PROBLEM I-5B (Continued)
(h) VERMAN CO.
Adjusted Trial Balance
February 28, 2015
Debit
Credit
Cash ……………………………………………………………
Accounts Receivable ……………………………………
Inventory …………………………………………………….
Supplies ……………………………………………………..
Equipment …………………………………………………..
Accumulated Depreciation—Equipment ………..
Accounts Payable ………………………………………..
Common Stock ……………………………………………
Cash Dividends ……………………………………………
Sales Revenue …………………………………………….
Sales Discounts …………………………………………..
Cost of Goods Sold ……………………………………..
Supplies Expense ………………………………………..
Depreciation Expense ………………………………….
$ 1,713
15,400
22,564
300
7,000
1,100
55
21,648
820
160
$70,760
$ 160
7,800
30,000
32,800
$70,760
COMPREHENSIVE PROBLEM: CHAPTERS 3 TO 6 AND APPENDIX I
Note: If the working papers that accompany this text are not used in
solving this problem, account numbers may differ from those presented in
this solution.
(a)
Sales Journal S1
Date
Account Debited
Ref.
Accounts Receivable Dr.
Sales Cr.
Jan. 3
3
11
11
22
22
25
25
W. Rayms
M. Fischer
G. Dukes
L. Longhini
W. Rayms
G. Dukes
M. Hall
M. Fischer
510
511
512
513
514
515
516
517
3,600
1,800
1,900
900
3,700
800
3,500
6,100
22,300
(112)(401)
Purchases Journal P1
Date
Account Credited
Terms
Ref.
Purchases Dr.
Accounts Payable Cr.
Jan. 5
5
16
16
16
27
27
27
K. Zapfel
J. Liotta
L. Quinn
O. Kisten
K. Zapfel
L. Quinn
J. Liotta
K. Zapfel
3,000
2,400
15,000
13,900
1,500
12,500
1,200
2,800
52,300
COMPREHENSIVE PROBLEM (Continued)
Cash Receipts Journal CR1
Date
Account
Credited
Ref.
Cash
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accounts
Cr.
Jan. 7
7
10
13
13
20
21
31
L. Longhini
M. Hall
W. Rayms
M. Fischer
L. Longhini
4,000
2,000
15,500
3,600
1,560
17,750
900
22,920
68,230
(101)
4,000
2,000
3,600
1,560
900
12,060
(112)
15,500
17,750
22,920
56,170
(401)
Cash Payments Journal CP1
Date
Account Debited
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Supplies
Dr.
Cash
Cr.
Jan. 8
9
9
12
15
17
23
23
28
31
Freight-In
O. Kitson
L. Quinn
Rent Expense
Cash Dividends
L. Quinn
O. Kitson
Salaries and Wages
Expense
516
729
332
627
180
1,000
650
7,400
9,230
(X)
9,000
11,000
15,000
13,700
48,700
(201)
400
200
600
(125)
180
9,000
11,000
1,000
650
400
15,000
13,700
200
7,400
58,530
(101)
COMPREHENSIVE PROBLEM (Continued)
(a) & (e)
General Journal G1
Date
Account Titles and Explanations
Ref.
Debit
Credit
Jan. 9
Sales Returns and
Allowances ……………………………..
Accounts Receivable—
M. Fischer ……………………….
(Issued credit for
merchandise returned)
412
112/
240
240
18
Accounts Payable—O. Kitson ………
Purchase Returns and
Allowances ……………………..
(Received credit for
returned goods)
201/
512
200
200
21
Accounts Payable—
D. Markoff ……………………………….
Notes Payable ……………………..
(Issued note for
balance due)
201/
200
15,000
15,000
Adjusting Entries
31
Supplies Expense ……………………….
Supplies …………………………..…
728
125
1,020
1,020
31
Insurance Expense
(1/10 X $2,000) …………………………
Prepaid Insurance ……………….
/
722
130/
200
200
31
Depreciation Expense
(1/12 X $1,500) …………………………
Accumulated Depreciation—
Equipment……………………….
711
158
125
125
31
Interest Expense …………………………
Interest Payable …………………..
718
230
30
30
COMPREHENSIVE PROBLEM (Continued)
General Journal G1
Date
Account Titles and Explanations
Ref.
Debit
Credit
Jan. 31
Inventory (Jan. 31) ………………………
Sales Revenue …………………………...
Purchase Returns and
Allowances ……………………………..
Income Summary ………………..
120
401
512
350
12,600
78,470
200
91,270
31
Income Summary ………………………..
Inventory
(Jan. 1) …………………………...
Sales Returns and
Allowances ……………………..
Purchases …………………………..
Freight In …………………………...
Rent Expense ……………………..
Salaries and Wages
Expense ………………………….
Supplies Expense ……………….
Insurance Expense ……………..
Depreciation Expense ………….
Interest Expense …………………
350
120
412
510
516
729
627
728
722
711
718
82,495
20,000
240
52,300
180
1,000
7,400
1,020
200
125
30
31
Income Summary ………………………..
Retained Earnings……………….
350
320
8,775
8,775
31
Retained Earnings ………………………
Cash Dividends …………………..
320
332
650
650
(b) & (e) General Ledger
COMPREHENSIVE PROBLEM (Continued)
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
31
31
9
Balance
S1
CR1
G1
22,300
12,060
240
13,000
35,300
23,240
23,000
Notes Receivable No. 115
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
42,000
Inventory No. 120
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
31
31
Balance
G1
G1
12,600
20,000
20,000
32,600
12,600
Supplies No. 125
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
31
31
Balance
CP1
G1
600
1,020
1,000
1,600
580
Prepaid Insurance No. 130
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
31
Balance
G1
200
2,000
1,800
Equipment No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
6,450
COMPREHENSIVE PROBLEM (Continued)
Accumulated Depreciation—Equipment No. 158
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
31
Balance
G1
125
1,500
1,625
Notes Payable No. 200
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 21
Balance
G1
15,000
15,000
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
31
31
18
21
Balance
P1
CP1
G1
G1
48,700
200
15,000
52,300
35,000
87,300
38,600
38,400
23,400
Interest Payable No. 230
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
G1
30
30
Common Stock No. 311
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
70,000
Retained Earnings No. 320
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
31
31
Balance
G1
G1
650
8,775
10,700
19,475
18,825
Cash Dividends No. 332
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 15
31
CP1
G1
650
650
650
0
COMPREHENSIVE PROBLEM (Continued)
Income Summary No. 350
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
31
31
G1
G1
G1
82,495
8,775
91,270
91,270
8,775
0
Sales Revenue No. 401
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
31
31
S1
CR1
G1
78,470
22,300
56,170
22,300
78,470
0
Sales Returns and Allowances No. 412
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 9
31
G1
G1
240
240
240
0
Purchases No. 510
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
31
P1
G1
52,300
52,300
52,300
0
Purchase Returns and Allowances No. 512
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 18
31
G1
G1
200
200
200
0
Freight-In No. 516
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 8
31
CP1
G1
180
180
180
0
COMPREHENSIVE PROBLEM (Continued)
Salaries and Wages Expense No. 627
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
31
CP1
G1
7,400
7,400
7,400
0
Depreciation Expense No. 711
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
31
G1
G1
125
125
125
0
Interest Expense No. 718
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
31
G1
G1
30
30
30
0
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
31
G1
G1
200
200
200
0
Supplies Expense No. 728
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
31
G1
G1
1,020
1,020
1,020
0
COMPREHENSIVE PROBLEM (Continued)
Rent Expense No. 729
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 12
31
CP1
G1
1,000
1,000
1,000
0
Accounts Receivable Subsidiary Ledger
G. Dukes
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
11
22
Balance
S1
S1
1,900
800
1,800
3,700
4,500
M. Fischer
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 3
9
13
25
S1
G1
CR1
S1
1,800
6,100
240
1,560
1,800
1,560
0
6,100
M. Hall
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
7
25
Balance
CR1
S1
3,500
2,000
7,200
5,200
8,700
L. Longhini
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
7
11
21
Balance
CR1
S1
CR1
900
4,000
900
4,000
0
900
0