Azizi Distributors closes its books and prepares financial statements at the end of each month. Azizi uses the perpetual

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Azizi Distributors closes its books and prepares financialstatements at the end of each month. Azizi uses the perpetualinventory system. The company completed the following transactionsduring August 2020:
Aug. 1 Issued cheque no. 682 for August office rent,$1,000 (debit Rent Expense).
Aug. 2 Issued cheque no. 683 to pay salaries of $1,620, whichincludes salaries payable of $465 from July 31. Azizi does not usereversing entries.
Aug. 2* Issued invoice no. 503 for sale on account to R. T.Loeb, $300. Azizi’s cost of this merchandise was $95. Aug. 3Purchased inventory on credit terms of 1/15, n/60 from Grant Ltd.,$700. The invoice was dated August 3. Aug. 4 Received net amount ofcash on account from Fullam Corp., $2,058, within the discountperiod.
Aug. 4 Sold inventory for cash, $1,165 (cost, $552).
Aug. 5 Received from Park-Hee Inc. merchandise that had beensold earlier for $275 (cost, $87). The wrong merchandise had beensent.
Aug. 5 Issued cheque no. 684 to purchase supplies for cash,$390.
Aug. 6 Collected interest revenue of $550.
Aug. 7 Issued invoice no. 504 for sale on account to K. D.Skipper Inc., $1,200 (cost, $380).
Aug. 8 Issued cheque no. 685 to pay Fayda Corp. $1,300 of theamount owed at July 31. This payment occurred after the end of thediscount period.
Aug. 11 Issued cheque no. 686 to pay Grant Ltd. the net amountowed from August 3.
Aug. 12* Received cash from R. T. Loeb in full settlement of heraccount from August 2. R. T. Loeb notified Azizi that onlyone-quarter of the goods ordered had been received but agreed topay now if Azizi held the remaining goods in the Azizi warehouseuntil September.
Aug. 16 Issued cheque no. 687 to pay salaries expense of$620.
Aug. 19 Purchased inventory for cash, $425, issuing cheque no.688.
Aug. 22 Purchased furniture on credit terms of 3/15, n/60 fromBeaver Corporation, $255. The invoice was dated August 22.
Aug. 23 Sold inventory on account to Fullam Corp., issuinginvoice no. 505 for $4,983 (cost, $1,576).
Aug. 24 Received $2,193 of the July 31 amount receivable from K.D. Skipper Inc.—after the end of the discount period.
Aug. 25 Issued cheque no. 689 to pay utilities,$1,216.
Aug. 26 Purchased supplies on credit terms of 2/10, n/30 fromFayda Corp., $90. The invoice was dated August 26.
Aug. 30 Returned damaged inventory to company from whom Azizimade the cash purchase on August 19, receiving cash of$425.
Aug. 30 Granted a sales allowance of $88 to K. D. SkipperInc.
Aug. 31 Purchased inventory on credit terms of 1/10, n/30 fromSuncrest Supply Ltd., $5,165. The invoice was dated August 31.
Aug. 31 Issued cheque no. 690 to Mona Azizi, owner of Azizi, for$850.
*Azizi Distributors sold inventory on account to R. T. Loeb onAugust 2 and collected in full on August 12. Loeb indicated thatthe shipment was incomplete and arranged with Azizi to have thegoods shipped to Loeb in September. At August 31, $225 of unearnedsales revenue needs to be recorded, and the cost of thismerchandise ($71) needs to be removed from Cost of Goods Sold andreturned to Inventory.
Required
1. Open the following three-column ledger accounts withtheir account numbers and July 31 balances in the ledgersindicated.
General Ledger
101- Cash- $ 2,245
102- Accounts Receivable -12,280
104 -Interest Receivable- 0
105- Inventory -20,900
109- Supplies- 670
117 -Prepaid Insurance -1,100
140- Note Receivable, Long-Term- 5,500
160 -Furniture -18,635
161 -Accumulated Amortization—Furniture- 5,275
201- Accounts Payable -5,300
204 -Salaries Payable- 465
207- Interest Payable -2,160
208- Unearned Sales Revenue- 0
220- Note Payable, Long-Term -21,000
301 -Mona Azizi, Capital -27,130
303- Mona Azizi, Withdrawals- 0
400- Income Summary- 0
401 -Sales Revenue- 0
402- Sales Discounts- 0
403 -Sales Returns and Allowances- 0
410- Interest Revenue -0
501- Cost of Goods Sold- 0
510 -Salaries Expense- 0
513- Rent Expense -0
514 -Amortization Expense—Furniture- 0
516 -Insurance Expense -
517 -Utilities Expense - 0
519 -Supplies Expense - 0
523 -Interest Expense - 0
Accounts receivable subsidiary ledger:Fullam Corp., $2,100; R. T. Loeb, $0; Park-Hee Inc., $5,795; K. D.Skipper Inc., $4,385.
Accounts payable subsidiary ledger:Beaver Corporation, $0; Fayda Corp., $5,300; Grant Ltd., $0;Suncrest Supply Ltd., $0.
2. Ask your professor for directions. Journalize the Augusttransactions either in the general journal (Page 9; explanationsnot required) or, as illustrated in this chapter, in a series ofspecial journals: a sales journal (Page 4), a cash receipts journal(Page 11), a purchases journal (Page 8), a cash payments journal(Page 5), and a general journal (Page 9). Azizi makes all creditsales on terms of 2/10, n/30.
3. Post daily to the accounts receivable subsidiary ledger andthe accounts payable subsidiary ledger. On August 31, 2020, post tothe general ledger.
4. Prepare a trial balance in the unadjusted trial balancecolumns of a worksheet and use the following information tocomplete the worksheet for the month ended August 31, 2020:
Accrued interest revenue, $500
Supplies on hand, $495
Prepaid insurance expired, $275
Amortization expense, $115
Accrued salaries expense, $515
Accrued interest expense, $660
Unearned sales revenue, $225 (refers to August 2transaction)
Inventory on hand, $23,850
5. Prepare Azizi’s multi-step income statement and statement ofowner’s equity for August 2020. Prepare the balance sheet at August31, 2020 (account format).
Journalize and post the adjusting and closing entries.
Prepare a post-closing trial balance at August 31, 2020. Also,balance the total of the
customer accounts in the accounts receivable subsidiary ledgeragainst the Accounts Receivable balance in the general ledger. Dothe same for the accounts payable subsidiary ledger and AccountsPayable in the general ledger.