Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Problem E-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
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
July 31
S3
44,520
155,480
31
R3
130,185
25,295
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
June 30
200,000
July 21
R3
15,000
215,000
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Balance
June 30
10,000
Retained Earnings
Acct. No. 318
Date
Explanation
PR
Debit
Credit
Balance
June 30
90,000
Problem E-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
Problem E-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
Problem E-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 E-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
Problem E-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
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Balance
June 30
10,000
Retained Earnings
Acct. No. 318
Date
Explanation
PR
Debit
Credit
Balance
June 30
90,000
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
Problem E-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
Problem E-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 E-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 E-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
Problem E-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
Problem E-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
Financial & Managerial Accounting, 5th Edition
1548
Problem E-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
Common stock .....................................................
10,000
Retained earnings ................................................
30,000
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
Problem E-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 E-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
