Note: Short Exercise SC-10 must be completed before attempting Short Exercise SC-11.
SC-11 Posting transactions from a cash payments journal to a subsidiary ledger and general
ledger
Learning Objective 3
Review your results from Short Exercise SC-10.
Requirements
1. Total each column of the cash payments journal.
2. Open the following four-column accounts in the accounts payable subsidiary ledger: Accounts
Payable—King Co., Bal. $1,025. Post the transactions to the accounts payable subsidiary ledger.
3. Open the following selected four-column accounts in the general ledger: Cash (111), Bal. $6,500;
Merchandise Inventory (118), $1,800; Equipment (150), $10,000; Accounts Payable (211), $1,025;
Utilities Expense (541). Post the total of each column to the general ledger. Also, post the Other
Accounts to the general ledger.
4. Balance the total of the vendor balances in the accounts payable subsidiary ledger against Accounts
Payable in the general ledger.
SOLUTION
Requirement 1
See cash payments journal in Short Exercise SC–10.
Requirement 2
Accounts Payable––King Co.
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Bal.
Jan. 18
CP.8
1,025
Requirement 3
Cash
No. 111
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Bal.
6,500
Jan. 31
CP.8
3,775
2,725
Merchandise Inventory
No. 118
Balance
Bal.
1,800
CP.8
2,200
Jan. 31
CP.8
2,140
Equipment
No. 150
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Bal.
CP.8
2,200
Accounts Payable
No. 211
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Bal.
Jan. 31
CP.8
1,025
SC–11, cont.
Requirement 3, cont.
Utilities Expense
No. 541
Date
Ref.
Credit
Requirement 4
King Co.
Total
SC-12 Recording transactions in a general journal
Learning Objective 3
Journalize the above transactions that should be recorded in the general journal. If a transaction should
not be recorded in the general journal, identify the special journal that should be used. Assume the
company uses the perpetual inventory system.
SOLUTION
Date
Accounts and Explanation
Debit
Credit
Mar. 6
Sales Returns and Allowances
1,100
Accounts Receivable—B. Kamp
1,100
Merchandise Inventory
1,090
Cost of Goods Sold
1,090
Accounts Payable—Prompt Company
Merchandise Inventory
SC-13 Understanding components of a computerized accounting information system
Learning Objective 4
Ned Timmons, engineer, is considering using a computerized accounting system for his professional
engineering business. Ned has asked that you help him understand the components of a computerized
accounting information system by answering the following questions:
Requirements
1. What are the two basic components of a computerized accounting information system?
2. Provide examples of each component.
3. If Ned were interested in an entry-level software system, what software might you recommend?
SOLUTION
Requirement 1
The two basic components of a computerized accounting information system are hardware and software.
Exercises
EC-14 Recording transactions—sales journal
Learning Objective 2
Accounts Receivable DR, Sales Revenue CR column total $1,825
Requirements
1. Prepare headings for a sales journal. Journalize the transactions that should be recorded in the sales
journal. (Round the sales discount to a whole dollar.) Assume the company uses the perpetual
inventory system.
2. Total each column of the sales journal.
SOLUTION
Requirements 1 and 2
Sales Journal
Page 1
CR
CR
Invoice
Customer
Post.
Accounts Receivable
DR
Cost of Goods Sold
DR
Sales Revenue
Merchandise
Inventory
EC-15 Recording transactions—cash receipts journal
Learning Objective 2
Accounts Receivable CR column total $1,825
Refer to information in Exercise EC-14.
Requirements
1. Prepare headings for a cash receipts journal. Journalize the transactions that should be recorded in
the cash receipts journal.
2. Total each column of the cash receipts journal.
SOLUTION
Requirements 1 and 2
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
EC-16 Using the sales and cash receipts journals
Learning Objective 2
The sales and cash receipts journals of Reynolds Office Products include the following
entries:
Identify the missing information in the cash receipts journal for those transactions listed. There are no
sales discounts. Also, total the columns in the cash receipts journal and show that total debits equal total
credits.
SOLUTION
Cash Receipts Journal
Page 5
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
145
640
EC-17 Analyzing postings from the cash receipts journal
Learning Objective 2
The cash receipts journal of Silver Plastics follows.
Silver’s general ledger includes the following selected accounts, along with their account numbers:
Indicate whether each posting reference (a) through (k) should be a
• Check mark (✓) for a posting to a customer account in the accounts receivable subsidiary ledger.
• Account number for a posting to an account in the general ledger. If so, give the account number.
• Letter (X) for an amount not posted.
SOLUTION
a.
110
512
c.
115
510
e.
X
125
520
EC-18 Identifying transactions in the accounts receivable subsidiary ledger
Learning Objective 2
A customer account in the accounts receivable subsidiary ledger of Landon Old Company follows.
Describe the three posted transactions.
SOLUTION
Date
Description
Nov. 9
From the sales journal, Landon Old Company recorded a sale on account to Jacob
Waits
From the general journal, Landon Old Company issued a credit memo to Jacob Waits.
Jacob Waits returned some goods or received an adjustment on goods purchased.
From the cash receipts journal, Landon Old Company received a cash payment from
Jacob Waits
EC-19 Recording transactions—purchases journal
Learning Objective 3
Accounts Payable CR column total $4,300
Requirements
1. Prepare headings for a purchases journal. Journalize the transactions that should be recorded in the
purchases journal. The company uses the perpetual inventory system.
2. Total each column of the purchases journal.
SOLUTION
Requirements 1 and 2
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
EC-20 Recording transactions—cash payments journal
Learning Objective 3
Cash CR column total $9,616
Refer to information in Exercise EC-19.
Requirements
1. Prepare headings for a cash payments journal. Journalize the transactions that should be recorded in
the cash payments journal.
2. Total each column of the cash payments journal.
SOLUTION
Requirement 1 and 2
Cash Payments Journal
Page 1
Ck.
Post.
Other
Accounts
Accounts
Payable
Merchandise
Inventory
EC-21 Posting from the purchases journal; balancing the ledgers
Learning Objective 3
Merchandise Inventory DR column total $2,285
The purchases journal of NorthEastern Publishing Company follows.
Requirements
1. Total each column of the purchases journal.
2. Open four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120),
Equipment (150), and Accounts Payable (211). Post to these accounts from the purchases journal.
Use dates and posting references in the accounts.
3. Open four-column accounts in the accounts payable subsidiary ledger for Farrell Equipment, Jump
Supply, and Last Tech. Post from the purchases journal. Use dates and posting references in the
ledger accounts.
4. Balance the Accounts Payable control account in the general ledger with the total of the balances in
the accounts payable subsidiary ledger.
SOLUTION
Requirement 1
Purchases Journal
Page 7
Vendor
Post.
Accounts
Payable
Merchandise
Inventory
Office
Supplies
Other Accounts DR
Account
Post.
Requirement 2
Merchandise Inventory
No. 118
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Sep. 30
P.7
2,285
2,285
Office Supplies
No. 120
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Sep. 30
P.7
Equipment
No. 150
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Sep. 26
P.7
Accounts Payable
No. 211
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Sep. 30
P.7
3,360
Requirement 3
Accounts Payable—Farrell Equipment
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Sep. 26
P.7
Accounts Payable—Jump Supply
Date
Post.
Ref.
Debit
Credit
Balance
Debit
P.7
EC–21, cont.
Requirement 3, cont.
Accounts Payable—Last Tech
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Requirement 4
Vendor
Balance
Farrell Equipment
$ 910
$ 3,360
EC-22 Identifying transactions in the accounts payable subsidiary ledger
Learning Objective 3
A vendor account in the accounts payable subsidiary ledger of Frank Company follows.
Describe the three posted transactions.
SOLUTION
Date
Description
Dec. 12
From the general journal, Frank Company issued a debit memo to Leslie Carter for
From the purchases journal, Frank Company made a purchase on account from Leslie
Carter.
EC-23 Identifying errors in special journals
Learning Objectives 2, 3
For each transaction listed, identify the recording error and indicate the journal that should have been
used.
SOLUTION
a.
Cash payments are recorded in the cash payments journal.
Adjusting entries are recorded in the general journal.
c.
Sales on account are recorded in the sales journal.
e.
Cash payments (by check or currency) are recorded in the cash payments journal.
Debit memos are recorded in the general journal.
Cash sales are recorded in the cash receipts journal.
Problems (Group A)
All problems can be completed manually or by using either MyAccountingLab General Ledger or
QuickBooks.
PC-24A Using the sales, cash receipts, and general journals
Learning Objectives 2, 3, 4
Cash Receipts Journal, Accounts Receivable CR column total $12,800
Assume Smiling Springs Glass Company uses the perpetual inventory system. The general ledger of
Smiling Springs Glass Company includes the following selected ac- counts, along with their account
numbers:
Requirements
1. Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice
No. column), a cash receipts journal, and a general journal. Smiling Springs Glass Company records
sales returns and allowances in the general journal.
2. Total each column of the sales journal and the cash receipts journal. Show that total debits equal
total credits.
3. Show how postings would be made by writing the account numbers and check marks in the
appropriate places in the journals.