Problem E-1A (Continued)
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Mar. 9
P2
21,850
19
G2
630
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Mar. 17
G2
2,425
(2,425)
19
G2
630
(3,055)
31
P2
101,075
31
D2
73,800
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Mar. 6
R2
82,000
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Mar. 1
Retained Earnings
Acct. No. 318
Date
Explanation
PR
Debit
Credit
Mar. 1
Sales
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Mar. 31
S2
51,825
31
R2
64,860
Sales Discounts
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Mar. 31
R2
652
Cost of Goods Sold
Acct. No. 502
Date
Explanation
PR
Debit
Credit
Mar. 31
R2
37,030
Mar. 31
S2
27,600
Sales Salaries Expense
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Mar. 15
D2
18,300
31
D2
18,300
Problem E-1A (Continued)
ACCOUNTS RECEIVABLE LEDGER
Jovita Albany
Date
Explanation
PR
Debit
Credit
Mar. 10
S2
5,600
20
R2
5,600
27
S2
14,910
Date
Explanation
PR
Debit
Credit
Balance
Mar. 2
S2
16,800
16,800
12
R2
0
Linda Witt
Date
Explanation
PR
Debit
Credit
Balance
Mar. 3
S2
10,200
10,200
13
R2
0
28
S2
4,315
4,315
Problem E-1A (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
©McGraw–Hill Companies, 2015
Solutions Manual, Appendix E
457
Problem E-2A (70 minutes)
Parts 1, 2 and 3
SALES JOURNAL
Page 3
Date
Account Debited
Invoice
Number
PR
Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
Apr. 3
Page Alistair …………………………..
760
✓
4,000
3,000
5
Paula Kohr …………………………….…………..
761
✓
8,000
6,500
11
Nic Nelson ……………………………..…………..
762
✓
10,500
7,000
13
Page Alistair …………………………..
763
✓
5,100
3,600
27
Paula Kohr …………………………….…………..
764
✓
3,170
2,520
27
Nic Nelson ……………………………..…………..
765
✓
6,700
4,305
30
Totals …………………………………….…………..
37,470
26,925
(106/413)
(502/119)
CASH RECEIPTS JOURNAL
Page 3
Date
Account Credited
Explanation
PR
Cash
Dr.
Sales
Discount
Dr.
Sales
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
Apr.13
Page Alistair …………………………..
Sale of 4/3
✓
3,920
80
14
Paula Kohr …………………………..
Sale of 4/5
✓
7,840
160
16
Sales ………………….……….
Cash Sales
✓
52,840
52,840
35,880
18
L.T. Notes Payable .………………………….
Note to bank
251
60,000
60,000
20
Nic Nelson …………………………..
Sale of 4/11
✓
10,290
210
23
Page Alistair …………………………..
Sale of 4/13
✓
4,998
102
30
Sales ………………….……….
Cash sales
✓
73,975
___
73,975
_____
58,900
30
Totals …………………………..
213,863
552
126,815
60,000
94,780
(101)
(415)
(413)
(✓)
(502/119)
Problem E-2A (Continued)
Parts 2 and 3
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Mar. 31
Apr. 30
R3
213,863
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Apr. 30
S3
37,470
30
R3
27,600
Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Mar. 31
Apr. 30
S3
26,925
30
R3
94,780
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Mar. 31
Apr. 18
R3
60,000
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Mar. 31
Retained Earnings
Acct. No. 318
Date
Explanation
PR
Debit
Credit
Mar. 31
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
S3
37,470
37,470
30
R3
164,285
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
R3
Acct. No. 502
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
S3
26,925
26,925
30
R3
94,780
121,705
Problem E-2A (Continued)
Parts 2 and 3 (continued)
ACCOUNTS RECEIVABLE LEDGER
Page Alistair
Date
Explanation
PR
Debit
Credit
Apr. 3
S3
4,000
13
R3
4,000
13
S3
5,100
23
R3
5,100
Date
Explanation
PR
Debit
Credit
Balance
Apr. 5
S3
8,000
8,000
14
R3
8,000
0
27
S3
3,170
3,170
Date
Explanation
PR
Debit
Credit
Balance
Apr. 11
S3
20
R3
0
27
S3
6,700
6,700
Problem E-2A (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
Problem E-3A (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-3A (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
Mar. 31
Apr. 23
G3
750
30
P3
39,425
30
D3
546
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Apr. 3
P3
1,480
6
G3
80
Store Supplies
Acct. No. 125
Date
Explanation
PR
Debit
Credit
Apr. 20
P3
830
Store Equipment
Acct. No. 165
Date
Explanation
PR
Debit
Credit
Apr. 9
P3
12,125
Problem E-3A (Continued)
General Ledger—continued
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Apr. 6
G3
80
(80)
23
G3
750
(830)
30
P3
53,860
53,030
30
D3
27,300
25,730
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Mar. 31
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Mar. 31
Retained Earnings
Acct. No. 318
Date
Explanation
PR
Debit
Credit
Mar. 31
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Balance
Apr. 16
D3
10,750
30
D3
10,750
Advertising Expense
Date
Explanation
PR
Debit
Credit
Balance
Apr. 4
D3
899
Date
Explanation
PR
Debit
Credit
Balance
Apr. 3
P3
G3
80
Date
Explanation
PR
Debit
Credit
Balance
Apr. 17
P3
13,750
23
G3
750
26
D3
13,000
Problem E-3A (Concluded)
Parts 2 and 3—continued
Accounts Payable Ledger—continued
Hal’s Supply
Date
Explanation
PR
Debit
Credit
Apr. 9
P3
12,125
20
P3
830
Date
Explanation
PR
Debit
Credit
Balance
Apr. 2
P3
14,300
14,300
12
25
P3
11,375
11,375
Debit
Credit
Solutions Manual, Appendix E
465
PROBLEM SET B
Problem E-1B (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
Date
Account
Date of
Invoice
Terms
PR
Inventory
Dr.
Office
Supplies
Dr.
Nov. 1
Office Equip./Brun Supply ……..……………..
11/1
n/10, EOM
163/✓
4
BLR Industries …………………………..
11/3
2/10, n/30
✓
33,500
5
Store Supplies/Grebe Company ………………..
11/5
n/10, EOM
125/✓
11
Lo Company …………………………..
11/10
2/10, n/30
✓
2,557
16
Grebe Company ……………………..……
11/16
n/10, EOM
✓
_____
459
30
Totals ……………………………………..……………..
36,057
459
(119)
(124)
©2016 by McGraw–Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned,
duplicated, forwarded, distributed, or posted on a website, in whole or part.
Financial Accounting Fundamentals, 5th Edition
466
Problem E-1B (Continued)
CASH RECEIPTS JOURNAL
Page 2
Date
Account
Credited
Explanation
PR
Cash
Dr.
Sales
Discount
Dr.
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
19
Carlos Mantel …..………………………
Invoice, 11/10 ..…………………………
✓
13,230
270
25
Tori Tripp ………….……………….
Invoice, 11/15 ..…………………………
✓
5,145
105
30
Sales ………………..…………
Cash sales …………………………..
✓
16,703
___
16,703
_____
10,200
30
Totals ……………….………….
148,167
506
34,873
88,500
19,200
(101)
(415)
(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-1B (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.
Problem E-1B (Continued)
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
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
Nov. 2
R2
88,500
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Nov. 1
Retained Earnings
Acct. No. 318
Date
Explanation
PR
Debit
Credit
Nov. 1
Sales
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Nov. 30
S2
33,275
30
R2
34,873
Sales Discounts
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Nov. 30
R2
506
Costs of Goods Sold
Acct. No. 502
Date
Explanation
PR
Debit
Credit
Nov. 30
S2
19,050
30
R2
19,200
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Balance
Nov. 15
D2
30
D2
13,170