South Coast Board Co. is a merchandising business. The account balances for South Coast Boards Co.

as
of July 1, 20x3 (unless otherwise indicated) are as follows:

110 Cash P63, 600

112 Accounts Receivable 153,900
115 Merchandise Inventory 602,400
116 Prepaid Insurance 16,800
117 Store Supplies 11,400
123 Store Equipment 469,500
124 Accumulated Depreciation – Store Equipment 56,700
210 Accounts Payable 96,800
211 Salaries Payable 0
310 Rocky Hansen, Capital, August 1, 2016 555,300
311 Rocky Hansen, Drawing 135,000
312 Income Summary 0
410 Sales 3,221,100
411 Sales Returns and Allowances 92,700
412 Sales Discounts 59,400
510 Purchases 1,800,300
511 Purchase Returns and Allowance 98,500
512 Purchase Discounts 78,800
520 Sales Salaries Expense 334,800
521 Advertising expense 81,000
522 Depreciation Expense 0
523 Store Supplies Expense 0
529 Miscellaneous Selling Expense 12,600
530 Office Salaries Expense 182,100
531 Rent Expense 83,700
532 Insurance Expense 0
539 Miscellaneous Administrative Expense 7,800
During July, the last month of the fiscal year, the following transactions were completed:

July 1 Paid rent for July, $5,000.

2 Paid Watson's Co. for the amount due less 2% discount.

3 Purchased merchandise on account from Belmont Co., terms 2/10, n/30, FOB shipping point,
$4,000.

4 Paid freight on purchase of July 3, $600.

5 Received payment from Triple Creek Co., no discount.

6 Sold merchandise on account to Modesto Co., terms 2/10, n/30, FOB shipping point, $25,000.

7 Received $26,500 from Yuba Co. on account, no discount.

10 Sold merchandise for cash, $80,000.

13 Paid Belmont Co. for the amount due.

14 Issued credit memorandum to Modesto Co. for merchandise returned from July 6, purchases,
$6,000.

15 Paid advertising expense for last half of July, $7,500.

16 Received payment from Modesto Co. for July 6 sales.

19 Purchased merchandise for cash, $36,000.

19 Paid $18,000 to Bakke Co. on account less 2% discount.

20 Sold merchandise on account to Reedley Co., terms 1/10, n/30, FOB shipping point, $40,000.
For the convenience of the customer, freight of $1,100 was paid in advance.

21 Purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB destination,
$20,000.

24 Received credit memorandum from Nye Co. for merchandise returned to them, $2,000.

26 Refunded cash on sales made for cash $3,000.

28 Paid sales salaries of $22,800 and office salaries of $15,200.

29 Purchased store supplies for cash, $2,400.

30 Sold merchandise on account to Whitetail Co., terms 2/10, n/30, FOB shipping point, $18,750.

30 Received cash from Reedley Co., for settlement of account due.

31 Paid Nye Co. for the amount due.

Instructions:

accounts receivable:

a. Yuba Co. $26,500

b. Triple Creek Co. 127,600
c. Modesto Co. 0
d. Reedley Co. 0
e. Whitetail Co. 0

accounts payable:

a. Bakke Co. $18,000

b. Watson's Co. 78,800
c. Belmont Co. 0
d. Nye Co. 0

At the end of July, the following adjustment data were assembled.:

a. Merchandise inventory on July 31 $589,850

b. Insurance expired during the year 12,500
c. Store supplies on hand 4,700
d. Depreciation of Store equipment 18,800
e. Accrued salaries on July 31:
Sales salaries 4,400
Office Salaries 2,700