Problem 7-3B (80 minutes)
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.
July 1 Teton Company……………………………….6/30 2/10, n/30 6,500 6,500
7 Store Supp./Plaine Inc……………………….7/7 n/10, EOM 125/1,250 1,250
(201) (119) (124) ()
CASH DISBURSEMENTS JOURNAL Page 3
Date
Ck.
No. Payee Account Debited PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
July
3
300 The Weekly …………………………………….Advertising Expense…………………………………………………….
65
5
625 625
1
(101) (119) () (201)
Problem 7-3B (Continued)
Parts 1 and 3—continued
GENERAL JOURNAL Page 3
July 8 Accounts Payable—Plaine………………. 201/250
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
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
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
Charm’s Supply
Date Explanation PR Debit Credit Balance
Drake Company
Date Explanation PR Debit Credit Balance
July 17 P3 7,200 7,200
Problem 7-3B (Concluded)
Parts 2 and 3—continued
Accounts Payable Ledger—continued
Plaine, Inc.
Date Explanation PR Debit Credit Balance
Teton Company
Date Explanation PR Debit Credit Balance
Part 4
ACORN INDUSTRIES
Trial Balance
July 31
Debit Credit
Cash……………………………………………………………
$ 24,601
Inventory…………………………………………………….
220,844
ACORN INDUSTRIES
Schedule of Accounts Payable
July 31
Charm’s Supply………………………………. $38,870
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Solutions Manual, Chapter 7
8
7-9
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SERIAL PROBLEM – SP 7
Serial Problem, Business Solutions (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.
Jan. 13 Liu Corp………………………………………n/a 5,200 3,560
26 KC, Inc…………………………………………n/a 5,800 4,640
(106/413) (502/119)
CASH RECEIPTS JOURNAL Page 2
Date
Account Credited
Explanation PR
Cash
Dr.
Sales
Discoun
t
Dr.
Accounts
Receivable
Cr.
Services
Revenue
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
Jan.
9
Gomez Co……………………………………….Invoice, n/a 2,668 2,668
16 Services Revenue……………………………..Cash Sales 4,000 4,000
7-10
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(101) (415) (106) (403) () (502/119)
7-11
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Serial Problem, Business Solutions (Continued)
7-12
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PURCHASES JOURNAL Page 2
Date Account
Date of
Invoice Terms PR
Accounts
Payable
Cr.
Inventory
Dr.
Computer
Supplies
Dr.
Other
Accounts
Dr.
Jan. 7 Kansas Corp…………………………………1/7 1/10, n/30 5,800 5,800
(201) (119) (126) ()
CASH DISBURSEMENTS JOURNAL Page 2
Date
Ck.
No. Payee Account Debited PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Jan.
4
n/a Lyn Addie…………………………………….Wages Expense…………………
Wages Payable………………….
623/21
0
625 125
500
15 n/a Not specified………………………………..Merchandise Inventory………. 119 600 600
17 n/a Kansas Corp…………………………………Kansas Corp…………………….. 5,742 58 5,800
6
(101) (119) () (201)
7-13
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Serial Problem, Business Solutions (Concluded)
Part 3
GENERAL JOURNAL Page 2
2016
Jan. 5 Cash………………………………………………………..101 25,000
S. Rey, Capital…………………………………..301 25,000
Additional investment by owner.
Mar. 24 Accounts Receivable—Easy Leasing…………106.3 9,047
Computer Services Revenue………………403 9,047
Billed customer for services.
7-14
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Comprehensive Problem
Comprehensive Problem, Colo Company (150 minutes)
Part 1
SALES JOURNAL Page 2
Date Account Debited
Invoice
Number PR
Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
May 2 Hensel Company……………………………….8785 6,100 4,100
(106/413) (502/119)
7-15
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Education.
7-16
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Education.
Comprehensive Problem, Colo Company (Part 1—Continued)
PURCHASES JOURNAL
Date Account
Date of
Invoice Terms PR
Accounts
Payable
Cr.
Inventory
Dr.
Office
Supplies
Dr.
May 4 Store Supp./Gear Supp…………………………5/04 n/10, EOM 125/37,729 37,072 83
10 Office Equip./Gear Supp……………………….5/10 n/10, EOM 163/4,074
(201) (119) (124)
CASH RECEIPTS JOURNAL
Date
Account
Credited Explanation PR
Cash
Dr.
Sales
Discoun
t
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
Cost of Goods
May 5 Knox, Inc…………………………………………….
Sale of Apr. 28………………………………………………………………………
4,459 91 4,550
9 Store Supplies…………………………………….Sold store
supplies……………………………………………………………………………
125
350 350
(101) (415) (106) (413) ()
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Solutions Manual, Chapter 7
17
Comprehensive Problem, Colo Company (Part 1—Continued)
CASH DISBURSEMENTS JOURNAL
Date
Ck.
No. Payee Account Debited PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
May 1 341
0
S&P Mgmt. Co…………………………………….Rent Exp.–Selling Space…………………………………………………….642 2,968
Rent Exp.–Office Space………………………………………………………641 3,710 742
8 341
1
Peyton Products………………………………….Peyton Products………………………………………………………………..
6,174 126
(101) (119) ()
GENERAL JOURNAL Page 2
May 2 Sales Returns and Allow…………………………………………..414 175
Accounts Receivable—Knox, Inc………………………….106/175
Issued a credit memo for returns.
©McGraw-Hill Companies, Inc., 2005
Solutions Manual, Chapter 7
18
©McGraw-Hill Companies, Inc., 2005
Solutions Manual, Chapter 7
19