SOLUTION
Requirements 1, 2 and 3
Sales Journal
Page 1
Date
Invoice
No.
Customer
Account Debited
Post.
Ref.
Accounts
Receivable
DR
Sales Revenue
CR
2016
Jul. 2
Intelysis, Inc.
✓
1,700
A. B. Moore
✓
7,500
Smart Electric
✓
5,800
West & Bob
✓
3,900
Smart Electric
✓
Oggie Co.
✓
1,590
R. O. Bankston
✓
Totals
Debits:
Accounts Receivable + Cost of Goods Sold
Credits:
Sales Revenue + Merchandise Inventory
PC–24A, 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
Jul. 3
Office Supplies
16
60
60
7
2,000
2,000
1,500
10
Land
19
8,000
12
Intelysis, Inc.*
1,666
14
2,500
2,500
1,700
21
4,000
West & Bob**
3,822
Notes Receivable
13
5,600
3,790
3,790
2,460
A. B. Moore
3,200
Totals
9,190
13,660
6,310
(11)
(51/15)
*$1,700 × 2% = $34; $1,700 – $34 = $1,666
**$3,900 × 2% = $78; $3,900 – $78 = $3,822
Debits:
Cash + Sales Discounts + Cost of Goods Sold
Credits:
Accounts Receivable + Sales Revenue + Other Accounts + Merchandise Inventory
PC–24A, cont.
Requirements 1, 2, and 3, cont.
Date
Accounts and Explanation
Post.
Ref.
Debit
Credit
Jul. 18
Sales Returns and Allowances
43
300
Accounts Receivable—A. B. Moore
12/✓
300
Merchandise Inventory
15
200
Cost of Goods Sold
51
200
Sales Returns and Allowances
43
Accounts Receivable—Oggie Co.
12/✓
Merchandise Inventory
15
Cost of Goods Sold
51
PC-25A Using the purchases, cash payments, and general journals
Learning Objectives 3, 4
Purchases Journal, Accounts Payable CR column total $20,350
The general ledger of Sparkling Lake Golf Shop includes the following selected accounts, along with
their account numbers:
Transactions in December that affected purchases and cash payments follow:
Requirements
1. Sparkling Lake Golf Shop records purchase returns in the general journal. Use the appropriate
journal to record the transactions in a purchases journal, a cash payments journal (omit the Check
No. column), and a 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.
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
Tighe
1/10, n/30
✓
4,300
4,300
Ready Supply
1/10, n/30
✓
Avery Equipment
n/30
✓
6,800
Equipment
6,800
Crystal Golf
2/10, n/30
✓
4,500
4,500
Darling, Inc.
3/10, n/45
✓
3,800
3,800
Office Stuff, Inc.
n/30
✓
Totals
6,800
Debits:
Merchandise Inventory + Office Supplies + Other Accounts
Credits:
Accounts Payable
PC–25A, 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
570
570
4,300
4,257
Merchandise Inventory
131
610
610
Prepaid Insurance
161
1,000
1,000
450
450
Utilities Expense
583
100
100
4,500
4,410
2,900
2,813
Totals
4,480
12,150
1$4,300 × 1% = $43; $4,300 – $43 = $4,257
2Did not make payment within the discount period
3$4,500 × 2% = $90; $4,500 – $90 = $4,410
4$3,800 – $900 = $2,900; $2,900 × 3% = $87
Accounts Payable—Avery Equipment
6,800
26
Accounts Payable—Darling, Inc.
Credits:
Merchandise Inventory + Cash
PC-26A Using all journals, posting, and balancing the ledgers
Learning Objectives 2, 3, 4
Trial balance, total debits $51,000
Oxford Computer Security uses the perpetual inventory system and makes all credit sales on terms of
2/10, n/30. Oxford completed the following transactions during May:
Requirements
1. Open four-column general ledger accounts using Oxford’s account numbers and balances as of May
1, 2016, that follow. All accounts have normal balances.
2. Open four-column accounts in the subsidiary ledgers with beginning balances as of May 1, if any:
Accounts receivable subsidiary ledger—Backus Co., $1,400; Burleson Co., $0; M. O. Samson, $0;
and K. D. Kerwin, $0. Accounts payable subsidiary ledger—Habile Co., $0; Marszalek, Inc., $0;
Saari Distributing, $0; Weaver Co., $1,000.
SOLUTION
Requirements 1 and 5
Cash
No. 111
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
May 31
CR.5
31
CP.8
Accounts Receivable
No. 112
Date
Debit
Credit
Debit
Credit
Bal.
1,400
May 17
J.6
900
500
31
S.7
31
CR.5
8,900
4,700
Merchandise Inventory
No. 114
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
6,700
May 10
CP.8
1,250
7,950
17
J.6
300
8,250
29
J.6
600
7,650
31
S.7
5,600
2,050
31
CR.5
650
1,400
31
P.10
5,750
7,150
31
CP.8
84
7,066
Office Supplies
No. 116
Date
Post.
Ref.
Debit
Credit
Debit
Credit
May 24
CR.5
75
625
31
P.10
400
1,025
Prepaid Insurance
No. 117
Date
Post.
Ref.
Debit
Credit
Debit
Credit
PC–26A, cont.
Requirements 1 and 5, cont.
Furniture
No. 151
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
2,700
CP.8
2,550
5,250
22
P.10
600
5,850
Accounts Payable
No. 211
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
1,000
May 29
J.6
600
400
31
P.10
6,750
7,150
31
CP.8
3,200
3,950
Common Stock
No. 311
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
19,000
Retained Earnings
No. 314
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
3,400
Sales Revenue
No. 411
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
7,500
May 31
S.7
13,100
20,600
31
CR.5
1,500
22,100
Sales Discounts
No. 412
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
PC–26A, cont.
Requirements 1 and 5, cont.
Sales Returns and Allowances
No. 413
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
May 17
J.6
900
900
Interest Revenue
No. 419
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
CR.5
1,450
2,550
Cost of Goods Sold
No. 511
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
2,900
May 17
J.6
300
2,600
31
S.7
5,600
8,200
31
CR.5
650
8,850
Salaries Expense
No. 531
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
1,700
May 31
CP.8
2,050
3,750
Utilities Expense
No. 541
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
500
May 25
CP.8
300
800
PC-26A, cont.
Requirements 2 and 4
Accounts Receivable—Backus Co.
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
1,400
Accounts Receivable—Burleson Co.
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
19
CR.5
5,400
0
29
S.7
3,300
3,300
Accounts Receivable—M. O. Samson
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
May 15
S.7
900
900
17
J.6
900
0
Accounts Receivable—K. D. Kerwin
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
May 2
S.7
2,900
2,900
12
CR.5
2,900
0
18
S.7
600
600
31
CR.5
600
0
Accounts Payable—Habile Co.
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
May 3
2,800
2,800
13
2,800
0
22
600
600
PC–26A, cont.
Requirements 2 and 4, cont.
Accounts Payable—Marszalek, Inc.
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
May 13
P.10
P.10
1,000
0
Accounts Payable—Saari Distributing
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
0
May 20
P.10
2,350
2,350
Accounts Payable—Weaver Co.
Date
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
Bal.
1,000
Requirements 3, 4, 5 and 6
Sales Journal
Page 7
Date
Invoice
No.
Customer
Account Debited
Post.
Ref.
Accounts Receivable
DR
Cost of Goods Sold
DR
Sales Revenue
CR
Merchandise Inventory
CR
2016
K. D. Kerwin
Burleson Co.
M. O. Samson
Burleson Co.
Totals
Debits:
Accounts Receivable + Cost of Goods Sold
Credits:
Sales Revenue + Merchandise Inventory
PC–26A, cont.
Requirements 3, 4, 5 and 6, cont.
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
2016
May 5
1,500
1,500
650
8
Interest Revenue
419
1,450
1,450
2,842
5,292
Office Supplies
116
K. D. Kerwin
Totals
1,500
1,525
650
(411)
(X)
Debits:
Cash + Sales Discounts + Cost of Goods Sold
Credits:
Accounts Receivable + Sales Revenue + Other Accounts + Merchandise Inventory
PC–26A, cont.
Requirements 3, 4, 5 and 6, cont.
Purchases Journal
Page 10
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
May 3
Habile Co.
3/10, n/60
✓
2,800
2,800
13
Marszalek, Inc.
n/EOM
✓
400
400
Saari Distributing
n/30
✓
2,350
2,350
Habile Co.
3/10, n/60
✓
Furniture
Marszalek, Inc.
2/10, n/30
✓
Totals
6,750
5,750
Debits:
Merchandise Inventory + Office Supplies + Other Accounts
Credits:
Accounts Payable
PC–26A, cont.
Requirements 3, 4, 5 and 6, cont.
Cash Payments Journal
Page 8
Date
Ck.
No.
Account Debited
Post.
Ref.
Other
Accounts
DR
Accounts
Payable
DR
Merchandise
Inventory
CR
Cash
CR
2016
May 5
532
Furniture
151
2,550
2,550
10
533
Merchandise Inventory
114
1,250
1,250
13
534
2,800
2,716
22
535
Prepaid Insurance
117
1,100
1,100
25
536
Utilities Expense
541
30
537
Marszalek Co.
31
538
Salaries Expense
531
2,050
2,050
31
Totals
7,250
3,200
Debits:
Other Accounts + Accounts Payable
$7,250 + $3,200 = $10,450
Credits:
Merchandise Inventory + Cash
$84 + $10,366 = $10,450
General Journal Page 6
Date
Accounts and Explanation
Post.
Ref.
Debit
Credit
May 17
Sales Returns and Allowances
413
900
Merchandise Inventory
114
300
511
Accounts Payable—Marszalek, Inc.
600
114
PC–26A, cont.
Requirement 6
OXFORD COMPUTER SECURITY
Trial Balance
May 31, 2016
Acct. No.
Account Name
Debit
Credit
111
Cash
$ 16,793
112
Accounts Receivable
4,700
114
Merchandise Inventory
7,066
116
Office Supplies
1,025
117
Prepaid Insurance
1,100
151
Furniture
5,850
211
Accounts Payable
311
Common Stock
314
Retained Earnings
3,400
411
Sales Revenue
412
Sales Discounts
413
Sales Returns and Allowances
419
Interest Revenue
2,550
511
Cost of Goods Sold
8,850
531
Salaries Expense
3,750
541
Utilities Expense
Totals
PC–26A, cont.
Requirements 3, 4, 5 and 6, cont.
Accounts Receivable Subsidiary Ledger
Customer
Balance
Backus Co.
$ 1,400
Burleson Co.
3,300
M. O. Kerwin
K. D. Samson
Total
$ 4,700
Accounts Payable Subsidiary Ledger
Vendor
Balance
Habile Co.
$ 600
Marszalek, Inc.
Saari Distributing
Weaver Co.
Total
$ 3,950
Problems (Group B)
All problems can be completed manually or by using either MyAccountingLab General Ledger or
QuickBooks.
PC-27B Using the sales, cash receipts, and general journals
Learning Objectives 2, 3, 4
Cash Receipts Journal, Accounts Receivable CR column total $12,800
Assume Brilliant Spring Company uses the perpetual inventory system. The general ledger of Brilliant
Springs Company includes the following selected accounts, 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. Record sales returns and allowances in
the general journal.