Concept explainers
1.
Special Journal: It is a book where only specific type of monetary transactions such as cash receipts, cash payments, credit sales, and credit purchases are recorded.
Sales Journal: It is a special book where only sales transactions that are sold to customer on credit are recorded.
Purchase Journal: It is a special book where only purchase transactions that are purchased from suppliers on credit are recorded.
Cash Receipts Journal: It is a special book where only cash receipts transactions that are received from customers or other sources are recorded.
Cash Payments Journal: It is a special book where only cash payments transactions that are paid to the supplier or other sources are recorded.
General Journal: It is a book where all the monetary transactions are recorded in the form of
To record: The transactions in a sales journal.
2.
To calculate: Total each column of the sales journal.
3.
To show: How posting would be made by writing the accounts numbers and check marks in the journals.
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Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition (5th Edition)
- The trial balance of Hadden Company as of December 31, the end of its current fiscal year, is as follows: Here are the data for the adjustments. ab.Merchandise Inventory at December 31, 64,742.80. c.Store supplies inventory (on hand), 420.20. d.Insurance expired, 738. e.Salaries accrued, 684.50. f.Depreciation of store equipment, 3,620. Required Complete the work sheet after entering the account names and balances onto the work sheet.arrow_forwardPuzzles, Pranks ** Games is a retail business selling children’s toys and games as well as a wide selection of jigsaw puzzles and accessories. They purchase their inventory from local and national wholesale suppliers. For the year ending December 31, 2017, they reported these revenues and expenses. Using this information, prepare an income statement for Puzzles, Pranks & Games for 2017.arrow_forwardThe trial balance of Jillson Company as of December 31, the end of its current fiscal year, is as follows: Here are the data for the adjustments. ab. Merchandise Inventory at December 31, 54,845.00. c. Store supplies inventory (on hand), 488.50. d. Insurance expired, 680. e. Salaries accrued, 692. f. Depreciation of store equipment, 3,760. Required Complete the work sheet after entering the account names and balances onto the work sheet.arrow_forward
- Chandler Company is owned by Roscoe Chandler and provides appraisal services to individuals and companies wishing to purchase and sell fine art. Chandler Company began business on January 1, 2018, and is just completing its first year of business. Roscoe asks for your help in completing the accounting cycle for the company by assisting with the closing process. Chart of Accounts CHART OF ACCOUNTS Chandler Company General Ledger ASSETS 11 Cash 12 Accounts Receivable 16 Prepaid Insurance 18 Equipment 19 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Salaries Payable 24 Income Taxes Payable EQUITY 31 Roscoe Chandler, Capital 32 Roscoe Chandler, Drawing REVENUE 41 Fees Earned 42 Rent Revenue 43 Interest Revenue EXPENSES 51 Salaries Expense 52 Selling Expense 53 Income Taxes Expense 54 Depreciation Expense-Equipment 55 Insurance Expense 59…arrow_forwardChandler Company is owned by Roscoe Chandler and provides appraisal services to individuals and companies wishing to purchase and sell fine art. Chandler Company began business on January 1, 2018, and is just completing its first year of business. Roscoe asks for your help in completing the accounting cycle for the company by assisting with the closing process. Chart of Accounts CHART OF ACCOUNTS Chandler Company General Ledger ASSETS 11 Cash 12 Accounts Receivable 16 Prepaid Insurance 18 Equipment 19 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Salaries Payable 24 Income Taxes Payable EQUITY 31 Roscoe Chandler, Capital 32 Roscoe Chandler, Drawing REVENUE 41 Fees Earned 42 Rent Revenue 43 Interest Revenue EXPENSES 51 Salaries Expense 52 Selling Expense 53 Income Taxes Expense 54 Depreciation Expense-Equipment 55 Insurance Expense 59…arrow_forwardStatement of Financial Position - PERIODIC INVENTORY SYSTEM PLEASE ANSWER Mr. Lopez opened a mini grocery store with business name Lopez Fiesta Mart. Operations began on January 1, 2022, and the following transactions were completed during the month: 1 Mr. Lopez withdrew ₱150,000 from a personal savings account and used it to open a new account in the name of Lopez Fiesta Mart. 2 Bought grocery supplies on account ₱10,700. 4 Acquired a service vehicle costing ₱76,000. A payment of ₱25,000 Cash was made and a note payable given for the ₱51,000 remainder payable for 6 equal monthly installment. 6 Purchased merchandise from Puregold ₱49,500, terms 5/10, 3/20. 7 Paid ₱1,600 delivery charge for January 6 transactions. 8 Paid for three months of advertising and recorded Prepaid Advertising in the amount of ₱6,000. 11 Sold merchandise on account ₱42,000 with 40% mark-up from the inventory cost of ₱30,000, term 2/10, n/30. 12 Paid ₱1,200 freight for January 11 transactions. 14 Returned…arrow_forward
- GJ started operating his new salon business (Sir George Salon) during 2017. He provides services for corporate accounts with 60-day payment term. He submits the following data in 2018: Supplies inventory, 1/1/2018 50,000 Supplies inventory, 12/31/2018 80,000 Revenues 3,000,000 Accounts receivable, Jan. 1, 2018 500,000 Accounts receivable, Dec. 31, 2018 700,000 Purchase of supplies from VAT registered entities (net) 100,000 Purchase of supplies from non-VAT registered entities 50,000 Determine the following: What is the applicable business tax for the taxpayer? How much is the correct business tax due? Assume the taxpayer is non-VAT registered, how much is the VAT payable for the year? Assume the taxpayer is VAT registered, how much is the VAT payable for the year?arrow_forwardAt the beginning of the current season on April 1, the ledger of Gage Pro Shop showed Cash $3,000, Inventory $4,000, and Owner’s Capital $7,000. These transactions occurred during April 2017.Apr. 5 Purchased golf bags, clubs, and balls on account from Tiger Co. $1,200, FOB shipping point, terms 2/10, n/60. 7 Paid freight on Tiger Co. purchases $50. 9 Received credit from Tiger Co. for merchandise returned $100. 10 Sold merchandise on account to customers $600, terms n/30. 12 Purchased golf shoes, sweaters, and other accessories on account from Classic Sportswear $450, terms 1/10, n/30. 14 Paid Tiger Co. in full. 17 Received credit from Classic Sportswear for merchandise returned $50. 20 Made sales on account to customers $600, terms n/30. 21 Paid Classic Sportswear in full. 27 Granted credit to customers for clothing that had fl aws $35. 30 Received payments on account from customers $600.The chart of accounts for the pro shop includes Cash, Accounts Receivable, Inventory, Accounts…arrow_forwardThe following transactions were extracted from the books of Info Link Communications Ltd. for the month ended 30 April 2018. The company is registered for VAT. 2 April: Purchased goods from Mambo Enterprises on credit worth Sh.800,000. 2 April: Purchased office furniture for Sh.200, 000 from Excel Mart. 3 April: Sold goods worth Sh.60,000 to Ken Link Communications Ltd. On credit. 4 April: Purchased spare parts for motor vehicles worth Sh.300, 000. 5 April: Returned furniture worth Sh.80.000 to Excel Mart & was issued with a debit note of the same amount. 6 April: Goods worth Sh.120, 000 were found to be defective and Ken Link Communications Ltd., returned them. 9 April: Purchased goods worth Sh.2.400, 000 from Japan exclusive of import duty of 15% and VAT at the rate of 16%. 10 April: Sold goods for cash worth Sh.3, 200,000. 12 April: Exported goods worth Sh.4, 200,000 to Annex Enterprises Ltd., in Rwanda. 16 April: Paid catering expenses worth…arrow_forward
- From the adjusted trial balance that follows for Nelson Company, prepare a multiple-step income statement in the proper format for the current year. When completed, upload your file using pdf or doc only to this problem. Nelson Company Adjusted Trial Balance December 31, 20-- Debit Credit Cash $ 7,400 Merchandise Inventory 21,300 Store Supplies 3,700 Prepaid Insurance 3,800 Store Equipment 81,800 Accumulated Depreciation – Store Equipment $ 35,000 Accounts Payable 18,000 F. Worker, Capital 43,000 F. Worker, Withdrawals 2,000 Sales 227,100 Sales Discounts 1,000 Sales Returns and Allowances 5,000 Cost of Goods Sold 78,500 Salaries Expense (50% to each department) 63,000 Depreciation Expense – Store Equipment 3,000 Insurance Expense 2,800…arrow_forwardA apiary supply store in LA had the following events for 2015: a) purchased a two-year insurance policy $2,400 and made the appropriate entry on September 1, 2015, the date of purchase. b) Office supplies account had a $500 balance on January 1, 2015. At December 31, an inventory count showed $100 of supplies on hand. Supplies costing $3,100 were purchased during the year. c) has specialized Bee Keepers that sell and educate customers. On December 31, 2015, $4,800 of unpaid employee salaries had accumulated. d) Straight-line depreciation is recorded only at year end and is being used for a building that was purchased at the beginning of 2014. Depreciation expense to be recorded is $13000. Required: Prepare the appropriate December 31, 2015, adjusting entry for each item, or indicate that an adjusting entry is not necessary.arrow_forwardMr. Evans Otabil has been in business for a number of years. In the past year, he has been busy Learning for the ICAG exams and has not kept proper records for his business. He has given you some information. 1st June, 2017 31st May, 2018$ $Inventory 1,019 2,998Trade Receivables 3,605 2,070Trade payables 1,740 970Telephone prepaid 200 265Cash at bank 1,696 (1,144)The bank statements for the year to 31st May, 2018 are summarized as follows:$Payments to suppliers 8,460 Receipt from Customers 6,690Cash takings 5,900 Drawing 3,120Rent 2,700 Telephone 1,150Other balances as at 1st June, 2017 are as follows: $Motor vehicle (cost $6,000) 4,750Rent; Outstanding 165 Prepaid 100You are given the following additional information: i. Depreciation is to be charged at 20% on straight line method. Mr. Otabil took goods for his personal use worth $375. ii. A telephone bill was received on 7th July, 2018 for $375, this related to the quarter ended 30th June, 2018. iii. Rent includes $960 paid on 1st…arrow_forward
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