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Problem 7-1A (Continued)
Parts 2 and 3 (continued)
ACCOUNTS RECEIVABLE LEDGER
Page Alistair
Date
Explanation
PR
Debit
Credit
Balance
Apr. 3
S3
4,000
4,000
13
R3
4,000
0
13
S3
5,100
5,100
23
R3
5,100
0
Paula Kohr
Date
Explanation
PR
Debit
Credit
Balance
Apr. 5
S3
8,000
8,000
14
R3
8,000
0
27
S3
3,170
3,170
Nic Nelson
Date
Explanation
PR
Debit
Credit
Balance
Apr. 11
S3
10,500
10,500
20
R3
10,500
0
27
S3
6,700
6,700
Part 4
WISET COMPANY
Trial Balance
April 30
Debit
Credit
Cash ......................................................................
$298,863
Accounts receivable ............................................
9,870
Inventory ...............................................................
3,295
Long-term notes payable ................................
$170,000
B. Wiset, Capital ...................................................
100,000
Sales ......................................................................
164,285
Sales discounts....................................................
552
Cost of goods sold ..............................................
121,705
_______
Totals ................................................................
$434,285
$434,285
Problem 7-1A (Concluded)
Part 4 (continued)
WISET COMPANY
Schedule of Accounts Receivable
April 30
Paula Kohr ..................................................
$3,170
Nic Nelson ..................................................
6,700
Total accounts receivable .........................
$9,870
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
Fundamental Accounting Principles, 21st Edition
450
Problem 7-2A (120 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.
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
9
Store Equip./Hal’s Supply ..........................
4/9
n/10, EOM
165/✓
12,125
12,125
17
Grant Company................................
4/17
2/10, n/30
✓
13,750
13,750
20
Store Supplies/Hal’s Supply ......................
4/19
n/10, EOM
125/✓
830
830
25
Noth Company ................................
4/24
2/10, n/60
✓
11,375
11,375
____
_____
30
Totals .................................................
53,860
39,425
1,480
12,955
(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.
Apr. 4
587
World View ................................
Advertising Expense ................................
655
899
899
12
588
Noth Company ................................
Noth Company ................................
✓
14,014
286
14,300
16
589
Payroll ................................
Sales Salaries Expense ................................
621
10,750
10,750
26
590
Grant Company ................................
Grant Company ................................
✓
12,740
260
13,000
30
591
Payroll ................................
Sales Salaries Expense ................................
621
10,750
___
10,750
_____
30
Totals ................................
49,153
546
22,399
27,300
(101)
(119)
(✓)
(201)
Problem 7-2A (Continued)
Parts 1 and 3—continued
GENERAL JOURNAL Page 3
Apr. 6
Accounts Payable--Custer Inc. ................................
201/✓
80
Office Supplies ..................................................
124
80
Received a credit memorandum.
23
Accounts Payable--Grant Co. ...............................
201/✓
750
Inventory. ...........................................................
119
750
Received a credit memorandum.
Parts 2 and 3
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
85,000
Apr. 30
D3
49,153
35,847
Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
125,000
Apr. 23
G3
750
124,250
30
P3
39,425
163,675
30
D3
546
163,129
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Apr. 3
P3
1,480
1,480
6
G3
80
1,400
Store Supplies
Acct. No. 125
Date
Explanation
PR
Debit
Credit
Balance
Apr. 20
P3
830
830
Problem 7-2A (Continued)
General Ledger—continued
Store Equipment
Acct. No. 165
Date
Explanation
PR
Debit
Credit
Balance
Apr. 9
P3
12,125
12,125
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Apr. 6
G3
80
(80)
23
G3
750
(830)
30
P3
53,860
53,030
30
D3
27,300
25,730
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
110,000
B. Wiset, Capital
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
100,000
Sales Salaries Expense
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Balance
Apr. 16
D3
10,750
10,750
30
D3
10,750
21,500
Advertising Expense
Acct. No. 655
Date
Explanation
PR
Debit
Credit
Balance
Apr. 4
D3
899
899
ACCOUNTS PAYABLE LEDGER
Custer, Inc.
Date
Explanation
PR
Debit
Credit
Balance
Apr. 3
P3
1,480
1,480
6
G3
80
1,400
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
Problem 7-2A (Concluded)
Parts 2 and 3—continued
Accounts Payable Ledger—continued
Hal’s Supply
Date
Explanation
PR
Debit
Credit
Balance
Apr. 9
P3
12,125
12,125
20
P3
830
12,955
Noth Company
Date
Explanation
PR
Debit
Credit
Balance
Apr. 2
P3
14,300
14,300
12
D3
14,300
0
25
P3
11,375
11,375
Part 4
WISET COMPANY
Trial Balance
April 30
Debit
Credit
Cash .............................................................
$ 35,847
Inventory .....................................................
163,129
Office supplies............................................
1,400
Store supplies.............................................
830
Store equipment .........................................
12,125
Accounts payable.......................................
$ 25,730
Long-term notes payable ..........................
110,000
B. Wiset, Capital .........................................
100,000
Sales salaries expense ..............................
21,500
Advertising expense ..................................
899
Totals ...........................................................
$235,730
$235,730
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
Problem 7-3A (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.
Mar. 2
Min Cho .....................................................
854
✓
16,800
8,400
3
Linda Witt ..................................................
855
✓
10,200
5,800
10
Jovita Albany ................................
856
✓
5,600
2,900
27
Jovita Albany ................................
857
✓
14,910
7,220
28
Linda Witt ..................................................
858
✓
4,315
3,280
31
Totals .........................................................
51,825
27,600
(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.
Mar. 1
Van Industries ................................
3/1
2/15, n/30
✓
43,600
43,600
3
Gabel Company ................................
3/3
n/10, EOM
✓
1,230
1,230
9
Office Equip./Spell Supply .........................
3/9
n/10, EOM
163/✓
21,850
21,850
14
The CD Company ................................
3/13
2/10, n/30
✓
32,625
32,625
16
Store Supplies/Gabel Company ..................
3/16
n/10, EOM
125/✓
1,770
_____
____
1,770
31
Totals .............................................................
101,075
76,225
1,230
23,620
(201)
(119)
(124)
(✓)
Problem 7-3A (Continued)
Parts 1 and 2—continued
CASH RECEIPTS JOURNAL
Page 2
Date
Account Credited
Explanation
PR
Cash
Dr.
Sales
Discount
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
Mar. 6
L.T. Notes Pay. ................................
Note to bank................................
251
82,000
82,000
12
Min Cho ................................
Invoice, 3/2 ................................
✓
16,464
336
16,800
13
Linda Witt ................................
Invoice 3/3 ................................
✓
9,996
204
10,200
15
Sales ................................
Cash sales ................................
✓
34,680
34,680
20,210
20
Jovita Albany ................................
Invoice, 3/10 ................................
✓
5,488
112
5,600
31
Sales ................................
Cash sales ................................
✓
30,180
___
_____
30,180
_____
16,820
31
Totals ................................
178,808
652
32,600
64,860
82,000
37,030
(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.
Mar. 13
416
Van Industries ................................
Van Industries ................................
✓
42,728
872
43,600
15
417
Payroll ................................
Sales Salaries Expense ................................
621
18,300
18,300
23
418
The CD Co. ................................
The CD Company ................................
✓
29,596
604
30,200
31
419
Payroll ................................
Sales Salaries Expense ................................
621
18,300
____
18,300
_____
31
Totals ................................
108,924
1,476
36,600
73,800
(101)
(119)
(✓)
(201)
Problem 7-3A (Continued)
Parts 1 and 2—continued
GENERAL JOURNAL
Page 2
Mar. 17
Accounts Payable—CD Co. ................................
201/✓
2,425
Inventory ................................................................
119
2,425
Received a credit memo for returns.
19
Accounts Payable—Spell Supply .............................
201/✓
630
Office Equipment ...................................................
163
630
Received a credit memo for returns.
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
R2
178,808
178,808
31
D2
108,924
69,884
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
S2
51,825
51,825
31
R2
32,600
19,225
Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
Mar. 1
10,000
17
G2
2,425
7,575
31
P2
76,225
83,800
31
D2
1,476
82,324
31
S2
27,600
54,724
31
R2
37,030
17,694
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
P2
1,230
1,230
Store Supplies
Acct. No. 125
Date
Explanation
PR
Debit
Credit
Balance
Mar. 16
P2
1,770
1,770
Problem 7-3A (Continued)
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Mar. 9
P2
21,850
21,850
19
G2
630
21,220
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Mar. 17
G2
2,425
(2,425)
19
G2
630
(3,055)
31
P2
101,075
98,020
31
D2
73,800
24,220
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
Mar. 6
R2
82,000
82,000
Z. Church, Capital
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance
Mar. 1
10,000
Sales
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
S2
51,825
51,825
31
R2
64,860
116,685
Sales Discounts
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
R2
652
652
Cost of Goods Sold
Acct. No. 502
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
R2
37,030
37,030
Mar. 31
S2
27,600
64,630
Sales Salaries Expense
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Balance
Mar. 15
D2
18,300
18,300
31
D2
18,300
36,600
Problem 7-3A (Continued)
ACCOUNTS RECEIVABLE LEDGER
Jovita Albany
Date
Explanation
PR
Debit
Credit
Balance
Mar. 10
S2
5,600
5,600
20
R2
5,600
0
27
S2
14,910
14,910
Min Cho
Date
Explanation
PR
Debit
Credit
Balance
Mar. 2
S2
16,800
16,800
12
R2
16,800
0
Linda Witt
Date
Explanation
PR
Debit
Credit
Balance
Mar. 3
S2
10,200
10,200
13
R2
10,200
0
28
S2
4,315
4,315
ACCOUNTS PAYABLE LEDGER
CD Company
Date
Explanation
PR
Debit
Credit
Balance
Mar. 14
P2
32,625
32,625
17
G2
2,425
30,200
23
D2
30,200
0
Gabel Company
Date
Explanation
PR
Debit
Credit
Balance
Mar. 3
P2
1,230
1,230
16
P2
1,770
3,000
Spell Supply
Date
Explanation
PR
Debit
Credit
Balance
Mar. 9
P2
21,850
21,850
19
G2
630
21,220
Van Industries
Date
Explanation
PR
Debit
Credit
Balance
Mar. 1
P2
43,600
43,600
13
D2
43,600
0
Problem 7-3A (Concluded)
Part 3
CHURCH COMPANY
Trial Balance
March 31
Debit
Credit
Cash ................................................................
$ 69,884
Accounts receivable ............................................
19,225
Inventory ...............................................................
17,694
Office supplies .....................................................
1,230
Store supplies ......................................................
1,770
Office equipment..................................................
21,220
Accounts payable ................................................
$ 24,220
Long-term notes payable ................................
82,000
Z. Church, Capital ................................................
10,000
Sales ................................................................
116,685
Sales discounts....................................................
652
Cost of goods sold ..............................................
64,630
Sales salaries expense ................................
36,600
________
Totals ................................................................
$232,905
$232,905
CHURCH COMPANY
Schedule of Accounts Receivable
March 31
Jovita Albany ..........................................................
$14,910
Linda Witt ................................................................
4,315
Total accounts receivable ................................
$19,225
CHURCH COMPANY
Schedule of Accounts Payable
March 31
Gabel Company ......................................................
$ 3,000
Spell Supply ............................................................
21,220
Total accounts payable ................................
$24,220
PROBLEM SET B
Problem 7-1B (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
13
Ashton Moore ................................
920
✓
8,550
5,230
14
Kim Nettle .....................................................
921
✓
5,100
3,800
29
Ruth Blake ....................................................
922
✓
17,500
10,850
30
Ashton Moore ................................
923
✓
16,820
9,840
31
Totals .............................................................
74,670
44,520
(106/413)
(502/119)
CASH RECEIPTS JOURNAL
Page 3
Date
Account Credited
Explanation
PR
Cash
Dr.
Sales
Discount
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
July 15
Kim Nettle ................................
Sale of 7/5 ................................
✓
18,816
384
19,200
15
Sales ................................
Cash sales ................................
✓
118,350
118,350
76,330
16
Ruth Blake ................................
Sale of 7/6 ................................
✓
7,350
150
7,500
21
L.T. Notes Pay. ................................
Note to bank................................
251
15,000
15,000
23
Ashton Moore ................................
Sale of 7/13 ................................
✓
8,379
171
8,550
24
Kim Nettle ................................
Sale of 7/14 ................................
✓
4,998
102
5,100
31
Sales ................................
Cash sales ................................
✓
80,244
___
_____
80,244
_____
53,855
31
Totals ................................
253,137
807
40,350
198,594
15,000
130,185
(101)
(415)
(106)
(413)
(✓)
(502/119)
Problem 7-1B (Continued)
Parts 2 and 3
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
June 30
100,000
July 31
R3
253,137
353,137
Problem 7-1B (Continued)
Parts 2 and 3 (continued)
ACCOUNTS RECEIVABLE LEDGER
Ruth Blake
Date
Explanation
PR
Debit
Credit
Balance
July 6
S3
7,500
7,500
16
R3
7,500
0
29
S3
17,500
17,500
Ashton Moore
Date
Explanation
PR
Debit
Credit
Balance
July 13
S3
8,550
8,550
23
R3
8,550
0
30
S3
16,820
16,820
Kim Nettle
Date
Explanation
PR
Debit
Credit
Balance
July 5
S3
19,200
19,200
14
S3
5,100
24,300
15
R3
19,200
5,100
24
R3
5,100
0
Part 4
ACORN INDUSTRIES
Trial Balance
July 31
Debit
Credit
Cash ................................................................
$353,137
Accounts receivable ............................................
34,320
Inventory ...............................................................
25,295
Long-term notes payable ................................
$215,000
R. Acorn, Capital ..................................................
100,000
Sales ................................................................
273,264
Sales discounts....................................................
807
Cost of goods sold ..............................................
174,705
_______
Totals ................................................................
$588,264
$588,264
