Problem 7-5BA (Continued)
Parts 2 and 3—continued
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
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
Problem 7-5BA (Concluded)
Part 4
ACORN INDUSTRIES
Trial Balance
July 31
Debit
Credit
Cash …………………………………………………..…..
$ 24,601
Inventory …………………………………………….………..
200,000
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
Purchases …………………………………………..………..
23,470
Purchases returns and allowances ………………..
2,400
Purchases discounts …………………………..
226
Sales salaries expense ………………………..…
63,700
Advertising expense ……………………………………..
625
________
Totals ……………………………………………………….
$352,266
$352,266
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 7-6BA (100 minutes)
Parts 1 and 2
SALES JOURNAL
Page 2
Date
Account Debited
Invoice
Number
PR
Accounts Receivable Dr.
Sales Cr.
Nov. 8
Cyd Rounder …………………………..
439
✓
6,550
10
Carlos Mantel…………………………..
440
✓
13,500
15
Tori Tripp ………………………………..………….
441
✓
5,250
22
Carlos Mantel…………………………..
442
✓
3,695
24
Tori Tripp ………………………………..………….
443
✓
4,280
30
Totals ……………………………………..………….
33,275
(106/413)
PURCHASES JOURNAL
Page 2
Date
Account
Date of
Invoice
Terms
PR
Accounts
Payable
Cr.
Purchases
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)
(505)
(124)
(✓)
Problem 7-6BA (Continued)
CASH RECEIPTS JOURNAL
Page 2
Date
Account Credited
Explanation
PR
Cash
Dr.
Sales
Discount
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
Nov. 2
L.T. Notes Pay. ……….………………….
Note to bank …………………………..
251/✓
88,500
88,500
15
Sales …………………………..
Cash sales …………………………..
✓
18,170
18,170
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
_____
30
Totals ……………………..……
148,167
506
25,300
34,873
88,500
(101)
(415)
(106)
(413)
(✓)
CASH DISBURSEMENTS JOURNAL
Page 2
Date
Ck.
No.
Payee
Account Debited
PR
Cash
Cr.
Purchases
Discounts
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)
(507)
(✓)
(201)
Problem 7-6BA (Continued)
GENERAL JOURNAL
Page 2
Nov. 17
Accounts Payable—Lo Co. ………………….……….
201/✓
557
Purchases Returns and Allowances …………..
506
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
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
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Nov. 1
P2
5,058
5,058
26
G2
922
4,136
Problem 7-6BA (Continued)
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
Acct. No. 415
Date
PR
Debit
Credit
Balance
Nov. 30
R2
506
Acct. No. 505
Date
Explanation
PR
Debit
Credit
Balance
Nov. 30
P2
36,057
36,057
Date
Explanation
PR
Debit
Credit
Nov. 17
G2
Acct. No. 507
Date
Explanation
PR
Debit
Credit
Balance
Nov. 30
D2
Problem 7-6BA (Continued)
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
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
Problem 7-6BA (Continued)
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
Part 3
GRASSLEY COMPANY
Trial Balance
November 30
Debit
Credit
Cash …………………………………………………....
$100,207
Accounts receivable ……………………………..
7,975
Inventory ……………………………………………...
40,000
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
Purchases …………………………………………....
36,057
Purchases returns and allowances ………..
557
Purchases discounts …………………………..
710
Sales salaries expense ………………………....
13,170
________
Totals …………………………………………………..
$203,550
$203,550
Problem 7-6BA (Concluded)
Part 3—continued
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