Big Country Ski Shop is a retail store that sells ski equipm

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: DATE TRANSACTIONS 2019 Sept. 2 Purchased ski boots for $5,900 plus a freight charge of $240 from Colorado Ski Shop, Invoice 6672, terms n/30. 3 Purchased skis for $11,500 from Alaska Supply Company, Invoice 5916; terms 1/10, n/30. 7 Received Credit Memorandum 165 for $930 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672. 11 Purchased ski jackets for $4,300 from Cold Mountain Clothing Company, Invoice 4091, terms n/30. 12 Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount. 22 Purchased ski poles for $4,060 plus a freight charge of $135 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30. 23 Purchased ski pants for $2,550 from Swenson Ski Goods, Invoice 528, terms n/30. 25 Received Credit Memorandum 245 for $330 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528. 27 Purchased ski sweaters for $2,900 plus a freight charge of $115 from Colorado Ski Shop, Invoice 6722, terms n/30. 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 101 Cash, $26,000 Dr. 201 Accounts Payable 501 Purchases 502 Freight In 503 Purchases Returns and Allowances 504 Purchases Discounts 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.

Solution

Cash No.101 Date Details Debit Credit Balance Debit Credit Sept.1 Balance 26000 Sept.12 11385 14615 Sept.30 5210 9405 9405 Accounts Payable No.201 Date Details Debit Credit Balance Debit Credit Sept.30 17970 31700 13730 13730 Purchases No.501 Date Details Debit Credit Balance Debit Credit Sept.2 5900 5900 Sept.3 11500 17400 Sept.11 4300 21700 Sept.22 4060 25760 Sept.23 2550 28310 Sept.27 2900 31210 Freigth In No.502 Date Details Debit Credit Balance Debit Credit Sept.2 240 240 Sept.22 135 375 Sept.27 115 490 Purchase returns and allowances No.503 Date Details Debit Credit Balance Debit Credit Sept.7 930 930 Sept.25 330 1260 1260 Purchase discounts No.504 Date Details Debit Credit Balance Debit Credit Sept.12 115 115 115 Accounts Payable - Subsidiary Ledger Alaska Supply Copmany Date Debit Credit Balance Sept.3 11500 11500 Sept.12 11500 0 Sept.22 4195 4195 4195 Cold Mountain Clothing Company Date Debit Credit Balance Sept.11 4300 4300 4300 4300 4300 Colarado Ski Shop Date Debit Credit Balance Sept.2 6140 6140 Sept.7 930 5210 Sept.27 3015 8225 Sept.30 5210 3015 Swenson Ski goods Date Debit Credit Balance Sept.23 2550 2550 Sept.25 330 2220 Schedule of accounts payable Alaska Supply Company 4195 Cold Mountain Clothing company 4300 Colarado Ski Shop 3015 Swnson Ski Goods 2220 Total 13730