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EB–19, cont.
SOLUTION
EB–20 Recording transactions—cash payments journal
Learning Objective 3
Cash CR column total $8,928
Refer to information in Exercise EB-19.
Requirements
1. Prepare headings for a cash payments journal. Journalize the transactions that should be
recorded in the cash payments journal.
2. Total each column of the cash payments journal.
SOLUTION
30 Totals 6,600 2,400 72 8,928
*$2,400 × 3% = $72; $2,400 – $72 = $2,328
EB–21 Posting from the purchases journal; balancing the ledgers
Learning Objective 3
Merchandise Inventory DR column total $2,300
The purchases journal of Southeastern Publishing Company follows:
Requirements
1. Total each column of the purchases journal.
2. Open four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120),
Equipment (150), and Accounts Payable (211). Post to these accounts from the purchases
journal. Use dates and posting references in the accounts.
3. Open four-column accounts in the accounts payable subsidiary ledger for Fallon Equipment,
Jell Supply, and Leap Tech. Post from the purchases journal. Use dates and posting references
in the ledger accounts.
4. Balance the Accounts Payable control account in the general ledger with the total of the
ending balances in the accounts payable subsidiary ledger.
EB–21, cont.
SOLUTION
EB–21, cont.
Requirements 1, 2, and 3, cont.
EB–21, cont.
Requirements 1, 2, and 3, cont.
The total of the vendor balances in the accounts payable subsidiary ledger agrees with the
balance in Accounts Payable in the general ledger: $3,335.
EB–22 Identifying transactions in the accounts payable subsidiary ledger
Learning Objective 3
A vendor account in the accounts payable subsidiary ledger of Frost Company follows.
Describe the three posted transactions.
SOLUTION
EB–23 Identifying errors in special journals
Learning Objectives 2, 3
Transaction Recording
a. Henry Associates paid $490 on account for an earlier
purchase of merchandise inventory.
Purchases journal
b. Recorded depreciation expense for the month. Cash payments journal
c. Collected interest revenue. Cash receipts journal
d. Sold merchandise inventory on account. Cash receipts journal
e. Issued check no. 535 for purchase of merchandise
inventory.
Purchases journal
f. Returned damaged inventory that was purchased on
account.
Purchases journal
g. Sold merchandise inventory for cash. Sales journal
For each transaction listed, identify the recording error and indicate the journal that should have
been used.
SOLUTION
Problems (Group A)
All problems can be completed manually or by using either MyAccountingLab General
Ledger or QuickBooks.
PB–24A Using the sales, cash receipts, and general journals
Learning Objectives 2, 3
Cash Receipts Journal, Accounts Receivable CR column total $11,600
Assume Sparkling Springs Glass Company uses the perpetual inventory system. The general
ledger of Sparkling Springs Glass Company includes the following selected accounts, along with
their account numbers:
Number Account Number Account
11 Cash 18 Equipment
12 Accounts Receivable 19 Land
13 Notes Receivable 41 Sales Revenue
15 Merchandise Inventory 51 Cost of Goods Sold
16 Office Supplies
Sales and cash receipts transactions in July were as follows:
Jul. 2 Sold merchandise inventory on credit, terms n/30, to Intel, Inc., $1,500 (cost, $200).
3 Sold office supplies to an employee at cost, $80, receiving cash.
7 Cash sales for the week totaled $2,300 (cost, $1,500).
9 Sold merchandise inventory on account, terms n/30, to A. B. Miller, $7,700 (cost, $5,200).
10 Sold land that cost $10,000 for cash of the same amount.
11 Sold merchandise inventory on account, terms n/30, to Speedy Electric, $5,400 (cost,
$3,350).
12 Received cash from Intel in full settlement of its account receivable from July 2.
14 Cash sales for the week were $2,600 (cost, $1,700).
15 Sold merchandise inventory on credit, terms n/30, to the partnership of William & Bill,
$3,400 (cost, $2,400).
20 Sold merchandise inventory on account, terms n/30, to Speedy Electric, $500 (cost, $250).
21 Cash sales for the week were $980 (cost, $640).
22 Received $4,000 cash from A. B. Miller in partial settlement of his account receivable.
25 Received cash from William & Bill for its account receivable from July 15.
25 Sold merchandise inventory on account, terms n/30, to Oscar Co., $1,520 (cost, $1,000).
27 Collected $5,000 on a note receivable. There was no interest earned.
28 Cash sales for the week totaled $3,710 (cost, $2,450).
29 Sold merchandise inventory on account, terms n/30, to R. O. Bart, $200 (cost, $100).
31 Received $2,700 cash on account from A. B. Miller.
PB–24A, cont.
Requirements
1.Use the appropriate journal to record the preceding transactions in a sales journal (omit the
Invoice No. column) and a cash receipts journal (omit the Sales Discounts Forfeited column).
2. Total each column of the sales journal and the cash receipts journal. Show that total debits
equal total credits.
3. Show how postings would be made by writing the account numbers and check marks in the
appropriate places in the journals.
SOLUTION
Requirements 1, 2 and 3
