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Question:

Mary James owns Marys Card House in Halifax. As her newly hired accountant, your task is to:

a. Journalize the following transactions for the month of March.

b. Record in subsidiary ledgers and post to the general ledger as appropriate.

c. Total, rule, and cross-add the various journals.

d. Prepare a schedule of accounts receivable and a schedule of accounts payable at month-end.

The following is the partial chart of accounts for Marys Card House.

Assets 1100 Cash 1200 Accounts Receivable 1450 Prepaid Rent 1500 Inventory 1620 Delivery Truck	Revenue 4100 Card Sales 4120 Sales Returns and Allowances 4130 Sales Discounts
Liabilities 2100 Accounts Payable 2200 Bank Loan Payable 2300 HST Payable 2320 Prepaid HST	Expenses 5100 Cost of Goods Sold 5200 Salaries Expense 5250 Cleaning Expense
Owners Equity 3000 M. James, Capital

**Note: All purchases and sales are subject to a charge of 15% HST, and it is not included in the price.

2020
Mar.	1	Mary James invested $28,000 in the card store.
	1	Paid four months rent in advance to Harbour Realty, Cheque No. 700, $3,600
	2	Purchased merchandise from X-Card Company on account, $8,200. Invoice No. 823 dated March 2, terms 2/10, n/30.
	3	Sold merchandise to Jas Investors on account, $2,600. Invoice No. 325, terms 2/10, n/30. Cost of merchandise was $2,000.
	4	Sold merchandise to Paton Lee on account, $1,300. Invoice No. 326, terms 2/10, n/30. Cost of merchandise was $975.
	7	Purchased merchandise from X-Card Company on account, $2,500. Invoice No. 829, dated March 7, terms 2/10, n/30.
	8	Sold merchandise to Jas Investors on account, $1,200. Invoice No. 327, terms 2/10, n/30. Cost of merchandise was $800.
	8	Paid Able Cleaning Service $220. Cheque No. 701.
	9	Paid X-Card company invoice No. 823, dated March 2, cheque No. 702, taking discount.
	10	Paton Lee returned merchandise that cost $200 to Marys Card House. Mary issued credit memorandum No. 1 to Paton Lee for $200. Cost of inventory returned was $150.
	10	Purchased merchandise from Kaelynn Imports on account, $3,100. Invoice No. 510, dated March 10, terms 1/15, n/60.
	11	Arranged $35,000 bank loan with Royal Bank. Deposited today to the companys bank account.
	14	Sold $1,000 worth of card merchandise for cash. Cost of inventory was $750.
	14	Paid casual salaries, $400, cheque No. 703.
	14	Returned merchandise to Kaelynn Imports in the amount of $800. Marys Card House issued debit memorandum No. 1 to Kaelynn Imports.
	14	Sold card merchandise for cash, $5,500. Cost of inventory was $4,125.
	14	Received payment from Paton Lee, invoice No. 326, (less returned merchandise), less discount.
	15	Jas Investors paid invoice No. 325, no discount.
	15	Sold card supplies to Gayle Herbert on account, $6,000. Invoice No. 328, terms 2/10, n/30. Cost of inventory was $4,500.
	16	Purchased used delivery truck on account from Halifax Auto, $11,000. Invoice No. 926, dated March 16 (no discount terms).
	16	Sold to Jas Investors card merchandise on account, $1,000. Invoice No. 329, terms 2/10, n/30. Cost of inventory was $750.
	16	Paid Kaelynn Imports balance owed, cheque No. 704, taking discount.
	17	Sold card merchandise on account to Gayle Herbert, $1,000. Invoice No. 330, terms 2/10, n/30. Cost of inventory was $750.
	18	Purchased for cash, card display supplies from AMR Supplies, $500. Cheque No. 705.
	21	Purchased card merchandise from Benson and McIntyre on account, $3,500. Invoice No. 189, dated March 21, terms 2/10, n/30.
	21	Jas Investors paid invoice No. 329, dated March16, taking discount.
	22	Gayle Herbert paid invoice No. 330, dated March 17, taking discount.
	23	Purchased merchandise from X-Card Company, $1,000. Invoice No. 1004, dated March 22, terms 2/10, n/30.
	23	Paid half of the balance to Halifax Auto on their invoice No. 926, cheque No. 706.
	31	Sold merchandise to Youville Company on account, $4,500. Invoice No. 331, terms 2/10, n/30. Cost of inventory was $3,375.

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