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Problem 7-6AA (Continued)
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
Problem 7-6AA (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 7-6AA (Concluded)
Part 3
CHURCH COMPANY
Trial Balance
March 31
Debit
Credit
Cash .............................................................................
$ 69,884
Accounts receivable ...................................................
19,225
Inventory ......................................................................
10,000
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
Purchases ....................................................................
76,225
Purchases returns and allowances ...........................
2,425
Purchases discounts ..................................................
1,476
Sales salaries expense ...............................................
36,600
_______
Totals ...........................................................................
$236,806
$236,806
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 7-4BA (70 minutes)
Parts 1 and 2
SALES JOURNAL
Page 3
Date
Account Debited
Invoice
Number
PR
Accounts Receivable Dr.
Sales Cr.
July 5
Kim Nettle ................................
918
✓
19,200
6
Ruth Blake ................................
919
✓
7,500
13
Ashton Moore ................................
920
✓
8,550
14
Kim Nettle ................................
921
✓
5,100
29
Ruth Blake ................................
922
✓
17,500
30
Ashton Moore ................................
923
✓
16,820
31
Totals ....................................................
74,670
(106/413)
CASH RECEIPTS JOURNAL
Page 3
Date
Account
Credited
Explanation
PR
Cash
Dr.
Sales
Discounts
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accounts
Cr.
July 15
Kim Nettle ................................
Sale of 7/5 ................................
✓
18,816
384
19,200
15
Sales ................................
Cash sales ................................
✓
118,350
118,350
16
Ruth Blake ................................
Sale of 7/6 ................................
✓
7,350
150
7,500
21
L.T. Notes
Payable ................................
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
_____
31
Totals ................................
253,137
807
40,350
198,594
15,000
(101)
(415)
(106)
(413)
(✓)
Problem 7-4BA (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
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
July 31
S3
74,670
74,670
31
R3
40,350
34,320
Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
June 30
200,000
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
June 30
200,000
July 21
R3
15,000
215,000
R. Acorn, Capital
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance
June 30
100,000
Sales
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
July 31
S3
74,670
74,670
31
R3
198,594
273,264
Sales Discounts
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
July 31
R3
807
807
Problem 7-4BA (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 ...............................................................
200,000
Long-term notes payable ................................
$215,000
R. Acorn, Capital ..................................................
100,000
Sales ................................................................
273,264
Sales discounts....................................................
807
_______
Totals ................................................................
$588,264
$588,264
Problem 7-4BA (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
Problem 7-5BA (100 minutes)
Parts 1 and 3
PURCHASES JOURNAL
Page 3
Date
Account
Date of
Invoice
Terms
PR
Accounts
Payable
Cr.
Purchases
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)
(505)
(124)
(✓)
CASH DISBURSEMENTS JOURNAL
Page 3
Date
Ck.
No.
Payee
Account Debited
PR
Cash
Cr.
Purchases
Discounts
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)
(507)
(✓)
(201)
Problem 7-5BA (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
Purchases Returns and Allowances ........
506
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
Problem 7-5BA (Continued)
Parts 2 and 3—continued
General Ledger—continued
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
Purchases
Acct. No. 505
Date
Explanation
PR
Debit
Credit
Balance
July 31
P3
23,470
23,470
Purchases Returns and Allowances
Acct. No. 506
Date
Explanation
PR
Debit
Credit
Balance
July 24
G3
2,400
2,400
Purchases Discounts
Acct. No. 507
Date
Explanation
PR
Debit
Credit
Balance
July 31
D3
226
226
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
