Problem E-2A (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
Paula Kohr
Date
Explanation
PR
Debit
Credit
Balance
Apr. 5
S3
8,000
8,000
14
R3
8,000
0
27
S3
3,170
3,170
Nic Nelson
Date
Explanation
PR
Debit
Credit
Balance
Apr. 11
S3
10,500
10,500
20
R3
10,500
0
27
S3
6,700
6,700
Part 4
WISET COMPANY
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
balances listed on the schedule of accounts receivable back to the
subsidiary accounts to confirm that they are listed correctly on the
schedule. Next, recalculate the balance of each subsidiary account to
confirm that the additions and subtractions are correct. Next, trace the
postings from each subsidiary account and from the controlling account
back to the appropriate journals. Since the sales and cash receipts
journals were footed and crossfooted before posting, the previous steps
should disclose the error.
©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.
Solutions Manual, Appendix E
461
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
Problem E-3A (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
Long–Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
110,000
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
20,000
Retained Earnings
Acct. No. 318
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
80,000
Sales Salaries Expense
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Balance
Apr. 16
D3
10,750
10,750
30
D3
10,750
21,500
Advertising Expense
Acct. No. 655
Date
Explanation
PR
Debit
Credit
Balance
Apr. 4
D3
899
899
ACCOUNTS PAYABLE LEDGER
Custer, Inc.
Date
Explanation
PR
Debit
Credit
Balance
Apr. 3
P3
1,480
1,480
6
G3
80
1,400
Grant Company
Date
Explanation
PR
Debit
Credit
Balance
Apr. 17
P3
13,750
13,750
23
G3
750
13,000
26
D3
13,000
0
Problem E-3A (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
Noth Company
Date
Explanation
PR
Debit
Credit
Balance
Apr. 2
P3
14,300
14,300
12
D3
14,300
0
25
P3
11,375
11,375
Part 4
WISET COMPANY
Trial Balance
April 30
Debit
Credit
Cash …………………………..………………………..
$ 35,847
Inventory ……………………………………………..
163,129
Office supplies ……………………………………..
1,400
Store supplies ……………………………………...
830
Store equipment …………………………………..
12,125
Accounts payable ………………………………...
$ 25,730
Long-term notes payable……………………...
110,000
Common stock …………………………………….
20,000
Retained earnings ………………………………..
80,000
Sales salaries expense ………………………...
21,500
Advertising expense …………………………….
899
Totals …………………………..……………………...
$235,730
$235,730
WISET COMPANY
Schedule of Accounts Payable
April 30
Custer, Inc. ……………………………………………
$ 1,400
Hal’s Supply ……………………………………….…
12,955
Noth Company. …………………………………....
11,375
Total accounts payable ……………………….…
$25,730
©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.
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
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)
()
©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 and Managerial Accounting, 6th Edition
466
Problem E-1B (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-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.
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
17
G2
557
39,443
30
P2
36,057
75,500
30
D2
710
74,790
30
S2
19,050
55,740
30
R2
19,200
36,540
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 E-1B (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
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Balance
Nov. 1
10,000
Retained Earnings
Acct. No. 318
Date
Explanation
PR
Debit
Credit
Balance
Nov. 1
30,000
Sales
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
Nov. 30
S2
33,275
33,275
30
R2
34,873
68,148
Sales Discounts
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
Nov. 30
R2
506
506
Costs of Goods Sold
Acct. No. 502
Date
Explanation
PR
Debit
Credit
Balance
Nov. 30
S2
19,050
19,050
30
R2
19,200
38,250
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