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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Nathan Systems uses a voucher system in which it records invoices at the gross amount. During October, it completed the following transactions:

Oct. 2    Issued voucher no. 2632 in favor of Myers and Horn for the purchase of merchandise with an invoice price of $5,831; terms n/30; FOB shipping point; freight prepaid and added to the invoice, $192 (total, $6,023). Leave an extra line after this entry.

3    Issued voucher no. 2633 for $1,010, no. 2634 for $1,010, and no. 2635 for $1,010. The debt arose because Nathan Systems bought a laptop and printer from Fitzpatrick, Inc. The terms are $1,010 cash on delivery, $1,010 in 30 days, and $1,010 in 60 days. (Use three lines.)

5    Issued Ck. No. 2725 in payment of voucher no. 2633, $1,010.

9    Issued voucher no. 2636 in favor of Cordero Company for the purchase of supplies, $360.50; terms n/30.

12    Issued voucher no. 2637 in favor of Goode Realty for rent for the month, $1,650.

12    Issued Ck. No. 2726 in payment of voucher no. 2637, $1,650.

16    Issued voucher no. 2638 in favor of French Cargo for freight charges on merchandise purchased, $104.

16    Issued voucher no. 2639 in favor of Holley Company for the purchase of merchandise having a list price of $6,512 with a 25 percent trade discount (record voucher for $4,884); terms 2/10, n/30; FOB shipping point. Leave an extra line after this entry.

16    Issued Ck. No. 2727 in payment of voucher no. 2638, $104.

16    Canceled voucher no. 2632 because the invoice will be paid in two installments as follows: voucher no. 2640, payable November 1, $3,011.50; voucher no. 2641, payable November 15, $3,011.50. Issued voucher no. 2640 and no. 2641.

17    Received a credit memo from Holley Company for merchandise returned, $352, credit memo no. 580, voucher no. 2639.

22    Issued voucher no. 2642 in favor of Pardo Telephone Company for telephone bill, $164.90.

22    Issued Ck. No. 2728 in payment of voucher no. 2642, $164.90.

Oct. 23    Issued Ck. No. 2729 in payment of voucher no. 2639, $4,441.36. ($4,884 less $352 return, less cash discount.)

31    Issued voucher no. 2643 for wages payable, $4,550, in favor of Payroll Bank Account. (Assume that the payroll entry was recorded previously in the general journal.)

31    Issued Ck. No. 2730 in payment of voucher no. 2643, $4,550.

31    Issued voucher no. 2644 in favor of N. S. Nathan, the owner, for personal withdrawal, $1,400.

31    Issued Ck. No. 2731 in payment of voucher no. 2644, $1,400.

Required

  1. 1. Record the transactions for October in the voucher register (page 32), the check register (page 34), and the general journal (page 18).
  2. 2. Total and rule the voucher register and the check register.
  3. 3. Prove the equality of the debits and credits on the voucher register and the check register.
  4. 4. Post the amounts from the registers and the general journal to the Vouchers Payable account, No. 212. Assume no previous balance in the account. (Posting from the voucher register should be marked as VR32. Posting from the check register should be marked as CkR34.)
  5. 5. Prepare a schedule of vouchers payable. Compare this total with the balance of the Vouchers Payable account.

1.

To determine

Prepare the voucher register, check register and general journal for the October month.

Explanation

Voucher register is a journal that records the voucher once they are approved. Voucher register is also known as book of original entry.

Check register is the journal used to record all the checks, cash payment and outlay of cash during an accounting period. Check register is also known as cash disbursements journal.

General journal is a record of financial transaction. The transactions are recorded in the journal prior to posting them to the accounts in the general ledger.

Prepare the voucher register for the October month.

2.

To determine

Show the total of the voucher register and check register for the October month.

3.

To determine

Show the equality of credit and debit column of voucher register and check register.

4.

To determine

Post the prepared register and general journals to vouchers payable account.

5.

To determine

Prepare a schedule for voucher payable.

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