Introduction
Introduction
The Cogg Hill Camping Equipment Company sells and rents camping equipment from its store in Denver, Colorado. It is a sole proprietorship and is owned and operated by Samuel Stephens. The company sells camping equipment and outdoor clothing. Cogg Hill maintains a perpetual inventory system. The company also rents tents and groups of assorted camping equipment (e.g., Type A, B, and C) to trail guides. The terms of all sales and all rentals are “net 30.” The company delivers the equipment to many of its customers. Some customers pick it up at the store. Mr. Stephens makes all deposits. He removes the cash from the cash register and lists all checks received on a deposit ticket. He then gives the duplicate deposit slip to you for recording. The company’s accounting system includes:
|
Journals |
Ledgers |
|
Sales Journal |
General Ledger |
|
Purchases Journal |
Accounts Receivable Subsidiary Ledger |
|
Cash Receipts Journal |
Accounts Payable Subsidiary Ledger |
|
Cash Disbursements Journal |
|
|
General Journal |
|
The accounting files include:
|
Name of File |
Business Papers to be Filed |
|
Sales and Rental Invoices |
Bookkeeper’s copy of sales invoices Bookkeeper’s copy of rental invoices |
|
Purchase Invoices |
Purchase invoices and credit memorandums |
|
Interoffice Memoranda |
Interoffice memoranda received from Mr. Stephens |
|
Checks to be signed |
Checks prepared for Mr. Stephens |
|
Duplicate Deposit Tickets |
Bookkeeper’s copy of deposit tickets |
|
|
Cash |
$ |
21,567.81 |
|
|
|
|
|
Accounts Receivable |
11,492.00 |
|
|
||
|
|
Allowance for Doubtful Accounts |
|
|
$ |
379.35 |
|
|
|
Interest Receivable |
56.00 |
|
|
||
|
|
Notes Receivable – Emory Co. |
9,870.40 |
|
|
||
|
|
(6-month, 8%, due August 15) |
|
|
|
||
|
|
Merchandise Inventory |
174,985.00 |
|
|
||
|
|
Office Supplies |
557.05 |
|
|
||
|
|
Store Supplies |
324.75 |
|
|
||
|
|
Prepaid Insurance |
650.00 |
|
|
||
|
|
Office Equipment |
17,250.00 |
|
|
||
|
|
Accumulated Depreciation – Office Equipment |
|
|
6,450.00 |
||
|
|
Store Equipment |
69,500.00 |
|
|
||
|
|
Accumulated Depreciation – Store Equipment |
|
|
22,650.00 |
||
|
|
Camping Rental Equipment |
163,175.15 |
|
|
||
|
|
Accumulated Depreciation – Camping Rental Equipment |
|
|
91,387.00 |
||
|
|
Building |
350,000.00 |
|
|
||
|
|
Accumulated Depreciation – Building |
|
|
121,475.00 |
||
|
|
Accounts Payable |
|
|
10,435.35 |
||
|
|
Interest Payable |
|
|
1,200.00 |
||
|
|
Mortgage Note Payable – 9% |
|
|
160,000.00 |
||
|
|
Samuel Stephens, Capital |
|
|
405,451.46 |
||
|
|
Totals |
$ |
819,428.16 |
|
$ |
819,428.16 |
Accounts Receivable Subsidiary Ledger
|
P. Davis |
$ |
2,131.00 |
|
K. Gragg |
|
890.00 |
|
H. Holmes |
|
1,696.00 |
|
S. Peeples |
|
655.00 |
|
A. Smith |
|
1,275.00 |
|
J. Still |
|
4,845.00 |
|
Total |
$ |
11,492.00 |
|
|
|
|
|
Accounts Payable Subsidiary Ledger |
||
|
|
|
|
|
Dex Company |
$ |
1,117.90 |
|
Dixon Company |
|
817.40 |
|
Fulton, Inc. |
|
108.00 |
|
Robinson Co. |
|
1,942.05 |
|
Samson Dist. |
|
1,950.00 |
|
Technical Corp. |
|
2,000.00 |
|
Zappo Corp. |
|
2,500.00 |
|
Totals |
$ |
10,435.35 |
|
|
Cash |
$ |
21,567.81 |
|
|
|
|
|
Accounts Receivable |
11,492.00 |
|
|
||
|
|
Allowance for Doubtful Accounts |
|
|
$ |
379.35 |
|
|
|
Interest Receivable |
56.00 |
|
|
||
|
|
Notes Receivable – Emory Co. |
9,870.40 |
|
|
||
|
|
(6-month, 8%, due August 15) |
|
|
|
||
|
|
Merchandise Inventory |
174,985.00 |
|
|
||
|
|
Office Supplies |
557.05 |
|
|
||
|
|
Store Supplies |
324.75 |
|
|
||
|
|
Prepaid Insurance |
650.00 |
|
|
||
|
|
Office Equipment |
17,250.00 |
|
|
||
|
|
Accumulated Depreciation – Office Equipment |
|
|
6,450.00 |
||
|
|
Store Equipment |
69,500.00 |
|
|
||
|
|
Accumulated Depreciation – Store Equipment |
|
|
22,650.00 |
||
|
|
Camping Rental Equipment |
163,175.15 |
|
|
||
|
|
Accumulated Depreciation – Camping Rental Equipment |
|
|
91,387.00 |
||
|
|
Building |
350,000.00 |
|
|
||
|
|
Accumulated Depreciation – Building |
|
|
121,475.00 |
||
|
|
Accounts Payable |
|
|
10,435.35 |
||
|
|
Interest Payable |
|
|
1,200.00 |
||
|
|
Mortgage Note Payable – 9% |
|
|
160,000.00 |
||
|
|
Samuel Stephens, Capital |
|
|
405,451.46 |
||
|
|
Totals |
$ |
819,428.16 |
|
$ |
819,428.16 |