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Problem 7-4BA (Continued)
Parts 2 and 3
GENERAL LEDGER
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Inventory Acct. No. 119
Date Explanation PR Debit Credit Balance
Long-Term Notes Payable Acct. No. 251
Date Explanation PR Debit Credit Balance
R. Acorn, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
Sales Acct. No. 413
Date Explanation PR Debit Credit Balance
Sales Discounts Acct. No. 415
Date Explanation PR Debit Credit Balance
Problem 7-4BA (Continued)
Parts 2 and 3—continued
ACCOUNTS RECEIVABLE LEDGER
Ruth Blake
Date Explanation PR Debit Credit Balance
Ashton Moore
Date Explanation PR Debit Credit Balance
Kim Nettle
Date Explanation PR Debit Credit Balance
Part 4
ACORN INDUSTRIES
Trial Balance
July 31
Debit Credit
Cash.....................................................................$353,137
Accounts receivable...........................................34,320
Problem 7-4BA (Concluded)
Part 4—continued
ACORN INDUSTRIES
Schedule of Accounts Receivable
July 31
Ruth Blake.............................................................$17,500
Part 5
Analysis component
To find the error(s), first re-add the account balances on the schedule of
accounts receivable to confirm that the addition is correct. Then, trace the
balances listed on the schedule of accounts receivable back to the
Problem 7-5BA (100 minutes)
Parts 1 and 3
PURCHASES JOURNAL
Date Account
Date of
Invoice Terms PR
Accounts
Payable
Cr.
Purchases
Dr.
Office
Supplies
Dr.
Accounts
July 1 Teton Company.....................................6/30 2/10, n/30 6,500 6,500
17 Drake Company.....................................7/17 2/10, n/30 7,200 7,200
CASH DISBURSEMENTS JOURNAL
Date
Ck.
No. Payee Account Debited PR
Cash
Cr.
Purchases
Discounts
Cr.
Other
Accounts
Dr.
Accounts
Payable
July
3
300 The Weekly ...........................................Advertising Expense.............................................................
65
5
625 625
Problem 7-5BA (Continued)
Parts 1 and 3—continued
GENERAL JOURNAL Page 3
Received a credit memorandum.
Received a credit memorandum.
Parts 2 and 3
GENERAL LEDGER
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Inventory Acct. No. 119
Date Explanation PR Debit Credit Balance
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
Store Supplies Acct. No. 125
Date Explanation PR Debit Credit Balance
*
Store Equipment Acct. No. 165
Date Explanation PR Debit Credit Balance
Problem 7-5BA (Continued)
Parts 2 and 3—continued
General Ledger—continued
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
July 8 G3 250 (250)
Long-Term Notes Payable Acct. No. 251
Date Explanation PR Debit Credit Balance
R. Acorn, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
Purchases Acct. No. 505
Date Explanation PR Debit Credit Balance
Purchases Returns and Allowances Acct. No. 506
Date Explanation PR Debit Credit Balance
Purchases Discounts Acct. No. 507
Date Explanation PR Debit Credit Balance
Sales Salaries Expense Acct. No. 621
Date Explanation PR Debit Credit Balance
Advertising Expense Acct. No. 655
Date Explanation PR Debit Credit Balance
July 3 D3 625 625
Problem 7-5BA (Continued)
Parts 2 and 3—continued
ACCOUNTS PAYABLE LEDGER
Charm’s Supply
Date Explanation PR Debit Credit Balance
Drake Company
Date Explanation PR Debit Credit Balance
July 17 P3 7,200 7,200
Plaine, Inc.
Date Explanation PR Debit Credit Balance
Teton Company
Date Explanation PR Debit Credit Balance
July 1 P3 6,500 6,500
Problem 7-5BA (Concluded)
Part 4
ACORN INDUSTRIES
Trial Balance
July 31
Debit Credit
Cash.....................................................................$ 24,601
Inventory.............................................................
200,000
Office supplies.................................................... 650
Totals...................................................................
ACORN INDUSTRIES
Schedule of Accounts Payable
July 31
Charm’s Supply...................................................$38,870
Problem 7-6BA (100 minutes)
Parts 1 and 2
SALES JOURNAL Page 2
Date Account Debited
Invoice
Number PR
Accounts Receivable Dr.
Sales Cr.
Nov. 8 Cyd Rounder......................................439 6,550
PURCHASES JOURNAL
Date Account
Date of
Invoice Terms PR
Accounts
Payable
Cr.
Purchases
Dr.
Office
Supplies
Dr.
Nov. 1 Office Equip./Brun Supply......................11/1 n/10, EOM 163/5,058
4 BLR Industries......................................11/3 2/10, n/30 33,500 33,500
