Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Problem E-1A (Continued)
Parts 2 and 3
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
85,000
Apr. 30
R3
213,863
298,863
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
S3
37,470
37,470
30
R3
27,600
9,870
Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
125,000
Apr. 30
S3
26,925
98,075
30
R3
94,780
3,295
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
110,000
Apr. 18
R3
60,000
170,000
Problem E-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
Financial & Managerial Accounting, 5th Edition
1508
Problem E-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
Problem E-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 E-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
Problem E-2A (Continued)
General Ledger—continued
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
Problem E-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
Problem E-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 E-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 E-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
Problem E-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
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Balance
Mar. 1
3,000
Retained Earnings
Acct. No. 318
Date
Explanation
PR
Debit
Credit
Balance
Mar. 1
7,000
Problem E-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
Financial & Managerial Accounting, 5th Edition
1518
Problem E-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
Common stock .....................................................
3,000
Retained earnings ................................................
7,000
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 E-4AA (70 minutes)
Parts 1 and 2
SALES JOURNAL
Page 3
Date
Account Debited
Invoice
Number
PR
Accounts Receivable Dr.
Sales Cr.
Apr. 3
Page Alistair ................................
760
✓
4,000
5
Paula Kohr ................................
761
✓
8,000
11
Nic Nelson ................................
762
✓
10,500
13
Page Alistair ................................
763
✓
5,100
27
Paula Kohr ................................
764
✓
3,170
27
Nic Nelson ................................
765
✓
6,700
30
Total ................................
37,470
(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.
Apr. 13
Page Alistair ................................
Sale of 4/3
✓
3,920
80
4,000
14
Paula Kohr ................................
Sale of 4/5
✓
7,840
160
8,000
16
Sales ................................
Cash Sales
✓
52,840
52,840
18
L.T. Notes
Payable ................................
Note to
bank
251
60,000
60,000
20
Nic Nelson ................................
Sale of
4/11
✓
10,290
210
10,500
23
Page Alistair ................................
Sale of
4/13
✓
4,998
102
5,100
30
Sales ................................
Cash sales
✓
73,975
___
_____
73,975
_____
30
Totals ............
213,863
552
27,600
126,815
60,000
(101)
(415)
(106)
(413)
(✓)
Problem E- 4AA (Continued)
Parts 2 and 3
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
85,000
Apr. 30
R3
213,863
298,863
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
S3
37,470
37,470
30
R3
27,600
9,870
