PROBLEM 7-6A (Continued)
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Balance
Jan. 1
14
Balance
G1
15,000
14,700
Notes Receivable No. 115
Date
Explanation
Ref.
Debit
Balance
Jan. 1
Balance
45,000
Inventory No. 120
Date
Explanation
Ref.
Debit
Balance
Jan. 1
11
Balance
CP1
300
23,000
23,300
Equipment No. 157
Date
Explanation
Ref.
Debit
Balance
Accumulated Depreciation—Equipment No. 158
Date
Explanation
Ref.
Debit
Balance
Jan. 1
Balance
1,500
PROBLEM 7-6A (Continued)
Notes Payable No. 200
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 20
18,000
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
20
Balance
G1
18,000
43,000
25,000
Owner’s Capital No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
86,450
Sales Revenue No. 401
Date
Explanation
Ref.
Debit
Credit
Balance
Sales Returns and Allowances No. 412
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 14
G1
300
300
Sales Discounts No. 414
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 7-6A (Continued)
Cost of Goods Sold No. 505
Date
Explanation
Ref.
Debit
Balance
Jan. 31
CR1
5,460
5,460
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Balance
Jan. 18
CP1
4,800
4,800
Rent Expense No. 729
Date
Explanation
Ref.
Debit
Balance
Jan. 12
Accounts Receivable Subsidiary Ledger
B. Hannigan
Date
Explanation
Ref.
Debit
Balance
Jan. 1
14
Balance
G1
2,500
2,200
I. Kirk
Date
Explanation
Ref.
Debit
Balance
Jan. 1
Balance
PROBLEM 7-6A (Continued)
T. Hodges
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
7
Balance
CR1
3,500
5,000
1,500
M. Ziesmer
Date
Explanation
Ref.
Debit
Credit
Balance
Accounts Payable Subsidiary Ledger
G. Roland
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 17
1,600
T. Igawa
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
12,000
D. Danford
Date
Explanation
Ref.
Debit
Credit
Balance
Balance
18,000
K. Thayer
Date
Explanation
Ref.
Debit
Credit
Balance
CP1
0
Jan. 1
Balance
13,000
PROBLEM 7-6A (Continued)
E. Pheatt
Date
Explanation
Ref.
Debit
Balance
(d) HORNER CO.
Trial Balance
January 31, 2018
Debit
Credit
Cash ……………………………………………………….
Accounts Receivable ……………………………….
Notes Receivable ……………………………………..
Accounts Payable …………………………………….
Owner’s Capital ……………………………………….
Sales Revenue …………………………………………
$ 82,020
18,600
5,000
14,350
86,450
24,500
(e) Accounts Receivable Subsidiary Ledger
B. Hanningan ……………………………………. $ 2,200
PROBLEM 7-6A (Continued)
Accounts Payable Subsidiary Ledger
G. Roland ………………………………………………………………. $ 1,300
CP 7-1 FINANCIAL REPORTING PROBLEM—A MINI PRACTICE SET
(a)
Sales Journal S1
Date
Account
Debited
Invoice
No.
Ref.
Accounts Receivable Dr.
Sales Revenue Cr.
Cost of Goods Sold Dr.
Inventory Cr.
Jan. 3
3
11
B. Corpas
J. Revere
R. Beltre
510
511
512
3,600
1,800
1,600
2,160
1,080
960
Purchases Journal P1
Date
Account Credited
Terms
Ref.
Inventory Dr.
Accounts Payable Cr.
Jan. 5
5
S. Gamel
D. Posey
n/30
n/30
5,000
2,200
CP 7-1 (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.
Jan. 7
7
S. Mahay
B. Santos
4,000
2,000
4,000
2,000
Cash Payments Journal CP1
Date
Account Debited
Ref.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Supplies
Dr.
Inventory
Cr.
Cash
Cr.
10,135
(X)
49,000
59,015
Jan. 8
9
Inventory
S. Meek
120
235
9,000
180
235
8,820
CP 7-1 (Continued)
(a) & (e)
General Journal G1
Date
Account Titles and Explanations
Ref.
Debit
Credit
Jan. 9
Sales Returns and Allowances …….
Accounts Receivable—
Inventory…………………………………….
($300 X .60)
Cost of Goods Sold ……………..
412
120
505
300
180
180
21
Accounts Payable—R. Moses ………
201/
15,000
Adjusting Entries
31
Supplies Expense ……………………….
Supplies ……………………………..
728
126
700
700
31
Insurance Expense ……………………..
Prepaid Insurance ……………….
722
200
31
Equipment ………………………
Depreciation Expense
($1,500 ÷ 12) ………………………………
711
125
CP 7-1 (Continued)
General Journal G1
Date
Account Titles and Explanations
Ref.
Debit
Credit
Jan. 31
Income Summary ………………………..
Sales Discounts ………………….
Sales Returns and
Interest Expense …………………
350
414
718
58,055
120
50
31
Income Summary ………………………..
Owner’s Capital …………………..
350
301
21,345
21,345
31
Owner’s Drawings ……………….
301
306
800
(b) & (e) General Ledger
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
35,750
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
13,000
CP 7-1 (Continued)
Notes Receivable No. 115
Date
Explanation
Ref.
Debit
Balance
Jan. 1
Balance
39,000
Inventory No. 120
Date
Explanation
Ref.
Debit
Balance
Jan. 1
31
Balance
P1
61,000
18,000
79,000
Supplies No. 126
Date
Explanation
Ref.
Debit
Balance
Jan. 1
Balance
1,000
Prepaid Insurance No. 130
Date
Explanation
Ref.
Debit
Balance
Equipment No. 157
Date
Explanation
Ref.
Debit
Balance
Jan. 1
Balance
6,450
CP 7-1 (Continued)
Accumulated Depreciation—Equipment No. 158
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
1,500
Notes Payable No. 200
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 21
G1
15,000
15,000
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
31
Balance
P1
61,000
35,000
96,000
Interest Payable No. 230
Date
Explanation
Ref.
Debit
Credit
Balance
Adj. entry
Owner’s Capital No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
31
Balance
G1
21,345
78,700
100,045
Owner’s Drawings No. 306
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 15
CP1
800
800
Clos. entry
CP 7-1 (Continued)
Income Summary No. 350
Date
Explanation
Ref.
Debit
Balance
Jan. 31
G1
79,400
Sales Revenue No. 401
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
S1
22,500
22,500
Sales Returns and Allowances No. 412
Date
Explanation
Ref.
Debit
Balance
Jan. 9
G1
300
300
Sales Discounts No. 414
Date
Explanation
Ref.
Debit
Balance
Jan. 31
CR1
120
120
Cost of Goods Sold No. 505
Date
Explanation
Ref.
Debit
Balance
Jan. 31
S1
13,500
13,500
CP 7-1 (Continued)
Salaries and Wages Expense No. 627
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
CP1
8,100
8,100
Depreciation Expense No. 711
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
31
Clos. entry
G1
G1
125
125
125
0
Interest Expense No. 718
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
G1
50
50
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
31
Clos. entry
G1
G1
200
200
200
0
Supplies Expense No. 728
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
700
Rent Expense No. 729
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 12
CP1
1,000
1,000
CP 7-1 (Continued)
Accounts Receivable Subsidiary Ledger
R. Beltre
Date
Explanation
Ref.
Debit
Balance
Jan. 1
Balance
1,500
J. Revere
Date
Explanation
Ref.
Debit
Balance
Jan. 3
9
S1
G1
1,800
1,800
1,500
B. Santos
Date
Explanation
Ref.
Debit
Balance
Jan. 1
Balance
7,500
S. Mahey
Date
Explanation
Ref.
Debit
Balance
Jan. 1
Balance
4,000
B. Corpas
Date
Explanation
Ref.
Debit
Balance
Jan. 3
S1
3,600
3,600
CP 7-1 (Continued)
Accounts Payable Subsidiary Ledger
D. Posey
Date
Explanation
Ref.
Debit
Credit
Balance
S. Meek
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
9
Balance
CP1
9,000
9,000
0
R. Moses
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
15,000
D. Saito
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
11,000
S. Gamel
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 5
P1
5,000
5,000
Accounts Receivable
Notes Receivable
Inventory
Supplies
Supplies Expense
Insurance Expense
Depreciation Expense
Interest Expense
23,200
39,000
30,855
1,600
(1) 700
(2) 200
(3) 125
(4) 50
(1) 700
23,200
39,000
30,855
900
700
200
125
50
700
200
125
50
23,200
39,000
30,855
900
CP 7-1 (Continued)
(d) JETER CO.
Income Statement
For the Month Ended January 31, 2017
Sales
Sales revenue …………………………... $79,400
Less: Sales discounts ………………. $ 120
Sales returns and
Operating expenses
Salaries and wages
expense ………………………….. $8,100
Rent expense …………………….. 1,000
CP 7-1 (Continued)
JETER CO.
Owner’s Equity Statement
For the Month Ended January 31, 2017
Owner’s, Capital, January 1, 2017 ………………………………….. $78,700
JETER CO.
Balance Sheet
January 31, 2017
Assets
Current assets
Cash …………………………………………………… $45,515
Accounts receivable ……………………………. 23,200
Notes receivable ………………………………….. 39,000
Property, plant, and equipment
Liabilities and Owner’s Equity
Current liabilities
Notes payable ……………………………………… $15,000
Owner’s equity
CP 7-1 (Continued)
(f) JETER CO.
Post-Closing Trial Balance
January 31, 2017
Debit
Credit
Cash ………………………………………………………..
Accounts Receivable ………………………………..
Accumulated Depreciation—Equipment …….
Notes Payable ………………………………………….
$ 45,515
23,200
$ 1,625
15,000
Accounts Receivable balance ………………………… $23,200
Subsidiary account balances
R. Beltre ………………………………………………… $ 5,400
$23,200
Accounts Payable balance …………………………….. $31,800
Subsidiary account balances
D. Posey ………………………………………………… $ 5,400