Weygandt, Accounting Principles, 12e
Chapter Seven
Solutions to Challenge Exercises
Challenge Exercise 7-1 – Solution
(a) $369,500. Beginning balance of $340,000 plus $162,500 debit from sales journal less
$133,000 credit from cash receipts journal.
(b) $93,100. Beginning balance of $77,000 plus $64,600 credit from purchases journal less
$48,500 debit from cash payments journal.
(c) The column total of $162,500 in the sales journal would be posted to the credit side of the
Challenge Exercise 7-2 – Solution
(a) & (b)
HOMES COMPANY
Sales Journal S1
Date
Account
Debited
Invoice
No.
Ref.
Accounts Receivable Dr.
Sales Revenue Cr.
Cost of Goods Sold Dr.
Inventory Cr.
2017
Sept. 2
H. Drew
101
650
450
HOMES COMPANY
Purchases Journal P1
Date
Account Credited
Terms
Ref.
Inventory Dr.
Accounts Payable Cr.
D. Downs
2017
Sept. 10
A. Pagan
2/10, n/30
680
(c) The September 12 transaction would be recorded in the General Journal as:
