461
Problem 7-2A (Continued)
Parts 2 and 3 (continued)
ACCOUNTS RECEIVABLE LEDGER
Page Alistair
Date
Explanation
PR
Credit
Balance
Apr. 3
S3
4,000
13
R3
4,000
0
13
S3
5,100
23
R3
5,100
0
Paula Kohr
Date
Explanation
PR
Credit
Balance
Apr. 5
S3
8,000
14
R3
8,000
0
27
S3
3,170
Date
Explanation
PR
Credit
Balance
Apr. 11
S3
20
R3
0
27
S3
6,700
Part 4
WISET COMPANY
Trial Balance
April 30
Debit
Credit
Cash …………………………………………………………….
$298,863
Accounts receivable ……………………………………..
9,870
3,295
Sales discounts…………………………………………….
462
Problem 7-2A (Concluded)
Part 4 (continued)
WISET COMPANY
Schedule of Accounts Receivable
April 30
Paula Kohr …………………………………………..
$3,170
463
Problem 7-3A (120 minutes)
Parts 1 and 3
PURCHASES JOURNAL
Page 3
Date
Account
Date of
Invoice
Terms
PR
Accounts
Payable
Cr.
Inventory
Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
Apr. 2
Noth Company …………………………..
4/2
2/10, n/60
✓
14,300
14,300
Office Supplies/Custer, Inc. …………………..
4/2
✓
1,480
1,480
4/9
12,125
Grant Company…………………………..
2/10, n/30
✓
13,750
13,750
Store Supplies/Hal’s Supply ………………….
830
830
Noth Company …………………………..
2/10, n/60
✓
11,375
11,375
_____
Totals ………………………………………….
53,860
39,425
1,480
CASH DISBURSEMENTS JOURNAL
Page 3
Date
Ck.
No.
Payee
Account Debited
PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Apr. 4
587
World View …………………………..
Advertising Expense …………………………..
655
899
899
588
Noth Company …………………………..
286
589
Payroll …………………………..
Sales Salaries Expense …………………………..
621
10,750
590
Grant Company …………………………..
Grant Company …………………………..
260
591
Payroll …………………………..
Sales Salaries Expense …………………………..
621
___
10,750
(201)
464
Problem 7-3A (Continued)
Parts 1 and 3—continued
GENERAL JOURNAL Page 3
Apr. 6
Accounts Payable—Custer Inc. …………………………..
201/✓
80
80
Accounts Payable—Grant Co. ………………………….
201/✓
Parts 2 and 3
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
85,000
35,847
Inventory
Acct. No. 119
Date
Explanation
PR
Credit
Balance
Mar. 31
125,000
Apr. 23
G3
750
124,250
163,675
546
163,129
Office Supplies
Acct. No. 124
Date
Explanation
PR
Credit
Balance
Apr. 3
G3
Store Supplies
Acct. No. 125
Date
Explanation
PR
Credit
Balance
Apr. 20
465
Problem 7-3A (Continued)
General Ledger—continued
Store Equipment
Acct. No. 165
Date
Explanation
PR
Credit
Balance
Apr. 9
P3
12,125
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Credit
Balance
Apr. 6
(830)
P3
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Credit
Balance
Mar. 31
110,000
B. Wiset, Capital
Acct. No. 301
Date
Explanation
PR
Credit
Balance
Mar. 31
100,000
Acct. No. 621
Date
Explanation
PR
Credit
Balance
Apr. 16
10,750
21,500
Acct. No. 655
Date
Explanation
PR
Credit
Balance
Apr. 4
Date
Explanation
PR
Credit
Balance
Apr. 3
P3
Date
Explanation
PR
Credit
Balance
Apr. 17
P3
13,750
13,000
466
Problem 7-3A (Concluded)
Parts 2 and 3—continued
Accounts Payable Ledger—continued
Hal’s Supply
Date
Explanation
PR
Credit
Balance
Apr. 9
P3
12,125
12,125
P3
12,955
Date
Explanation
PR
Credit
Balance
Apr. 2
P3
14,300
14,300
P3
11,375
11,375
Part 4
WISET COMPANY
Trial Balance
April 30
Debit
Credit
Cash …………………………………………………….
$ 35,847
Office supplies……………………………………..
Store supplies………………………………………
830
Store equipment …………………………………..
12,125
Accounts payable…………………………………
Long-term notes payable ……………………..
B. Wiset, Capital …………………………………..
Sales salaries expense …………………………
Advertising expense …………………………….
Totals …………………………………………………..
163,129
WISET COMPANY
Schedule of Accounts Payable
April 30
Custer, Inc. ……………………………………………
$ 1,400
Hal’s Supply ………………………………………….
Noth Company. …………………………………….
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
PROBLEM SET B
Problem 7-1B (100 Minutes)
Parts 1 and 2
SALES JOURNAL
Page 2
Date
Account Debited
Invoice
Number
PR
Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
Nov. 8
Cyd Rounder …………………………..
439
✓
6,550
3,910
Carlos Mantel…………………………..
440
✓
8,500
Tori Tripp ……………………………………………
441
✓
5,250
2,450
Carlos Mantel…………………………..
442
✓
3,695
2,060
Tori Tripp ……………………………………………
443
✓
Totals …………………………………………………
PURCHASES JOURNAL
Page 2
Date
Account
Date of
Invoice
Terms
PR
Accounts
Payable
Cr.
Inventory
Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
Nov. 1
Office Equip./Brun Supply …………………….
11/1
n/10, EOM
163/✓
5,058
5,058
Lo Company …………………………..
2,557
Problem 7-1B (Continued)
CASH RECEIPTS JOURNAL
Page 2
Date
Account
Credited
Explanation
PR
Cash
Dr.
Sales
Discount
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
Nov. 2
L.T. Notes Pay. …………………………..
Note to bank …………………………..
251/✓
88,500
88,500
Sales …………………………..
Cash sales …………………………..
18,170
18,170
Cyd Rounder …………………………..
Invoice, 11/8 …………………………..
6,550
Carlos Mantel …………………………..
13,230
Tori Tripp …………………………..
5,250
Sales …………………………..
Cash sales …………………………..
16,703
_____
Totals …………………………..
34,873
88,500
(101)
CASH DISBURSEMENTS JOURNAL
Page 2
Date
Ck.
No.
Payee
Account Debited
PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Nov. 12
633
BLR Industries …………………………..
BLR Industries …………………………..
✓
32,830
670
33,500
634
Payroll …………………………..
Sales Salaries Expense …………………………..
6,585
636
Payroll …………………………..
Sales Salaries Expense …………………………..
___
Totals …………………………..
47,960
710
35,500
Problem 7-1B (Continued)
GENERAL JOURNAL
Page 2
Nov. 17
Accounts Payable—Lo Co. …………………….
201/✓
557
Accounts Payable—Brun Supply ……………
201/✓
922
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Credit
Balance
Nov. 30
R2
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Credit
Balance
Nov. 30
S2
33,275
30
R2
25,300
7,975
Inventory
Acct. No. 119
Date
Explanation
PR
Credit
Balance
17
39,443
30
P2
75,500
30
S2
19,050
55,740
30
R2
19,200
36,540
Office Supplies
Acct. No. 124
Date
Explanation
PR
Credit
Balance
Store Supplies
Nov. 5
Problem 7-1B (Continued)
Office Equipment
Acct. No. 163
Date
Explanation
PR
Credit
Balance
Nov. 1
Acct. No. 201
Date
Explanation
PR
Credit
Balance
Nov. 17
42,614
D2
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Credit
Balance
Nov. 2
R2
88,500
88,500
C. Grassley, Capital
Acct. No. 301
Date
Explanation
PR
Credit
Balance
Nov. 1
40,000
Sales
Acct. No. 413
Date
Explanation
PR
Credit
Balance
Nov. 30
33,275
33,275
R2
34,873
68,148
Sales Discounts
Acct. No. 415
Date
Explanation
PR
Credit
Balance
Nov. 30
R2
Acct. No. 502
Date
Explanation
PR
Credit
Balance
R2
38,250
Acct. No. 621
Date
Explanation
PR
Credit
Balance
Nov. 15
D2
D2
13,170
Problem 7-1B (Continued)
ACCOUNTS RECEIVABLE LEDGER
Carlos Mantel
Date
Explanation
PR
Credit
Balance
Nov. 10
S2
13,500
S2
Date
Explanation
PR
Credit
Balance
Nov. 8
S2
Date
Explanation
PR
Credit
Balance
Nov. 15
S2
S2
ACCOUNTS PAYABLE LEDGER
BLR Industries
Date
Explanation
PR
Credit
Balance
Nov. 4
P2
33,500
33,500
12
D2
0
Brun Supply
Date
Explanation
PR
Credit
Balance
26
Nov. 5
P2
Date
Explanation
PR
Credit
Balance
Nov. 11
P2
17
Problem 7-1B (Concluded)
Part 3
GRASSLEY COMPANY
Trial Balance
November 30
Debit
Credit
Cash ……………………………………………………….
$100,207
Accounts receivable ……………………………………..
7,975
Inventory ………………………………………………………
36,540
Office supplies ……………………………………………..
1,040
Office equipment…………………………………………..
Accounts payable …………………………………………
C. Grassley, Capital ………………………………………
Sales discounts…………………………………………….
Costs of goods sold ……………………………………..
38,250
Sales salaries expense …………………………..
GRASSLEY COMPANY
Schedule of Accounts Receivable
November 30
Carlos Mantel ……………………………………………….
$3,695
Tori Tripp ……………………………………………………..
GRASSLEY COMPANY
Schedule of Accounts Payable
November 30
Brun Supply ………………………………………………….
$4,136
Grebe Company ……………………………………………
Problem 7-2B (70 minutes)
Parts 1 and 2
SALES JOURNAL
Page 3
Date
Account Debited
Invoice
Number
PR
Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
July 5
Kim Nettle ……………………………………………..
918
✓
19,200
10,500
✓
Ashton Moore …………………………..
923
✓
16,820
CASH RECEIPTS JOURNAL
Page 3
Date
Account Credited
Explanation
PR
Cash
Dr.
Sales
Discount
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
July 15
Kim Nettle …………………………..
Sale of 7/5 …………………………..
✓
18,816
384
19,200
Sales …………………………..
Cash sales …………………………..
Ruth Blake …………………………..
Sale of 7/6 …………………………..
150
L.T. Notes Pay. …………………………..
Note to bank…………………………..
15,000
Ashton Moore …………………………..
Sale of 7/13 …………………………..
✓
171
Kim Nettle …………………………..
Sale of 7/14 …………………………..
✓
102
Sales …………………………..
Cash sales …………………………..
Totals …………………………..
807
40,350
Problem 7-2B (Continued)
Parts 2 and 3
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Credit
Balance
June 30
100,000
353,137
Acct. No. 106
Date
Explanation
PR
Credit
Balance
Acct. No. 119
Date
Explanation
PR
Credit
Balance
June 30
200,000
155,480
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Credit
Balance
June 30
200,000
215,000
R. Acorn, Capital
Acct. No. 301
Date
Explanation
PR
Credit
Balance
June 30
100,000
Acct. No. 413
Date
Explanation
PR
Credit
Balance
273,264
Acct. No. 415
Date
Explanation
PR
Credit
Balance
Cost of Goods Sold
Acct. No. 502
Date
Explanation
PR
Debit
Credit
Balance
Problem 7-2B (Continued)
Parts 2 and 3 (continued)
ACCOUNTS RECEIVABLE LEDGER
Ruth Blake
Date
Explanation
PR
Credit
Balance
Ashton Moore
Date
Explanation
PR
Credit
Balance
Date
Explanation
PR
Credit
Balance
Part 4
ACORN INDUSTRIES
Trial Balance
July 31
Debit
Credit
Cash ……………………………………………………….
$353,137
R. Acorn, Capital …………………………………………..
100,000
Sales ……………………………………………………….
273,264
Cost of goods sold ……………………………………….
Problem 7-2B (Concluded)
Part 4—continued
ACORN INDUSTRIES
Schedule of Accounts Receivable
July 31
Ruth Blake ……………………………………………………..
$17,500
Part 5
Analysis component
To find the error(s), first re-add the account balances on the schedule of
Problem 7-3B (80 minutes)
Parts 1 and 3
PURCHASES JOURNAL
Page 3
Date
Account
Date of
Invoice
Terms
PR
Accounts
Payable
Cr.
Inventory
Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
July 1
Teton Company …………………………..
6/30
2/10, n/30
✓
6,500
6,500
Store Supp./Plaine, Inc. …………………………
1,250
1,250
38,220
38,220
Drake Company …………………………..
7/17
2/10, n/30
✓
7,200
7,200
7/19
✓
650
Teton Company …………………………..
7/26
2/10, n/30
✓
___
Totals
63,590
23,470
650
39,470
CASH DISBURSEMENTS JOURNAL
Page 3
Date
Ck.
No.
Payee
Account Debited
PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
July 3
300
The Weekly …………………………..
Advertising Expense …………………………..
655
625
625
301
Teton Company …………………………..
Teton Company …………………………..
6,500
302
Payroll. …………………………..
Sales Salaries Expense …………………………..
621
303
Drake Company …………………………..
Drake Company …………………………..
4,800
304
Payroll …………………………..
Sales Salaries Expense …………………………..
621
Totals …………………………..
11,300
Problem 7-3B (Continued)
Parts 1 and 3—continued
GENERAL JOURNAL
Page 3
July 8
Accounts Payable—Plaine ………………..
201/✓
250
Accounts Payable—Drake ………………..
201/✓
Parts 2 and 3
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Credit
Balance
June 30
100,000
Acct. No. 119
Date
Explanation
PR
Credit
Balance
June 30
200,000
197,600
221,070
220,844
Office Supplies
Acct. No. 124
Date
Explanation
PR
Credit
Balance
Store Supplies
Acct. No. 125
Date
Explanation
PR
Credit
Balance
July 7
Problem 7-3B (Continued)
General Ledger—continued
Store Equipment
Acct. No. 165
Date
Explanation
PR
Credit
Balance
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Credit
Balance
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Credit
Balance
R. Acorn, Capital
Acct. No. 301
Date
Explanation
PR
Credit
Balance
Acct. No. 621
Date
Explanation
PR
Credit
Balance
Advertising Expense
Acct. No. 655
Date
Explanation
PR
Credit
Balance
Date
Explanation
PR
Credit
Balance
Problem 7-3B (Concluded)
Parts 2 and 3—continued
Accounts Payable Ledger—continued
Plaine, Inc.
Date
Explanation
PR
Credit
Balance
Date
Explanation
PR
Credit
Balance
Part 4
ACORN INDUSTRIES
Trial Balance
July 31
Debit
Credit
Cash ……………………………………………………….
$ 24,601
Accounts payable …………………………………………
Sales salaries expense …………………………..
Advertising expense ……………………………………..
Totals ……………………………………………………….
ACORN INDUSTRIES
Schedule of Accounts Payable
July 31
Teton Company ………………………………..