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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
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
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
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
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.
Software Inventory*
No. 114
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 31
P.1
5,910
5,910
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
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
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
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.
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.
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
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
Comprehensive Problem, cont.
Requirements 1 and 3, cont.
Prepaid Insurance
No. 117
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
2,200
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
Comprehensive Problem, cont.
Requirements 1 and 3, cont.
Common Stock
No. 301
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
25,000
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
Rent Expense
No. 513
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
Aug. 1
CP.5
2,000
2,000
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