FUND.ACCT.PRIN.(LOOSELEAF)-W/ACCESS
FUND.ACCT.PRIN.(LOOSELEAF)-W/ACCESS
24th Edition
ISBN: 9781260260724
Author: Wild
Publisher: MCG
Question
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Chapter 7, Problem 2APSA
To determine

Concept Introduction:

Sales Journal:

Sales journal is concerned with all the credit sales occurred during an accounting period.

Cash Receipt Journal:

The specific journal where all the cash inflows or received during the period is recorded is called a cash receipt journal.

Requirement 1:

To Show:

Show all these transactions in a sales journal and cash receipts journal.

Expert Solution
Check Mark

Answer to Problem 2APSA

    Journal NameTransactions took place
    Sales Journal
    Accounts receivable ,Sales, COGS, inventory
    Cash receipt Journal
    Cash, sales discount, accounts receivable , sales, other accounts , COGS, inventory

Explanation of Solution

    Sales Journal
    Page 3
    Date
    Account Debited
    Invoice Number
    Accounts Receivable Dr.
    Sales Cr.
    Cost of Goods Sold Dr.
    Inventory Cr.
    Apr.3
    Page Alistair
    760
    $4,000
    $3,000
    5
    Paula Kohr
    761
    8,000
    6,500
    11
    Nic Nelson
    762
    10,500
    7,000
    13
    Page Alistair
    763
    5,100
    3,600
    27
    Paula Kohr
    764
    3,170
    2,520
    27
    Nic Nelson
    765
    6,700
    4,305
    30
    Total
    37,470
    26,925
    Cash Receipt Journal
    Page 3
    Date
    Account Credited
    Cash Dr.
    Sales Discount Dr.
    Accounts Receivable Cr.
    Sales Cr.
    Other Accounts Cr.
    Cost of Goods Sold Dr.
    Inventory Cr.
    Apr. 13
    Page Alistair
    $3,920
    $80
    $4,000
    14
    Paula Kohr
    7,840
    160
    8,000
    16
    Sales
    52,840
    52,840
    $35,880
    18
    L.T Notes Payable
    60,000
    60,000
    20
    Nic Nelson
    10,290
    210
    10,500
    23
    Page Alistair
    4,998
    102
    5,100
    30
    Sales
    73,975
    73,975
    58,900
    30
    Total
    213,863
    552
    27,600
    126,815
    60,000
    94,780
To determine

Concept Introduction:

General Ledger:

The grouping of similar nature transactions of a business that helps to prepare the financial statement is known as General ledger.

Subsidiary Ledger:

It is the supporting ledger for preparing the general ledger that gives detailed information.

Requirement 2:

To Prepare:

Open all the general ledger accounts concerned with the transactions which occurred in the month of April and also prepare all the accounts receivable subsidiary ledger accounts?

Expert Solution
Check Mark

Answer to Problem 2APSA

    Account NameBalance
    Cash
    $ 298,863
    Accounts Receivable
    $ 9,870
    Inventory
    $ 3,295
    Long Term Notes payable
    $ 170,000
    Capital
    $ 100,000
    Sales
    $ 164,285
    Sales Discount
    $ 552
    Cost Of Goods Sold
    $ 121,705

Explanation of Solution

    Cash
    Date
    Debit
    Credit
    Balance
    Apr. 1
    $85,000
    13
    3,920
    88,920
    14
    7,840
    96,760
    16
    52,840
    149,600
    18
    60,000
    209,600
    20
    10,290
    219,890
    23
    4,998
    224,888
    30
    73,975
    298,863
    Accounts Receivable
    Date
    Debit
    Credit
    Balance
    Apr. 3
    $4,000
    $4,000
    5
    8,000
    12,000
    11
    10,500
    22,500
    13
    $4,000
    18,500
    13
    5,100
    23,600
    14
    8,000
    15,600
    20
    10,500
    5,100
    23
    5,100
    0
    27
    3,170
    3,170
    27
    6,700
    9,870
    Inventory
    Date
    Debit
    Credit
    Balance
    Apr. 1
    $125,000
    3
    $3,000
    122,000
    5
    6,500
    115,500
    11
    7,000
    108,500
    13
    3,600
    104,900
    16
    35,880
    69,020
    27
    2,520
    66,500
    27
    4,305
    62,195
    30
    58,900
    3,295
    Long-Term Notes Payable
    Date
    Debit
    Credit
    Balance
    Apr. 1
    $110,000
    18
    60,000
    170,000
    B. Wiset, Capital
    Date
    Debit
    Credit
    Balance
    Apr. 1
    $100,000
    Sales
    Date
    Debit
    Credit
    Balance
    Apr. 3
    $4,000
    $4,000
    5
    8,000
    12,000
    11
    10,500
    22,500
    13
    5,100
    27,600
    16
    52,840
    80,440
    27
    3,170
    83,610
    27
    6,700
    90,310
    30
    73,975
    164,285
    Sales Discount
    Date
    Debit
    Credit
    Balance
    Apr. 13
    $80
    $80
    14
    160
    240
    20
    210
    450
    23
    102
    552
    Cost of Goods Sold
    Date
    Debit
    Credit
    Balance
    Apr. 3
    $3,000
    $3,000
    5
    6,500
    9,500
    11
    7,000
    16,500
    13
    3,600
    20,100
    16
    35,880
    55,980
    27
    2,520
    58,500
    27
    4,305
    62,805
    30
    58,900
    121,705

Accounts Receivable Subsidiary Ledger Accounts

    Page Alistair
    Date
    Debit
    Credit
    Balance
    Apr. 3
    $4,000
    $4,000
    13
    $4,000
    0
    13
    5,100
    5,100
    23
    5,100
    0
    Paula Kohr
    Date
    Debit
    Credit
    Balance
    Apr. 5
    $8,000
    $8,000
    14
    $8,000
    0
    27
    3,170
    3,170
    Nic Nelson
    Date
    Debit
    Credit
    Balance
    Apr. 11
    $10,500
    $10,500
    20
    $10,500
    0
    27
    6,700
    6,700
To determine

Concept Introduction:

Journal:

The recording of financial transactions in the books of accounts is known as Journal

Requirement 3:

To Verify:

Verify that amounts that should be posted as individual amounts from the journals have been posted.

Expert Solution
Check Mark

Explanation of Solution

    Cash
    Date
    Debit
    Credit
    Balance
    Apr. 1
    $85,000
    13
    3,920
    88,920
    14
    7,840
    96,760
    16
    52,840
    149,600
    18
    60,000
    209,600
    20
    10,290
    219,890
    23
    4,998
    224,888
    30
    73,975
    298,863
    Accounts Receivable
    Date
    Debit
    Credit
    Balance
    Apr. 3
    $4,000
    $4,000
    5
    8,000
    12,000
    11
    10,500
    22,500
    13
    $4,000
    18,500
    13
    5,100
    23,600
    14
    8,000
    15,600
    20
    10,500
    5,100
    23
    5,100
    0
    27
    3,170
    3,170
    27
    6,700
    9,870
    Inventory
    Date
    Debit
    Credit
    Balance
    Apr. 1
    $125,000
    3
    $3,000
    122,000
    5
    6,500
    115,500
    11
    7,000
    108,500
    13
    3,600
    104,900
    16
    35,880
    69,020
    27
    2,520
    66,500
    27
    4,305
    62,195
    30
    58,900
    3,295
    Long-Term Notes Payable
    Date
    Debit
    Credit
    Balance
    Apr. 1
    $110,000
    18
    60,000
    170,000
    B. Wiset, Capital
    Date
    Debit
    Credit
    Balance
    Apr. 1
    $100,000
    Sales
    Date
    Debit
    Credit
    Balance
    Apr. 3
    $4,000
    $4,000
    5
    8,000
    12,000
    11
    10,500
    22,500
    13
    5,100
    27,600
    16
    52,840
    80,440
    27
    3,170
    83,610
    27
    6,700
    90,310
    30
    73,975
    164,285
    Sales Discount
    Date
    Debit
    Credit
    Balance
    Apr. 13
    $80
    $80
    14
    160
    240
    20
    210
    450
    23
    102
    552
    Cost of Goods Sold
    Date
    Debit
    Credit
    Balance
    Apr. 3
    $3,000
    $3,000
    5
    6,500
    9,500
    11
    7,000
    16,500
    13
    3,600
    20,100
    16
    35,880
    55,980
    27
    2,520
    58,500
    27
    4,305
    62,805
    30
    58,900
    121,705

Accounts Receivable Subsidiary Ledger Accounts

    Page Alistair
    Date
    Debit
    Credit
    Balance
    Apr. 3
    $4,000
    $4,000
    13
    $4,000
    0
    13
    5,100
    5,100
    23
    5,100
    0
    Paula Kohr
    Date
    Debit
    Credit
    Balance
    Apr. 5
    $8,000
    $8,000
    14
    $8,000
    0
    27
    3,170
    3,170
    Nic Nelson
    Date
    Debit
    Credit
    Balance
    Apr. 11
    $10,500
    $10,500
    20
    $10,500
    0
    27
    6,700
    6,700
To determine

Concept Introduction:

Trial Balance:

The listing of all accounts in debits and credits is known as Trial balance.

Requirement 4:

To Prepare:

(a) Prepare a trial balance of the general ledger.

(b) Prove the accuracy of the subsidiary ledgers by preparing schedule of accounts receivable

Expert Solution
Check Mark

Answer to Problem 2APSA

    Account Names Totals
    Trial balance
    $ 434,285
    Accounts Receivable
    $ 9,870

Explanation of Solution

a. Trial Balance

    WISET COMPANYTrial Balance April 30
    Accounts
    Debit
    Credit
    Cash
    $298,863
    Accounts Receivable
    9,870
    Inventory
    3,295
    Long-Term Notes Payable
    170,000
    B. Wiset, Capital
    100,000
    Sales
    164,285
    Sales Discount
    552
    Cost of Goods Sold
    121,705
    434,285
    434,285

b. Schedule of Accounts Receivable

    WISET COMPANYSchedule of Accounts ReceivableApril 30
    Nic Nelson
    $6,700
    Paula Kohr
    3,170
    Total Accounts Receivable
    $9,870

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Chapter 7 Solutions

FUND.ACCT.PRIN.(LOOSELEAF)-W/ACCESS

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