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Problem 7-1B (Concluded)
Part 4—continued
ACORN INDUSTRIES
Schedule of Accounts Receivable
July 31
Ruth Blake ..............................................................
$17,500
Ashton Moore .........................................................
16,820
Total accounts receivable ................................
$34,320
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
©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned,
duplicated, forwarded, distributed, or posted on a website, in whole or part.
Fundamental Accounting Principles, 21st Edition
464
Problem 7-2B (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
9
Store Equip./Charm’s Supply .......................
7/8
n/10, EOM
165/✓
38,220
38,220
17
Drake Company ................................
7/17
2/10, n/30
✓
7,200
7,200
20
Office Supp./Charm’s Supply .......................
7/19
n/10, EOM
✓
650
650
26
Teton Company ................................
7/26
2/10, n/30
✓
9,770
9,770
___
_____
31
Totals
63,590
23,470
650
39,470
(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 ................................
655
625
625
10
301
Teton Company ................................
Teton Company ................................
✓
6,370
130
6,500
15
302
Payroll. ................................
Sales Salaries Expense ................................
621
31,850
31,850
27
303
Drake Company ................................
Drake Company ................................
✓
4,704
96
4,800
31
304
Payroll ................................
Sales Salaries Expense ................................
621
31,850
___
31,850
_____
31
Totals ................................
75,399
226
64,325
11,300
(101)
(119)
(✓)
(201)
Problem 7-2B (Continued)
Parts 1 and 3—continued
GENERAL JOURNAL
Page 3
July 8
Accounts Payable—Plaine ....................
201/✓
250
Store Supplies ..................................
125
250
Received a credit memorandum.
24
Accounts Payable—Drake ....................
201/✓
2,400
Inventory. .........................................
119
2,400
Received a credit memorandum.
Parts 2 and 3
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
June 30
100,000
July 31
D3
75,399
24,601
Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
June 30
200,000
July 24
G3
2,400
197,600
31
P3
23,470
221,070
31
D3
226
220,844
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
July 31
P3
650
650
Store Supplies
Acct. No. 125
Date
Explanation
PR
Debit
Credit
Balance
July 7
P3
1,250
1,250
8
G3
250
1,000
Problem 7-2B (Continued)
General Ledger—continued
Store Equipment
Acct. No. 165
Date
Explanation
PR
Debit
Credit
Balance
July 9
P3
38,220
38,220
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
July 8
G3
250
(250)
24
G3
2,400
(2,650)
31
P3
63,590
60,940
31
D3
11,300
49,640
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
June 30
200,000
R. Acorn, Capital
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance
June 30
100,000
Sales Salaries Expense
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Balance
July 15
D3
31,850
31,850
31
D3
31,850
63,700
Advertising Expense
Acct. No. 655
Date
Explanation
PR
Debit
Credit
Balance
July 3
D3
625
625
ACCOUNTS PAYABLE LEDGER
Charm’s Supply
Date
Explanation
PR
Debit
Credit
Balance
July 9
P3
38,220
38,220
20
P3
650
38,870
Drake Company
Date
Explanation
PR
Debit
Credit
Balance
July 17
P3
7,200
7,200
24
G3
2,400
4,800
27
D3
4,800
0
Problem 7-2B (Concluded)
Parts 2 and 3—continued
Accounts Payable Ledger—continued
Plaine, Inc.
Date
Explanation
PR
Debit
Credit
Balance
July 7
P3
1,250
1,250
8
G3
250
1,000
Teton Company
Date
Explanation
PR
Debit
Credit
Balance
July 1
P3
6,500
6,500
10
D3
6,500
0
26
P3
9,770
9,770
Part 4
ACORN INDUSTRIES
Trial Balance
July 31
Debit
Credit
Cash ................................................................
$ 24,601
Inventory ...............................................................
220,844
Office supplies .....................................................
650
Store supplies ......................................................
1,000
Store equipment...................................................
38,220
Accounts payable ................................................
$ 49,640
Long-term notes payable ................................
200,000
R. Acorn, Capital ..................................................
100,000
Sales salaries expense ................................
63,700
Advertising expense ............................................
625
________
Totals ................................................................
$349,640
$349,640
ACORN INDUSTRIES
Schedule of Accounts Payable
July 31
Charm’s Supply......................................
$38,870
Plaine, Inc ...............................................
1,000
Teton Company ......................................
9,770
Total accounts payable .........................
$49,640
Problem 7-3B (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
15
Tori Tripp ...................................................
441
✓
5,250
2,450
22
Carlos Mantel................................
442
✓
3,695
2,060
24
Tori Tripp ...................................................
443
✓
4,280
2,130
30
Totals .........................................................
33,275
19,050
(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
5
Store Supplies/Grebe Company ....................
11/5
n/10, EOM
125/✓
1,040
1,040
11
Lo Company ................................
11/10
2/10, n/30
✓
2,557
2,557
16
Grebe Company ................................
11/16
n/10, EOM
✓
459
_____
459
____
30
Totals .............................................................
42,614
36,057
459
6,098
(201)
(119)
(124)
(✓)
Problem 7-3B (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.
Nov. 2
L.T. Notes Pay. ................................
Note to bank ................................
251/✓
88,500
88,500
15
Sales ................................
Cash sales ................................
✓
18,170
18,170
9,000
18
Cyd Rounder ................................
Invoice, 11/8 ................................
✓
6,419
131
6,550
19
Carlos Mantel ................................
Invoice, 11/10 ................................
✓
13,230
270
13,500
25
Tori Tripp ................................
Invoice, 11/15 ................................
✓
5,145
105
5,250
30
Sales ................................
Cash sales ................................
✓
16,703
___
_____
16,703
_____
10,200
30
Totals ................................
148,167
506
25,300
34,873
88,500
19,200
(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
19
635
Lo Co. ................................
Lo Company ................................
✓
1,960
40
2,000
30
636
Payroll ................................
Sales Salaries Expense ................................
621
6,585
___
6,585
_____
30
Totals ................................
47,960
710
13,170
35,500
(101)
(119)
(✓)
(201)
Problem 7-3B (Continued)
GENERAL JOURNAL
Page 2
Nov. 17
Accounts Payable—Lo Co. .........................
201/✓
557
Inventory .................................................
119
557
Received a credit memo for returns.
26
Accounts Payable—Brun Supply ...............
201/✓
922
Office Equipment ....................................
163
922
Received a credit memo for returns.
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
Nov. 30
S2
33,275
33,275
30
R2
25,300
7,975
Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
Nov. 1
40,000
17
G2
557
39,443
30
P2
36,057
75,500
30
D2
710
74,790
30
S2
19,050
55,740
30
R2
19,200
36,540
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Nov. 30
P2
459
459
Store Supplies
Acct. No. 125
Date
Explanation
PR
Debit
Credit
Balance
Nov. 5
P2
1,040
1,040
Problem 7-3B (Continued)
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Nov. 1
P2
5,058
5,058
26
G2
922
4,136
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Nov. 17
G2
557
(557)
26
G2
922
(1,479)
30
P2
42,614
41,135
30
D2
35,500
5,635
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
Nov. 2
R2
88,500
88,500
C. Grassley, Capital
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance
Nov. 1
40,000
Sales
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
Nov. 30
S2
33,275
33,275
30
R2
34,873
68,148
Sales Discounts
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
Nov. 30
R2
506
506
Costs of Goods Sold
Acct. No. 502
Date
Explanation
PR
Debit
Credit
Balance
Nov. 30
S2
19,050
19,050
30
R2
19,200
38,250
Sales Salaries Expense
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Balance
Nov. 15
D2
6,585
6,585
30
D2
6,585
13,170
Problem 7-3B (Continued)
ACCOUNTS RECEIVABLE LEDGER
Carlos Mantel
Date
Explanation
PR
Debit
Credit
Balance
Nov. 10
S2
13,500
13,500
19
R2
13,500
0
22
S2
3,695
3,695
Cyd Rounder
Date
Explanation
PR
Debit
Credit
Balance
Nov. 8
S2
6,550
6,550
18
R2
6,550
0
Tori Tripp
Date
Explanation
PR
Debit
Credit
Balance
Nov. 15
S2
5,250
5,250
24
S2
4,280
9,530
25
R2
5,250
4,280
ACCOUNTS PAYABLE LEDGER
BLR Industries
Date
Explanation
PR
Debit
Credit
Balance
Nov. 4
P2
33,500
33,500
12
D2
33,500
0
Brun Supply
Date
Explanation
PR
Debit
Credit
Balance
Nov. 1
P2
5,058
5,058
26
G2
922
4,136
Grebe Company
Date
Explanation
PR
Debit
Credit
Balance
Nov. 5
P2
1,040
1,040
16
P2
459
1,499
Lo Company
Date
Explanation
PR
Debit
Credit
Balance
Nov. 11
P2
2,557
2,557
17
G2
557
2,000
19
D2
2,000
0
Problem 7-3B (Concluded)
Part 3
GRASSLEY COMPANY
Trial Balance
November 30
Debit
Credit
Cash ................................................................
$100,207
Accounts receivable ............................................
7,975
Inventory ...............................................................
36,540
Office supplies .....................................................
459
Store supplies ......................................................
1,040
Office equipment..................................................
4,136
Accounts payable ................................................
$ 5,635
Long-term notes payable ................................
88,500
C. Grassley, Capital .............................................
40,000
Sales ................................................................
68,148
Sales discounts....................................................
506
Costs of goods sold ............................................
38,250
Sales salaries expense ................................
13,170
_______
Totals ................................................................
$202,283
$202,283
GRASSLEY COMPANY
Schedule of Accounts Receivable
November 30
Carlos Mantel .......................................................
$3,695
Tori Tripp ..............................................................
4,280
Total accounts receivable ................................
$7,975
GRASSLEY COMPANY
Schedule of Accounts Payable
November 30
Brun Supply ..........................................................
$4,136
Grebe Company ...................................................
1,499
Total accounts payable ................................
$5,635
SERIAL PROBLEM – SP 7
Serial Problem, Success Systems (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
Feb. 23
Delta Co......................................................
n/a
✓
3,220
2,660
Mar. 25
Wildcat Services ................................
n/a
✓
2,800
2,002
30
IFM Company ................................
n/a
✓
2,220
1,100
31
Totals ..........................................................
19,240
13,962
(106/413)
(502/119)
CASH RECEIPTS JOURNAL
Page 2
Date
Account Credited
Explanation
PR
Cash
Dr.
Sales
Discount
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
22
Liu Corp ................................
Invoice, 1/13
✓
4,653
47
4,700
Feb.11
Alex’s Eng. Co ................................
Invoice, 1/11
✓
5,500
5,500
Mar. 9
Delta Co ................................
Invoice, 2/23
✓
3,220
3,220
16
Services Revenue ................................
Cash Sales
✓
5,260
__
_____
5,260
_
_
31
Totals ................................
25,301
47
16,088
9,260
0
0
(101)
(415)
(106)
(403)
(✓)
(502/119)
Serial Problem, Success Systems (Continued)
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
26
Kansas Corp ................................
1/26
1/10, n/30
✓
9,000
9,000
Mar. 8
Harris Office Products ............................
3/8
✓
2,730
_____
2,730
31
Totals .........................................................
17,530
14,800
2,730
0
(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
623/210
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
31
n/a
Lyn Addie ................................
Wages Expense
623
1,250
1,250
Feb. 1
n/a
Hillside Mall ................................
Prepaid Rent
131
2,475
2,475
3
n/a
Kansas Corp ................................
Kansas Corp
✓
8,414
90
8,504
5
n/a
Not specified ................................
Advertising Expense
655
600
600
15
n/a
A. Lopez ................................
A. Lopez, Withdrawals
302
4,800
4,800
26
n/a
Lyn Addie ................................
Wages Expense
623
1,000
1,000
27
n/a
A. Lopez ................................
Mileage Expense
676
192
192
Mar. 11
n/a
Not Specified ................................
Repairs Expense
684
960
960
19
n/a
Harris Off. Prod ................................
Harris Office Products
✓
3,830
3,830
31
n/a
A. Lopez ................................
Mileage Expense
676
128
___
128
_____
31
Totals ................................
30,616
148
12,630
18,134
(101)
(119)
(✓)
(201)
Serial Problem, Success Systems (Concluded)
Part 3
GENERAL JOURNAL
Page 2
2014
11 Accounts Receivable—Alex’s Eng. Co .......... 106.1 5,500
20* Sales Returns and Allowances ....................... 414 500
Accounts Receivable—Liu Corp ............ 106.5 500
24 Accounts Payable—Kansas Corp................... 201 496
29 No entry recorded in the journal (but memorandum noted).
Mar. 24 Accounts Receivable—Easy Leasing ............ 106.3 8,900
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
16
Hensel Company ................................
8786
✓
3,990
1,890
22
Lee Services ................................
8787
✓
6,850
4,990
26
Crane Corp. ................................
8788
✓
14,210
8,230
31
Totals ................................
31,150
19,210
(106/413)
(502/119)
