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SOLUTION
Requirements 1, 2 and 3
Sales Journal
Page 1
Date
Invoice
No.
Customer
Account Debited
Post.
Ref.
Accounts Receivable
DR
Cost of Goods Sold
DR
Sales Revenue
CR
Merchandise Inventory
CR
PC–27B, 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
2016
Nov. 6
Equipment
18
85
85
6
2,300
2,300
1,500
*$2,200 × 2% = $44; $2,200 – $44 = $2,156
**$3,600 × 2% = $72; $3,600 – $72 = $3,528
PC–27B, cont.
Requirements 1, 2 and 3, cont.
Date
Accounts and Explanation
Post.
Ref.
Debit
Credit
Jul. 18
Sales Returns and Allowances
43
500
Accounts Receivable—A. Z. Metz
12/✓
500
PC-28B Using the purchases, cash payments, and general journals
Learning Objectives 3, 4
Purchases Journal, Accounts Payable CR column total $18,750
The general ledger of Circus Lake Golf Shop includes the following selected accounts, along with their
account numbers:
Transactions in December that affected purchases and cash payments were as follows:
Requirements
1. Use the appropriate journal to record the preceding transactions in a purchases journal, a cash
payments journal (omit the Check No. column), and a general journal. Circus Lake Golf Shop
records purchase returns in the general journal. The company uses the perpetual inventory system.
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
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
2016
Dec. 2
Trudel
3/10, n/30
✓
4,200
4,200
PC–28B, 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
2016
Dec. 3
Rent Expense
564
2,200
2,200
8
Utilities Expense
583
530
530
1$4,200 × 3% = $126; $4,200 – $126 = $4,074
2Did not make payment within the discount period
3$4,500 × 2% = $90; $4,500 – $90 = $4,410
4$3,100 – $1,300 = $1,800; $1,800 × 2% = $36; $1,800 – $36 = $1,764
PC-29B Using all journals, posting, and balancing the ledgers
Learning Objectives 2, 3, 4
Trial balance, total debits $49,400
Kingston Computer Security uses the perpetual inventory system and makes all credit
sales on terms of 2/10, n/30. During March, Kingston completed these transactions:
Requirements
1. Open four-column general ledger accounts using Kingston Computer Security’s account numbers
and balances as of March 1, 2016, that follow. All accounts have normal balances.
2. Open four-column accounts in the subsidiary ledgers with beginning balances as of March 1, if any.
Accounts receivable subsidiary ledger: Abney Co., $2,000; Cantu Co., $0; J. R. Kaeding, $0; and
Stenback, $0. Accounts payable subsidiary ledger: Heard, $0; Marston Corp, $0; James Sales, $0;
and Yount Co., $1,000.
3. Enter the transactions in a sales journal (page 8), a cash receipts journal (page 3), a purchases journal
(page 6), a cash payments journal (page 9), and a general journal (page 4), as appropriate.
4. Post daily to the accounts receivable subsidiary ledger and to the accounts payable subsidiary ledger.
5. Total each column of the special journals. Show that total debits equal total credits in each special
journal. On March 31, post to the general ledger.
6. Prepare a trial balance as of March 31, 2016, to verify the equality of the general ledger. Balance the
total of the customer account balances in the accounts receivable subsidiary ledger against Accounts
Receivable in the general ledger. Do the same for the accounts payable subsidiary ledger and
Accounts Payable in the general ledger.
SOLUTION
Requirements 1 and 5
Cash
No. 111
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
15,200
Mar. 31
CR.3
11,497
26,697
31
CP.9
11,107
15,590
Merchandise Inventory
No. 114
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
6,000
Mar. 10
CP.9
1,150
7,150
17
J.4
250
7,400
29
J.4
700
6,700
PC–29B, cont.
Requirements 1 and 5, cont.
Prepaid Insurance
No. 117
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
Mar. 22
CP.9
1,300
1,300
PC–29B, cont.
Requirements 1 and 5, cont.
Sales Revenue
No. 411
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
7,800
Mar. 31
S.8
13,350
21,150
31
CR.3
1,000
22,150
Interest Revenue
No. 419
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
700
Mar. 8
CR.3
1,250
1,950
PC–29B, cont.
Requirements 1 and 5, cont.
Salaries Expense
No. 531
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
PC-29B, cont.
Requirements 2 and 4
Accounts Receivable—Abney Co.
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
PC-29B, cont.
Requirements 2 and 4
Accounts Receivable—L. E. Kaeding
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
Mar. 2
S.8
3,200
3,200
12
CR.3
3,200
0
18
S.8
400
400
31
CR.3
400
0
Accounts Payable—James Sales
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
Mar. 20
P.6
2,000
2,000
PC–29B, cont.
Requirements 3, 4, 5 and 6
Sales Journal
Page 8
Date
Invoice
No.
Customer
Account Debited
Post.
Ref.
Accounts Receivable
DR
Cost of Goods Sold
DR
Sales Revenue
CR
Merchandise Inventory
CR
2016
PC–29B, cont.
Requirements 3, 4, 5 and 6, cont.
Cash Receipts Journal
Page 3
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
2016
Mar. 4
1,000
1,000
550
PC–29B, cont.
Requirements 3, 4, 5 and 6, cont.
Purchases Journal
Page 6
Date
Vendor
Account Credited
Terms
Post.
Ref.
Accounts
Payable
CR
Merchandise
Inventory
DR
Office
Supplies
DR
Other Accounts DR
Account
Title
Post.
Ref.
Amount
2016
Mar. 3
Heard
3/10, n/60
✓
3,100
3,100
PC–29B, cont.
Requirements 3, 4, 5 and 6, cont.
Cash Payments Journal
Page 9
Date
Ck.
No.
Account Debited
Post.
Ref.
Other
Accounts
DR
Accounts
Payable
DR
Merchandise
Inventory
CR
Cash
CR
2016
Mar. 5
473
Furniture
151
2,650
2,650
10
474
Merchandise Inventory
114
1,150
1,150
PC–29B, cont.
Requirements 3, 4, 5 and 6, cont.
General Journal Page 4
Date
Accounts and Explanation
Post.
Ref.
Debit
Credit
Mar. 17
Sales Returns and Allowances
413
650
Requirement 6
KINGSTON COMPUTER SECURITY
Trial Balance
March 31, 2016
Acct. No.
Account Name
Debit
Credit
111
Cash
$ 15,590
112
Accounts Receivable
5,400
PC–29B, cont.
Requirement 6, cont.
Accounts Receivable Subsidiary Ledger
Customer
Balance
Abney Co.
$ 2,000
Cantu Co.
3,400
Stenback Co.
0
L. E. Kaeding
0
Total
$ 5,400
Continuing Problem
PC-30 Using all journals
This problem continues the Daniels Consulting situation. Daniels Consulting per- forms systems
consulting. Daniels has also begun selling accounting software and uses the perpetual inventory system
to account for software inventory. During January 2017, Daniels completed the following transactions:
Daniels Consulting had the following selected accounts with account numbers and normal balances:
