable 112 sales discount 412

    supplies 116 sales returns & allowances 413

    prepaid insurance 117 interest revenue 419

    inventory 118 cost of goods sold 511

    furniture 151 salary expense 531

    accounts payable 211 utilities expense 541

    These are the following transactions from which I would be posting information.

    march 2nd - Issued invoice for sale on account to "john doe" $2,350. Cost of this inventory was $1,390.

    march 3 - Purchased inventory on credit terms 3/10n / 60 from "Holmes Co"$5,900.

    march 4 - sold inventory for cash, $3,410 (cost $1,080).

    march 5 - Issued check no# 473 to purchase furniture for cash $1,080.

    march 8 - collected interest revenue of $2,440

    march 9 - Issued invoice no# 192 for sale on account to "Bogus co.", $6,250 (cost $3,300)

    march 10 - Purchased inventory for cash, $770, issuing check no#474

    march 12 - Received $2,303 cash from "john doe" in full settlement of account receivable, net of the discount, from sale on March 2nd.

    march 13- Issued check no#475 to pay supplier net amount owed from March 3rd.

    march 13 - Purchased supplies on account from Supplier $680. Terms were net end of month.

    march 15 - sold inventory on account to buyer "HERO CO.", issuing invoice no# 193 for $740 (cost $410)

    march 17 - Issued credit to memo to "HERO CO." for $740 for defective merchandise returned to us by "HERO CO". Also accounted for receipt of the inventory at cost.

    march 18 - Issued invoice no# 194 for credit sale to "john doe", $1,825 ( cost $970)

    march 19 - Received $6,125 from "Bogus Co." in full settlement of its account receivable from MARCH 9TH.

    march 20 - Purchased inventory on credit terms of net 30 from "Diego Sales",$2,150

    march 22 - Purchased furniture on credit terms of 3/10 n/60 from "HOLMES CO", $775

    march 22- Issued check no# 476 to pay for insurance coverage, debiting prepaid insurance for $1,345.

    march 24 - sold supplies to an employee for cash of $80. which was company's original cost.

    march 25 - issued check no#477 to pay utilities, $380

    march 28 - Purchased inventory on credit terms of 2/ 10n / 30 from "UNIT TRUST CO" for $ 420.

    march 29 -returned damaged inventory to "UNIT TRUST CO", issuing a debit memo for $420.

    march 29 - sold goods on account to "Bogus Co", issuing invoice no#195 for $560(cost, $310)

    march 30 - Issued check no# 478 to pay supplier on account from March 13th.

    march 31 - Received cash in full from "John Doe" on credit sale of March 18th. There was no discount.

    march 31st - Issued check no#479 to pay monthly salaries of $5,100.

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    Solution Preview

    Please find my response in the attached file. I have explained how you will get to open the general ledger and also how to prepare journal entries for each transactions. For the general ledger, I have put in excel file. There might be different formats or details for the general ledger, but I have put every important details.

    Opening the following general ledger accounts using the following account numbers:

    cash 111 sales revenue 411

    accounts receivable 112 sales discount 412

    supplies 116 sales returns & allowances 413

    prepaid insurance 117 interest revenue 419

    inventory 118 cost of goods sold 511

    furniture 151 salary expense 531

    accounts payable 211 utilities expense 541

    First, you need to open the general ledger accounts by using the given account numbers. Then, you have to prepare the journal entries for the following transactions and post the number into the correct debit and credit side.

    These are the following transactions from which I would be posting information.

    march 2nd - Issued invoice for sale on account to "john doe" $2,350. Cost of this inventory was $1,390.

    March 2 Accounts Receivable 2,350
    Sales Revenue 2,350

    Cost of Goods Sold 1,390
    Inventory 1,390

    From the transaction, this is the transaction for the company that uses perpetual inventory system whereby the cost of goods sold will be recorded every time sales occurs.

    So, when sales are made on account, it means that they will receive the payment later. Thus, we debit accounts receivable account and credit sales revenue account. Then, we will record the cost of the inventory by debiting cost of goods sold account and credit inventory ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer how to open the following general ledger accounts using the following account numbers.

    $2.19