522
Problem 7-6AA (Concluded)
Part 3
CHURCH COMPANY
Trial Balance
March 31
Debit
Credit
Accounts receivable ……………………………………………
Accounts payable ……………………………………………….
Sales discounts…………………………………………………..
Purchases …………………………………………………………..
Purchases returns and allowances ………………………
Purchases discounts …………………………………………..
Sales salaries expense ………………………………………..
CHURCH COMPANY
Schedule of Accounts Receivable
March 31
Jovita Albany …………………………………………………
CHURCH COMPANY
Schedule of Accounts Payable
March 31
Gabel Company ……………………………………………..
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7A
523
PROBLEM SET B
Problem 7-4BA (70 minutes)
Parts 1 and 2
SALES JOURNAL
Page 3
Date
Account Debited
Invoice
Number
PR
Accounts Receivable Dr.
Sales Cr.
CASH RECEIPTS JOURNAL
Page 3
Date
Account
Credited
Explanation
PR
Cash
Dr.
Sales
Discounts
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accounts
Cr.
384
118,350
118,350
7,350
150
4,998
102
___
253,137
807
198,594
524
Problem 7-4BA (Continued)
Parts 2 and 3
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
R3
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
74,670
31
R3
40,350
34,320
Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
R3
15,000
R. Acorn, Capital
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 413
74,670
74,670
31
R3
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
R3
525
Problem 7-4BA (Continued)
Parts 2 and 3—continued
ACCOUNTS RECEIVABLE LEDGER
Ruth Blake
Date
Explanation
PR
Debit
Credit
Balance
Ashton Moore
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
Part 4
ACORN INDUSTRIES
Trial Balance
July 31
Debit
Credit
526
Problem 7-4BA (Concluded)
Part 4—continued
ACORN INDUSTRIES
Schedule of Accounts Receivable
July 31
Part 5
Analysis component
To find the error(s), first re-add the account balances on the schedule of
accounts receivable to confirm that the addition is correct. Then, trace the
527
Problem 7-5BA (100 minutes)
Parts 1 and 3
PURCHASES JOURNAL
Page 3
Date
Account
Date of
Invoice
Terms
Accounts
Payable
Cr.
Purchases
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.
Purchases
Discounts
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 …………………………..
528
Problem 7-5BA (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
Debit
Credit
Balance
Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 125
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
529
Problem 7-5BA (Continued)
Parts 2 and 3—continued
General Ledger—continued
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Long-Term Notes Payable
Acct. No. 251
Explanation
Balance
200,000
R. Acorn, Capital
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance
100,000
Acct. No. 505
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 506
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 507
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 655
Date
Explanation
PR
Debit
Credit
Balance
530
Problem 7-5BA (Continued)
Parts 2 and 3—continued
ACCOUNTS PAYABLE LEDGER
Charm’s Supply
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Date
Explanation
PR
Debit
Credit
Date
Explanation
PR
Debit
Credit
Teton Company …………………………………………….
Problem 7-5BA (Concluded)
Part 4
ACORN INDUSTRIES
Trial Balance
July 31
Debit
Credit
Accounts payable …………………………………………
Purchases …………………………………………………….
Purchases returns and allowances ………………..
Purchases discounts …………………………..
Sales salaries expense …………………………..
Advertising expense ……………………………………..
Totals ……………………………………………………….
ACORN INDUSTRIES
Schedule of Accounts Payable
July 31
532
Problem 7-6BA (100 minutes)
Parts 1 and 2
SALES JOURNAL
Page 2
Date
Account Debited
Invoice
Number
Accounts Receivable Dr.
Sales Cr.
Cyd Rounder …………………………..
Tori Tripp ……………………………………………
Carlos Mantel…………………………..
Tori Tripp ……………………………………………
PURCHASES JOURNAL
Page 2
Date
Account
Date of
Invoice
Terms
PR
Accounts
Payable
Cr.
Purchases
Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
5,058
5,058
33,500
1,040
1,040
2,557
2,557
459
36,057
459
6,098
533
Problem 7-6BA (Continued)
CASH RECEIPTS JOURNAL
Page 2
Date
Account Credited
Explanation
PR
Cash
Dr.
Sales
Discount
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
88,500
18,170
16,703
34,873
88,500
CASH DISBURSEMENTS JOURNAL
Page 2
Date
Ck.
No.
Payee
Account Debited
PR
Cash
Cr.
Purchases
Discounts
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
670
33,500
6,585
___
710
35,500
534
Problem 7-6BA (Continued)
GENERAL JOURNAL
Page 2
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
535
Problem 7-6BA (Continued)
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
(1,479)
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
Sales Discounts
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 505
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 507
Date
Explanation
PR
Debit
Credit
Balance
536
Problem 7-6BA (Continued)
Sales Salaries Expense
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Balance
ACCOUNTS RECEIVABLE LEDGER
Carlos Mantel
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
ACCOUNTS PAYABLE LEDGER
BLR Industries
Date
Explanation
PR
Debit
Credit
Balance
537
Problem 7-6BA (Continued)
Grebe Company
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
Part 3
GRASSLEY COMPANY
Trial Balance
November 30
Debit
Credit
Cash …………………………………………………….
$100,207
Accounts receivable ……………………………..
Accounts payable …………………………………
C. Grassley, Capital ………………………………
Sales discounts…………………………………….
Purchases …………………………………………….
Purchases returns and allowances ………..
Purchases discounts …………………………..
Sales salaries expense ………………………….
Totals …………………………………………………..
538
Problem 7-6BA (Concluded)
Part 3—continued
GRASSLEY COMPANY
Schedule of Accounts Receivable
November 30
GRASSLEY COMPANY
Schedule of Accounts Payable
November 30