Problem 7-2A (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
B. Wiset, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
Sales Acct. No. 413
Date Explanation PR Debit Credit Balance
7-1
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Sales Discounts Acct. No. 415
Date Explanation PR Debit Credit Balance
Cost of Goods Sold Acct. No. 502
Date Explanation PR Debit Credit Balance
7-2
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Problem 7-2A (Continued)
Parts 2 and 3 (continued)
ACCOUNTS RECEIVABLE LEDGER
Page Alistair
Date Explanation PR Debit Credit Balance
Paula Kohr
Date Explanation PR Debit Credit Balance
Nic Nelson
Date Explanation PR Debit Credit Balance
Part 4
WISET COMPANY
Trial Balance
April 30
Debit Credit
7-3
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Cash………………………………………………………….. $298,863
Accounts receivable……………………………………. 9,870
Inventory……………………………………………………. 3,295
7-4
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Problem 7-2A (Concluded)
Part 4 (continued)
WISET COMPANY
Schedule of Accounts Receivable
April 30
Paula Kohr…………………………………………. $3,170
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 subsidiary accounts to confirm that they are listed correctly on the schedule. Next, recalculate
the balance of each subsidiary account to confirm that the additions and subtractions are correct. Next,
trace the postings from each subsidiary account and from the controlling account back to the
appropriate journals. Since the sales and cash receipts journals were footed and crossfooted before
posting, the previous steps should disclose the error.
Problem 7-3A (120 minutes)
7-5
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Parts 1 and 3
PURCHASES JOURNAL Page 3
Date Account
Date of
Invoice Terms PR
Accounts
Payable
Cr.
Inventory
Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
Apr. 2 Noth Company…………………………………
4/2 2/10, n/60 14,300 14,300
3 Office Supplies/Custer Inc………………….
4/2 n/10, EOM 1,480 1,480
(201) (119) (124) ()
7-6
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CASH DISBURSEMENTS JOURNAL Page 3
Date
Ck.
No. Payee Account Debited PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Apr. 4 587 World View………………………………………Advertising Expense…………………………………………………….
65
5
899 899
12 588 Noth Company……………………………………
Noth Company…………………………………………………………….
14,014 286 14,300
153
(101) (119) () (201)
7-7
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Problem 7-3A (Continued)
Parts 1 and 3—continued
GENERAL JOURNAL Page 3
Apr. 6 Accounts Payable–Custer Inc……………………………
201/80
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
Mar. 31 125,000
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Apr. 6 G3 80 (80)
Long-Term Notes Payable Acct. No. 251
Date Explanation PR Debit Credit Balance
B. Wiset, Capital Acct. No. 301
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
ACCOUNTS PAYABLE LEDGER
Custer, Inc.
Date Explanation PR Debit Credit Balance
Grant Company
Date Explanation PR Debit Credit Balance
Apr. 17 P3 13,750 13,750
23 G3 750 13,000
26 D3 13,000 0
7-9
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Education.
Problem 7-3A (Concluded)
Parts 2 and 3—continued
Accounts Payable Ledger—continued
Hal’s Supply
Date Explanation PR Debit Credit Balance
Noth Company
Date Explanation PR Debit Credit Balance
Part 4
WISET COMPANY
Trial Balance
April 30
Debit Credit
Cash…………………………………………………… $ 35,847
Inventory……………………………………………. 163,129
WISET COMPANY
Schedule of Accounts Payable
April 30
Custer, Inc…………………………………………… $ 1,400
Hal’s Supply………………………………………… 12,955
Noth Company……………………………………. 11,375
Total accounts payable………………………… $25,730
7-10
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Education.
©McGraw-Hill Companies, Inc., 2005
Solutions Manual, Chapter 7
11