Chapter 7, Problem 7.5AP

(a)

To determine

Sales Journal: A sales journal is a special journal which records the credit sales transactions and the transactions which are of sales on account.

Purchases Journal: A purchases journal is a special journal which is used to record the credit purchases and the purchases made on the account in a business.

General Journal: A general journal is that journal which records those transactions which are not recorded in the special journal. The closing, correcting and adjusting entries are recorded in the general journal.

Cash Receipts Journal: A cash receipts journal is a special journal. This special journal records all the cash collections made in the business. The cash collections are made from the customers and the creditors. As these collections are very frequent in the business, this special journal is prepared.

Cash Payments Journal: The cash payments journal is a special journal. This special journal record all the cash payments and disbursements in the business. The cash payments are made in business for the purchases, expenses and for many other transactions. So, a special journal is prepared and the transactions are recorded in the special journal called as the cash payments journal.

Subsidiary Ledger: The subsidiary ledger is that ledger which is prepared for support of the main ledger. It contains all the details of the individual account of that particular ledger.

Trial Balance: It is a statement in which all the balances of the ledger are shown in two columns individually which is debit and credit. The trial balance is that statement which is prepared to check that the books of accounts have any arithmetical error or not.

Adjustment Entries: The adjustment entries refer to those entries which are made after the trial balance is prepared. These entries are prepared so that the income and expenses can be adjusted in the accounting period in which they are incurred.

Adjusted Trial Balance: After the trial balance is prepared, some adjustment entries are made which are required. Now, to make the debit and credit columns equal another trial balance is prepared to record the adjusted entries, this trial balance is known as the adjusted trial balance.

To prepare: The accounts in the general ledger.

(b)

To determine

To prepare: The sales and cash receipts journal and record the transactions into it.

(c)

To determine

To prepare: The accounts receivable subsidiary ledger and the accounts payable subsidiary ledger.

(d)

To determine

To prepare: The entries and the totals to be posted in the general ledger.

(e)

To determine

To prepare: The trial balance at July 31, 2017.

(f).

To determine

The balance agreement of the control account and the subsidiary account.

(g).

To determine

To prepare: The adjusting entries in the general ledger.

(h).

To determine

To prepare: An adjusted trial balance.