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PROBLEM SET B
Problem 7-1B (100 Minutes)
Parts 1 and 2
SALES JOURNAL Page 2
Date Account Debited
Invoice
Number PR
Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
Nov. 8 Cyd Rounder......................................439 6,550 3,910
10 Carlos Mantel.....................................440 13,500 8,500
(106/413) (502/119)
PURCHASES JOURNAL Page 2
Date Account
Date of
Invoice Terms PR
Accounts
Payable
Cr.
Inventory
Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
Nov. 1 Office Equip./Brun Supply......................11/1 n/10, EOM 163/5,058 5,058
4 BLR Industries......................................11/3 2/10, n/30 33,500 33,500
(201) (119) (124) ()
Problem 7-1B (Continued)
CASH RECEIPTS JOURNAL Page 2
Date
Account
Credited Explanation PR
Cash
Dr.
Sales
Discoun
t
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
Nov. 2 L.T. Notes Pay.........................................Note to bank..........................................................................
251/88,500 88,500
15 Sales......................................................Cash sales.............................................................................
18,170 18,170 9,000
(101) (415) (106) (413) () (502/119)
CASH DISBURSEMENTS JOURNAL Page 2
Date
Ck.
No. Payee Account Debited PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Nov. 12 633 BLR Industries.......................................BLR Industries......................................................................
32,830 670 33,500
15 634 Payroll...................................................Sales Salaries
Expense................................................................................
621 6,585 6,585
(101) (119) () (201)
Problem 7-1B (Continued)
GENERAL JOURNAL Page 2
Nov. 17 Accounts Payable—Lo Co..........................201/557
GENERAL LEDGER
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Nov. 30 R2 148,167 148,167
30 D2 47,960 100,207
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Inventory Acct. No. 119
Date Explanation PR Debit Credit Balance
Nov. 1 40,000
17 G2 557 39,443
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
Store Supplies Acct. No. 125
Date Explanation PR Debit Credit Balance
Problem 7-1B (Continued)
Office Equipment Acct. No. 163
Date Explanation PR Debit Credit Balance
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Nov. 17 G2 557 (557)
Long-Term Notes Payable Acct. No. 251
Date Explanation PR Debit Credit Balance
C. Grassley, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
Sales Acct. No. 413
Sales Discounts Acct. No. 415
Date Explanation PR Debit Credit Balance
Costs of Goods Sold Acct. No. 502
Date Explanation PR Debit Credit Balance
Sales Salaries Expense Acct. No. 621
Date Explanation PR Debit Credit Balance
Problem 7-1B (Continued)
ACCOUNTS RECEIVABLE LEDGER
Carlos Mantel
Date Explanation PR Debit Credit Balance
Cyd Rounder
Date Explanation PR Debit Credit Balance
Tori Tripp
Date Explanation PR Debit Credit Balance
ACCOUNTS PAYABLE LEDGER
BLR Industries
Date Explanation PR Debit Credit Balance
Brun Supply
Date Explanation PR Debit Credit Balance
Grebe Company
Date Explanation PR Debit Credit Balance
Lo Company
Date Explanation PR Debit Credit Balance
Problem 7-1B (Concluded)
Part 3
GRASSLEY COMPANY
Trial Balance
November 30
Debit Credit
Cash....................................................................$100,207
Accounts receivable........................................... 7,975
Inventory............................................................. 36,540
Office supplies.................................................... 459
GRASSLEY COMPANY
Schedule of Accounts Receivable
November 30
Carlos Mantel......................................................$3,695
GRASSLEY COMPANY
Schedule of Accounts Payable
November 30
Brun Supply........................................................$4,136
Problem 7-2B (70 minutes)
Parts 1 and 2
SALES JOURNAL Page 3
Date Account Debited
Invoice
Number PR
Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
July
5
Kim Nettle..............................................
918 19,200 10,500
6 Ruth Blake.............................................
919 7,500 4,300
(106/413) (502/119)
CASH RECEIPTS JOURNAL Page 3
Date Account Credited Explanation PR
Cash
Dr.
Sales
Discoun
t
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
15
15 Sales......................................................Cash sales.............................................................................
118,350 118,350 76,330
16 Ruth Blake.............................................Sale of 7/6..............................................................................
7,350 150 7,500
(101) (415) (106) (413) () (502/119)
Problem 7-2B (Continued)
Parts 2 and 3
GENERAL LEDGER
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
June 30 100,000
Accounts Receivable Acct. No. 106
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
Cost of Goods Sold Acct. No. 502
Date Explanation PR Debit Credit Balance
Problem 7-2B (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
Inventory.............................................................
25,295
Problem 7-2B (Concluded)
Part 4—continued
ACORN INDUSTRIES
Schedule of Accounts Receivable
July 31
©McGraw-Hill Companies, Inc., 2005
Solutions Manual, Chapter 7
17
