Special Subsidiary Ledger Exercise The Missile Hotel maintains a general ledger, two accounts receivables subsidiary ledgers (a
guest ledger and city ledger), and an accounts payable subsidiary ledger.
You are to record and post the following transactions which occurred during the month of March
2020. The Missile Hotel uses the gross method (to be explained next chapter just record the
transactions as you current have been instructed) to record purchases and uses the perpetual
inventory system. See general ledger for account names and account numbers. Include
explanations for each journal entry.
Mar. 5 Purchased $1,500 worth of restaurant supplies on account from Blast Wholesalers.
5 Tom Bomb, a guest, checked into room 575 at 15:00.
5 Purchased $720 worth of food on account from Fresh Produce.
5 Tom Bomb had a drink in the bar and charged the $20 to the room.
5 The night auditor charged Room 575 with the first night’s stay at $350.
6 Purchased $300 worth of beverage from Gulp Ltd. on account.
6 Tom Bomb dry cleaning charges totaled $50 was charged to the room.
6 The night auditor charged Room 575 with the second night’s stay at $350.
7 Returned $100 worth of beverage purchased on March 6 from Gulp Ltd.
7 Tom Bomb checked out of the Missile Hotel paying with his Big Bang Credit Card
(a non-bank credit card).
8 Issued cheque no. 444 to pay Gulp Ltd. for the beverage purchased on March 6th
.
9 Purchased $500 worth of beverage on account from Gulp Ltd.
25 Issued cheque no. 445 to pay Blast Wholesalers for ½ of the supplies purchased on the
March 5th
.