CHAPTER 7
SOLUTIONS TO PROBLEMS: SET B
(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.
June 1
3
6
7
Owner’s
Capital
Hinshaw Co.
Guthrie Co.
301
15,000
1,960
2,744
8,700
40
56
2,000
2,800
8,700
15,000
5,000
(b) General Ledger
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
June 1
30
Balance
CR1
10,200
10,200
0
Accounts Receivable Subsidiary Ledger
Suppan & Son
Date
Explanation
Ref.
Debit
Credit
Balance
June 1
Balance
PROBLEM 7-1B
PROBLEM 7-1B (Continued)
Guthrie Co.
Date
Explanation
Ref.
Debit
Credit
Balance
Quentin Bros.
Date
Explanation
Ref.
Debit
Credit
Balance
Hinshaw Co.
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 7-2B
(a)
Cash Payments Journal CP1
Date
Ck.
No.
Account Debited
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Inventory
Cr.
Cash
Cr.
S. Gentry
6,850
Nov. 1
16
19
11
16
17
Inventory
Owner’s Drawings
D. Montero
120
306
950
400
2,100
42
950
400
2,058
(b) General Ledger
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
30
Balance
CP1
7,400
8,700
1,300
Accounts Payable Subsidiary Ledger
S. Gentry
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
Balance
CP1
2,700
1,300
PROBLEM 7-2B (Continued)
D. Montero
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
19
Balance
CP1
2,100
2,100
0
R. Trumbo
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
Balance
W. Olivo
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
5
Balance
CP1
1,800
1,800
0
PROBLEM 7-3B
(a)
Purchases Journal P1
Date
Account Credited (Debited)
Ref.
Accounts
Payable
Cr.
Inventory
Dr.
Other
Accounts
Dr.
May 2
3
8
Berkman Company
Fast Freight
Kayser Company
5,000
250
5,400
5,000
250
5,400
Sales Journal S1
Date
Account Debited
Ref.
Accounts Receivable Dr.
Sales Revenue Cr.
Cost of Goods Sold Dr.
Inventory Cr.
May 5
5
Persinger Co.
Fehr Bros.
1,300
2,300
780
1,380
PROBLEM 7-3B (Continued)
General Journal
Date
Accounts and Explanations
Ref.
Debit
Credit
May 10
Accounts Payable—Neufeld
Company …………………………………
Inventory …………………………….
201/
120/
350
350
17
Accounts Payable—Rabel’s
Supplies …………………………………
Supplies ……………………………..
201/
20
Accounts Payable—Berkman
Company …………………………………
Inventory …………………………….
201/
120/
200
200
26
Sales Returns and Allowances …….
Accounts Receivable—
Mount Company ………………
412/
112/
140
140
(b) General Ledger
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
Inventory No. 120
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
10
P1
G1
21,275
350
21,275
20,925
PROBLEM 7-3B (Continued)
Supplies No. 126
Date
Explanation
Ref.
Debit
Credit
Balance
May 15
17
P1
G1
600
70
600
530
Equipment No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
May 28
P1
400
400
Accounts Payable No. 201
Date
Explanation
Debit
Credit
Balance
Sales Revenue No. 401
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
S1
8,700
8,700
Sales Returns and Allowances No. 412
Date
Explanation
Ref.
Debit
Credit
Balance
May 26
G1
140
140
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
S1
Date
Explanation
Ref.
Debit
Credit
Balance
May 25
P1
620
620
PROBLEM 7-3B (Continued)
Accounts Receivable Subsidiary Ledger
Persinger Company
Date
Explanation
Ref.
Debit
Credit
Balance
May 5
S1
1,300
1,300
S1
1,600
3,900
Date
Explanation
Ref.
Debit
Credit
Balance
26
140
Accounts Payable Subsidiary Ledger
Fast Freight
Date
Explanation
Ref.
Debit
Credit
Balance
May 3
18
P1
P1
250
325
250
575
Explanation
Ref.
Debit
Credit
Balance
P1
200
3,100
PROBLEM 7-3B (Continued)
Rabel’s Supplies
Date
Explanation
Ref.
Debit
Credit
Balance
May 15
17
28
P1
G1
P1
70
600
400
600
530
930
Date
Explanation
Ref.
Debit
Credit
Balance
Neufeld Company
Date
Explanation
Ref.
Debit
Credit
Balance
May 8
10
P1
G1
350
3,000
3,000
2,650
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 7-3B (Continued)
(c) Accounts receivable balance ……………………………. $ 8,560
Subsidiary account balances
Persinger Company ………………………………….. $1,300
Fehr Bros. ………………………………………………… 3,900
Subsidiary account balances
Fast Freight …………………………………………….. $ 575
PROBLEM 7-4B
(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.
Oct. 4
Doumit Co.
204
5,600
3,640
Purchases Journal P1
Date
Account Credited
Ref.
Inventory Dr.
Accounts Payable Cr.
Oct. 2
10
Kent Company
Wrigley Corp.
15,000
2,600
General Journal G1
Date
Accounts and Explanations
Ref.
Debit
Credit
Oct. 13
Accounts Payable—Wrigley
Corp. ……………………………………….
Inventory ……………………………..
201/
120/
150
150
Supplies …………………………..………….
Accounts Payable—
Francisco Co. ………………….
PROBLEM 7-4B (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.
Oct. 7
12
14
Doumit Co.
6,700
5,488
6,000
112
5,600
6,700
6,000
4,355
3,900
Cash Payments Journal CP1
Date
Account Debited
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Inventory
Cr.
Cash
Cr.
Expense
Oct. 5
9
18
Supplies
Kent Co.
Inventory
126
120
60
1,600
15,000
300
60
14,700
1,600
PROBLEM 7-5B
(b)
Purchases Journal P1
Date
Account Credited
Ref.
Inventory Dr.
Accounts Payable Cr.
Feb. 2
7
B. Setterstrom
A. Dambro
5,600
23,000
Cash Payments Journal CP1
Date
Account Debited
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Inventory
Cr.
Cash
Cr.
Feb. 9
12
Supplies
B. Setterstrom
126
980
5,600
112
980
5,488
(a), (d) & (g) General Ledger
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 28
CR1
36,580
36,580
PROBLEM 7-5B (Continued)
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 28
28
S1
CR1
21,000
9,000
21,000
12,000
Inventory No. 120
Date
Explanation
Ref.
Debit
Credit
Balance
12,600
2,700
Feb. 28
18
P1
CR1
38,500
120
38,500
38,380
Supplies No. 126
Date
Explanation
Ref.
Debit
Credit
Balance
28
Adjusting entry
G1
780
200
Feb. 9
CP1
980
980
Equipment No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 15
CP1
4,500
4,500
Accumulated Depreciation—Equipment No. 158
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 28
Adjusting entry
G1
150
150
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 28
8,000
PROBLEM 7-5B (Continued)
Owner’s Capital No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 1
CR1
23,000
23,000
Owner’s Drawings No. 306
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 20
CP1
800
800
Sales Revenue No. 401
Date
Explanation
Ref.
Debit
Credit
Balance
CR1
4,500
Sales Discounts No. 414
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 28
CR1
40
40
Cost of Goods Sold No. 505
Date
Explanation
Ref.
Debit
Credit
Balance
CR1
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 28
Adjusting entry
G1
780
780
Depreciation Expense No. 711
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 28
Adjusting entry
150
PROBLEM 7-5B (Continued)
(c) Accounts Receivable Subsidiary Ledger
C. Ogleby
Date
Explanation
Ref.
Debit
Credit
Balance
4,000
0
Feb. 3
S1
4,000
4,000
T. Ghosh
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 12
S1
6,500
6,500
S. Hauke
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 9
5,000
5,000
5,000
0
W. Hoy
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 26
S1
5,500
5,500
Accounts Payable Subsidiary Ledger
Eberle Company
Date
Explanation
Ref.
Debit
Credit
Balance
B. Setterstrom
Date
Explanation
Ref.
Debit
Credit
Balance
5,600
0
Feb. 2
P1
5,600
5,600
PROBLEM 7-5B (Continued)
A. Dambro
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 7
P1
23,000
23,000
D. Budke
Date
Explanation
Ref.
Debit
Credit
Balance
(e) LOWERY CO.
Trial Balance
February 28, 2017
Debit
Credit
Cash …………………………………………………………..
Accounts Receivable ……………………………………
Inventory …………………………………………………….
$ 142
12,000
22,738
PROBLEM 7-5B (Continued)
(f) Accounts Receivable control account ……………. $12,000
Accounts Receivable subsidiary accounts
(g)
General Journal G1
Date
Accounts and Explanations
Ref.
Debit
Credit
Feb. 28
Supplies Expense ………………………..
Supplies ………………………………
631
126
780
780
PROBLEM 7-5B (Continued)
(h) LOWERY CO.
Adjusted Trial Balance
February 28, 2017
Debit
Credit
Cash …………………………………………………………..
Accounts Receivable ……………………………………
Inventory …………………………………………………….
$ 142
12,000
22,738