PROBLEM 7-1A (Continued)
Rose
Date
Explanation
Ref.
Debit
Credit
Balance
Jennings Co.
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 1
Balance
2,900
Dent
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 7-2A
(a)
Cash Payments Journal CP1
Date
Ck.
No.
Account Debited
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Inventory
Cr.
Cash
Cr.
Oct. 1
63
Inventory
120
300
300
(b) General Ledger
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Accounts Payable Subsidiary Ledger
Uggla Company
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 7-2A (Continued)
Orr Co.
Date
Explanation
Ref.
Debit
Credit
Balance
Oct. 1
Balance
2,500
Rosenthal Co.
Date
Explanation
Ref.
Debit
Credit
Balance
Oct. 1
Balance
1,800
Clevenger Company
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 7-3A
(a)
Purchases Journal P1
Date
Account Credited (Debited)
Ref.
Accounts
Payable
Cr.
Inventory
Dr.
Other
Accounts
Dr.
July 1
15
15
Eby Company
(Supplies)
Eby Company
Bosco Company
8,000
3,600
4,300
8,000
3,600
4,300
Sales Journal S1
Date
Account Debited
Ref.
Accounts Receivable Dr.
Sales Revenue Cr.
Cost of Goods Sold Dr.
Inventory Cr.
July 3
3
Fort Company
Hefner Bros.
1,300
1,500
910
1,050
PROBLEM 7-3A (Continued)
General Journal G1
Date
Accounts and Explanations
Ref.
Debit
Credit
July 8
Accounts Payable—Getz
22
Fort Company ………………….
Sales Returns and Allowances
412/
40
(b) General Ledger
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
Inventory No. 120
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
P1
22,880
22,880
Supplies No. 126
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 7-3A (Continued)
Equipment No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Sales Revenue No. 401
Date
Explanation
Ref.
Debit
Credit
Balance
Sales Returns and Allowances No. 412
Date
Explanation
Ref.
Debit
Credit
Balance
Advertising Expense No. 610
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 7-3A (Continued)
Accounts Receivable Subsidiary Ledger
Hefner Bros.
Date
Explanation
Ref.
Debit
Credit
Balance
Fort Company
Date
Explanation
Ref.
Debit
Credit
Balance
July 3
S1
1,300
1,300
Aybar Company
Date
Explanation
Ref.
Debit
Credit
Balance
Duncan Company
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 7-3A (Continued)
Accounts Payable Subsidiary Ledger
Dayne Supply
Date
Explanation
Ref.
Debit
Credit
Balance
26
P1
Shaw Shipping
Date
Explanation
Ref.
Debit
Credit
Balance
Eby Company
Date
Explanation
Ref.
Debit
Credit
Balance
15
P1
3,600
11,600
Getz Company
Date
Explanation
Ref.
Debit
Credit
Balance
Welton Advertisements
Date
Explanation
Ref.
Debit
Credit
Balance
July 18
P1
600
600
Bosco Company
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 7-3A (Continued)
(c) Accounts receivable balance …………………………... $16,790
Subsidiary account balances
Accounts payable balance ………………………………. $24,800
Subsidiary account balances
Dayne Supply ………………………………………….. $ 1,620
PROBLEM 7-4A
(a), (b) & (c)
Sales Journal S1
Date
Account
Debited
Invoice
No.
Ref.
Accounts Receivable Dr.
Sales Revenue Cr.
Cost of Goods Sold Dr.
Inventory Cr.
Purchases Journal P1
Date
Account Credited
Ref.
Inventory Dr.
Accounts Payable Cr.
Jan. 3
Gallagher Co.
9,000
General Journal G1
Date
Accounts and Explanations
Ref.
Debit
Credit
Jan. 5
Accounts Payable—Gallagher Co. ……
Inventory ……………………………..
201/
120
300
300
PROBLEM 7-4A (Continued)
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.
4,230
1,200
(X)
Jan. 6
17
Wheeler
3,150
5,250
5,250
3,150
1,890
Cash Payments Journal CP1
Date
Account Debited
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Inventory
Cr.
Cash
Cr.
Jan. 4
13
Supplies
Gallagher Co.
126
80
8,700
174
80
8,526
PROBLEM 7-5A
(a), (d) & (g) General Ledger
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
CR1
104,025
104,025
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Inventory No. 120
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
29
P1
CR1
44,020
420
44,020
43,600
Supplies No. 126
Date
Explanation
Ref.
Debit
Credit
Balance
July 4
CP1
600
600
Prepaid Rent No. 131
Date
Explanation
Ref.
Debit
Credit
Balance
July 11
CP1
6,000
6,000
PROBLEM 7-5A (Continued)
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Owner’s Capital No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
Owner’s Drawings No. 306
Date
Explanation
Ref.
Debit
Credit
Balance
Sales Revenue No. 401
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
S1
20,700
20,700
Sales Discounts No. 414
Date
Explanation
Ref.
Debit
Credit
Balance
Cost of Goods Sold No. 505
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
S1
13,455
13,455
PROBLEM 7-5A (Continued)
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
Rent Expense No. 729
Date
Explanation
Ref.
Debit
Credit
Balance
(b)
Sales Journal S1
Date
Account Debited
Ref.
Accounts Receivable Dr.
Sales Revenue Cr.
Cost of Goods Sold Dr.
Inventory Cr.
July 6
Dow Co.
6,200
4,030
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.
(112)
(X)
July 1
Owner’s
Capital
301
80,000
80,000
PROBLEM 7-5A (Continued)
(c) Accounts Receivable Subsidiary Ledger
Dow Co.
Date
Explanation
Ref.
Debit
Credit
Balance
S1
H. Kenney
Date
Explanation
Ref.
Debit
Credit
Balance
W. Leiss
Date
Explanation
Ref.
Debit
Credit
Balance
S. Goebel
Date
Explanation
Ref.
Debit
Credit
Balance
July 8
S1
Accounts Payable Subsidiary Ledger
C. Werly
Date
Explanation
Ref.
Debit
Credit
Balance
July 13
P1
15,300
15,300
F. Rees
Date
Explanation
Ref.
Debit
Credit
Balance
July 5
8,100
8,100
PROBLEM 7-5A (Continued)
M. Mangus
Date
Explanation
Ref.
Debit
Credit
Balance
N. Alvarado
Date
Explanation
Ref.
Debit
Credit
Balance
J. Gallup
Date
Explanation
Ref.
Debit
Credit
Balance
(e) FORNELLI CO.
Trial Balance
July 31, 2017
Debit
Credit
Cash ………………………………………………………..
Owner’s Capital ……………………………………….
Owner’s Drawings ……………………………………
$ 64,959
2,500
80,000
PROBLEM 7-5A (Continued)
(f) Accounts receivable balance …………………………………………. $ 5,000
Subsidiary accounts balance
(g)
General Journal G1
Date
Accounts and Explanations
Ref.
Debit
Credit
July 31
Supplies Expense ……………………….
631
460
PROBLEM 7-5A (Continued)
(h) FORNELLI CO.
Adjusted Trial Balance
July 31, 2017
Debit
Credit
Cash ……………………………………………………….
Accounts Receivable ……………………………….
Owner’s Drawings ……………………………………
Sales Revenue…………………………………………
$ 64,959
5,000
2,500
28,700
PROBLEM 7-6A
(b) & (c)
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.
Jan. 7
13
T. Hodges
M. Ziesmer
3,500
7,840
160
3,500
8,000
Cash Payments Journal CP1
Date
Account Debited
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Inventory
Cr.
Cash
Cr.
Jan. 11
Inventory
120
300
300
Sales Journal S1
Date
Account
Debited
Ref.
Accounts Receivable Dr.
Sales Revenue Cr.
Cost of Goods Sold Dr.
Inventory Cr.
Jan. 3
M. Ziesmer
8,000
4,800
PROBLEM 7-6A (Continued)
Purchases Journal P1
Date
Account Credited
Ref.
Inventory Dr.
Accounts Payable Cr.
Jan. 5
E. Pheatt
2,000
General Journal G1
Date
Accounts and Explanations
Ref.
Debit
Credit
Jan. 14
B. Hannigan …………………….
Sales Returns and Allowances …….
Accounts Receivable—
/412
300
20
Accounts Payable—D. Danford …….
Notes Payable ……………………..
/201
/200
18,000
18,000
30
Accounts Payable—G. Roland ……..
/201
(a) & (c)
General Ledger
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
41,500