PROBLEM 9B-4
(1)
GENERAL JOURNAL PAGE 1
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Dec.
1
Cash
10
6
0
0
0
00
Al Franklin, Capital
30
6
0
0
0
00
Owner Investment
5
Cash
10
5
5
0
8
00
Sales Tax Payable
20
4
0
8
00
Lipstick Sales
40
5
1
0
0
00
Cash Sales, Lipstick
5
Cost of Goods Sold
51
4
0
2
5
00
Merchandise Inventory – Lipstick
16
4
0
2
5
00
Cost of merchandise inventory sold
5
Cash
10
1
8
3
6
00
Sales Tax Payable
20
1
3
6
00
Eye Shadow Sales
44
1
7
0
0
00
Cash Sales, Eye Shadow
5
Cost of Goods Sold
51
9
7
5
00
Merchandise Inventory – Eye Shadow
17
9
7
5
00
Cost of merchandise inventory sold
8
Accounts Receivable, Alexander Kozlosky Co.
2
1
6
00
Sales Tax Payable
20
1
6
00
Lipstick Sales
40
2
0
0
00
Sales on Acct. Ticket No. 1, Kozlosky
8
Cost of Goods Sold
51
1
1
0
00
Merchandise Inventory – Lipstick
16
1
1
0
00
Cost of merchandise inventory sold
9
Accounts Receivable, Douglas Sabin Co.
8
6
4
00
Sales Tax Payable
20
6
4
00
Eye Shadow Sales
44
8
0
0
00
Sales on Acct. Ticket No. 2, Sabin
9
Cost of Goods Sold
51
5
2
0
00
Merchandise Inventory – Eye Shadow
17
5
2
0
00
Cost of merchandise inventory sold
15
Sales Returns and Allowances
42
1
0
0
00
Sales Tax Payable
20
8
00
Issued Credit Memo #1
Cash
Sabin Paid 1/2 Sales Ticket No. 2
GENERAL JOURNAL PAGE 2
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Dec.
21
Accounts Receivable, John Tobin Co.
3
7
00
20
2
8
00
40
3
5
0
00
Sales on Acct. Ticket No. 3, Tobin
21
Cost of Goods Sold
51
1
9
0
00
Merchandise Inventory – Lipstick
16
1
9
0
00
Cost of merchandise inventory sold
24
Accounts Receivable, Edward Wease Co.
1
0
8
0
00
20
8
0
00
44
1
0
0
0
00
Sales on Acct. Ticket No. 4, Wease
24
Cost of Goods Sold
51
6
2
5
00
Merchandise Inventory – Eye Shadow
17
6
2
5
00
Cost of merchandise inventory sold
25
Sales Returns and Allowances
42
2
5
0
00
Sales Tax Payable
20
2
0
00
2
7
0
00
Issued Credit Memo #2
25
Merchandise Inventory – Lipstick
16
1
0
5
00
Cost of Goods Sold
51
1
0
5
00
Cost of merchandise inventory returned
29
Cash
10
4
1
0
4
00
20
3
0
4
00
40
9
0
0
00
44
2
9
0
0
00
Cash Sales
29
Cost of Goods Sold
51
1
8
0
0
00
Merchandise Inventory – Eye Shadow
17
1
8
0
0
00
Cost of merchandise inventory sold
29
Cost of Goods Sold
51
6
0
0
00
16
6
0
0
00
29
Accounts Receivable, Douglas Sabin Co.
3
2
4
00
Cash
Sales Ticket No. 5, Paid
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME
ALEXANDER KOZLOSKY CO.
ADDRESS
2 RYAN RD., BUFFALO, NY 12413
Date
201X
Explanation
Post
Ref.
Debit
Credit
Dr. Balance
NAME DOUGLAS SABIN CO.
ADDRESS
14 BONE DR., ENGLEWOOD CLIFFS, NJ 07632
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Balance
9
NAME
JOHN TOBIN CO.
ADDRESS
2 MARION RD., BOSTON, MA 02181
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Balance
PROBLEM 9B-4 (CONTINUED)
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME
EDWARD WEASE CO.
ADDRESS
4 REEL RD., LANCASTER, PA 17632
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Balance
24
1
0
8
0
00
1
0
8
0
00
AL‘S COSMETIC MARKET
GENERAL LEDGER
CASH
ACCOUNT NO. 10
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
1
GJ1
6
0
0
0
00
6
0
0
0
00
5
GJ1
5
5
0
8
00
11
5
0
8
00
5
GJ1
1
8
3
6
00
13
3
4
4
00
GJ1
4
3
2
00
13
7
7
6
00
GJ2
4
1
0
4
00
17
8
8
0
00
GJ2
3
2
4
00
18
2
0
4
00
ACCOUNTS RECEIVABLE
ACCOUNT NO. 12
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
8
GJ1
2
1
6
00
2
1
6
00
9
GJ1
8
6
4
00
1
0
8
0
00
GJ1
1
0
8
00
9
7
2
00
GJ1
4
3
2
00
5
4
0
00
GJ2
3
7
8
00
9
1
8
00
GJ2
1
0
8
0
00
1
9
9
8
00
GJ2
2
7
0
00
1
7
2
8
00
GJ2
3
2
4
00
2
0
5
2
00
GJ2
3
2
4
00
1
7
2
8
00
MERCHANDISE INVENTORY-LIPSTICK
ACCOUNT NO. 16
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
1
Balance
GJ1
11
0
0
0
00
5
GJ1
4
0
2
5
00
6
9
7
5
00
8
GJ1
1
1
0
00
6
8
6
5
00
GJ1
5
5
6
9
2
0
00
GJ2
1
9
0
00
6
7
3
0
00
GJ2
1
0
5
6
8
3
5
00
GJ2
6
0
0
00
6
2
3
5
00
MERCHANDISE INVENTORY – EYE SHADOW
ACCOUNT NO. 17
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
1
Balance
GJ1
18
0
0
0
00
5
GJ1
9
7
5
00
17
0
2
5
00
9
GJ1
5
2
0
00
5
0
5
00
6
2
5
00
15
8
8
0
00
1
8
0
0
00
14
0
8
0
00
SALES TAX PAYABLE
ACCOUNT NO. 20
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
5
GJ1
4
0
8
00
4
0
8
00
5
GJ1
1
3
6
00
5
4
4
00
8
GJ1
1
6
00
5
6
0
00
9
GJ1
6
4
00
6
2
4
00
GJ1
8
6
1
6
00
GJ2
2
8
00
6
4
4
00
GJ2
8
0
00
7
2
4
00
GJ2
2
0
7
0
4
00
GJ2
3
0
4
00
1
0
0
8
00
PROBLEM 9B-4 (CONTINUED)
AL FRANKLIN, CAPITAL
ACCOUNT NO. 30
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
LIPSTICK SALES
ACCOUNT NO. 40
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
5
GJ1
5
1
0
0
00
5
1
0
0
00
8
GJ1
2
0
0
00
5
3
0
0
00
GJ2
3
5
0
00
5
6
5
0
00
GJ2
9
0
0
00
6
5
5
0
00
GJ2
3
0
0
00
6
8
5
0
00
SALES RETURNS AND ALLOWANCES
ACCOUNT NO. 42
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
GJ1
1
0
0
1
0
0
00
GJ2
2
5
0
3
5
0
00
EYE SHADOW SALES
ACCOUNT NO. 44
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
5
GJ1
1
7
0
0
00
1
7
0
0
00
9
GJ1
8
0
0
00
2
5
0
0
00
GJ2
1
0
0
0
00
3
5
0
0
00
GJ2
2
9
0
0
00
6
4
0
0
00
PROBLEM 9B-4 (CONTINUED)
COST OF GOODS SOLD
ACCOUNT NO. 51
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
21
GJ2
1
9
0
00
5
7
6
5
00
24
GJ2
6
2
5
00
6
3
9
0
00
25
GJ2
1
0
5
6
2
8
5
00
29
GJ2
6
0
0
00
6
8
8
5
00
29
GJ2
1
8
0
0
00
8
6
8
5
00
29
GJ2
1
7
5
00
8
8
6
0
00
(2)
AL‘S COSMETIC MARKET
SCHEDULE OF ACCOUNTS RECEIVABLE
DECEMBER 31, 201X
Alexander Kozlosky Co.
$
1
0
8
00
4
3
2
1
0
8
0
8
0
7
2
8
00
SOLUTION TO READING AMAZON ANNUAL REPORT
From page 23 of annual report:
Product sales represent revenue from the sale of products and related shipping
fees and digital media content where we record revenue gross. Service sales
From page 42 of annual report:
We recognize revenue from product sales or services rendered when the
following four criteria are met: persuasive evidence of an arrangement exists,
delivery has occurred or service has been rendered, the selling price is fixed or
Sales of our digital devices, including Kindle e-readers, Fire tablets, Fire TVs,
and Echo, are considered arrangements with multiple deliverables, consisting of
the device, undelivered software upgrades and/or undelivered non-software
Sales of Amazon Prime memberships are also considered arrangements with
multiple deliverables, including shipping benefits, Prime Video, Prime Music,
Prime Photos, and access to the Kindle Owners’ Lending Library. The revenue
related to the deliverables is amortized over the life of the membership based on
the estimated delivery of services. Amazon Prime membership fees are allocated
fees. We evaluate whether it is appropriate to record the gross amount of product
sales and related costs or the net amount earned as commissions. Generally,
when we are primarily obligated in a transaction, are subject to inventory risk,
Product sales represent revenue from the sale of products and related shipping
fees and digital media content where we record revenue gross. Product sales
and shipping revenues, net of promotional discounts, rebates, and return
allowances, are recorded when the products are shipped and title passes to
customers. Retail sales to customers are made pursuant to a sales contract that
Service sales represent third-party seller fees earned (including commissions)
and related shipping fees, AWS sales, certain digital content subscriptions,
Return allowances, which reduce revenue and cost of sales, are estimated using
consumption taxes. Additionally, we periodically provide incentive offers to our
customers to encourage purchases. Such offers include current discount offers,
such as percentage discounts off current purchases, inducement offers, such as
offers for future discounts subject to a minimum current purchase, and other
CONTINUING PROBLEM SOLUTION: KEEPING IT REAL: SUAREZ
COMPUTER CENTER
(1)
SUAREZ COMPUTER CENTER
GENERAL JOURNAL
PAGE 4
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Jan.
1
Merchandise Inventory
1021
12
0
0
0
00
Cash
1000
12
0
0
0
00
Purchased merchandise inventory
5
7
8
0
00
Sales
4010
7
8
0
00
5
Cost of Goods Sold
5000
5
1
0
00
Merchandise Inventory
1021
5
1
0
00
Cost of merchandise inventory sold
10
Accounts Receivable, Dr. Michael Turiono
1020/√
3
6
0
0
00
Sales
4010
3
6
0
0
00
Sales Invoice 5001
10
Cost of Goods Sold
5000
2
3
4
0
00
Merchandise Inventory
1021
2
3
4
0
00
Cost of merchandise inventory sold
11
Cash
1000
2
8
0
0
00
Accounts Receivable, Vital Tax Services
2
8
0
0
00
12
Cash
1000
2
8
0
0
00
Sales
4010
2
8
0
0
00
12
Cost of Goods Sold
5000
1
7
7
5
00
Merchandise Inventory
1021
1
7
7
5
00
Cost of merchandise inventory sold
19
Accounts Receivable, Worldwide Professionals
4
5
0
0
00
Merchandise Inventory
1021
2
9
0
0
00
Cost of merchandise inventory sold
20
Cash
1000
3
4
9
2
00
Sales Discounts
4030
1
0
8
00
Accounts Receivable, Dr. Michael Turiono
3
6
0
0
00
29
Sales Returns and Allowances
4020
4
6
0
00
4
6
0
00
Issued Credit Memo
29
Merchandise Inventory
1021
3
0
0
00
Cost of Goods Sold
5000
3
0
0
00
Cost of merchandise inventory returned
29
Cash
1000
4
3
6
5
00
Sales Discounts
4030
1
3
5
00
Professionals
Professionals
(2)
CASH
ACCOUNT NO. 1000
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Jan.
1
Balance Forward
√
12
2
1
9
29
1
GJ4
12
0
0
0
00
2
1
9
29
11
GJ4
2
8
0
0
00
3
0
1
9
29
12
GJ4
2
8
0
0
00
5
8
1
9
29
20
GJ4
3
4
9
2
00
9
3
1
1
29
29
GJ4
4
3
6
5
00
13
6
7
6
29
ACCOUNTS RECEIVABLE
ACCOUNT NO. 1020
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Jan.
1
Balance Forward
√
14
8
5
0
00
5
GJ4
7
8
0
00
15
6
3
0
00
10
GJ4
3
6
0
0
00
19
2
3
0
00
11
GJ4
2
8
0
0
00
16
4
3
0
00
19
GJ4
4
5
0
0
00
20
9
3
0
00
CONTINUING PROBLEM (CONTINUED)
MERCHANDISE INVENTORY
ACCOUNT NO. 1021
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Jan.
1
GJ4
12
0
0
0
00
12
0
0
0
00
5
GJ4
5
1
0
00
11
4
9
0
00
GJ4
2
3
4
0
00
9
1
5
0
00
12
GJ4
1
7
7
5
00
7
3
7
5
00
GJ4
2
9
0
0
00
4
4
7
5
00
SALES
ACCOUNT NO. 4010
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Jan.
5
GJ4
7
8
0
00
7
8
0
00
GJ4
6
0
0
00
4
3
8
0
00
GJ4
8
0
0
00
7
1
8
0
00
SALES RETURNS AND ALLOWANCES
ACCOUNT NO. 4020
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
SALES DISCOUNTS
ACCOUNT NO. 4030
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Jan.
GJ4
1
0
8
00
1
0
8
00
GJ4
1
3
5
00
2
4
3
00
CONTINUING PROBLEM (CONTINUED)
COST OF GOODS SOLD
ACCOUNT NO. 5000
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Jan.
5
GJ4
5
1
0
00
5
1
0
00
GJ4
2
3
4
0
00
2
8
5
0
00
GJ4
1
7
7
5
00
4
6
2
5
00
GJ4
9
0
0
00
7
5
2
5
00
GJ4
3
0
0
00
7
2
2
5
00
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME
PHIL’S PHOTOGRAPHY
ACCOUNT NO. 100
ADDRESS
1010 MOCKINGBIRD LANE, CARLSBAD, CA 92008
Date
201X
Explanation
Post
Ref.
Debit
Credit
Dr. Balance
5
7
8
0
00
7
8
0
00
NAME
DR. MICHAEL TURIONO
ACCOUNT NO. 101
ADDRESS
600 NEWPORT BEACH, NEWPORT, CA 91600
Date
201X
Explanation
Post
Ref.
Debit
Credit
Dr. Balance
6
NAME
VALUE PAC INC.
ACCOUNT NO. 102
ADDRESS
1717 JORDAN ST., SAN CLEMENTE, CA 91607
Date
201X
Explanation
Post
Ref.
Debit
Credit
Dr. Balance
1
3
NAME
VIRAL VIDEO
ACCOUNT NO. 103
ADDRESS
500 NEWPORT BEACH, NEWPORT, CA 91600
Date
201X
Explanation
Post
Ref.
Debit
Credit
Dr. Balance
1
9
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME
VITAL TAX SERVICES
ACCOUNT NO. 104
ADDRESS
1010 MOCKINGBIRD LANE, CARLSBAD, CA 92008
Date
201X
Explanation
Post
Ref.
Debit
Credit
Dr. Balance
6
8
8
NAME
WORLDWIDE PROFESSIONALS
ACCOUNT NO. 105
ADDRESS
144 CANTATA, IRVINE, CA 92606
Date
201X
Explanation
Post
Ref.
Debit
Credit
Dr. Balance
5
3.
SUAREZ COMPUTER CENTER
SCHEDULE OF ACCOUNTS RECEIVABLE
1/31/201X
Phil’s Photography
$320
3,950
3,800
0