Appendix E – Accounting with Special Journals
APP E-10
Appendix E Alternate Demonstration Problem #1 Continued
14
Issued Check No. 415, payable to Payroll, in payment of sales
salaries for the first half of the month, $855. Cashed the check
and paid the employees.
14
Cash sales for the first half of the month, $18,460. Cost of this
merchandise was $ 9,500. (Normally, cash sales are recorded
daily; they are recorded only twice in this problem to reduce
the number of repetitive entries.)
14
Post to the customer and creditor accounts and also post any
amounts that should be posted as individual amounts to the
general ledger accounts. (Normally, such items are posted
daily; but you are asked to post them only twice in this
problem.)
16
Purchased inventory on credit from Best Company, $410;
store supplies, $45; and office supplies, $30. Invoice dated
February 12, terms n/10, EOM.
17
Received a credit memorandum from Old Company for
unsatisfactory inventory received on February 14 and returned
for credit, $85.
18
Received a credit memorandum from More Company for office
equipment received on February 9 and returned for credit,
$130.
21
Received payment from Carl Cole for the sale of February 11
less the discount.
21
Issued Check No. 416 to Old Company in payment of its
invoice of February 11 less the return and the discount.
24
Sold inventory costing $475 on credit to Carl Cole for $835,
Invoice No. 714.
26
Sold inventory costing $375 on credit to Gary Glen for $775,
Invoice No. 715.
28
Issued Check No. 417, payable to Payroll, in payment of sales
salaries for the last half of the month, $855. Cashed the check
and paid the employees.
Appendix E – Accounting with Special Journals
APP E-11
Appendix E Alternate Demonstration Problem #1 Continued
28
Cash sales for the last half of the month, $20,215. Cost of this
merchandise was $ 11,500.
28
Post to the customer and creditor accounts and post any
amounts that should be posted as individual amounts to
general ledger accounts.
28
Foot and crossfoot the journals and make the month–end
postings.
Required:
1. Open the following general ledger accounts: Cash, Accounts
Receivable, Inventory, Store Supplies, Office Supplies, Office
Equipment, Notes Payable, Accounts Payable, F. Stone, Capital,
Sales, Sales Discounts, Cost of Goods Sold, and Sales Salaries
Expense.
2. Open the following accounts receivable ledger accounts: Carl Cole,
Dale Dent, and Gary Glen.
3. Open the following accounts payable ledger accounts: Able
Company, Best Company, More Company, and Old Company.
4. Enter the transactions in a Sales Journal, a Purchases Journal, a
Cash Receipts Journal, a Cash Disbursements Journal, and a
General Journal similar to the ones illustrated in this chapter. Post
when instructed to do so.
5. Prepare a trial balance and prove the subsidiary ledgers by
preparing schedules of accounts receivable and payable.
Appendix E – Accounting with Special Journals
APP E-12
Solution: Appendix E Alternate Demonstration Problem #1
SALES JOURNAL
Date
Account Debited
Invoice
Number
PR
Accts Rec Dr
Sales Cr
Cost of Goods Sold Debit
Inventory Credit
Feb.
2
Dale Dent
711
800.00
500.00
4
Gary Glen
712
1,250.00
850.00
11
Carl Cole
713
1,650.00
1,000.00
24
Carl Cole
714
835.00
475.00
26
Gary Glen
715
775.00
375.00
28
Totals
. . . .
5,310.00
3,200.00
(112/411)
(511/113)
PURCHASES JOURNAL
Date
Amount Credited
Date of
Invoice
Terms
P
R
Accounts
Payable
Credit
Inventory
Debit
Store
Supplies
Debit
Office
Supplies
Debit
Feb.
3
Able Company
1/30
2/10, n/60
1,750.00
1,750.00
. . . . .
. . . . .
5
Best Company
2/4
n/10, EOM
1,965.00
1,855.00
75.00
35.00
14
Old Company
2/11
2/10, n/60
1,985.00
1,985.00
. . . . .
. . . . .
16
Best Company
2/12
n/10, EOM
485.00
410.00
45.00
30.00
28
Totals
. . . . .
. . . . . . . .
6,185.00
6,000.00
120.00
65.00
(212)
(113)
(115)
(116)
Appendix E – Accounting with Special Journals
APP E-13
Solution: Appendix E Alternate Demonstration Problem #1
CASH RECEIPTS JOURNAL
Date
Account
Credited
Explanation
PR
Cash
Debit
Sales
Disc.
Debit
Accts.
Rec.
Credit
Sales
Credit
Other
Accts.
Credit
Cost of
Goods Sold
Debit
Inventory
Credit
Feb.1
F.Stone,
Capital
Investment
311
100,000.00
…………….
……………
……………
100,000.00
……………
7
Notes
Payable
Note to bank
211
5,000.00
…………….
……………
……………
5,000.00
……………
12
Dale Dent
Sale of 2/2
784.00
16.00
800.00
……………
…………….
……………
14
Gary Glen
Sale of 2/4
1,225.00
25.00
1,250.00
……………
…………….
……………
14
Sales
Cash sales
18,460.00
…………….
……………
18,460.00
…………….
9,500.00
21
Carl Cole
Sale of 2/11
1,617.00
33.00
1,650.00
……………
…………….
……………
28
Sales
Cash sales
20,215.00
…………….
……………
20,215.00
…………….
11,500.00
28
Totals ..………
……………………
147,301.00
74.00
3,700.00
38,675.00
105,000.00
21,000.00
(111)
(413)
(112)
(411)
()
(511/113)
CASH DISBURSEMENTS JOURNAL
Date
Ch.
No.
Payee
Account Debited
PR
Cash
Credit
Inventory
Credit
Accts.
Pay
Debit
Other
Accts.
Debit
Feb.1
413
Flint Company
Inventory
113
75,000.00
…………….
……………
75,000.00
9
414
Able Company
Invoice of 1/30
1,715.00
35.00
1,750.00
……………
14
415
Payroll
Sales Salaries Exp.
612
855.00
…………….
……………
855.00
21
416
Old Company
Invoice of 2/11
1,862.00
38.00
1,900.00
……………
28
417
Payroll
Sales Salaries Exp.
612
855.00
…………….
……………
855.00
28
Totals ………..
……………………………..
80,287.00
73.00
3,650.00
76,710.00
(111)
(113)
(212)
()
Appendix E – Accounting with Special Journals
APP E-14
Solution: Appendix E Alternate Demonstration Problem #1, Continued
GENERAL JOURNAL
Feb 9
Office Equipment
133
625.00
Accounts Payable/ More Company
212/
625.00
17
Accounts Payable/ Old Company
212/
85.00
Inventory
113
85.00
18
Accounts Payable/ More Company
212/
130.00
Office Equipment
133
130.00
GENERAL LEDGER
Cash Acct. No. 111
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
28
R2
D2
147,301
80,287
147,301
67,014
Accounts Receivable Acct. No. 112
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
28
S2
R2
5,310
3,700
5,310
1,610
Appendix E – Accounting with Special Journals
APP E-15
Solution: Appendix E Alternate Demonstration Problem #1, Continued
Inventory Acct. No. 113
Date
Explanation
PR
Debit
Credit
Balance
Feb.
2
17
28
28
28
28
D2
G2
P2
S2
R2
D2
75,000
6,000
85
3,200
21,000
73
75,000
74,915
80,915
77,715
56,715
56,642
Store Supplies Acct. No. 115
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
P2
120
120
Office Supplies Acct. No. 116
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
P2
65
65
Office Equipment Acct. No. 133
Date
Explanation
PR
Debit
Credit
Balance
Feb.
9
18
G2
G2
625
130
625
495
Notes Payable Acct. No. 211
Date
Explanation
PR
Debit
Credit
Balance
Feb.
7
R2
5,000
5,000
Accounts Payable Acct. No. 212
Date
Explanation
PR
Debit
Credit
Balance
Feb.
9
17
18
28
28
G2
G2
G2
P2
D2
85
130
3,650
625
6,185
625
540
410
6,595
2,945
Appendix E – Accounting with Special Journals
APP E-16
Solution: Appendix E Alternate Demonstration Problem #1, Continued
F. Stone, Capital Acct. No. 311
Date
Explanation
PR
Debit
Credit
Balance
Feb.
1
R2
100,000
100,000
Sales Acct. No. 411
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
28
S2
R2
5,310
38,675
5,310
43,985
Sales Discounts Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
R2
74
74
Cost of Goods Sold Acct. No. 511
Date
Explanation
PR
Debit
Credit
Balance
Feb.
28
28
R2
SJ
21,000
3,200
21,000
24,200
Sales Salaries Expense Acct. No. 612
Date
Explanation
PR
Debit
Credit
Balance
Feb.
14
28
D2
D2
855
855
855
1,710
Appendix E – Accounting with Special Journals
APP E-17
Solution: Appendix E Alternate Demonstration Problem #1, Continued
ACCOUNTS RECEIVABLE LEDGER
Carl Cole
Date
Explanation
PR
Debit
Credit
Balance
Feb.
11
21
24
S2
R2
S2
1,650
835
1,650
1,650
-0-
835
Dale Dent
Date
Explanation
PR
Debit
Credit
Balance
Feb.
2
12
S2
R2
800
800
800
-0-
Gary Glen
Date
Explanation
PR
Debit
Credit
Balance
Feb.
4
14
26
S2
R2
S2
1,250
775
1,250
1,250
-0-
775
ACCOUNTS PAYABLE LEDGER
Able Company
Date
Explanation
PR
Debit
Credit
Balance
Feb.
3
9
P2
D2
1,750
1,750
1,750
-0-
Best Company
Date
Explanation
PR
Debit
Credit
Balance
Feb.
5
16
P2
P2
1,965
485
1,965
2,450
More Company
Date
Explanation
PR
Debit
Credit
Balance
Feb.
9
18
G2
G2
130
625
625
495
Old Company
Date
Explanation
PR
Debit
Credit
Balance
Feb.
14
17
21
P2
G2
D2
85
1,900
1,985
1,985
1,900
-0-
Appendix E – Accounting with Special Journals
APP E-18
Solution: Appendix E Alternate Demonstration Problem #1, Continued
BEDROCK COMPANY
Trial Balance
February 28, 2013
Cash …………………………………………………………………
Accounts Receivable …………………………………………
Inventory …………………………………………………………..
Store supplies ……………………………………………………
Office supplies …………………………………………………..
Office equipment ……………………………………………….
Notes payable …………………………..……………………….
$ 5,000
Accounts payable ………………………………………………
2,945
F. Stone, Capital ………………………………………………..
100,000
Sales …………………………………………………………………
43,985
Sales discounts …………………………………………………
Cost of Goods Sold ……………………………………………
Sales salaries expense ………………………………………
______
Totals ……………………………………………………….
$151,930
BEDROCK COMPANY
Schedule of Accounts Receivable
February 28, 2013
Carl Cole ……………………………………………………………
$ 835
Gary Glen ………………………………………………………….
775
Total ………………………………………………………...
$1,610
BEDROCK COMPANY
Schedule of Accounts Payable
February 28, 2013
Best Company …………………………………………………..
$2,450
More Company ………………………………………………….
495
Total ………………………………………………………..
$2,945