SB–11, cont.
Requirement 3, cont.
SB–12 Recording transactions in a general journal
Learning Objective 3
Mar. 2 Sold merchandise inventory on account, terms n/30, to B. Kelp, issuing
invoice no. 501 for $1,000 (cost, $680).
6 Issued credit memo to B. Kelp for $1,000 for merchandise returned to the
business by the customer. Also accounted for receipt of the merchandise
inventory at cost.
21 Purchased merchandise inventory on credit terms of 3/10, n/30 from Pond
Co., $600.
28 Returned damaged merchandise inventory to Pond Co., issuing a debit
memo for $600.
Journalize the above transactions that should be recorded in the general journal. If a transaction
should not be recorded in the general journal, identify the special journal that should be used.
Assume the company uses the perpetual inventory system.
SOLUTION
SB–13 Understanding components of a computerized accounting information system
Learning Objective 4
Ned Timmons, engineer, is considering using a computerized accounting system for his
professional engineering business. Ned has asked that you help him understand the components
of a computerized accounting information system by answering the following questions:
Requirements
1. What are the two basic components of a computerized accounting information system?
2. Provide examples of each component.
3. If Ned were interested in an entry-level software system, what software might you
recommend?
SOLUTION
Exercises
EB–14 Recording transactions—sales journal
Learning Objective 2
Accounts Receivable DR, Sales Revenue CR column total $1,550
Feb. 1 Sold merchandise inventory on account, terms n/30, to Cole Co., $1,050.
Cost of goods, $860. Invoice no. 401.
6 Sold merchandise inventory for cash, $950 (cost, $750).
12 Collected interest revenue of $170.
15 Received cash from Cole Co. in full settlement of its account receivable.
20 Sold merchandise inventory on account, terms n/30, to Dump Co., issuing
invoice no. 402 for $500 (cost, $325).
22 Sold merchandise inventory for cash, $600 (cost $530).
26 Sold office supplies to an employee for cash of $150.
28 Received $500 from Dump Co. in full settlement of its account receivable.
Requirements
1. Prepare headings for a sales journal. Journalize the transactions that should be recorded in the
sales journal. Assume the company uses the perpetual inventory system.
2. Total each column of the sales journal.
SOLUTION
Requirements 1 and 2
Learning Objective 2
Accounts Receivable CR column total $1,550
Refer to information in Exercise EB-14.
Requirements
1. Prepare headings for a cash receipts journal. Journalize the transactions that should be
recorded in the cash receipts journal.
2. Total each column of the cash receipts journal.
SOLUTION
EB–16 Using the sales and cash receipts journals
Learning Objective 2
The sales and cash receipts journals of Caverly Office Products include the following entries:
Identify the missing information in the cash receipts journal for those transactions listed. All
credit sales are terms n/30. Assume all the accounts are paid in full. Also, total the columns in the
cash receipts journal and show that total debits equal total credits.
EB–16, cont.
SOLUTION
EB–17 Analyzing postings from the cash receipts journal
Learning Objective 2
The cash receipts journal of Silver Plastics follows:
Silver’s general ledger includes the following selected accounts, along with their account
numbers:
Number Account
110 Cash
115 Accounts Receivable
118 Merchandise Inventory
125 Notes Receivable
510 Sales Revenue
512 Sales Discounts Forfeited
520 Interest Revenue
611 Cost of Goods Sold
Indicate whether each posting reference (a) through (k) should be a
• Check mark () for a posting to a customer account in the accounts receivable subsidiary
ledger.
• Account number for a posting to an account in the general ledger. If so, give the account
number.
• Letter (X) for an amount not posted.
SOLUTION
EB–18 Identifying transactions in the accounts receivable subsidiary ledger
Learning Objective 2
A customer account in the accounts receivable subsidiary ledger of Leger Old Company follows:
Describe the three posted transactions.
SOLUTION
Learning Objective 3
Accounts Payable CR column total $4,800
Apr. 2 Purchased merchandise inventory on credit terms of 3/10, n/60 from
Vanderbilt Co., $2,400.
5 Issued check no. 820 to purchase equipment for cash, $3,600.
11 Purchased merchandise inventory for cash, $750, issuing check no. 821.
12 Issued check no. 822 to pay Vanderbilt Co. net amount owed from Apr. 2.
19 Purchased office supplies on account from Downing Supplies, $500. Terms
were n/EOM.
24 Purchased merchandise inventory on credit terms of net 30 from
Wilmington Sales, $1,900.
28 Issued check no. 823 to pay for insurance coverage, debiting Prepaid
Insurance for $1,000.
29 Issued check no. 824 to pay rent for the month, $1,250.
Requirements
1. Prepare headings for a purchases journal. Journalize the transactions that should be recorded
in the purchases journal. The company uses the perpetual inventory system.
2. Total each column of the purchases journal.