978-0078025600 Appendix E Lecture Note Part 5

subject Type Homework Help
subject Pages 9
subject Words 1515
subject Textbook Financial and Managerial Accounting: Information for Decisions 5th Edition
subject Authors Barbara Chiappetta, John Wild, Ken Shaw
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page-pf1
Problem E-4BA (Continued)
Parts 2 and 3—continued
ACCOUNTS RECEIVABLE LEDGER
Ruth Blake
Date
Explanation
Debit
Credit
Balance
July 6
7,500
7,500
16
7,500
0
29
17,500
17,500
Ashton Moore
Date
Explanation
Debit
Credit
Balance
July 13
8,550
8,550
23
8,550
0
30
16,820
16,820
page-pf2
Problem E-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
page-pf3
Problem E-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)
page-pf4
Problem E-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
Debit
Credit
Balance
June 30
100,000
July 31
75,399
24,601
Inventory
Acct. No. 119
Date
Explanation
Debit
Credit
Balance
June 30
200,000
Office Supplies
Acct. No. 124
Date
Explanation
Debit
Credit
Balance
July 31
650
650
Store Supplies
Acct. No. 125
Date
Explanation
Debit
Credit
Balance
July 7
1,250
1,250
8
250
1,000
page-pf5
Problem E-5BA (Continued)
Parts 2 and 3—continued
General Ledger—continued
Accounts Payable
Acct. No. 201
Date
Explanation
Debit
Credit
Balance
July 8
250
(250)
24
2,400
(2,650)
31
63,590
60,940
31
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
Debit
Credit
Balance
June 30
10,000
page-pf6
Problem E-5BA (Continued)
Parts 2 and 3—continued
ACCOUNTS PAYABLE LEDGER
Charm’s Supply
Date
Explanation
Debit
Credit
Balance
July 9
38,220
38,220
20
650
38,870
Drake Company
Date
Explanation
Debit
Credit
Balance
July 17
7,200
7,200
24
2,400
4,800
27
4,800
0
Plaine, Inc.
Date
Explanation
Debit
Credit
Balance
July 7
1,250
1,250
8
250
1,000
page-pf7
Problem E-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
Common stock .....................................................
10,000
Retained earnings ................................................
90,000
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
page-pf8
Problem E-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)
(✓)
page-pf9
Problem E-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)
page-pfa
Problem E-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
Debit
Credit
Balance
Nov. 30
148,167
148,167
30
47,960
100,207
Accounts Receivable
Acct. No. 106
Date
Explanation
Debit
Credit
Balance
Nov. 30
33,275
33,275
30
25,300
7,975
Inventory
Acct. No. 119
Date
Explanation
Debit
Credit
Balance
Nov. 1
40,000
Office Supplies
Acct. No. 124
Date
Explanation
Debit
Credit
Balance
Nov. 30
459
459
Store Supplies
Acct. No. 125
Date
Explanation
Debit
Credit
Balance
Nov. 5
1,040
1,040
Office Equipment
Acct. No. 163
Date
Explanation
Debit
Credit
Balance
Nov. 1
5,058
5,058
26
922
4,136
page-pfb
Problem E-6BA (Continued)
Accounts Payable
Acct. No. 201
Date
Explanation
Debit
Credit
Balance
Nov. 17
557
(557)
26
922
(1,479)
30
42,614
41,135
30
35,500
5,635
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
Debit
Credit
Balance
Nov. 2
88,500
88,500

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