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P7-1A Kozma Company's chart of accounts includes the following selected accounts. 101 Cash 112 Accounts Receivable 401 Sales Revenue 414 Sales Discounts 505 Cost of Goods Sold 120 Inventory 301 Owner's Capital On April 1, the accounts receivable ledger of Kozma Company showed the following bal- ances: Morrow $1,550, Rose $1,200, Jennings Co. $2,900, and Dent $2,200. The April transactions involving the receipt of cash were as follows. The owner, T. Kozma, invested additional cash in the business $7,200. Received check for payment of account from Dent less 2% cash discount. Received check for $920 in payment of invoice no. 307 from Jennings Co. 8. Apr. 1 4. Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was $4,347. Received check for $600 in payment of invoice no. 309 from Morrow. Received cash refund from a supplier for damaged merchandise $740. Received check for $1,000 in payment of invoice no. 310 from Jennings Co. 10 11 23 29 Received check for payment of account from Rose (no cash discount allowed). Instructions (a) Journalize the transactions above in a six-column cash receipts journal with col- umns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr. Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr. Foot and cross-foot the journal. (b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts. (c) Prove the agreement of the control account and subsidiary account balances.

P7-1A Kozma Company's chart of accounts includes the following selected accounts. 101 Cash 112 Accounts Receivable 401 Sales Revenue 414 Sales Discounts 505 Cost of Goods Sold 120 Inventory 301 Owner's Capital On April 1, the accounts receivable ledger of Kozma Company showed the following bal- ances: Morrow $1,550, Rose $1,200, Jennings Co. $2,900, and Dent $2,200. The April transactions involving the receipt of cash were as follows. The owner, T. Kozma, invested additional cash in the business $7,200. Received check for payment of account from Dent less 2% cash discount. Received check for $920 in payment of invoice no. 307 from Jennings Co. 8. Apr. 1 4. Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was $4,347. Received check for $600 in payment of invoice no. 309 from Morrow. Received cash refund from a supplier for damaged merchandise $740. Received check for $1,000 in payment of invoice no. 310 from Jennings Co. 10 11 23 29 Received check for payment of account from Rose (no cash discount allowed). Instructions (a) Journalize the transactions above in a six-column cash receipts journal with col- umns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr. Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr. Foot and cross-foot the journal. (b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts. (c) Prove the agreement of the control account and subsidiary account balances.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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P7-1A Kozma Company's chart of accounts includes the following selected accounts. 401 Sales Revenue 414 Sales Discounts 505 Cost of Goods Sold 101 Cash 112 Accounts Receivable 120 Inventory 301 Owner's Capital On April 1, the accounts receivable ledger of Kozma Company showed the following bal- ances: Morrow $1,550, Rose $1,200, Jennings Co. $2,900, and Dent $2,200. The April transactions involving the receipt of cash were as follows. Apr. 1 The owner, T. Kozma, invested additional cash in the business $7,200. Received check for payment of account from Dent less 2% cash discount. Received check for $920 in payment of invoice no. 307 from Jennings Co. 8 4 Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was $4,347. Received check for $600 in payment of invoice no. 309 from Morrow. Received cash refund from a supplier for damaged merchandise $740. Received check for $1,000 in payment of invoice no. 310 from Jennings Co. Received check for payment of account from Rose (no cash discount allowed). 10 11 23 29 Instructions (a) Journalize the transactions above in a six-column cash receipts journal with col- umns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr. Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr. Foot and cross-foot the journal. (b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts. (c) Prove the agreement of the control account and subsidiary account balances.
Transcribed Image Text:P7-1A Kozma Company's chart of accounts includes the following selected accounts. 401 Sales Revenue 414 Sales Discounts 505 Cost of Goods Sold 101 Cash 112 Accounts Receivable 120 Inventory 301 Owner's Capital On April 1, the accounts receivable ledger of Kozma Company showed the following bal- ances: Morrow $1,550, Rose $1,200, Jennings Co. $2,900, and Dent $2,200. The April transactions involving the receipt of cash were as follows. Apr. 1 The owner, T. Kozma, invested additional cash in the business $7,200. Received check for payment of account from Dent less 2% cash discount. Received check for $920 in payment of invoice no. 307 from Jennings Co. 8 4 Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was $4,347. Received check for $600 in payment of invoice no. 309 from Morrow. Received cash refund from a supplier for damaged merchandise $740. Received check for $1,000 in payment of invoice no. 310 from Jennings Co. Received check for payment of account from Rose (no cash discount allowed). 10 11 23 29 Instructions (a) Journalize the transactions above in a six-column cash receipts journal with col- umns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr. Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr. Foot and cross-foot the journal. (b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts. (c) Prove the agreement of the control account and subsidiary account balances.
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