JOHN WILEY & SONS, INC.
SOLUTIONS TO CAMPUS CYCLE SHOP
A BUSINESS PAPERS PRACTICE SET
JERRY J. WEYGANDT Ph.D., C.P.A.
Arthur Anderson Alumni Professor of Accounting
University of Wisconsin – Madison
Madison, Wisconsin
PAUL D. KIMMEL Ph.D., C.P.A.
Associate Professor of Accounting
University of Wisconsin – Milwaukee
Milwaukee, Wisconsin
DONALD E. KIESO Ph.D., C.P.A.
KPMG Emeritus Professor of Accountancy
Northern Illinois University
DeKalb, Illinois
To order books or for customer service call 1-800-CALL-WILEY (225-5945)
TABLE OF CONTENTS
Sales Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Purchases Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Cash Receipts Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Cash Payments Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
General Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
General Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Accounts Receivable Subsidiary Ledger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Accounts Payable Subsidiary Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Continuous Checkbook Balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Original Deposit Tickets for September . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Bank Reconciliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Work Sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Accounts Receivable Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Accounts Payable Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Owner’s Equity Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Balance Sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Post-Closing Trial Balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
SALES JOURNAL
S5
Cost of Goods
20xx Inv. Accts. Rec. Dr. Sold Dr.
Date Account Debited No. Ref. Sales Rev. Cr. Inventory Cr.
1 Sept 1 Billy’s Bike and Skate Rental 524 ✔2500 1750 1
2 8 State University Cycling Club 525 ✔2850 1995 2
3 15 Normal Park District 526 ✔2000 1400 3
4 18 Twin Cities Bicycle Tours 527 ✔3300 2310 4
5 18 Evergreen Parks and Recreation 528 ✔4000 2800 5
13 13
14 14
15 15
PURCHASES JOURNAL
P8
Inventory Dr.
20xx Accounts
Date Account Credited Invoice # Terms Ref. Payable Cr.
1 Sept 4 Terry Cycling Apparel 230 2/10, n/30 ✔450 1
2 8 Gita Bicycles & Frames 993 n/30 ✔2260 2
3 9 Tandems USA 1108 1/15, n/30 ✔6000 3
4 17 Tuffy Bicycle Company 1417 2/10, n/30 ✔3400 4
5 18 Bicycle Transit Authority 837 2/10, n/30 ✔2200 5
6 22 Gita Bicycles & Frames 1023 n/30 ✔6560 6
14 14
15 15
16 16
17 17
18 18
19 19
20 20
CASH RECEIPTS JOURNAL
CR4
Date Cash
20xx Account Credited Ref. Dr.
1 Sept 1 Service Revenue 400 9 5 4 0 1
2 2 Billy’s Bike and Skate Rental ✔3283 2
3 3 Evergreen Parks and Recreation ✔2744 3
4 3 Twin Cities Bicycle Tours ✔3920 4
5 8 Service Revenue 400 2 4 8 0 5
6 8 Evergreen Parks and Recreation ✔3332 6
7 9 Billy’s Bike and Skate Rental ✔2156 7
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
41 41
42 42
43 43
44 44
45 45
CASH RECEIPTS JOURNAL
CR4
Sales Accounts Sales Other Cost of Goods
Discounts Receivable Revenue Accounts Sold Dr.
Debit Credit Credit Credit Inventory Cr.
1 8540 1000 5978 1
2 67 3350 2
3 56 2800 3
4 80 4000 4
5 1500 980 1050 5
6 68 3400 6
7 44 2200 7
8 73 3650 8
9 84 4200 9
10 6180 1800 4326 10
11 57 2850 11
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
41 41
42 42
43 43
44 44
45 45
1 Sept 1 315 Gita Bicycles & Frames Gita Bicycles & Frames 1
2 2 316 Tuffy Bicycle Company Tuffy Bicycle Company 2
3 2 317 Avanti Racers, Inc. Avanti Racers, Inc. 3
4 3 318 Terry Cycling Apparel Terry Cycling Apparel 4
5 3 319 Ginny Jordan Salaries and Wages Payable 5
6 4 320 Ginny Jordan Owner’s Drawings 6
7 4 321 Bicycle Transit Authority Bicycle Transit Authority 7
8 4 322 Tandems USA Tandems USA 8
9 9 323 Avanti Racers, Inc. Avanti Racers, Inc. 9
10 10 324 Ginny Jordan 10
11 11 325 Peterson Supply Co. Supplies 11
12 14 326 Terry Cycling Apparel Terry Cycling Apparel 12
13 14 327 The Community News Advertising Expense 13
14 17 328 Ginny Jordan 14
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
41 41
42 42
43 43
44 44
45 45
CASH PAYMENTS JOURNAL
CP9
20xx Check
Date No. Payee Account Debited
CASH PAYMENTS JOURNAL
CP9
Salaries
Other & Wages Accounts Cash
Ref. Accounts Dr. Expense Dr. Payable Dr. Inventory Cr. Cr.
1✔6200 6200 1
2✔3000 60 2940 2
3 ✔2000 40 1960 3
4✔800 16 784 4
5 212 500 900 1400 5
6 306 1200 1200 6
7✔3800 76 3724 7
8✔1200 12 1188 8
9✔1600 32 1568 9
10 1000 1000 10
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
41 41
42 42
43 43
44 44
45 45
1 Sept 4 Sales Returns and Allowances 412 3 0 0 1
2 Accounts Receivable/Billy’s Bike and Skate Rental 112 ✔ 300 2
3 (To record credit to Customer for defective bike- 3
4 –Credit Memo No.12) 4
5 5
6 15 Accounts Payable/Gita Bicycles & Frames 201 ✔250 6
7 Inventory 120 2 5 0 7
8 (To record return of men’s racer- 8
9 –Credit Memo No. 102) 9
10 10
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
GENERAL JOURNAL
J5
Date
20xx Account Titles and Explanation Ref. Debit Credit
1 Sept 30 -ADJUSTING ENTRIES- 1
2 2
3 (a) Supplies Expense 631 1833 3
4 Supplies 126 1833 4
5 (To record supplies used in September) 5
6 6
7 (b) Insurance Expense 722 2 0 0 7
8 Prepaid Insurance 130 2 0 0 8
9 (To record insurance expense for September) 9
10 10
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
GENERAL JOURNAL
J6
Date
20xx Account Titles and Explanation Ref. Debit Credit
1 Sept — CLOSING ENTRIES — 1
2 30 Sales Revenve 401 5 3670 2
3 Service Revenue 400 4677 3
4 Rent Revenue 829 3 0 0 4
5 Income Summary 350 5 8647 5
6 (To close credit accounts to Income Summary) 6
7 7
8 30 Income Summary 350 4 9188 8
9 Sales Returns and Allowances 412 5 0 0 9
10 Sales Discounts 414 7 1 1 10
11 Cost of Goods Sold 505 3 7659 11
12 Advertising Expense 610 1 2 5 12
23 23
24 30 Income Summary 350 9459 24
25 Owner’s Capital 301 9459 25
26 (To close Income Summary account and 26
27 transfer profit to owner’s capital) 27
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
GENERAL JOURNAL
J7
Date
20xx Account Titles and Explanation Ref. Debit Credit
GENERAL LEDGER
Cash ACCOUNT NO. 101
20xx Balance
Date Item Ref. Debit Credit Debit
Sept 1 Balance ✔9300
30 CR4 64206 73506
30 CP9 42846 30660
30 J5 10 30650
Supplies ACCOUNT NO. 126
20xx Balance
Date Item Ref. Debit Credit Debit
Sept 1 Balance ✔2220
11 CP9 248 2468
24 CP9 165 2633
30 J6 1833 800
Accounts Receivable ACCOUNT NO. 112
20xx Balance
Date Item Ref. Debit Credit Debit
Sept 1 Balance ✔24700
4 J5 300 24400
Inventory ACCOUNT NO. 120
20xx Balance
Date Item Ref. Debit Credit Debit
Sept 1 Balance ✔32990
15 J5 250 32740
18 CP9 110 32850
24 J5 140 32990
29 CP9 300 33290
GENERAL LEDGER
Prepaid Insurance ACCOUNT NO. 130
20xx Balance
Date Item Ref. Debit Credit Debit
Sept 1 Balance ✔4300
30 J6 200 4100
Equipment ACCOUNT NO. 157
20xx Balance
Date Item Ref. Debit Credit Debit
Sept 1 Balance ✔60000
Accumulated Depreciation — Equipment ACCOUNT NO. 158
20xx Balance
Date Item Ref. Debit Credit Credit
Accounts Payable ACCOUNT NO. 201
20xx Balance
Date Item Ref. Debit Credit Credit
Sept 1 Balance ✔18600
15 J5 250 18350
Salaries and Wages Payable ACCOUNT NO. 212
20xx Balance
Date Item Ref. Debit Credit Credit
Sept 1 Balance ✔500
3 CP9 5 0 0 0
30 J6 730 730
Owner’s Capital ACCOUNT NO. 301
20xx Balance
Date Item Ref. Debit Credit Credit
Sept 1 Balance ✔52410
Owner’s Drawings ACCOUNT NO. 306
20xx Balance
Date Item Ref. Debit Credit Debit
Sept 4 CP9 1200 1200
Income Summary ACCOUNT NO. 350
20xx Balance
Date Item Ref. Debit Credit Credit
Sept 30 J7 5 8647 58647
Interest Payable ACCOUNT NO. 230
20xx Balance
Date Item Ref. Debit Credit Credit
Sept 1 Balance ✔400
GENERAL LEDGER
Notes Payable ACCOUNT NO. 250
20xx Balance
Date Item Ref. Debit Credit Credit
Sept 1 Balance ✔26000
GENERAL LEDGER
Cost of Goods Sold ACCOUNT NO. 505
20xx Balance
Date Item Ref. Debit Credit Debit
Sept 24 J5 1 4 0 ( 1 4 0 )
30 S5 21056 20916
Sales Revenue ACCOUNT NO. 401
20xx Balance
Date Item Ref. Debit Credit Credit
Sales Returns and Allowances ACCOUNT NO. 412
20xx Balance
Date Item Ref. Debit Credit Debit
Sept 4 J5 3 0 0 3 0 0
Sales Discounts ACCOUNT NO. 414
20xx Balance
Date Item Ref. Debit Credit Debit
Sept 30 CR4 7 1 1 7 1 1
Service Revenue ACCOUNT NO. 400
20xx Balance
Date Item Ref. Debit Credit Credit
Sept 1 CR4 1000 1000
8 CR4 980 1980