101 Cash 401 Sales Revenue 112 Accounts Receivable 414 Sales Discounts 120 Inventory 505 Cost of Goods Sold 301 Owner’s Capital On April 1, the accounts receivable ledger of Ivanhoe Company showed the following balances: Morrow $1,540, Rose $1,240, Jennings Co. $2,950, and Dent $2,450. The April transactions involving the receipt of cash were as follows. Apr. 1 The owner, T. Ivanhoe, invested additional cash in the business $7,190. 4 Received check for payment of account from Dent less 2% cash discount. 5 Received check for $870 in payment of invoice no. 307 from Jennings Co. 8 Made cash sales of merchandise totaling $7,225. The cost of the merchandise sold was $4,335.00. 10 Received check for $625 in payment of invoice no. 309 from Morrow. 11 Received cash refund from a supplier for damaged merchandise $705. 23 Received check for $1,200 in payment of invoice no. 310 from Jennings Co. 29 Received check for payment of account from Rose (no cash discount allowed). Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts. (Post entries in the order of entries presented in the previous part.) General Ledger Accounts Receivable No. 112 Date Explanation Ref. Debit Credit Balance Choose a transaction date Balance √ Enter a debit amount Enter a credit amount Enter a balance amount Choose a transaction date CR1 Enter a debit amount Enter a credit amount Enter a balance amount Accounts Receivable Subsidiary Ledger Morrow Date Explanation Ref. Debit Credit Balance Choose a transaction date Balance √ Enter a debit amount Enter a credit amount Enter a balance amount Choose a transaction date CR1 Enter a debit amount Enter a credit amount Enter a balance amount Rose Date Explanation Ref. Debit Credit Balance Choose a transaction date Balance √ Enter a debit amount Enter a credit amount Enter a balance amount Choose a transaction date CR1 Enter a debit amount Enter a credit amount Enter a balance amount Jennings Co. Date Explanation Ref. Debit Credit Balance Choose a transaction date Balance √ Enter a debit amount Enter a credit amount Enter a balance amount Choose a transaction date CR1 Enter a debit amount Enter a credit amount Enter a balance amount Choose a transaction date CR1 Enter a debit amount Enter a credit amount Enter a balance amount Dent Date Explanation Ref. Debit Credit Balance Choose a transaction date Balance √ Enter a debit amount Enter a credit amount Enter a balance amount Choose a transaction date CR1 Enter a debit amount Enter a credit amount Enter a balance amount eTextbook and Media Save for Later Last saved 2 minutes ago. Saved work will be auto-submitted on the due date. Auto-submission can take up to 10 minutes. Attempts: 0 of 3 used Submit Answer (c) Prove the agreement of the control account and subsidiary account balances. (Do not list those accounts that have zero ending balance.) Accounts receivable balance: $Enter a dollar amount Subsidiary account balances: Select an account title $Enter a dollar amount Select an account title Enter a dollar amount Total $Enter a total of the two previous amounts eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
101 Cash 401 Sales Revenue 112 Accounts Receivable 414 Sales Discounts 120 Inventory 505 Cost of Goods Sold 301 Owner’s Capital On April 1, the accounts receivable ledger of Ivanhoe Company showed the following balances: Morrow $1,540, Rose $1,240, Jennings Co. $2,950, and Dent $2,450. The April transactions involving the receipt of cash were as follows. Apr. 1 The owner, T. Ivanhoe, invested additional cash in the business $7,190. 4 Received check for payment of account from Dent less 2% cash discount. 5 Received check for $870 in payment of invoice no. 307 from Jennings Co. 8 Made cash sales of merchandise totaling $7,225. The cost of the merchandise sold was $4,335.00. 10 Received check for $625 in payment of invoice no. 309 from Morrow. 11 Received cash refund from a supplier for damaged merchandise $705. 23 Received check for $1,200 in payment of invoice no. 310 from Jennings Co. 29 Received check for payment of account from Rose (no cash discount allowed). Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts. (Post entries in the order of entries presented in the previous part.) General Ledger Accounts Receivable No. 112 Date Explanation Ref. Debit Credit Balance Choose a transaction date Balance √ Enter a debit amount Enter a credit amount Enter a balance amount Choose a transaction date CR1 Enter a debit amount Enter a credit amount Enter a balance amount Accounts Receivable Subsidiary Ledger Morrow Date Explanation Ref. Debit Credit Balance Choose a transaction date Balance √ Enter a debit amount Enter a credit amount Enter a balance amount Choose a transaction date CR1 Enter a debit amount Enter a credit amount Enter a balance amount Rose Date Explanation Ref. Debit Credit Balance Choose a transaction date Balance √ Enter a debit amount Enter a credit amount Enter a balance amount Choose a transaction date CR1 Enter a debit amount Enter a credit amount Enter a balance amount Jennings Co. Date Explanation Ref. Debit Credit Balance Choose a transaction date Balance √ Enter a debit amount Enter a credit amount Enter a balance amount Choose a transaction date CR1 Enter a debit amount Enter a credit amount Enter a balance amount Choose a transaction date CR1 Enter a debit amount Enter a credit amount Enter a balance amount Dent Date Explanation Ref. Debit Credit Balance Choose a transaction date Balance √ Enter a debit amount Enter a credit amount Enter a balance amount Choose a transaction date CR1 Enter a debit amount Enter a credit amount Enter a balance amount eTextbook and Media Save for Later Last saved 2 minutes ago. Saved work will be auto-submitted on the due date. Auto-submission can take up to 10 minutes. Attempts: 0 of 3 used Submit Answer (c) Prove the agreement of the control account and subsidiary account balances. (Do not list those accounts that have zero ending balance.) Accounts receivable balance: $Enter a dollar amount Subsidiary account balances: Select an account title $Enter a dollar amount Select an account title Enter a dollar amount Total $Enter a total of the two previous amounts eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Question
| 101 | Cash | 401 | Sales Revenue | |||
|---|---|---|---|---|---|---|
| 112 | 414 | Sales Discounts | ||||
| 120 | Inventory | 505 | Cost of Goods Sold | |||
| 301 | Owner’s Capital |
On April 1, the accounts receivable ledger of Ivanhoe Company showed the following balances: Morrow $1,540, Rose $1,240, Jennings Co. $2,950, and Dent $2,450. The April transactions involving the receipt of cash were as follows.
| Apr. 1 | The owner, T. Ivanhoe, invested additional cash in the business $7,190. | |
|---|---|---|
| 4 | Received check for payment of account from Dent less 2% cash discount. | |
| 5 | Received check for $870 in payment of invoice no. 307 from Jennings Co. | |
| 8 | Made cash sales of merchandise totaling $7,225. The cost of the merchandise sold was $4,335.00. | |
| 10 | Received check for $625 in payment of invoice no. 309 from Morrow. | |
| 11 | Received cash refund from a supplier for damaged merchandise $705. | |
| 23 | Received check for $1,200 in payment of invoice no. 310 from Jennings Co. | |
| 29 | Received check for payment of account from Rose (no cash discount allowed). |
Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts. (Post entries in the order of entries presented in the previous part.)
|
General Ledger
|
|||||
|---|---|---|---|---|---|
|
Accounts Receivable
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No. 112
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||||
|
Date
|
Explanation
|
Ref.
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Debit
|
Credit
|
Balance
|
|
Choose a transaction date
|
Balance
|
√
|
Enter a debit amount
|
Enter a credit amount
|
Enter a balance amount
|
|
Choose a transaction date
|
|
CR1
|
Enter a debit amount
|
Enter a credit amount
|
Enter a balance amount
|
|
Accounts Receivable
Subsidiary Ledger |
|||||
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Morrow
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|||||
|
Date
|
Explanation
|
Ref.
|
Debit
|
Credit
|
Balance
|
|
Choose a transaction date
|
Balance
|
√
|
Enter a debit amount
|
Enter a credit amount
|
Enter a balance amount
|
|
Choose a transaction date
|
|
CR1
|
Enter a debit amount
|
Enter a credit amount
|
Enter a balance amount
|
|
Rose
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|||||
|
Date
|
Explanation
|
Ref.
|
Debit
|
Credit
|
Balance
|
|
Choose a transaction date
|
Balance
|
√
|
Enter a debit amount
|
Enter a credit amount
|
Enter a balance amount
|
|
Choose a transaction date
|
|
CR1
|
Enter a debit amount
|
Enter a credit amount
|
Enter a balance amount
|
|
Jennings Co.
|
|||||
|
Date
|
Explanation
|
Ref.
|
Debit
|
Credit
|
Balance
|
|
Choose a transaction date
|
Balance
|
√
|
Enter a debit amount
|
Enter a credit amount
|
Enter a balance amount
|
|
Choose a transaction date
|
|
CR1
|
Enter a debit amount
|
Enter a credit amount
|
Enter a balance amount
|
|
Choose a transaction date
|
|
CR1
|
Enter a debit amount
|
Enter a credit amount
|
Enter a balance amount
|
|
Dent
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|||||
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Date
|
Explanation
|
Ref.
|
Debit
|
Credit
|
Balance
|
|
Choose a transaction date
|
Balance
|
√
|
Enter a debit amount
|
Enter a credit amount
|
Enter a balance amount
|
|
Choose a transaction date
|
|
CR1
|
Enter a debit amount
|
Enter a credit amount
|
Enter a balance amount
|
eTextbook and Media
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Saved work will be auto-submitted on the due date. Auto-submission can take up to 10 minutes.
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(c)
Prove the agreement of the control account and subsidiary account balances. (Do not list those accounts that have zero ending balance.)
| Accounts receivable balance: |
$Enter a dollar amount
|
|
|---|---|---|
| Subsidiary account balances: | ||
| Select an account title |
$Enter a dollar amount
|
|
| Select an account title |
Enter a dollar amount
|
|
|
Total
|
$Enter a total of the two previous amounts
|
eTextbook and Media
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