EXERCISE I-6
(a) & (b) NORREN COMPANY
Sales Journal S1
Date
Account
Debited
Invoice
No.
Ref.
Cost of Goods Sold Dr.
Inventory Cr.
2015
Sept. 2
21
J. Yancey
K. Pricer
101
102
420
480
900
NORREN COMPANY
Purchases Journal P1
Date
Account Credited
Terms
Ref.
Inventory Dr.
Accounts Payable Cr.
2015
Sept. 10
25
H. Heerey
G. Jeanik
2/10, n/30
n/30
600
835
1,435
EXERCISE I-7
(a) & (b) MILNER CO.
Cash Receipts Journal CR1
Date
Account
Credited
Ref.
Cash
Dr.
Sales
Discounts
Dr.
Accounts
Receivable
Cr.
Sales
Revenue
Cr.
Other
Accounts
Cr.
Cost of Goods Sold
Dr.
Inventory
Cr.
2015
May 1
2
22
Common Stock
N. Feeney
48,000
6,340
9,000
63,340
9,000
9,000
6,340
6,340
48,000
48,000
4,200
4,200
EXERCISE I-7 (Continued)
MILNER CO.
Cash Payments Journal CP1
Date
Ck.
No.
Account Debited
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Cash
Cr.
2015
May 3
14
101
102
Inventory
Salaries and Wages Expense
7,200
700
7,900
7,200
700
7,900
EXERCISE I-8
(a) Journal
(b) Columns in the journal
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Cash Payments
Cash Receipts
Cash Payments
Cash Payments
Cash Receipts
Cash Payments
Cash Payments
Cash Receipts
Cash Payments
Cash Receipts
Cash (Cr.), Other Accounts (Dr.).
Cash (Dr.), Sales Discounts (Dr.), and
Accounts Receivable (Cr.).
Cash (Cr.), Other Accounts (Dr.).
Cash (Cr.), Inventory (Cr.), and
Accounts Payable (Dr.).
Cash (Dr.), Accounts Receivable (Cr.).
Cash (Cr.), Other Accounts (Dr.).
Cash (Cr.), Other Accounts (Dr.).
Cash (Dr.), Other Accounts (Cr.).
Cash (Cr.), Other Accounts (Dr.).
Cash (Dr.), Sales Revenue (Cr.), Cost of Goods
Sold (Dr.), and Inventory (Cr.).
EXERCISE I-9
(a) Mar. 2 Equipment …………………………………………….. 9,400
5 Accounts Payable—Dumont
7 Sales Returns and Allowances ……………….. 390
Accounts Receivable—Horst
Inventory ………………………………………………. 240
(b) To: President Nolasco
From: Chief Accountant
Subject: Posting of Control and Subsidiary Accounts
The posting of these accounts varies with the journals used in recording
the transactions.
Sales and purchases journals—the total for the month is posted to
I hope this memo answers your questions about posting.
EXERCISE I-10
1. Cash Payments Journal 8. Cash Receipts Journal
7. General Journal
EXERCISE I-11
(a) The debit posting reference on February 28 should be from the cash
payments journal to record the payments made during the month. The
(b) Only the general journal amounts were dual posted. Thus, the amounts
EXERCISE I-12
(a)
Purchases Journal P1
Date
Account Credited
Ref.
Inventory Dr.
Accounts Payable Cr.
July 3
12
14
17
20
21
29
Carolina Co.
Nevada Co.
Kentucky Co.
Florida Corp.
Carolina Co.
Nevada Co.
Florida Corp.
2,400
500
1,300
1,400
700
600
1,600
8,500
EXERCISE I-12 (Continued)
(b)
General Journal
Date
Accounts and Explanations
Ref.
Debit
Credit
July 1
Equipment ………………………………….
Accounts Payable—Alaska
Equipment Co. …………………
153/
201/
3,900
3,900
15
Inventory …………………………………….
Accounts Payable—
Oklahama Inc …………………..
120/
201/
600
600
(This entry should have been recorded in the Purchases Journal.)
18
Accounts Payable—Florida
Corp. …………………………..………….
Inventory …………………………….
201/
120/
380
380
25
Accounts Payable—Kentucky Co...
Inventory …………………………….
201/
120/
200
200
EXERCISE I-13
$985 ($280 + $240 + $145 + $190 + $130). All of the debit postings to the sub–
EXERCISE I-14
(a) $19,000 + $72,000 – $46,000 = $45,000
SOLUTIONS TO PROBLEMS
PROBLEM I-1A
(a)
Cash Receipts Journal CR1
Date
Account
Credited
Ref.
Cash
Dr.
Sales
Discounts
Dr.
Accounts
Receivable
Cr.
Sales
Revenue
Cr.
Other
Accounts
Cr.
Cost of Goods Sold
Dr.
Inventory
Cr.
Apr. 1
4
5
8
10
11
23
29
Common
Stock
Afzal
Hurt Co.
Park
Inventory
Hurt Co.
Kolten
311
120
7,200
1,764
990
7,845
600
680
1,500
1,200
21,779
(101)
36
36
(414)
1,800
990
600
1,500
1,200
6,090
(112)
7,845
7,845
(401)
7,200
680
7,880
(X)
4,347
4,347
(505)(120)
(b) General Ledger
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 1
30
Balance
CR1
6,090
7,450
1,360
Accounts Receivable Subsidiary Ledger
Park
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 1
10
Balance
CR1
600
1,550
950
PROBLEM I-1A (Continued)
Kolten
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 1
29
Balance
CR1
1,200
1,200
0
Hurt Co.
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 1
5
23
Balance
CR1
CR1
990
1,500
2,900
1,910
410
Afzal
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 1
4
Balance
CR1
1,800
1,800
0
Subsidiary account balances:
PROBLEM I-2A
(a)
Cash Payments Journal CP1
Date
Ck.
No.
Account Debited
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Inventory
Cr.
Cash
Cr.
Oct. 1
3
5
10
15
16
19
29
63
64
65
66
67
68
69
70
Inventory
Equipment
Coulsen Company
Inventory
Noy Co.
Cash Dividends
Flynn Co.
Trent Company
120
157
120
332
300
1,200
2,250
400
4,150
(X)
2,700
2,100
1,800
2,500
9,100
(201)
54
36
90
(120)
300
1,200
2,646
2,250
2,100
400
1,764
2,500
13,160
(101)
(b) General Ledger
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Oct. 1
31
Balance
CP1
9,100
11,000
1,900
Accounts Payable Subsidiary Ledger
Coulsen Company
Date
Explanation
Ref.
Debit
Credit
Balance
Oct. 1
5
Balance
CP1
2,700
2,700
0
PROBLEM I-2A (Continued)
Flynn Co.
Date
Explanation
Ref.
Debit
Credit
Balance
Oct. 1
19
Balance
CP1
1,800
2,500
700
Noy Co.
Date
Explanation
Ref.
Debit
Credit
Balance
Oct. 1
15
Balance
CP1
2,100
2,100
0
Trent Company
Date
Explanation
Ref.
Debit
Credit
Balance
Oct. 1
29
Balance
CP1
2,500
3,700
1,200
(c) Accounts payable balance: $1,900
PROBLEM I-3A
(a)
Purchases Journal P1
Date
Account Credited (Debited)
Ref.
Accounts
Payable
Cr.
Inventory
Dr.
Other
Accounts
Dr.
July 1
2
5
13
15
15
18
24
26
28
Dent Company
Rensing Shipping
Langer Company
Abel Supply
(Supplies)
Dent Company
Goran Company
Wei Advertisements
(Advertising Expense)
Langer Company
Abel Supply
(Equipment)
Rensing Shipping
126/
610/
157/
7,600
400
3,200
910
3,600
3,300
600
3,000
900
380
23,890
(201)
7,600
400
3,200
3,600
3,300
3,000
380
21,480
(120)
910
600
900
2,410
(X)
Sales Journal S1
Date
Account Debited
Ref.
Accounts Receivable Dr.
Sales Revenue Cr.
Cost of Goods Sold Dr.
Inventory Cr.
July 3
3
16
16
21
21
Dayley Company
Orsen Bros.
Gentry Company
Orsen Bros.
Dayley Company
Musky Company

1,300
2,000
3,450
1,570
310
2,800
910
1,400
2,415
1,099
217
1,960