Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
5th Edition
ISBN: 9780134078922
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter C, Problem C.25AP
Using the purchases, cash payments, and general journals
The general ledger of Sparkling Lake Golf Shop includes the following selected accounts, along with their account numbers:
| Number | Account |
| 111 | Cash |
| 131 | Merchandise Inventory |
| 161 | Prepaid Insurance |
| 171 | Office Supplies |
| 181 | Equipment |
| 211 | Accounts Payable |
| 564 | Rent Expense |
| 583 | Utilities Expense |
Transactions in December that affected purchases and cash payments follow:
| Dec. 2 | Purchased merchandise inventory on credit from Tighe, $4,300. Terms were 1/10, n/30. |
| 3 | Paid monthly rent, debiting Rent Expense for $2,200. |
| 5 | Purchased office supplies on credit terms of 1/10, n/30 from Ready Supply, $450. |
| 8 | Received and paid electricity utility bill, $570. |
| 9 | Purchased equipment on account from Avery Equipment, $6,800. Payment terms were net 30. |
| 10 | Returned the equipment to Avery Equipment. It was damaged. |
| 11 | Paid Tighe the amount owed on the purchase of December 2. |
| 12 | Purchased merchandise inventory on account from Crystal Golf, $4,500. Terms were 2/10, n/30. |
| 13 | Purchased merchandise inventory for cash, $610. |
| 14 | Paid a semiannual insurance premium, debiting Prepaid Insurance, $1,000. |
| 16 | Paid its account payable to Ready Supply from December 5. |
| 18 | Received and paid gas and water utility bills, $100. |
| 21 | Purchased merchandise inventory on credit terms of 3/10, n/45 from Darling, Inc., $3,800. |
| 21 | Paid its account payable to Crystal Golf from December 12. |
| 22 | Purchased office supplies on account from Office Stuff, Inc., $500. Terms were net 30. |
| 26 | Returned to Darling, Inc. $900 of the merchandise inventory purchased on December 21. |
| 31 | Paid Darling, Inc. the net amount owed from December 21 less the return on December 26. |
Requirements
- 1. Sparkling Lake Golf Shop records purchase returns in the general journal. Use the appropriate journal to record the transactions in a purchases journal, a cash payments journal (omit the Check No. column), and a general journal. The company uses the perpetual inventory system.
- 2. Total each column of the special journals. Show that total debits equal total credits in each special journal.
- 3. Show how postings would be made from the journals by writing the account numbers and check marks in the appropriate places in the journals.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Hawk Company uses a single-column purchases journal, a cash payments journal, and a general journal to record transactions with its suppliers and others. Record the following transactions in the appropriate journals.
Transactions
Oct. 5 Purchased merchandise on account for $19,000 from Harrelson Company. Terms: 2/10, n/30; FOB shipping point.
Oct. 6 Paid $6,600 to Ken’s Insurance Company for a two-year fire insurance policy.
Oct. 8 Purchased store supplies on account for $600 from Stone Pony Supply Company. Terms: 2/10, n/30.
Oct. 11 Purchased merchandise on account for $15,000 from Steve Corporation. Terms: 2/10, n/30; FOB shipping point.
Oct. 13 Granted a reduction of $3,000 from Steve Corporation for merchandise purchased on October 11 and returned because of damage.
Oct. 15 Paid Harrelson Company for merchandise purchased on October 5, less discount.
Oct. 16 Purchased merchandise for $9,000 cash from Williams…
On January 12th, Gates Gems returned merchandise they received on account from Gem Warehouse in the
amount of $800. What is the journal entry to record this transaction?
Debit Accounts Payable/Gem Warehouse, $800; credit Purchases Returns and Allowances,
$800
Debit Accounts Receivable/Gem Warehouse, $800; credit Purchases, $800
Debit Purchases, $800; credit Accounts Payable/Gem Warehouse, $800
Debit Accounts Receivable/Gem Warehouse, $800; credit Purchases Returns and Allowances
$800
Purchases and Cash Payments Journals
Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows:
May 1.
Issued Check No. 57 to Bio Safe Supplies Inc. in payment of account, $345.
May 3.
Purchased cleaning supplies on account from Brite N’ Shine Products Inc., $200.
May 8.
Issued Check No. 58 to purchase equipment from Carson Equipment Sales, $2,860.
May 12.
Purchased cleaning supplies on account from Porter Products Inc., $360.
May 15.
Issued Check No. 59 to Bowman Electrical Service in payment of account, $145.
May 18.
Purchased supplies on account from Bio Safe Supplies Inc., $240.
May 20.
Purchased electrical repair services from Bowman Electrical Service on account, $110.
May 26.
Issued Check No. 60 to Brite N’ Shine Products Inc. in payment of May 3 invoice.
May 31.
Issued Check No. 61 in payment of salaries, $5,600.
Wisk Away Cleaning Services Inc. uses the…
Chapter C Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
Ch. C - Prob. 1QCCh. C - Prob. 2QCCh. C - Prob. 3QCCh. C - Prob. 4QCCh. C - Prob. 5QCCh. C - Centex Sound Systems purchased merchandise...Ch. C - Every transaction recorded in the cash payments...Ch. C - Prob. 8QCCh. C - Prob. 9QCCh. C - What is an accounting information system (AIS)?
Ch. C - Prob. 2RQCh. C - Explain the three basic components of an...Ch. C - Prob. 4RQCh. C - What is the purpose of a subsidiary ledger?Ch. C - Prob. 6RQCh. C - List the four special journals often used in a...Ch. C - Explain the posting process of the sales journal.Ch. C - Provide some examples of transactions that would...Ch. C - Explain the posting process of the cash payments...Ch. C - When is the general journal used in a manual...Ch. C - Prob. 14RQCh. C - Prob. 15RQCh. C - Prob. 16RQCh. C - How would a business record a sale of services on...Ch. C - Prob. 18RQCh. C - Evaluating features of an effective accounting...Ch. C - Prob. C.2SECh. C - Identifying special journals Use the following...Ch. C - Prob. C.4SECh. C - Prob. C.6SECh. C - Prob. C.8SECh. C - Prob. C.9SECh. C - Prob. C.10SECh. C - Posting transactions from a cash payments journal...Ch. C - Prob. C.12SECh. C - Prob. C.13SECh. C - Recording transactions-sales journal Feb. 1 Sold...Ch. C - Prob. C.15ECh. C - Prob. C.16ECh. C - Prob. C.17ECh. C - Prob. C.18ECh. C - Prob. C.19ECh. C - Prob. C.20ECh. C - Prob. C.21ECh. C - Prob. C.22ECh. C - Prob. C.23ECh. C - Prob. C.24APCh. C - Using the purchases, cash payments, and general...Ch. C - Prob. C.26APCh. C - Prob. C.27BPCh. C - Prob. C.28BPCh. C - Prob. C.29BPCh. C - Prob. C.30CPCh. C - Prob. C.31PSCh. C - Prob. 1COPCh. C - Prob. C.1CTDCCh. C - Didrikson Rubin, the auditor of Red Barn Farm...Ch. C - Communication Activity C-1 In 150 words or fewer,...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Catherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200. In the cash disbursements journal, the Accounts Payable column has total debits of $6,800 for November. The Accounts Payable credit column in the purchases journal reveals a total of $10,500 for the current month. Based on this information, what is the ending balance in the Accounts Payable account in the general ledger?arrow_forwardGuardian Services Inc. had the following transactions during the month of April: a. Record the June purchase transactions for Guardian Services Inc. in the following purchases journal format: b. What is the total amount posted to the accounts payable and office supplies accounts from the purchases journal for April? c. What is the April 30 balance of the Officemate Inc. creditor account assuming a zero balance on April 1?arrow_forwardPurchases and Cash Payments Journals Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows: May 1. Issued Check No. 57 to Bio Safe Supplies Inc. in payment of account, $360. 3. Purchased cleaning supplies on account from Brite N' Shine Products Inc., $220. 8. Issued Check No. 58 to purchase equipment from Carson Equipment Sales, $3,680. 12. Purchased cleaning supplies on account from Porter Products Inc., $310. 15. Issued Check No. 59 to Bowman Electrical Service in payment of account, $180. 18. Purchased supplies on account from Bio Safe Supplies Inc., $410. 20. Purchased electrical repair services from Bowman Electrical Service on account, $150. 26. Issued Check No. 60 to Brite N’ Shine Products Inc. in payment of May 3 invoice. 31. Issued Check No. 61 in payment of salaries, $7,050. Wisk Away Cleaning Services Inc. uses the following accounts: Cash 11…arrow_forward
- Catherine's cookies has a beginning balance in the accounts payable total account of $8,200. In the cash disbursements journal, the accounts payable column has total debits of $6,800 for november. The accounts payable credit column in the purchases journal reveals a total of $10,500 for the current . Based on this information what is the ending balance in the accounts payable account in the general ledger?arrow_forwardJournalize entries for the following related transactions of Manville Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles. Mar. 1 Purchased $48,400 of merchandise from Wright Co. on account, terms 2/10, n/30. 9 Paid the amount owed on the invoice within the discount period. 11 Discovered that $7,800 of the merchandise purchased on Mar. 1 was defective and returned items, receiving credit. 18 Purchased $6,000 of merchandise from Wright Co. on account, terms n/30. 20 Received a refund from Wright Co. for return on Mar. 11 less the purchase on Mar. 18. CHART OF ACCOUNTS Manville Heating & Air Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated…arrow_forwardAllister's payables ledger control account has a balance at 1 October 20X8 of $34,500 credit. During October, credit purchases were $78,400, cash purchases were $2,400 and payments made to suppliers, excluding cash purchases, and after deducting cash discounts of $1,200, were $68,900. Purchase returns were $4,700. What was the closing balance on the purchase ledger control account? %24arrow_forward
- Catherine’s Cookies has a beginning balance in the Accounts Payable control total account of $8,200. In the cash disbursements journal, the Accounts Payable column has total debits of $6,800 for November. The Accounts Payable credit column in the purchases journal reveals a total of $10,500 for the current month. Based on this information, what is the ending balance in the Accounts Payable account in the general ledger? Record the following transactions in the sales journal: Jan. 15 Invoice # 325, sold goods on credit for $2,400, to Maroon 4, account # 4501 Jan. 22 Invoice #326, sold goods on credit for $3,500 to BTS, account # 5032 Jan. 27 Invoice #327, sold goods on credit for $1,250 to Imagine Fireflies, account # 3896arrow_forwardOn March 8th, Gates Gems returned merchandise they received on account from Diamonds Direct in the amount of $440. What is the journal entry to record this transaction? Debit Accounts Receivable/Diamonds Direct, $440; credit Purchases, $440 Debit Accounts Payable/Diamonds Direct, $440; credit Purchases Returns and Allowances, $440 Debit Purchases, $440; credit Accounts Payable/Diamonds Direct, $4400 Debit Accounts Receivable/Diamonds Direct, $440; credit Purchases Returns and Allowances $440arrow_forwardYou are to enter the following items in the books, post to personal accounts, and show the transfers to the General Ledger. Balance all accounts. 2009 July 1 Credit purchases form: K Hill $380; M Norman $500; N Senior $106. 3 Credit sales to: E Rigby $510; E Phillips $246; F Thompson $356. 5 Credit purchases from: R Morton $200; J Cook $180; D Edwards $410; C Davies $66. 8 Credit sales to: A Green $307; H George $250; J Ferguson $185. 12 Returns outwards to: M Norman $30; N Senior $16. 14 Return inwards from: E Phillips $18; F Thompson $22. 20 Credit sales to: E Phillips $188; F Powell $310; E Lee $420. 24 Credit purchases from: C Ferguson $550; K Ennevor $900. 31 Return inwards from: E Phillips $27; E Rigby $30. 31 Return outwards to: J Cook $13; C Davies $11.arrow_forward
- Enter the following transactions in the appropriate journal (purchases journal and cash payment journal) *October 11 Purchased merchandise from Lafferty Company, $500 on account, credit terms 1/15, n/45. Invoice No. 65. *15 Purchased merchandise from Alsted, Inc., $400 cash. Check No. 751. * 21 Paid amount due Lafferty Company, less discount. Check No. 752.arrow_forwardThe following transactions were completed by Nelsons Boutique, a retailer, during July. Terms of sales on account are 2/10, n/30, FOB shipping point. July 3Received cash from J. Smith in payment of June 29 invoice of 350, less cash discount. 6Issued Ck. No. 1718, 742.50, to Designer, Inc., for invoice. no. 2256, recorded previously for 750, less cash discount of 7.50. July 9Sold merchandise in the amount of 250 on a credit card. Sales tax on this sale is 6%. The credit card fee the bank deducted for this transaction is 5. 10Issued Ck. No. 1719, 764.40, to Smart Style, Inc., for invoice no. 1825, recorded previously on account for 780. A trade discount of 25% was applied at the time of purchase, and Smart Style, Inc.s credit terms are 2/10, n/30. 12Received 180 cash in payment of June 20 invoice from R. Matthews. No cash discount applied. 18Received 1,575 cash in payment of a 1,500 note receivable and interest of 75. 21Voided Ck. No. 1720 due to error. 25Received and paid utility bill, 152; Ck. No. 1721, payable to City Utilities Company. 31Paid wages recorded previously for the month, 2,586, Ck. No. 1722. Required 1. Journalize the transactions for July in the cash receipts journal, the general journal (for the transaction on July 9th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.arrow_forwardThe following transactions were completed by Nelsons Hardware, a retailer, during September. Terms on sales on account are 1/10, n/30, FOB shipping point. Sept. 4Received cash from M. Alex in payment of August 25 invoice of 275, less cash discount. 7Issued Ck. No. 8175, 915.75, to Top Tools, Inc., for invoice. no. 2256, recorded previously for 925, less cash discount of 9.25. 10Sold merchandise in the amount of 175 on a credit card. Sales tax on this sale is 8%. The credit card fee the bank deducted for this transaction is 5. 11Issued Ck. No. 8176, 653.40, to Snap Tools, Inc. for invoice no. 726, recorded previously on account for 660. A trade discount of 15% was applied at the time of purchase, and Snap Tools, Inc.s credit terms are 1/10, n/45. 15Received 95 cash in payment of August 20 invoice from N. Johnson. No cash discount applied. 19Received 1,165 cash in payment of a 1,100 note receivable and interest of 65. 22Voided Ck. No. 8177 due to error. 26Received and paid telephone bill, 62; Ck. No. 8178, payable to Southern Telephone Company. 30Paid wages recorded previously for the month, 3,266, Ck. No. 8179. Required 1. Journalize the transactions for September in the cash receipts journal, the general journal (for the transaction on Sept. 10th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
College Accounting (Book Only): A Career ApproachAccountingISBN:9781305084087Author:Cathy J. ScottPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY