Classification of Transactions in various journals.

Question

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Question

Chapter 7, Problem 4BTN

To determine

To Prepare:

Classification of Transactions in various journals.

Expert Solution

Answer to Problem 4BTN

Solution:

Transaction of Purchase of merchandise $43,600 (invoice dated March 1, terms 2/15, n/30), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $16,800, will be classified under Sales Ledger

Transaction of Purchase of $1,230 of office supplies on credit (invoice dated March 3, terms n/EOM), will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $10,200, will be classified under Sales Ledger

Transaction of Borrowing of $82,000 cash via long-term notes, will be classified under Cash Receipts Journal

Transaction of Purchase of $21,850 of office equipment on credit (invoice dated March 9, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $5,600, will be classified under Sales Ledger

Transaction of Receipt of payment for March 2 sales less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the March 1 invoice less the discount will be classified under Cash Disbursements Journal.

Transaction of Receipt of payment for the March 3 sale less the discount, will be classified under Cash Receipts Journal

Transaction of Purchase of $32,625 of merchandise (invoice dated March 13, terms 2/10, n/30), will be classified under Purchase Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the first half of the month of $34,680, will be classified under Sales Ledger

Transaction of Purchase of $1,770 of Supplies on credit (invoice dated March 16, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Receipt of a $2,425 credit memorandum, will be classified under General Journal

Transaction of Receipt of a $630 credit memorandum, will be classified under General Journal

Transaction of Receipt of payment for the sale of March 10 less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the invoice of March 13 less the March 17 return and the discount, will be classified under Cash Disbursements Journal

Transaction of Sale of merchandise on credit of $14,910, will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $4,315, will be classified under Sales Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the second half of the month of $30,180, will be classified under Sales Ledger

Explanation of Solution

Sales Journal is a monthly summary of credit sales and cost of goods sold of such sales made during a given period. Monthly totals of credit sales are transferred to the Accounts receivable ledger and sales ledger as part of the monthly closing process.

Purchase Journal is a monthly summary of credit purchases made during a given period. Monthly totals of the credit purchases are transferred to the Accounts payable ledger and purchases' ledger as part of the monthly closing process.

Cash receipt Journal is a monthly summary of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Monthly totals of cash receipts are transferred to the Cash account as part of the monthly closing process.

Cash disbursement journal is a monthly summary of cash payments made for purchases and expenses during a given period. Monthly totals of cash disbursements are transferred to the Cash account as part of the monthly closing process.

Conclusion

Hence the transactions are classified in respective summary journals.

To determine

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries to record the transactions.

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Account Titles	Debit	Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the transactions have been journalized.

To determine

Introduction:

Summary Journals

Summary journals are accounting documents prepared to record the financial transactions occurring during a month and then posting the totals of the same to the respective ledger accounts. Examples of Summary Journals are Sales Journals, Purchase Journal, Cash receipts and Cash payment Journals

Sales Journal records the value of credit sales and cost of goods sold of such sales made during a given period. The value of the credit sales is transferred to the Accounts receivable ledger and sales ledger at the end of the month.

Purchase Journal records the value of credit purchases made during a given period. The value of the credit purchases is transferred to the Accounts payable ledger and purchases' ledger at the end of the month.

Cash receipts record the value of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Total of cash receipts is transferred to the Cash account at the end of the month.

Cash payment Journals record the value of cash payments made for purchases and expenses during a given period. Total of cash payments is transferred to the Cash account at the end of the month.

To Prepare:

Sales Journal

Purchases Journal

Cash Receipts Journal

Cash Payments Journal

General Journal

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Particulars	Amount	Cost of Goods Sold
March
2	Credit Sales	$16,800.00	$8,400.00
3	Credit Sales	$5,600.00	$2,900.00
10	Credit Sales	$10,200.00	$5,800.00
27	Credit Sales	$14,910.00	$7,220.00
28	Credit Sales	$4,315.00	$3,280.00
31	Total	$51,825.00	$ 27,600.00

Date	Particulars	Amount	Inventory	Supplies	Others
March
1	Credit Purchases	$43,600.00	$ 43,600.00	$-	$-
3	Credit Purchases	$1,230.00	$ -	$1,230.00	$-
9	Credit Purchases	$21,850.00	$ -	$-	$ 21,850.00
14	Credit Purchases	$32,625.00	$ 32,625.00	$-	$-
16	Credit Purchases	$1,770.00		$1,770.00	$-
31	Total	$ 101,075.00	$ 76,225.00	$3,000.00	$ 21,850.00

Date	Particulars	Amount	Sales Discount	Cash Sales	Cost of Goods Sold	Others
March
6	Notes	$82,000.00	$ -	$-	$ -	$ 82,000.00
12	Accounts Receivable	$16,464.00	$ 336.00	$-	$-	$-
13	Accounts Receivable	$9,996.00	$ 204.00	$-	$-	$-
15	Cash Sales	$34,680.00	$ -	$ 34,680.00	$ 20,210.00	$-
20	Accounts Receivable	$5,488.00	$ 112.00	$-	$-	$-
31	Cash Sales	$30,180.00	$ -	$ 30,180.00	$ 16,820.00	$-
31	Total	$ 178,808.00	$ 652.00	$ 64,860.00	$ 37,030.00	$ 82,000.00

Date	Particulars	Amount	Purchase Discount	Salaries
Mar
3	Accounts Payable	$42,728.00	$ 872.00	$-
15	Sales Salaries	$18,300.00	$ -	$ 18,300.00
23	Accounts Payable	$29,596.00	$ 604.00	$-
31	Sales Salaries	$18,300.00	$ -	$ 18,300.00
31	Total	$ 108,924.00	$1,476.00	$ 36,600.00

Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the transactions have been journalized and appropriate journals are prepared.

To determine

Introduction:

T-Accounts

T-Accounts are a graphical representation of the postings made to the accounts during a reporting period. The left side records the debit entries and the right side records the credit entries of an account.

Depending on the nature of the account i.e. Balance Sheet or Profit and Loss Account, Income or Expense account etc. the account balances are reflected.

In case of Asset and Expenses accounts, the opening balance will be Debit Balance and in case of Liabilities and Incomes accounts, the opening balance is Credit Balance. They help in analysis of the transactions impacting the accounts.

To Prepare:

Ledger accounts and determine account balances

Expert Solution

Answer to Problem 4BTN

Solution:

Dr.	Accounts payable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the T-Accounts are prepared and account balances are determined.

To determine

Introduction:

Trial Balance

A trial Balance is a list of the balances of various Assets, Liabilities, Expense and Revenue Accounts prepared after the end of the financial year

Trial balance helps in evaluating the arithmetical accuracy of financial transactions and postings during a reporting period and serves as the starting point in the preparation of financial statements.

To prepare:

Trial Balance on March 31

Expert Solution

Answer to Problem 4BTN

Solution:

Particulars	Debit($)	Credit ($)
Accounts payable		$24,220.00
Accounts receivable	$19,225.00
Cash	$69,884.00
Cost of goods sold	$64,630.00
Merchandise inventory	$17,064.00
Notes Payable		$82,000.00
Office Equipment	$21,850.00
Sales		$ 116,685.00
Sales discount	$652.00
Sales Salaries	$36,600.00
Supplies	$3,000.00
Capital		$10,000.00
Total	$ 232,905.00	$ 232,905.00

Explanation of Solution

Dr.	Accounts payable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

According to the double entry system of bookkeeping, debits and credits must always be equal and a trial balance helps in verifying that.

The amounts posted to the trial balance are derived from the t-accounts to which effects of the transactions are given.

Assets such as Cash, Accounts Receivable etc. and Expenses such as Sales discounts, Utilities etc. have debit balance and hence amounts are posted to the left side (debit) side to increase the balance and amounts are posted to the right side (credit) side to decrease the balance.

Liabilities such as Capital, Accounts Payable etc. and Incomes such as Revenue have Credit balances and hence amounts are posted to the left side (debit) side to decrease the balance and amounts are posted to the right side (credit) side to increase the balance

Conclusion

Hence the trial balance has been prepared.

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Answer 2

Question

Chapter 7, Problem 4BTN

To determine

To Prepare:

Classification of Transactions in various journals.

Expert Solution

Answer to Problem 4BTN

Solution:

Transaction of Purchase of merchandise $43,600 (invoice dated March 1, terms 2/15, n/30), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $16,800, will be classified under Sales Ledger

Transaction of Purchase of $1,230 of office supplies on credit (invoice dated March 3, terms n/EOM), will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $10,200, will be classified under Sales Ledger

Transaction of Borrowing of $82,000 cash via long-term notes, will be classified under Cash Receipts Journal

Transaction of Purchase of $21,850 of office equipment on credit (invoice dated March 9, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $5,600, will be classified under Sales Ledger

Transaction of Receipt of payment for March 2 sales less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the March 1 invoice less the discount will be classified under Cash Disbursements Journal.

Transaction of Receipt of payment for the March 3 sale less the discount, will be classified under Cash Receipts Journal

Transaction of Purchase of $32,625 of merchandise (invoice dated March 13, terms 2/10, n/30), will be classified under Purchase Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the first half of the month of $34,680, will be classified under Sales Ledger

Transaction of Purchase of $1,770 of Supplies on credit (invoice dated March 16, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Receipt of a $2,425 credit memorandum, will be classified under General Journal

Transaction of Receipt of a $630 credit memorandum, will be classified under General Journal

Transaction of Receipt of payment for the sale of March 10 less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the invoice of March 13 less the March 17 return and the discount, will be classified under Cash Disbursements Journal

Transaction of Sale of merchandise on credit of $14,910, will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $4,315, will be classified under Sales Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the second half of the month of $30,180, will be classified under Sales Ledger

Explanation of Solution

Sales Journal is a monthly summary of credit sales and cost of goods sold of such sales made during a given period. Monthly totals of credit sales are transferred to the Accounts receivable ledger and sales ledger as part of the monthly closing process.

Purchase Journal is a monthly summary of credit purchases made during a given period. Monthly totals of the credit purchases are transferred to the Accounts payable ledger and purchases' ledger as part of the monthly closing process.

Cash receipt Journal is a monthly summary of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Monthly totals of cash receipts are transferred to the Cash account as part of the monthly closing process.

Cash disbursement journal is a monthly summary of cash payments made for purchases and expenses during a given period. Monthly totals of cash disbursements are transferred to the Cash account as part of the monthly closing process.

Conclusion

Hence the transactions are classified in respective summary journals.

To determine

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries to record the transactions.

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Account Titles	Debit	Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the transactions have been journalized.

To determine

Introduction:

Summary Journals

Summary journals are accounting documents prepared to record the financial transactions occurring during a month and then posting the totals of the same to the respective ledger accounts. Examples of Summary Journals are Sales Journals, Purchase Journal, Cash receipts and Cash payment Journals

Sales Journal records the value of credit sales and cost of goods sold of such sales made during a given period. The value of the credit sales is transferred to the Accounts receivable ledger and sales ledger at the end of the month.

Purchase Journal records the value of credit purchases made during a given period. The value of the credit purchases is transferred to the Accounts payable ledger and purchases' ledger at the end of the month.

Cash receipts record the value of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Total of cash receipts is transferred to the Cash account at the end of the month.

Cash payment Journals record the value of cash payments made for purchases and expenses during a given period. Total of cash payments is transferred to the Cash account at the end of the month.

To Prepare:

Sales Journal

Purchases Journal

Cash Receipts Journal

Cash Payments Journal

General Journal

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Particulars	Amount	Cost of Goods Sold
March
2	Credit Sales	$16,800.00	$8,400.00
3	Credit Sales	$5,600.00	$2,900.00
10	Credit Sales	$10,200.00	$5,800.00
27	Credit Sales	$14,910.00	$7,220.00
28	Credit Sales	$4,315.00	$3,280.00
31	Total	$51,825.00	$ 27,600.00

Date	Particulars	Amount	Inventory	Supplies	Others
March
1	Credit Purchases	$43,600.00	$ 43,600.00	$-	$-
3	Credit Purchases	$1,230.00	$ -	$1,230.00	$-
9	Credit Purchases	$21,850.00	$ -	$-	$ 21,850.00
14	Credit Purchases	$32,625.00	$ 32,625.00	$-	$-
16	Credit Purchases	$1,770.00		$1,770.00	$-
31	Total	$ 101,075.00	$ 76,225.00	$3,000.00	$ 21,850.00

Date	Particulars	Amount	Sales Discount	Cash Sales	Cost of Goods Sold	Others
March
6	Notes	$82,000.00	$ -	$-	$ -	$ 82,000.00
12	Accounts Receivable	$16,464.00	$ 336.00	$-	$-	$-
13	Accounts Receivable	$9,996.00	$ 204.00	$-	$-	$-
15	Cash Sales	$34,680.00	$ -	$ 34,680.00	$ 20,210.00	$-
20	Accounts Receivable	$5,488.00	$ 112.00	$-	$-	$-
31	Cash Sales	$30,180.00	$ -	$ 30,180.00	$ 16,820.00	$-
31	Total	$ 178,808.00	$ 652.00	$ 64,860.00	$ 37,030.00	$ 82,000.00

Date	Particulars	Amount	Purchase Discount	Salaries
Mar
3	Accounts Payable	$42,728.00	$ 872.00	$-
15	Sales Salaries	$18,300.00	$ -	$ 18,300.00
23	Accounts Payable	$29,596.00	$ 604.00	$-
31	Sales Salaries	$18,300.00	$ -	$ 18,300.00
31	Total	$ 108,924.00	$1,476.00	$ 36,600.00

Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the transactions have been journalized and appropriate journals are prepared.

To determine

Introduction:

T-Accounts

T-Accounts are a graphical representation of the postings made to the accounts during a reporting period. The left side records the debit entries and the right side records the credit entries of an account.

Depending on the nature of the account i.e. Balance Sheet or Profit and Loss Account, Income or Expense account etc. the account balances are reflected.

In case of Asset and Expenses accounts, the opening balance will be Debit Balance and in case of Liabilities and Incomes accounts, the opening balance is Credit Balance. They help in analysis of the transactions impacting the accounts.

To Prepare:

Ledger accounts and determine account balances

Expert Solution

Answer to Problem 4BTN

Solution:

Dr.	Accounts payable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the T-Accounts are prepared and account balances are determined.

To determine

Introduction:

Trial Balance

A trial Balance is a list of the balances of various Assets, Liabilities, Expense and Revenue Accounts prepared after the end of the financial year

Trial balance helps in evaluating the arithmetical accuracy of financial transactions and postings during a reporting period and serves as the starting point in the preparation of financial statements.

To prepare:

Trial Balance on March 31

Expert Solution

Answer to Problem 4BTN

Solution:

Particulars	Debit($)	Credit ($)
Accounts payable		$24,220.00
Accounts receivable	$19,225.00
Cash	$69,884.00
Cost of goods sold	$64,630.00
Merchandise inventory	$17,064.00
Notes Payable		$82,000.00
Office Equipment	$21,850.00
Sales		$ 116,685.00
Sales discount	$652.00
Sales Salaries	$36,600.00
Supplies	$3,000.00
Capital		$10,000.00
Total	$ 232,905.00	$ 232,905.00

Explanation of Solution

Dr.	Accounts payable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

According to the double entry system of bookkeeping, debits and credits must always be equal and a trial balance helps in verifying that.

The amounts posted to the trial balance are derived from the t-accounts to which effects of the transactions are given.

Assets such as Cash, Accounts Receivable etc. and Expenses such as Sales discounts, Utilities etc. have debit balance and hence amounts are posted to the left side (debit) side to increase the balance and amounts are posted to the right side (credit) side to decrease the balance.

Liabilities such as Capital, Accounts Payable etc. and Incomes such as Revenue have Credit balances and hence amounts are posted to the left side (debit) side to decrease the balance and amounts are posted to the right side (credit) side to increase the balance

Conclusion

Hence the trial balance has been prepared.

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Answer 3

Question

Chapter 7, Problem 4BTN

To determine

To Prepare:

Classification of Transactions in various journals.

Expert Solution

Answer to Problem 4BTN

Solution:

Transaction of Purchase of merchandise $43,600 (invoice dated March 1, terms 2/15, n/30), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $16,800, will be classified under Sales Ledger

Transaction of Purchase of $1,230 of office supplies on credit (invoice dated March 3, terms n/EOM), will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $10,200, will be classified under Sales Ledger

Transaction of Borrowing of $82,000 cash via long-term notes, will be classified under Cash Receipts Journal

Transaction of Purchase of $21,850 of office equipment on credit (invoice dated March 9, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $5,600, will be classified under Sales Ledger

Transaction of Receipt of payment for March 2 sales less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the March 1 invoice less the discount will be classified under Cash Disbursements Journal.

Transaction of Receipt of payment for the March 3 sale less the discount, will be classified under Cash Receipts Journal

Transaction of Purchase of $32,625 of merchandise (invoice dated March 13, terms 2/10, n/30), will be classified under Purchase Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the first half of the month of $34,680, will be classified under Sales Ledger

Transaction of Purchase of $1,770 of Supplies on credit (invoice dated March 16, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Receipt of a $2,425 credit memorandum, will be classified under General Journal

Transaction of Receipt of a $630 credit memorandum, will be classified under General Journal

Transaction of Receipt of payment for the sale of March 10 less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the invoice of March 13 less the March 17 return and the discount, will be classified under Cash Disbursements Journal

Transaction of Sale of merchandise on credit of $14,910, will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $4,315, will be classified under Sales Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the second half of the month of $30,180, will be classified under Sales Ledger

Explanation of Solution

Sales Journal is a monthly summary of credit sales and cost of goods sold of such sales made during a given period. Monthly totals of credit sales are transferred to the Accounts receivable ledger and sales ledger as part of the monthly closing process.

Purchase Journal is a monthly summary of credit purchases made during a given period. Monthly totals of the credit purchases are transferred to the Accounts payable ledger and purchases' ledger as part of the monthly closing process.

Cash receipt Journal is a monthly summary of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Monthly totals of cash receipts are transferred to the Cash account as part of the monthly closing process.

Cash disbursement journal is a monthly summary of cash payments made for purchases and expenses during a given period. Monthly totals of cash disbursements are transferred to the Cash account as part of the monthly closing process.

Conclusion

Hence the transactions are classified in respective summary journals.

To determine

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries to record the transactions.

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Account Titles	Debit	Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the transactions have been journalized.

To determine

Introduction:

Summary Journals

Summary journals are accounting documents prepared to record the financial transactions occurring during a month and then posting the totals of the same to the respective ledger accounts. Examples of Summary Journals are Sales Journals, Purchase Journal, Cash receipts and Cash payment Journals

Sales Journal records the value of credit sales and cost of goods sold of such sales made during a given period. The value of the credit sales is transferred to the Accounts receivable ledger and sales ledger at the end of the month.

Purchase Journal records the value of credit purchases made during a given period. The value of the credit purchases is transferred to the Accounts payable ledger and purchases' ledger at the end of the month.

Cash receipts record the value of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Total of cash receipts is transferred to the Cash account at the end of the month.

Cash payment Journals record the value of cash payments made for purchases and expenses during a given period. Total of cash payments is transferred to the Cash account at the end of the month.

To Prepare:

Sales Journal

Purchases Journal

Cash Receipts Journal

Cash Payments Journal

General Journal

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Particulars	Amount	Cost of Goods Sold
March
2	Credit Sales	$16,800.00	$8,400.00
3	Credit Sales	$5,600.00	$2,900.00
10	Credit Sales	$10,200.00	$5,800.00
27	Credit Sales	$14,910.00	$7,220.00
28	Credit Sales	$4,315.00	$3,280.00
31	Total	$51,825.00	$ 27,600.00

Date	Particulars	Amount	Inventory	Supplies	Others
March
1	Credit Purchases	$43,600.00	$ 43,600.00	$-	$-
3	Credit Purchases	$1,230.00	$ -	$1,230.00	$-
9	Credit Purchases	$21,850.00	$ -	$-	$ 21,850.00
14	Credit Purchases	$32,625.00	$ 32,625.00	$-	$-
16	Credit Purchases	$1,770.00		$1,770.00	$-
31	Total	$ 101,075.00	$ 76,225.00	$3,000.00	$ 21,850.00

Date	Particulars	Amount	Sales Discount	Cash Sales	Cost of Goods Sold	Others
March
6	Notes	$82,000.00	$ -	$-	$ -	$ 82,000.00
12	Accounts Receivable	$16,464.00	$ 336.00	$-	$-	$-
13	Accounts Receivable	$9,996.00	$ 204.00	$-	$-	$-
15	Cash Sales	$34,680.00	$ -	$ 34,680.00	$ 20,210.00	$-
20	Accounts Receivable	$5,488.00	$ 112.00	$-	$-	$-
31	Cash Sales	$30,180.00	$ -	$ 30,180.00	$ 16,820.00	$-
31	Total	$ 178,808.00	$ 652.00	$ 64,860.00	$ 37,030.00	$ 82,000.00

Date	Particulars	Amount	Purchase Discount	Salaries
Mar
3	Accounts Payable	$42,728.00	$ 872.00	$-
15	Sales Salaries	$18,300.00	$ -	$ 18,300.00
23	Accounts Payable	$29,596.00	$ 604.00	$-
31	Sales Salaries	$18,300.00	$ -	$ 18,300.00
31	Total	$ 108,924.00	$1,476.00	$ 36,600.00

Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the transactions have been journalized and appropriate journals are prepared.

To determine

Introduction:

T-Accounts

T-Accounts are a graphical representation of the postings made to the accounts during a reporting period. The left side records the debit entries and the right side records the credit entries of an account.

Depending on the nature of the account i.e. Balance Sheet or Profit and Loss Account, Income or Expense account etc. the account balances are reflected.

In case of Asset and Expenses accounts, the opening balance will be Debit Balance and in case of Liabilities and Incomes accounts, the opening balance is Credit Balance. They help in analysis of the transactions impacting the accounts.

To Prepare:

Ledger accounts and determine account balances

Expert Solution

Answer to Problem 4BTN

Solution:

Dr.	Accounts payable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the T-Accounts are prepared and account balances are determined.

To determine

Introduction:

Trial Balance

A trial Balance is a list of the balances of various Assets, Liabilities, Expense and Revenue Accounts prepared after the end of the financial year

Trial balance helps in evaluating the arithmetical accuracy of financial transactions and postings during a reporting period and serves as the starting point in the preparation of financial statements.

To prepare:

Trial Balance on March 31

Expert Solution

Answer to Problem 4BTN

Solution:

Particulars	Debit($)	Credit ($)
Accounts payable		$24,220.00
Accounts receivable	$19,225.00
Cash	$69,884.00
Cost of goods sold	$64,630.00
Merchandise inventory	$17,064.00
Notes Payable		$82,000.00
Office Equipment	$21,850.00
Sales		$ 116,685.00
Sales discount	$652.00
Sales Salaries	$36,600.00
Supplies	$3,000.00
Capital		$10,000.00
Total	$ 232,905.00	$ 232,905.00

Explanation of Solution

Dr.	Accounts payable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

According to the double entry system of bookkeeping, debits and credits must always be equal and a trial balance helps in verifying that.

The amounts posted to the trial balance are derived from the t-accounts to which effects of the transactions are given.

Assets such as Cash, Accounts Receivable etc. and Expenses such as Sales discounts, Utilities etc. have debit balance and hence amounts are posted to the left side (debit) side to increase the balance and amounts are posted to the right side (credit) side to decrease the balance.

Liabilities such as Capital, Accounts Payable etc. and Incomes such as Revenue have Credit balances and hence amounts are posted to the left side (debit) side to decrease the balance and amounts are posted to the right side (credit) side to increase the balance

Conclusion

Hence the trial balance has been prepared.

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Answer 4

Question

Chapter 7, Problem 4BTN

To determine

To Prepare:

Classification of Transactions in various journals.

Expert Solution

Answer to Problem 4BTN

Solution:

Transaction of Purchase of merchandise $43,600 (invoice dated March 1, terms 2/15, n/30), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $16,800, will be classified under Sales Ledger

Transaction of Purchase of $1,230 of office supplies on credit (invoice dated March 3, terms n/EOM), will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $10,200, will be classified under Sales Ledger

Transaction of Borrowing of $82,000 cash via long-term notes, will be classified under Cash Receipts Journal

Transaction of Purchase of $21,850 of office equipment on credit (invoice dated March 9, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $5,600, will be classified under Sales Ledger

Transaction of Receipt of payment for March 2 sales less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the March 1 invoice less the discount will be classified under Cash Disbursements Journal.

Transaction of Receipt of payment for the March 3 sale less the discount, will be classified under Cash Receipts Journal

Transaction of Purchase of $32,625 of merchandise (invoice dated March 13, terms 2/10, n/30), will be classified under Purchase Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the first half of the month of $34,680, will be classified under Sales Ledger

Transaction of Purchase of $1,770 of Supplies on credit (invoice dated March 16, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Receipt of a $2,425 credit memorandum, will be classified under General Journal

Transaction of Receipt of a $630 credit memorandum, will be classified under General Journal

Transaction of Receipt of payment for the sale of March 10 less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the invoice of March 13 less the March 17 return and the discount, will be classified under Cash Disbursements Journal

Transaction of Sale of merchandise on credit of $14,910, will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $4,315, will be classified under Sales Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the second half of the month of $30,180, will be classified under Sales Ledger

Explanation of Solution

Sales Journal is a monthly summary of credit sales and cost of goods sold of such sales made during a given period. Monthly totals of credit sales are transferred to the Accounts receivable ledger and sales ledger as part of the monthly closing process.

Purchase Journal is a monthly summary of credit purchases made during a given period. Monthly totals of the credit purchases are transferred to the Accounts payable ledger and purchases' ledger as part of the monthly closing process.

Cash receipt Journal is a monthly summary of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Monthly totals of cash receipts are transferred to the Cash account as part of the monthly closing process.

Cash disbursement journal is a monthly summary of cash payments made for purchases and expenses during a given period. Monthly totals of cash disbursements are transferred to the Cash account as part of the monthly closing process.

Conclusion

Hence the transactions are classified in respective summary journals.

To determine

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries to record the transactions.

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Account Titles	Debit	Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the transactions have been journalized.

To determine

Introduction:

Summary Journals

Summary journals are accounting documents prepared to record the financial transactions occurring during a month and then posting the totals of the same to the respective ledger accounts. Examples of Summary Journals are Sales Journals, Purchase Journal, Cash receipts and Cash payment Journals

Sales Journal records the value of credit sales and cost of goods sold of such sales made during a given period. The value of the credit sales is transferred to the Accounts receivable ledger and sales ledger at the end of the month.

Purchase Journal records the value of credit purchases made during a given period. The value of the credit purchases is transferred to the Accounts payable ledger and purchases' ledger at the end of the month.

Cash receipts record the value of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Total of cash receipts is transferred to the Cash account at the end of the month.

Cash payment Journals record the value of cash payments made for purchases and expenses during a given period. Total of cash payments is transferred to the Cash account at the end of the month.

To Prepare:

Sales Journal

Purchases Journal

Cash Receipts Journal

Cash Payments Journal

General Journal

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Particulars	Amount	Cost of Goods Sold
March
2	Credit Sales	$16,800.00	$8,400.00
3	Credit Sales	$5,600.00	$2,900.00
10	Credit Sales	$10,200.00	$5,800.00
27	Credit Sales	$14,910.00	$7,220.00
28	Credit Sales	$4,315.00	$3,280.00
31	Total	$51,825.00	$ 27,600.00

Date	Particulars	Amount	Inventory	Supplies	Others
March
1	Credit Purchases	$43,600.00	$ 43,600.00	$-	$-
3	Credit Purchases	$1,230.00	$ -	$1,230.00	$-
9	Credit Purchases	$21,850.00	$ -	$-	$ 21,850.00
14	Credit Purchases	$32,625.00	$ 32,625.00	$-	$-
16	Credit Purchases	$1,770.00		$1,770.00	$-
31	Total	$ 101,075.00	$ 76,225.00	$3,000.00	$ 21,850.00

Date	Particulars	Amount	Sales Discount	Cash Sales	Cost of Goods Sold	Others
March
6	Notes	$82,000.00	$ -	$-	$ -	$ 82,000.00
12	Accounts Receivable	$16,464.00	$ 336.00	$-	$-	$-
13	Accounts Receivable	$9,996.00	$ 204.00	$-	$-	$-
15	Cash Sales	$34,680.00	$ -	$ 34,680.00	$ 20,210.00	$-
20	Accounts Receivable	$5,488.00	$ 112.00	$-	$-	$-
31	Cash Sales	$30,180.00	$ -	$ 30,180.00	$ 16,820.00	$-
31	Total	$ 178,808.00	$ 652.00	$ 64,860.00	$ 37,030.00	$ 82,000.00

Date	Particulars	Amount	Purchase Discount	Salaries
Mar
3	Accounts Payable	$42,728.00	$ 872.00	$-
15	Sales Salaries	$18,300.00	$ -	$ 18,300.00
23	Accounts Payable	$29,596.00	$ 604.00	$-
31	Sales Salaries	$18,300.00	$ -	$ 18,300.00
31	Total	$ 108,924.00	$1,476.00	$ 36,600.00

Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the transactions have been journalized and appropriate journals are prepared.

To determine

Introduction:

T-Accounts

T-Accounts are a graphical representation of the postings made to the accounts during a reporting period. The left side records the debit entries and the right side records the credit entries of an account.

Depending on the nature of the account i.e. Balance Sheet or Profit and Loss Account, Income or Expense account etc. the account balances are reflected.

In case of Asset and Expenses accounts, the opening balance will be Debit Balance and in case of Liabilities and Incomes accounts, the opening balance is Credit Balance. They help in analysis of the transactions impacting the accounts.

To Prepare:

Ledger accounts and determine account balances

Expert Solution

Answer to Problem 4BTN

Solution:

Dr.	Accounts payable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the T-Accounts are prepared and account balances are determined.

To determine

Introduction:

Trial Balance

A trial Balance is a list of the balances of various Assets, Liabilities, Expense and Revenue Accounts prepared after the end of the financial year

Trial balance helps in evaluating the arithmetical accuracy of financial transactions and postings during a reporting period and serves as the starting point in the preparation of financial statements.

To prepare:

Trial Balance on March 31

Expert Solution

Answer to Problem 4BTN

Solution:

Particulars	Debit($)	Credit ($)
Accounts payable		$24,220.00
Accounts receivable	$19,225.00
Cash	$69,884.00
Cost of goods sold	$64,630.00
Merchandise inventory	$17,064.00
Notes Payable		$82,000.00
Office Equipment	$21,850.00
Sales		$ 116,685.00
Sales discount	$652.00
Sales Salaries	$36,600.00
Supplies	$3,000.00
Capital		$10,000.00
Total	$ 232,905.00	$ 232,905.00

Explanation of Solution

Dr.	Accounts payable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

According to the double entry system of bookkeeping, debits and credits must always be equal and a trial balance helps in verifying that.

The amounts posted to the trial balance are derived from the t-accounts to which effects of the transactions are given.

Assets such as Cash, Accounts Receivable etc. and Expenses such as Sales discounts, Utilities etc. have debit balance and hence amounts are posted to the left side (debit) side to increase the balance and amounts are posted to the right side (credit) side to decrease the balance.

Liabilities such as Capital, Accounts Payable etc. and Incomes such as Revenue have Credit balances and hence amounts are posted to the left side (debit) side to decrease the balance and amounts are posted to the right side (credit) side to increase the balance

Conclusion

Hence the trial balance has been prepared.

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Answer 5

Chapter 7, Problem 4BTN

To determine

To Prepare:

Classification of Transactions in various journals.

Expert Solution

Answer to Problem 4BTN

Solution:

Transaction of Purchase of merchandise $43,600 (invoice dated March 1, terms 2/15, n/30), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $16,800, will be classified under Sales Ledger

Transaction of Purchase of $1,230 of office supplies on credit (invoice dated March 3, terms n/EOM), will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $10,200, will be classified under Sales Ledger

Transaction of Borrowing of $82,000 cash via long-term notes, will be classified under Cash Receipts Journal

Transaction of Purchase of $21,850 of office equipment on credit (invoice dated March 9, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $5,600, will be classified under Sales Ledger

Transaction of Receipt of payment for March 2 sales less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the March 1 invoice less the discount will be classified under Cash Disbursements Journal.

Transaction of Receipt of payment for the March 3 sale less the discount, will be classified under Cash Receipts Journal

Transaction of Purchase of $32,625 of merchandise (invoice dated March 13, terms 2/10, n/30), will be classified under Purchase Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the first half of the month of $34,680, will be classified under Sales Ledger

Transaction of Purchase of $1,770 of Supplies on credit (invoice dated March 16, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Receipt of a $2,425 credit memorandum, will be classified under General Journal

Transaction of Receipt of a $630 credit memorandum, will be classified under General Journal

Transaction of Receipt of payment for the sale of March 10 less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the invoice of March 13 less the March 17 return and the discount, will be classified under Cash Disbursements Journal

Transaction of Sale of merchandise on credit of $14,910, will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $4,315, will be classified under Sales Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the second half of the month of $30,180, will be classified under Sales Ledger

Explanation of Solution

Sales Journal is a monthly summary of credit sales and cost of goods sold of such sales made during a given period. Monthly totals of credit sales are transferred to the Accounts receivable ledger and sales ledger as part of the monthly closing process.

Purchase Journal is a monthly summary of credit purchases made during a given period. Monthly totals of the credit purchases are transferred to the Accounts payable ledger and purchases' ledger as part of the monthly closing process.

Cash receipt Journal is a monthly summary of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Monthly totals of cash receipts are transferred to the Cash account as part of the monthly closing process.

Cash disbursement journal is a monthly summary of cash payments made for purchases and expenses during a given period. Monthly totals of cash disbursements are transferred to the Cash account as part of the monthly closing process.

Conclusion

Hence the transactions are classified in respective summary journals.

To determine

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries to record the transactions.

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Account Titles	Debit	Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the transactions have been journalized.

To determine

Introduction:

Summary Journals

Summary journals are accounting documents prepared to record the financial transactions occurring during a month and then posting the totals of the same to the respective ledger accounts. Examples of Summary Journals are Sales Journals, Purchase Journal, Cash receipts and Cash payment Journals

Sales Journal records the value of credit sales and cost of goods sold of such sales made during a given period. The value of the credit sales is transferred to the Accounts receivable ledger and sales ledger at the end of the month.

Purchase Journal records the value of credit purchases made during a given period. The value of the credit purchases is transferred to the Accounts payable ledger and purchases' ledger at the end of the month.

Cash receipts record the value of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Total of cash receipts is transferred to the Cash account at the end of the month.

Cash payment Journals record the value of cash payments made for purchases and expenses during a given period. Total of cash payments is transferred to the Cash account at the end of the month.

To Prepare:

Sales Journal

Purchases Journal

Cash Receipts Journal

Cash Payments Journal

General Journal

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Particulars	Amount	Cost of Goods Sold
March
2	Credit Sales	$16,800.00	$8,400.00
3	Credit Sales	$5,600.00	$2,900.00
10	Credit Sales	$10,200.00	$5,800.00
27	Credit Sales	$14,910.00	$7,220.00
28	Credit Sales	$4,315.00	$3,280.00
31	Total	$51,825.00	$ 27,600.00

Date	Particulars	Amount	Inventory	Supplies	Others
March
1	Credit Purchases	$43,600.00	$ 43,600.00	$-	$-
3	Credit Purchases	$1,230.00	$ -	$1,230.00	$-
9	Credit Purchases	$21,850.00	$ -	$-	$ 21,850.00
14	Credit Purchases	$32,625.00	$ 32,625.00	$-	$-
16	Credit Purchases	$1,770.00		$1,770.00	$-
31	Total	$ 101,075.00	$ 76,225.00	$3,000.00	$ 21,850.00

Date	Particulars	Amount	Sales Discount	Cash Sales	Cost of Goods Sold	Others
March
6	Notes	$82,000.00	$ -	$-	$ -	$ 82,000.00
12	Accounts Receivable	$16,464.00	$ 336.00	$-	$-	$-
13	Accounts Receivable	$9,996.00	$ 204.00	$-	$-	$-
15	Cash Sales	$34,680.00	$ -	$ 34,680.00	$ 20,210.00	$-
20	Accounts Receivable	$5,488.00	$ 112.00	$-	$-	$-
31	Cash Sales	$30,180.00	$ -	$ 30,180.00	$ 16,820.00	$-
31	Total	$ 178,808.00	$ 652.00	$ 64,860.00	$ 37,030.00	$ 82,000.00

Date	Particulars	Amount	Purchase Discount	Salaries
Mar
3	Accounts Payable	$42,728.00	$ 872.00	$-
15	Sales Salaries	$18,300.00	$ -	$ 18,300.00
23	Accounts Payable	$29,596.00	$ 604.00	$-
31	Sales Salaries	$18,300.00	$ -	$ 18,300.00
31	Total	$ 108,924.00	$1,476.00	$ 36,600.00

Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the transactions have been journalized and appropriate journals are prepared.

To determine

Introduction:

T-Accounts

T-Accounts are a graphical representation of the postings made to the accounts during a reporting period. The left side records the debit entries and the right side records the credit entries of an account.

Depending on the nature of the account i.e. Balance Sheet or Profit and Loss Account, Income or Expense account etc. the account balances are reflected.

In case of Asset and Expenses accounts, the opening balance will be Debit Balance and in case of Liabilities and Incomes accounts, the opening balance is Credit Balance. They help in analysis of the transactions impacting the accounts.

To Prepare:

Ledger accounts and determine account balances

Expert Solution

Answer to Problem 4BTN

Solution:

Dr.	Accounts payable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the T-Accounts are prepared and account balances are determined.

To determine

Introduction:

Trial Balance

A trial Balance is a list of the balances of various Assets, Liabilities, Expense and Revenue Accounts prepared after the end of the financial year

Trial balance helps in evaluating the arithmetical accuracy of financial transactions and postings during a reporting period and serves as the starting point in the preparation of financial statements.

To prepare:

Trial Balance on March 31

Expert Solution

Answer to Problem 4BTN

Solution:

Particulars	Debit($)	Credit ($)
Accounts payable		$24,220.00
Accounts receivable	$19,225.00
Cash	$69,884.00
Cost of goods sold	$64,630.00
Merchandise inventory	$17,064.00
Notes Payable		$82,000.00
Office Equipment	$21,850.00
Sales		$ 116,685.00
Sales discount	$652.00
Sales Salaries	$36,600.00
Supplies	$3,000.00
Capital		$10,000.00
Total	$ 232,905.00	$ 232,905.00

Explanation of Solution

Dr.	Accounts payable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

According to the double entry system of bookkeeping, debits and credits must always be equal and a trial balance helps in verifying that.

The amounts posted to the trial balance are derived from the t-accounts to which effects of the transactions are given.

Assets such as Cash, Accounts Receivable etc. and Expenses such as Sales discounts, Utilities etc. have debit balance and hence amounts are posted to the left side (debit) side to increase the balance and amounts are posted to the right side (credit) side to decrease the balance.

Liabilities such as Capital, Accounts Payable etc. and Incomes such as Revenue have Credit balances and hence amounts are posted to the left side (debit) side to decrease the balance and amounts are posted to the right side (credit) side to increase the balance

Conclusion

Hence the trial balance has been prepared.

Answer 6

Chapter 7, Problem 4BTN

To determine

To Prepare:

Classification of Transactions in various journals.

Expert Solution

Answer to Problem 4BTN

Solution:

Transaction of Purchase of merchandise $43,600 (invoice dated March 1, terms 2/15, n/30), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $16,800, will be classified under Sales Ledger

Transaction of Purchase of $1,230 of office supplies on credit (invoice dated March 3, terms n/EOM), will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $10,200, will be classified under Sales Ledger

Transaction of Borrowing of $82,000 cash via long-term notes, will be classified under Cash Receipts Journal

Transaction of Purchase of $21,850 of office equipment on credit (invoice dated March 9, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $5,600, will be classified under Sales Ledger

Transaction of Receipt of payment for March 2 sales less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the March 1 invoice less the discount will be classified under Cash Disbursements Journal.

Transaction of Receipt of payment for the March 3 sale less the discount, will be classified under Cash Receipts Journal

Transaction of Purchase of $32,625 of merchandise (invoice dated March 13, terms 2/10, n/30), will be classified under Purchase Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the first half of the month of $34,680, will be classified under Sales Ledger

Transaction of Purchase of $1,770 of Supplies on credit (invoice dated March 16, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Receipt of a $2,425 credit memorandum, will be classified under General Journal

Transaction of Receipt of a $630 credit memorandum, will be classified under General Journal

Transaction of Receipt of payment for the sale of March 10 less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the invoice of March 13 less the March 17 return and the discount, will be classified under Cash Disbursements Journal

Transaction of Sale of merchandise on credit of $14,910, will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $4,315, will be classified under Sales Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the second half of the month of $30,180, will be classified under Sales Ledger

Explanation of Solution

Sales Journal is a monthly summary of credit sales and cost of goods sold of such sales made during a given period. Monthly totals of credit sales are transferred to the Accounts receivable ledger and sales ledger as part of the monthly closing process.

Purchase Journal is a monthly summary of credit purchases made during a given period. Monthly totals of the credit purchases are transferred to the Accounts payable ledger and purchases' ledger as part of the monthly closing process.

Cash receipt Journal is a monthly summary of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Monthly totals of cash receipts are transferred to the Cash account as part of the monthly closing process.

Cash disbursement journal is a monthly summary of cash payments made for purchases and expenses during a given period. Monthly totals of cash disbursements are transferred to the Cash account as part of the monthly closing process.

Conclusion

Hence the transactions are classified in respective summary journals.

Answer 7

Chapter 7, Problem 4BTN

To determine

To Prepare:

Classification of Transactions in various journals.

Answer 8

Expert Solution

Answer to Problem 4BTN

Solution:

Transaction of Purchase of merchandise $43,600 (invoice dated March 1, terms 2/15, n/30), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $16,800, will be classified under Sales Ledger

Transaction of Purchase of $1,230 of office supplies on credit (invoice dated March 3, terms n/EOM), will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $10,200, will be classified under Sales Ledger

Transaction of Borrowing of $82,000 cash via long-term notes, will be classified under Cash Receipts Journal

Transaction of Purchase of $21,850 of office equipment on credit (invoice dated March 9, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Sale of merchandise on credit of $5,600, will be classified under Sales Ledger

Transaction of Receipt of payment for March 2 sales less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the March 1 invoice less the discount will be classified under Cash Disbursements Journal.

Transaction of Receipt of payment for the March 3 sale less the discount, will be classified under Cash Receipts Journal

Transaction of Purchase of $32,625 of merchandise (invoice dated March 13, terms 2/10, n/30), will be classified under Purchase Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the first half of the month of $34,680, will be classified under Sales Ledger

Transaction of Purchase of $1,770 of Supplies on credit (invoice dated March 16, terms n/10 EOM), will be classified under Purchase Ledger

Transaction of Receipt of a $2,425 credit memorandum, will be classified under General Journal

Transaction of Receipt of a $630 credit memorandum, will be classified under General Journal

Transaction of Receipt of payment for the sale of March 10 less the discount, will be classified under Cash Receipts Journal

Transaction of Payment of the invoice of March 13 less the March 17 return and the discount, will be classified under Cash Disbursements Journal

Transaction of Sale of merchandise on credit of $14,910, will be classified under Sales Ledger

Transaction of Sale of merchandise on credit of $4,315, will be classified under Sales Ledger

Transaction of Payment of sales salaries of $18,300, will be classified under Cash Disbursements Journal

Transaction of Cash sales for the second half of the month of $30,180, will be classified under Sales Ledger

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Sales Journal is a monthly summary of credit sales and cost of goods sold of such sales made during a given period. Monthly totals of credit sales are transferred to the Accounts receivable ledger and sales ledger as part of the monthly closing process.

Purchase Journal is a monthly summary of credit purchases made during a given period. Monthly totals of the credit purchases are transferred to the Accounts payable ledger and purchases' ledger as part of the monthly closing process.

Cash receipt Journal is a monthly summary of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Monthly totals of cash receipts are transferred to the Cash account as part of the monthly closing process.

Cash disbursement journal is a monthly summary of cash payments made for purchases and expenses during a given period. Monthly totals of cash disbursements are transferred to the Cash account as part of the monthly closing process.

Answer 13

Conclusion

Hence the transactions are classified in respective summary journals.

Answer 14

To determine

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries to record the transactions.

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Account Titles	Debit	Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the transactions have been journalized.

Answer 15

To determine

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries to record the transactions.

Answer 16

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Account Titles	Debit	Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Answer 21

Conclusion

Hence the transactions have been journalized.

Answer 22

To determine

Introduction:

Summary Journals

Summary journals are accounting documents prepared to record the financial transactions occurring during a month and then posting the totals of the same to the respective ledger accounts. Examples of Summary Journals are Sales Journals, Purchase Journal, Cash receipts and Cash payment Journals

Sales Journal records the value of credit sales and cost of goods sold of such sales made during a given period. The value of the credit sales is transferred to the Accounts receivable ledger and sales ledger at the end of the month.

Purchase Journal records the value of credit purchases made during a given period. The value of the credit purchases is transferred to the Accounts payable ledger and purchases' ledger at the end of the month.

Cash receipts record the value of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Total of cash receipts is transferred to the Cash account at the end of the month.

Cash payment Journals record the value of cash payments made for purchases and expenses during a given period. Total of cash payments is transferred to the Cash account at the end of the month.

To Prepare:

Sales Journal

Purchases Journal

Cash Receipts Journal

Cash Payments Journal

General Journal

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Particulars	Amount	Cost of Goods Sold
March
2	Credit Sales	$16,800.00	$8,400.00
3	Credit Sales	$5,600.00	$2,900.00
10	Credit Sales	$10,200.00	$5,800.00
27	Credit Sales	$14,910.00	$7,220.00
28	Credit Sales	$4,315.00	$3,280.00
31	Total	$51,825.00	$ 27,600.00

Date	Particulars	Amount	Inventory	Supplies	Others
March
1	Credit Purchases	$43,600.00	$ 43,600.00	$-	$-
3	Credit Purchases	$1,230.00	$ -	$1,230.00	$-
9	Credit Purchases	$21,850.00	$ -	$-	$ 21,850.00
14	Credit Purchases	$32,625.00	$ 32,625.00	$-	$-
16	Credit Purchases	$1,770.00		$1,770.00	$-
31	Total	$ 101,075.00	$ 76,225.00	$3,000.00	$ 21,850.00

Date	Particulars	Amount	Sales Discount	Cash Sales	Cost of Goods Sold	Others
March
6	Notes	$82,000.00	$ -	$-	$ -	$ 82,000.00
12	Accounts Receivable	$16,464.00	$ 336.00	$-	$-	$-
13	Accounts Receivable	$9,996.00	$ 204.00	$-	$-	$-
15	Cash Sales	$34,680.00	$ -	$ 34,680.00	$ 20,210.00	$-
20	Accounts Receivable	$5,488.00	$ 112.00	$-	$-	$-
31	Cash Sales	$30,180.00	$ -	$ 30,180.00	$ 16,820.00	$-
31	Total	$ 178,808.00	$ 652.00	$ 64,860.00	$ 37,030.00	$ 82,000.00

Date	Particulars	Amount	Purchase Discount	Salaries
Mar
3	Accounts Payable	$42,728.00	$ 872.00	$-
15	Sales Salaries	$18,300.00	$ -	$ 18,300.00
23	Accounts Payable	$29,596.00	$ 604.00	$-
31	Sales Salaries	$18,300.00	$ -	$ 18,300.00
31	Total	$ 108,924.00	$1,476.00	$ 36,600.00

Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the transactions have been journalized and appropriate journals are prepared.

Answer 23

To determine

Introduction:

Summary Journals

Summary journals are accounting documents prepared to record the financial transactions occurring during a month and then posting the totals of the same to the respective ledger accounts. Examples of Summary Journals are Sales Journals, Purchase Journal, Cash receipts and Cash payment Journals

Sales Journal records the value of credit sales and cost of goods sold of such sales made during a given period. The value of the credit sales is transferred to the Accounts receivable ledger and sales ledger at the end of the month.

Purchase Journal records the value of credit purchases made during a given period. The value of the credit purchases is transferred to the Accounts payable ledger and purchases' ledger at the end of the month.

Cash receipts record the value of cash receipts and cash sales made during a period along with the cost of goods sold of such sales. Total of cash receipts is transferred to the Cash account at the end of the month.

Cash payment Journals record the value of cash payments made for purchases and expenses during a given period. Total of cash payments is transferred to the Cash account at the end of the month.

To Prepare:

Sales Journal

Purchases Journal

Cash Receipts Journal

Cash Payments Journal

General Journal

Answer 24

Expert Solution

Answer to Problem 4BTN

Solution:

Date	Particulars	Amount	Cost of Goods Sold
March
2	Credit Sales	$16,800.00	$8,400.00
3	Credit Sales	$5,600.00	$2,900.00
10	Credit Sales	$10,200.00	$5,800.00
27	Credit Sales	$14,910.00	$7,220.00
28	Credit Sales	$4,315.00	$3,280.00
31	Total	$51,825.00	$ 27,600.00

Date	Particulars	Amount	Inventory	Supplies	Others
March
1	Credit Purchases	$43,600.00	$ 43,600.00	$-	$-
3	Credit Purchases	$1,230.00	$ -	$1,230.00	$-
9	Credit Purchases	$21,850.00	$ -	$-	$ 21,850.00
14	Credit Purchases	$32,625.00	$ 32,625.00	$-	$-
16	Credit Purchases	$1,770.00		$1,770.00	$-
31	Total	$ 101,075.00	$ 76,225.00	$3,000.00	$ 21,850.00

Date	Particulars	Amount	Sales Discount	Cash Sales	Cost of Goods Sold	Others
March
6	Notes	$82,000.00	$ -	$-	$ -	$ 82,000.00
12	Accounts Receivable	$16,464.00	$ 336.00	$-	$-	$-
13	Accounts Receivable	$9,996.00	$ 204.00	$-	$-	$-
15	Cash Sales	$34,680.00	$ -	$ 34,680.00	$ 20,210.00	$-
20	Accounts Receivable	$5,488.00	$ 112.00	$-	$-	$-
31	Cash Sales	$30,180.00	$ -	$ 30,180.00	$ 16,820.00	$-
31	Total	$ 178,808.00	$ 652.00	$ 64,860.00	$ 37,030.00	$ 82,000.00

Date	Particulars	Amount	Purchase Discount	Salaries
Mar
3	Accounts Payable	$42,728.00	$ 872.00	$-
15	Sales Salaries	$18,300.00	$ -	$ 18,300.00
23	Accounts Payable	$29,596.00	$ 604.00	$-
31	Sales Salaries	$18,300.00	$ -	$ 18,300.00
31	Total	$ 108,924.00	$1,476.00	$ 36,600.00

Credit
Mar
1	Merchandise inventory	$ 43,600.00
	Accounts payable		$ 43,600.00
	(Being credit purchases recorded)

2	Accounts receivable	$ 16,800.00
	Sales		$ 16,800.00
	(Being credit sales recorded)

2	Cost of goods sold	$ 8,400.00
	Merchandise inventory		$ 8,400.00
	(Being cost of goods sold of credit sale recorded)

3	Supplies	$ 1,230.00
	Accounts payable		$ 1,230.00
	(Being credit purchases recorded)

3	Accounts receivable	$ 10,200.00
	Sales		$ 10,200.00
	(Being credit sales recorded)

3	Cost of goods sold	$ 5,800.00
	Merchandise inventory		$ 5,800.00
	(Being cost of goods sold of credit sale recorded)

6	Cash	$ 82,000.00
	Notes Payable		$ 82,000.00
	(Being notes payable issued)

9	Office Equipment	$ 21,850.00
	Accounts payable		$ 21,850.00
	(Being credit purchases recorded)

10	Accounts receivable	$ 5,600.00
	Sales		$ 5,600.00
	(Being credit sales recorded)

10	Cost of goods sold	$ 2,900.00
	Merchandise inventory		$ 2,900.00
	(Being cost of goods sold of credit sale recorded)

12	Cash	$ 16,464.00
	Sales discount	$ 336.00
	Accounts receivable		$ 16,800.00
	(Being cash received for accounts receivable recorded net of discount)

13	Accounts payable	$ 43,600.00
	Merchandise inventory		$ 872.00
	Cash		$ 42,728.00
	(Being cash paid for accounts payable recorded net of discount)

13	Cash	$ 9,996.00
	Sales discount	$ 204.00
	Accounts receivable		$ 10,200.00
	(Being cash received for accounts receivable recorded net of discount)

14	Merchandise inventory	$ 32,625.00
	Accounts payable		$ 32,625.00
	(Being credit purchases recorded)

15	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

15	Cash	$ 34,680.00
	Sales		$ 34,680.00
	(Being cash sales recorded)

15	Cost of goods sold	$ 20,210.00
	Merchandise inventory		$ 20,210.00
	(Being cost of goods sold of cash sales recorded)

16	Supplies	$ 1,770.00
	Accounts payable		$ 1,770.00
	(Being credit memo received)

17	Accounts payable	$ 2,425.00
	Merchandise Inventory		$ 2,425.00
	(Being credit memo received)

19	Accounts payable	$ 630.00
	Office Equipment		$ 630.00
	(Being credit memo received)

20	Cash	$ 5,488.00
	Sales discount	$ 112.00
	Accounts receivable		$ 5,600.00
	(Being cash received for accounts receivable recorded net of discount)

23	Accounts payable	$ 30,200.00
	Merchandise inventory		$ 604.00
	Cash		$ 29,596.00
	(Being cash paid for accounts payable recorded net of discount)

27	Accounts receivable	$ 14,910.00
	Sales		$ 14,910.00
	(Being credit sales recorded)

27	Cost of goods sold	$ 7,220.00
	Merchandise inventory		$ 7,220.00
	(Being cost of goods sold of credit sale recorded)

28	Accounts receivable	$ 4,315.00
	Sales		$ 4,315.00
	(Being credit sales recorded)

28	Cost of goods sold	$ 3,280.00
	Merchandise inventory		$ 3,280.00
	(Being cost of goods sold of credit sale recorded)

31	Sales Salaries	$ 18,300.00
	Cash		$ 18,300.00
	(Being salaries paid in cash)

31	Cash	$ 30,180.00
	Sales		$ 30,180.00
	(Being cash sales recorded)

31	Cost of goods sold	$ 16,820.00
	Merchandise inventory		$ 16,820.00
	(Being cost of goods sold of cash sales recorded)

Answer 25

Expert Solution

Answer 26

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Answer 29

Conclusion

Hence the transactions have been journalized and appropriate journals are prepared.

Answer 30

To determine

Introduction:

T-Accounts

T-Accounts are a graphical representation of the postings made to the accounts during a reporting period. The left side records the debit entries and the right side records the credit entries of an account.

Depending on the nature of the account i.e. Balance Sheet or Profit and Loss Account, Income or Expense account etc. the account balances are reflected.

In case of Asset and Expenses accounts, the opening balance will be Debit Balance and in case of Liabilities and Incomes accounts, the opening balance is Credit Balance. They help in analysis of the transactions impacting the accounts.

To Prepare:

Ledger accounts and determine account balances

Expert Solution

Answer to Problem 4BTN

Solution:

Dr.	Accounts payable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Conclusion

Hence the T-Accounts are prepared and account balances are determined.

Answer 31

To determine

Introduction:

T-Accounts

T-Accounts are a graphical representation of the postings made to the accounts during a reporting period. The left side records the debit entries and the right side records the credit entries of an account.

Depending on the nature of the account i.e. Balance Sheet or Profit and Loss Account, Income or Expense account etc. the account balances are reflected.

In case of Asset and Expenses accounts, the opening balance will be Debit Balance and in case of Liabilities and Incomes accounts, the opening balance is Credit Balance. They help in analysis of the transactions impacting the accounts.

To Prepare:

Ledger accounts and determine account balances

Answer 32

Expert Solution

Answer to Problem 4BTN

Solution:

Dr.	Accounts payable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales				Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies				Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

Answer 33

Expert Solution

Answer 34

Expert Solution

Answer 35

Expert Solution

Answer 36

Explanation of Solution

Assets and Expenses have debit balances and must be debited in order to increase their balance and credited in order to decrease their balance.

Liabilities and Incomes have credit balances and must be debited in order to decrease their balance and credited in order to increase their balance.

On March 1 Merchandise inventory will be debited by $ 43,600.00 and Accounts payable will be credited by $ 43,600.00 since credit purchases were recorded.

On March 2 Accounts receivable will be debited by $ 16,800.00 and Sales will be credited by $ 16,800.00 since credit sales were recorded.

On March 2 Cost of goods sold will be debited by $ 8,400.00 and Merchandise inventory will be credited by $ 8,400.00 since cost of goods sold of credit sale were recorded.

On March 3 Supplies will be debited by $ 1,230.00 and Accounts payable will be credited by $ 1,230.00 since credit purchases were recorded.

On March 3 Accounts receivable will be debited by $ 10,200.00 and Sales will be credited by $ 10,200.00 since credit sales were recorded.

On March 3 Cost of goods sold will be debited by $ 5,800.00 and Merchandise inventory will be credited by $ 5,800.00 since cost of goods sold of credit sale were recorded.

On March 6 Cash will be debited by $ 82,000.00 and Notes Payable will be credited by $ 82,000.00 since notes payable issued.

On March 9 Office Equipment will be debited by $ 21,850.00 and Accounts payable $ 21,850.00 since credit purchases were recorded.

On March 10 Accounts receivable will be debited by $ 5,600.00 and Sales will be credited by $ 5,600.00 since credit sales were recorded.

On March 10 Cost of goods sold will be debited by $ 2,900.00 and Merchandise inventory will be credited by $ 2,900.00 since cost of goods sold of credit sale were recorded.

On March 12 Cash will be debited by $ 16,464.00, Sales discount will be debited by $ 336.00 and Accounts receivable will be credited by $ 16,800.00 since cash received for accounts receivable were recorded net of discount.

On March 13 Accounts payable will be debited by $ 43,600.00, Merchandise inventory will be debited by $ 872.00 and Cash will be credited by $ 42,728.00 since cash paid for accounts payable were recorded net of discount.

On March 13 Cash will be debited by $ 9,996.00, Sales discount will be debited by $ 204.00 and Accounts receivable will be credited by $ 10,200.00 since cash received for accounts receivable were recorded net of discount.

On March 14 Merchandise inventory will be debited by $ 32,625.00 and Accounts payable will be credited by $ 32,625.00 since credit purchases were recorded.

On March 15 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 15 Cash will be debited by $ 34,680.00 and Sales $ 34,680.00 since cash sales were recorded.

On March 15 Cost of goods sold will be debited by $ 20,210.00 and Merchandise inventory will be credited by $ 20,210.00 since cost of goods sold of cash sales were recorded.

On March 16 Supplies will be debited by $ 1,770.00 and Accounts payable will be credited by $ 1,770.00 since credit memo received.

On March 17 Accounts payable will be debited by $ 2,425.00 and Merchandise Inventory will be credited by $ 2,425.00 since credit memo received.

On March 19 Accounts payable will be debited by $ 630.00 and Office Equipment will be credited by $ 630.00 since credit memo received.

On March 20 Cash will be debited by $ 5,488.00, Sales discount will be debited by $ 112.00 and Accounts receivable will be credited by $ 5,600.00 since cash received for accounts receivable were recorded net of discount.

On March 23 Accounts payable will be debited by $ 30,200.00, Merchandise inventory will be debited by $ 604.00 and Cash will be credited by $ 29,596.00 since cash paid for accounts payable were recorded net of discount.

On March 27 Accounts receivable will be debited by $ 14,910.00 and Sales will be credited by $ 14,910.00 since credit sales were recorded.

On March 27 Cost of goods sold will be debited by $ 7,220.00 and Merchandise inventory will be credited by $ 7,220.00 since cost of goods sold of credit sale were recorded.

On March 28 Accounts receivable will be debited by $ 4,315.00 and Sales will be credited by $ 4,315.00 since credit sales were recorded.

On March 28 Cost of goods sold will be debited by $ 3,280.00 and Merchandise inventory will be credited by $ 3,280.00 since cost of goods sold of credit sale were recorded.

On March 31 Sales Salaries will be debited by $ 18,300.00 and Cash will be credited by $ 18,300.00 since salaries paid in cash.

On March 31 Cash will be debited by $ 30,180.00 and Sales will be credited by $ 30,180.00 since cash sales were recorded.

On March 31 Cost of goods sold will be debited by $ 16,820.00 and Merchandise inventory will be credited by $ 16,820.00 since cost of goods sold of cash sales were recorded.

Answer 37

Conclusion

Hence the T-Accounts are prepared and account balances are determined.

Answer 38

To determine

Introduction:

Trial Balance

A trial Balance is a list of the balances of various Assets, Liabilities, Expense and Revenue Accounts prepared after the end of the financial year

Trial balance helps in evaluating the arithmetical accuracy of financial transactions and postings during a reporting period and serves as the starting point in the preparation of financial statements.

To prepare:

Trial Balance on March 31

Expert Solution

Answer to Problem 4BTN

Solution:

Particulars	Debit($)	Credit ($)
Accounts payable		$24,220.00
Accounts receivable	$19,225.00
Cash	$69,884.00
Cost of goods sold	$64,630.00
Merchandise inventory	$17,064.00
Notes Payable		$82,000.00
Office Equipment	$21,850.00
Sales		$ 116,685.00
Sales discount	$652.00
Sales Salaries	$36,600.00
Supplies	$3,000.00
Capital		$10,000.00
Total	$ 232,905.00	$ 232,905.00

Explanation of Solution

Dr.	Accounts payable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

According to the double entry system of bookkeeping, debits and credits must always be equal and a trial balance helps in verifying that.

The amounts posted to the trial balance are derived from the t-accounts to which effects of the transactions are given.

Assets such as Cash, Accounts Receivable etc. and Expenses such as Sales discounts, Utilities etc. have debit balance and hence amounts are posted to the left side (debit) side to increase the balance and amounts are posted to the right side (credit) side to decrease the balance.

Liabilities such as Capital, Accounts Payable etc. and Incomes such as Revenue have Credit balances and hence amounts are posted to the left side (debit) side to decrease the balance and amounts are posted to the right side (credit) side to increase the balance

Conclusion

Hence the trial balance has been prepared.

Answer 39

To determine

Introduction:

Trial Balance

A trial Balance is a list of the balances of various Assets, Liabilities, Expense and Revenue Accounts prepared after the end of the financial year

Trial balance helps in evaluating the arithmetical accuracy of financial transactions and postings during a reporting period and serves as the starting point in the preparation of financial statements.

To prepare:

Trial Balance on March 31

Answer 40

Expert Solution

Answer to Problem 4BTN

Solution:

Particulars	Debit($)	Credit ($)
Accounts payable		$24,220.00
Accounts receivable	$19,225.00
Cash	$69,884.00
Cost of goods sold	$64,630.00
Merchandise inventory	$17,064.00
Notes Payable		$82,000.00
Office Equipment	$21,850.00
Sales		$ 116,685.00
Sales discount	$652.00
Sales Salaries	$36,600.00
Supplies	$3,000.00
Capital		$10,000.00
Total	$ 232,905.00	$ 232,905.00

Answer 41

Expert Solution

Answer 42

Expert Solution

Answer 43

Expert Solution

Answer 44

Explanation of Solution

Dr.	Accounts payable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 17		$2,425.00	Mar 31		$ 101,075.00
Mar 19		$630.00
Mar 31		$73,800.00

				Balance	$24,220.00

Dr.	Accounts receivable	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$51,825.00	Mar 31		$32,600.00

	Balance	$19,225.00

Dr.	Cash	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$ 178,808.00	Mar 31		$ 108,924.00

	Balance	$69,884.00

Dr.	Cost of goods sold	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$37,030.00
Mar 31		$27,600.00
	Balance	$64,630.00

Dr.	Merchandise inventory	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 1		$10,000.00	Mar 17		$2,425.00
Mar 31		$76,225.00	Mar 31		$37,030.00
			Mar 31		$27,600.00
			Mar 31		$1,476.00
			Mar 19		$630.00
	Balance	$17,064.00

Dr.	Notes Payable	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 6		$82,000.00

				Balance	$82,000.00

Dr.	Office Equipment	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 9		$21,850.00

	Balance	$21,850.00

Dr.	Sales	Cr.
Date		Amount ($)	Date		Amount ($)
			Mar 31		$51,825.00
			Mar 31		$64,860.00
				Balance	$ 116,685.00

Dr.	Sales discount	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$652.00

	Balance	$652.00


Dr.	Sales Salaries	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$36,600.00

	Balance	$36,600.00

Dr.	Supplies	Cr.
Date		Amount ($)	Date		Amount ($)
Mar 31		$3,000.00

	Balance	$3,000.00

According to the double entry system of bookkeeping, debits and credits must always be equal and a trial balance helps in verifying that.

The amounts posted to the trial balance are derived from the t-accounts to which effects of the transactions are given.

Assets such as Cash, Accounts Receivable etc. and Expenses such as Sales discounts, Utilities etc. have debit balance and hence amounts are posted to the left side (debit) side to increase the balance and amounts are posted to the right side (credit) side to decrease the balance.

Liabilities such as Capital, Accounts Payable etc. and Incomes such as Revenue have Credit balances and hence amounts are posted to the left side (debit) side to decrease the balance and amounts are posted to the right side (credit) side to increase the balance