FINANCIAL+MANAGERIAL ACCOUNTING
17th Edition
ISBN: 9781323409169
Author: Miller
Publisher: PEARSON
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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.
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Chapter C Solutions
FINANCIAL+MANAGERIAL ACCOUNTING
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,...
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