Journalizing, Posting, and Trial Balance
(Alternates are 3-37, 3-39, 3-40, and 3-42 through 3-44.) Tsugawa Nursery, a retailer of garden plants and supplies, had the accompanying balance sheet accounts on December $31,20 \times 0$ :
(TABLE CANT COPY)
Following is a summary of aggregate transactions that occurred during $20 \times 1$ :
a. Purchases of merchandise inventory on open account, $$\$ 550,000$$.
b. Sales, all on credit, $$\$ 810,000$$.
c. Cost of merchandise sold to customers, $$\$ 536,000$$.
d. Disbursed $$\$ 25,000$$ for the rent of the store. Add to Prepaid Rent.
e. Disbursed $$\$ 165,000$$ for wages through November.
f. Disbursed $$\$ 75,000$$ for miscellaneous expenses such as utilities, advertising, and legal help. (Debit Miscellaneous Expenses.)
g. On July $1,20 \times 1$, loaned $$\$ 40,000$$ to the office manager. He signed a note that will mature on July $1,20 \times 2$, together with interest at $5 \%$ per annum. Interest for $20 \mathrm{X} 1$ is due on December $31,20 \times 1$.
h. On August 1,20X1, borrowed $$\$ 80,000$$ from a supplier. The note is payable in 4 years. Interest is payable yearly on December 31 at a rate of $6 \%$ per annum.
i. Collections on accounts receivable, $$\$ 692,000$$.
j. Payments on accounts payable, $$\$ 472,000$$.
The following entries were made on December 31, 20X1:
k. Recognized rent expense for $$20 \times 1: \$ 3,000$$ of prepaid rent is applicable to $20 \times 2$; the remainder expired in $20 \times 1$.
1. Depreciation for $20 \times 1$ was $$\$ 6,000$$.
$\mathrm{m}$. Wages earned by employees during December were paid on December $$31, \$ 6,000$$.
$\mathrm{n}$. Interest on the loan made to the office manager was received. See transaction $\mathrm{g}$.
o. Interest on the loan from the supplier was disbursed. See transaction h.
Required
1. Prepare journal entries in thousands of dollars.
2. Post the entries to T-accounts in the ledger, keying your postings by transaction letter.
3. Prepare a trial balance for the year ending December $31,20 \mathrm{X} 1$.