Chapter 5: Accounting Systems
151.
The following are selected transactions related to purchases on account and cash payments completed during
April
of the current year.
April 1 Issued Check No. 60 in payment of rent for month, $2,400.
5 Purchased office supplies from Clauson Co., $850.
9
Issued Check No. 61 to Dame Co. for $9,750 for cash purchase of equipment.
10
Purchased store supplies from Ewing Co., $425.
15 Issued Check No. 62 to Clauson Co. in payment of April 5 invoice.
17 Purchased store supplies from Patton Co., $7,500.
20 Issued Check No. 63 to Ewing Co. in payment of April 10 invoice of $425.
25 Purchased equipment from Sloan Co., $7,750.
27 Issued Check No. 64 to Patton Co. for partial payment of the April 17 invoice, $4,000.
30 Purchased office supplies from Winthrop Co., $400.
(a)
Record the transactions in the purchases and cash payments journals.
(b)
Total and rule the purchases and cash payments journals as of April 30.
(c)
Indicate the method of posting the individual items and the totals of the purchases and
cash
payments journals in the following manner:
(1)
For individual items and totals to be posted to the subsidiary ledger or not to be
posted,
insert a check mark in the Posting Reference column or below the totals.
(2)
For individual items and totals to be posted to the general ledger, insert the letter
“G”
(as a substitute for specific account numbers) in the Posting Reference
column or
below the totals.
CASH PAYMENTS JOURNAL
Other
Accounts
Check
Account
Post.
Accounts
Payable
Cash
Date
No.
Debited
Ref.
Dr.
Dr.
Cr.
PURCHASES JOURNAL )
)
Accounts
Store
)
Account
Post.
Payable
Supplies
)
Date
Credited
Ref.
Cr.
Dr.
)
(
( Other Accounts Dr.
( Office
(
Supplies
Post.
( Dr. Account Ref. Amount
Chapter 5: Accounting Systems
Chapter 5: Accounting Systems
Chapter 5: Accounting Systems
152.
Listed below are selected transactions completed by Ridge Company during March of the current year.
Mar. 5 Rendered services on account to Quinton Co., Invoice No. 92,$3,250.
10 Rendered services on account to Martin Inc., Invoice No. 93, $4,500.
13 Received $5,000 in payment of monthly rent, which was due on March 1.
15 Received payment from Quinton Co. for invoice of March 5.
19
Received payment from Martin Inc. for balance due on invoice of March 10.
20
Received amount due from Thomas Co. on sale made in February, $5,200.
31 Recorded cash from services rendered for cash during the month, $15,750.
(a)
Record the transactions in the revenue journal and cash receipts journal.
(b)
Total and rule the revenue and cash receipts journals.
(c)
Indicate the method of posting the individual items and the columnar totals of the
revenue
and cash receipts journals in the following manner:
(1)
For individual items and totals to be posted to the subsidiary ledger or not to be
posted,
insert a check mark in the Posting Reference column or below the totals.
(2)
For individual items and totals to be posted to the general ledger, insert the letter
“G”
(as a substitute for specific account numbers) in the Posting Reference
column or
below the totals.
REVENUE JOURNAL
Post.
Accts. Rec. Dr.
Date
Invoice No.
Account Debited
Ref.
Services Revenue Cr.
CASH RECEIPTS JOURNAL
Other
Accts.
Account
Post.
Accounts
Rec.
Cash
Date
Credited
Ref.
Cr.
Cr.
Dr.
Chapter 5: Accounting Systems
Chapter 5: Accounting Systems
153.
Down-Under, an aquatic supply store, makes the following five payments during August. Journalize them in the
cash
payments journal as appropriate.
(a)
On August 2, Down-Under paid Pondmaster, Inc. with check 6420 for 6 pumps at $435.00 each. The pumps
had been purchased in July on account.
(b)
On August 10, Down-Under purchased $785.00 of office supplies from
Business
Systems with check 6421.
(c)
On August 15, Down-Under paid Aqua Magic $215.00 on account with check 6422.
(d)
On August 27, Down-Under paid an invoice for merchandise received earlier
from
Spindrifter, Inc. for 8 drains at $73.50 each with check 6423.
(e)
On August 31, Down-Under purchased $65.00 of koi clay from The Natural
Wonder
Company by writing check 6424. (Record in Pond Supplies Expense.)
Cash Payments Journal
Page 17
Date
Check
Number
Account Debited
Post.
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Cash
Cr.
Chapter 5: Accounting Systems
154.
Voyager Electronic Services has three customers in its accounts receivable subsidiary ledger with
beginning
balances as follows:
Fred Yao Ming, $1,150.00
Kohl Townson, $850.00
Chandra Jahi, $1,075.00
Record the following transactions in a general journal. Then post to the accounts receivable account in the
general
ledger and to the customer accounts in the accounts receivable subsidiary ledger.
On June 3, Kohl Townson paid $325.00 on account.
On June 10, Chandra Jahi purchased $475.00 on account.
On June 15, Fred Yao Ming paid $395.00 on account.
On June 16, Fred Yao Ming purchased $685.00 on account.
On June 23, Kohl Townson purchased $155.00 on account.
General Journal
Page 41
Date
Account Title
Post.
Ref.
Debit
Credit
Chapter 5: Accounting Systems
Accounts Receivable – controlling Account
Date:
Item:
Post Ref:
Debit:
Credit:
Balance:
BB
3,075.00
Accounts Receivable – Fred Yao Ming
Date:
Item:
Post Ref:
Debit:
Credit:
Balance:
BB
1,150.00
Accounts Receivable – Kohl Townson
Date:
Item:
Post Ref:
Debit:
Credit:
Balance:
BB
850.00
Accounts Receivable – Chandra Jahi
Date:
Item:
Post Ref:
Debit:
Credit:
Balance:
BB
1,075.00
Chapter 5: Accounting Systems
Chapter 5: Accounting Systems
Chapter 5: Accounting Systems
155.
Read each transaction and identify the appropriate journal in which it should be recorded.
1.
Owner withdrew supplies.
2.
Sale made on account.
3.
Payment to vendor on account.
4.
Payment received from customer on account.
5.
Purchases on account.
6.
Adjusting journal entry for supplies used.
7.
Owner withdrew cash.
8.
Company borrows money from bank.
9.
Record monthly depreciation.
10.
Close revenue accounts at month’s end.
Chapter 5: Accounting Systems
156.
Read each transaction and identify which journal the transaction should be recorded.
1.
Recorded adjusting journal entry for accrued interest.
2.
Performed advising services on account.
3. Purchased office supplies on account.
4.
Borrowed money for expansion project.
5.
Received $500 from Tool Tech. on account.
6.
Owner withdrew cash for personal use.
7.
Paid monthly rent.
8.
Recorded depreciation on equipment.
9.
Completed Job 34aG for services provided to Beard Co.
10.
Purchased inventory on account.
Chapter 5: Accounting Systems
157.
The posting references in the following revenue journal are indicated by letters. Identify each posting
reference
[(a) through (h)] as representing (1) a posting to a general ledger account, (2) a posting to a
subsidiary ledger
account, or (3) that no posting is required.
REVENUE JOURNAL
Post
Acct. Rec. Dr.
Date
Invoice No.
Account Debited
Ref.
Fees Earned Cr.
April 3
190
Hill Company
(a)
4,750
8
191
North Supply
(b)
5,025
13
192
Macon Inc.
(c)
2,100
17
193
White Products
(d)
6,000
25
194
Easton Supply
(e)
2,250
30
195
Karson Enterprises
(f)
3,750
30
23,875
(g) (h)
158.
Sunrise Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash receipts
journal.
Record the following transactions for the first two weeks in March, total the columns, and include the
posting
references. A partial chart of accounts is given below. After recording the transactions, indicate if there
are any
additional columns you would add to this journal.
Cash Receipts Journal
Date
Account
Credited
Post.
Ref.
Other
Accounts
Cr.
Beverage
Revenue
Cr.
Food
Revenue
Cr.
Cash
Cr.
Chapter 5: Accounting Systems
March 1 Cash received for beverages, $375.
1 Cash received for food, $250.
1 Cash received for customer sales of Sunrise’s signature coffee mugs, $130
7 Cash received for beverages, $480
7 Cash received for food, $325
7 Cash received for customer sales of Sunrise’s signature coffee mugs, $115
10 Cash received on account from Central.com, $900
Chart of Accounts (Partial)
10 Cash
41 Beverage Revenue
12 Accounts Receivable
42 Food Revenue
15 Retail Items
43 Retail Revenue
Chapter 5: Accounting Systems
159.
Explain whether each of the following would usually be used in a computerized accounting system and why or
why
not.
1.
special journals
2.
accounts receivable control accounts
3.
electronic invoice form
4.
month-end postings to the general ledger
160.
The discovery and correction of errors is important in a computerized system. What kinds of errors might occur
in
these systems? What type(s) of errors will be prevented in a computerized system?