Requirements
1. Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice
No. column), a cash receipts journal, a purchases journal, a cash payments journal (omit the Check
No. column), and a general journal.
2. Total each column of the special journals. Show that total debits equal total credits in each special
journal.
3. Show how postings would be made from the journals by writing the account numbers and check
marks in the appropriate places in the journals.
SOLUTION
Requirements 1, 2 and 3
Sales Journal
Page 1
Date
Customer
Account Debited
Post.
Ref.
Accounts Receivable
DR
Cost of Goods Sold
DR
Sales Revenue
CR
Software Inventory
CR
2017
Jan. 18
Jason Needle
Totals
Debits:
Accounts Receivable + Cost of Goods Sold
Credits:
Sales Revenue + Software Inventory
PC–30, cont.
Requirements 1, 2 and 3, cont.
Cash Receipts Journal
Page 1
Date
Account Credited
Post.
Ref.
Cash
DR
Sales
Discounts
DR
Accounts
Receivable
CR
Sales
Revenue
CR
Other
Accounts
CR
Cost of
Goods Sold
DR
Software
Inventory
CR
2017
Service Revenue
Totals
(411)
Debits:
Cash + Sales Discounts + Cost of Goods Sold
Credits:
Accounts Receivable + Sales Revenue + Other Accounts + Software Inventory
PC–30, cont.
Requirements 1, 2 and 3, cont.
Purchases Journal
Page 1
Date
Vendor
Account Credited
Terms
Post.
Ref.
Accounts
Payable
CR
Software
Inventory
DR
Office
Supplies
DR
Other Accounts DR
Account
Title
Post.
Ref.
Amount
2017
Miller Co.
Totals
Debits:
Software Inventory + Office Supplies + Other Accounts
Credits:
Accounts Payable
PC–30, cont.
Requirements 1, 2 and 3, cont.
Cash Payments Journal
Page 1
Date
Ck.
No.
Account Debited
Post.
Ref.
Other
Accounts
DR
Accounts
Payable
DR
Software
Inventory
CR
Cash
CR
2017
Jan. 2
Prepaid Rent
117
2,400
2,400
Salaries Payable
213
Salaries Expense
531
1,200
1,885
Miller Co.
1,100
1,100
Utilities Expense
541
Totals
4,660
1,100
5,760
(211)
Debits:
Other Accounts + Accounts Payable
Credits:
Software Inventory + Cash
PC–30, cont.
Requirements 1, 2 and 3, cont.
General Journal Page 1
Date
Accounts and Explanation
Post.
Ref.
Debit
Credit
Jan. 19
Accounts Receivable—Louis Frank
112/✓
2,500
Service Revenue
419
2,500
Provided services on account.
Salaries Expense
531
Salaries Payable
213
Accrued salaries expense.
Depreciation Expense—Equipment
551
Depreciation Expense—Furniture
561
Accumulated Depreciation—Equipment
171
Accumulated Depreciation—Furniture
181
To record depreciation for month.
Rent Expense
571
Prepaid Rent
117
To record expiration of rent.
Cost of Goods Sold
511
Software Inventory*
114
To adjust for inventory shrinkage.
Software Inventory*
No. 114
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 31
P.1
5,910
5,910
S.1
5,030
3,470
1,560
Practice Set
PC-31 Using all journals
This problem continues the Crystal Clear Cleaning problem. Crystal Clear Cleaning has decided that, in
addition to providing cleaning services, it will sell cleaning products. Crystal Clear uses the perpetual
inventory system. During December 2017, Crystal Clear completed the following transactions:
Crystal Clear Cleaning had the following selected accounts with account numbers and normal balances:
Requirements
1. Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice
No. column), a cash receipts journal, a purchases journal, a cash payments journal (omit the Check
No. column), and a general journal.
2. Total each column of the special journals. Show that total debits equal total credits in each special
journal.
3. Show how postings would be made from the journals by writing the account numbers and check
marks in the appropriate places in the journals.
SOLUTION
Requirements 1, 2 and 3
Sales Journal
Page 1
Date
Customer
Account Debited
Post.
Ref.
Accounts Receivable
DR
Cost of Goods Sold
DR
Sales Revenue
CR
Merchandise Inventory
CR
PC–31, cont.
Requirements 1, 2 and 3, cont.
Cash Receipts Journal
Page 1
Date
Account Credited
Post.
Ref.
Cash
DR
Sales
Discounts
DR
Accounts
Receivable
CR
Sales
Revenue
CR
Other
Accounts
CR
Cost of
Goods Sold
DR
Merchandise
Inventory
CR
2017
Dec. 21
Happy Maids1
✓
3,572
110
3,682
Bridget Inc.
3,975
Totals
7,547
110
3,682
(412)
Debits:
Cash + Sales Discounts + Cost of Goods Sold
Credits:
Accounts Receivable + Sales Revenue + Other Accounts + Merchandise Inventory
PC–31, cont.
Requirements 1, 2 and 3, cont.
Purchases Journal
Page 1
Date
Vendor
Account Credited
Terms
Post.
Ref.
Accounts
Payable
CR
Merchandise
Inventory
DR
Office
Supplies
DR
Other Accounts DR
Account
Title
Post.
Ref.
Amount
2017
Sparkle Co.
3/10, n/20
Totals
Debits:
Merchandise Inventory + Office Supplies + Other Accounts
Credits:
Accounts Payable
PC–31, cont.
Requirements 1, 2 and 3, cont.
Cash Payments Journal
Page 1
Date
Ck.
No.
Account Debited
Post.
Ref.
Other
Accounts
DR
Accounts
Payable
DR
Merchandise
Inventory
CR
Cash
CR
2017
Dec. 9
Borax1
✓
4,500
87
4,413
✓
2,400
72
2,328
Utilities Expense
Sales Commission Expense
Totals
6,900
7,706
Debits:
Other Accounts + Accounts Payable
Credits:
Merchandise Inventory + Cash
PC–31, cont.
General Journal Page 1
Date
Accounts and Explanation
Post.
Ref.
Debit
Credit
Dec. 7
Accounts Payable—Sparkle Co.
211/✓
450
Merchandise Inventory
114
450
Issued debit memo for purchase return.
15
Sales Returns and Allowances
413
308
Accounts Receivable—Happy Maids
112/✓
308
Received returned goods from customer.
Merchandise Inventory
114
132
Placed returned goods into inventory.
31
Cost of Goods Sold
511
324
Merchandise Inventory*
114
324
To adjust for inventory shrinkage.
31
Depreciation Expense
551
270
Accumulated Depreciation
171
270
To record depreciation for the month.
31
Salaries Expense
531
725
Salaries Payable
212
725
Accrued salaries expense.
31
Rent Expense
571
500
Prepaid Rent
117
500
To record expiration of rent.
31
Insurance Expense
561
150
Prepaid Insurance
118
150
To record expiration of insurance.
31
Unearned Revenue
213
Service Revenue
419
in advance.
31
591
720
214
720
To accrue interest expense ($96,000 × 9% × 1/12).
PC–31, cont.
Requirements 1, 2 and 3, cont.
Merchandise Inventory*
No. 114
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Dec. 31
P.1
7,350
7,350
7
J.1
450
6,900
159
6,741
S.1
1,710
5,031
J.1
132
5,163
1,691
3,472
Comprehensive Problem for Appendix C
Completing the Accounting Cycle for a Merchandising Entity—Using Special Journals
Quick Networking Systems adjusts and closes its books and then prepares financial statements monthly.
Quick uses the perpetual inventory system. The company completed the following transactions during
August:
Requirements
1. Open these four-column accounts with their account numbers and July 31 balances in the various
ledgers.
General Ledger:
Accounts Receivable Subsidiary Ledger: Finnish Company $2,200; R. T. Lowe,
$0; Parkland, Inc., $11,590; K. D. Statesman, $8,770.
Accounts Payable Subsidiary Ledger: Boxman Corporation, $0; French Company,
$12,600; Goodman, Inc., $0; Sammy Supply, $0.
2. Journalize the August transactions using a sales journal (page 4), a cash receipts journal (page 11), a
purchases journal (page 8), a cash payments journal (page 5), and a general journal (page 9). Quick
makes all credit sales on terms of 2/10, n/30.
3. Post daily to the accounts receivable subsidiary ledger and the accounts payable subsidiary ledger.
On August 31, post to the general ledger.
4. Prepare an unadjusted trial balance for the month ended August 31.
5. Journalize and post the following adjusting entries:
a. Office supplies on hand, $990.
b. Prepaid insurance expired, $550.
c. Depreciation expense, $230.
d. Accrued salaries expense, $1,030.
6. Prepare an adjusted trial balance.
7. Prepare a multistep income statement, statement of retained earnings, and classi– fied balance sheet.
8. Journalize closing entries and post.
9. Prepare a post-closing trial balance.
SOLUTION
Requirements 1 and 3
Cash
No. 101
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
4,490
Aug. 31
CR.11
8,309
12,799
31
CP.5
10,606
2,193
Accounts Receivable
No. 102
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
22,560
Aug. 31
12,966
35,526
31
CR.11
7,185
28,341
27,791
Merchandise Inventory
No. 105
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
41,800
Aug. 31
9,730
51,530
19
CP.5
52,380
52,554
30
CR.11
51,704
31
4,101
47,603
31
CR.11
47,499
31
CP.5
47,485
Office Supplies
No. 109
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
1,340
CP.5
2,120
31
2,300
Comprehensive Problem, cont.
Requirements 1 and 3, cont.
Prepaid Insurance
No. 117
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
2,200
Furniture
No. 160
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
37,270
Accumulated Depreciation—Furniture
No. 161
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
10,550
Accounts Payable
No. 201
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
12,600
Aug. 31
P.8
10,420
23,020
31
CP.5
4,000
19,020
Salaries Payable
No. 204
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
1,250
CP.5
1,250
Notes Payable, Long-term
No. 220
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
31,000
Comprehensive Problem, cont.
Requirements 1 and 3, cont.
Common Stock
No. 301
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
25,000
Retained Earnings
No. 305
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
29,260
Dividends
No. 310
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
Income Summary
No. 400
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
Sales Revenue
No. 401
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
12,966
12,966
13,296
Sales Discounts
No. 402
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
Comprehensive Problem, cont.
Requirements 1 and 3, cont.
Sales Returns and Allowances
No. 403
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
Aug. 5
J.9
550
550
Cost of Goods Sold
No. 501
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
4,101
4,101
104
4,205
J.9
174
4,031
Salaries Expense
No. 510
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
CP.5
1,240
1,240
Rent Expense
No. 513
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
Aug. 1
CP.5
2,000
2,000
Depreciation Expense—Furniture
No. 514
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0