Bundle: Accounting, Loose-Leaf Version, 26th + CengageNOWv2, 2 term Printed Access Card
26th Edition
ISBN: 9781305617063
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 5, Problem 5.1BPR
(1) and (2)
To determine
General Journal
It is a chronological record of the transactions, showing an explanation of each transaction, the accounts affected, whether those accounts are increased or decreased, and by what amount. It has two columns i.e. Debit column and Credit column.
Special Journal
Special journal records a single kind of transactions that occurs frequently. For example: Revenue Journal is a special journal which records all revenue earned on account.
General ledger
It is the primary ledger, which contains all
Subsidiary ledger
A large number of individual accounts with a common characteristic can be grouped together in a separate ledger called subsidiary ledger. For example:
Controlling Account
Each subsidiary ledger is represented in the general ledger by a summarizing account, called a controlling account. For example: Accounts Receivable Subsidiary ledger is represented in Accounts Receivable ledger.
To record: The transactions in General journal, Revenue journal, Accounts Receivable subsidiary ledger, and General ledger.
(3)a.
To determine
The sum of the balances of the customer accounts in the subsidiary ledger at 31st January 2016.
b.
To determine
The balance of the accounts receivable controlling account.
4.
To determine
To explain: The benefits of the computerized system over the manual system.
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Revenue and Cash Receipts Journals
Lasting Summer Inc. has $2,360 in the October 1 balance of the accounts receivable account consisting of $1,090 from Champion Co. and $1,270 from Wayfarer Co. Transactions related to revenue and cash receipts completed by Lasting Summer Inc. during the month of October 20Y5 are as follows:
Oct. 3.
Issued Invoice No. 622 for services provided to Palace Corp., $2,480.
5.
Received cash from Champion Co., on account, for $1,090.
8.
Issued Invoice No. 623 for services provided to Sunny Style Inc., $4,270.
12.
Received cash from Wayfarer Co., on account, for $1,270.
18.
Issued Invoice No. 624 for services provided to Amex Services Inc., $3,000.
23.
Received cash from Palace Corp. for Invoice No. 622 of October 3.
28.
Issued Invoice No. 625 to Wayfarer Co., on account, for $2,530.
30.
Received cash from Rogers Co. for services provided, $90.
a. Prepare a single-column revenue journal to record these transactions.…
1
EJ-3 On September 1, the balance of the Accounts Receivable control account in
the general ledger of Stark Company was $10,960. The customers' subsidiary ledger
contained account balances as follows: Zeyen $1,440, Milo $2,640, Baez $2,060, and
Dey $4,820. At the end of September, the various journals contained the following
information.
Sales journal: Sales to Dey $800; to Zeyen $1,260; to Guy $1,330; to Baez $1,260.
Cash receipts journal: Cash received from Baez $1,310; from Dey $2,300; from Guy $380;
from Milo $1,800; from Zeyen $1,240.
General journal: An allowance is granted to Dey $185.
Instructions
(a) Set up control and subsidiary accounts and enter the beginning balances. Do not con-
struct the journals.
(b) Post the various journals. Post the items as individual items or as totals, whichever
would be the appropriate procedure. (No sales discounts given.)
(c) Prepare a schedule of accounts receivable and prove the agreement of the controlling
account with the subsidiary…
3. Burneside Corp.'s accounts receivable subsidiary ledger shows the
following information:
Customer
Arden, Inc.
Lakeside Co.
Moraine Corp.
Budapest Co.
Brno Co.
Account Balance
Dec 31, 2018
P35, 180
20,920
30, 600
45, 140
31, 600
17,400
Age of Accounts
0-30 days
Date
12/06/18
31-60 days
61-90 days
91-120 days
Over 120 days
11/29/18
09/27/18
08/20/18
12/08/18
10/25/18
11/17/18
10/09/18
12/12/18
12/02/18
09/12/18
Invoice
Rate
1%
1.5%
3%
10%
50%
Amount
P14,000
21, 180
12,000
8,920
20,000
Napa Corp.
The lifetime expected credit loss rates below are based on Burneside
Corp's receivable collection experience, adjusted for forward-looking
estimates.
10, 600
23, 140
22,000
19, 200
12,400
17,400
The allowance for credit loss account had a debit balance of P5,500
on December 31, 2018, before adjustment.
a. Prepare the aging schedule of report of Burneside Corp.
Chapter 5 Solutions
Bundle: Accounting, Loose-Leaf Version, 26th + CengageNOWv2, 2 term Printed Access Card
Ch. 5 - Why would a company maintain separate accounts...Ch. 5 - What are the major advantages of the use of...Ch. 5 - Prob. 3DQCh. 5 - How many postings to Fees Earned for the month...Ch. 5 - During the current month, the following errors...Ch. 5 - Prob. 6DQCh. 5 - What is an electronic form, and how is it used in...Ch. 5 - Prob. 8DQCh. 5 - What happens to the special journal in a...Ch. 5 - Prob. 10DQ
Ch. 5 - Revenue journal The following revenue transactions...Ch. 5 - Revenue journal The following revenue transactions...Ch. 5 - Accounts receivable subsidiary ledger The debits...Ch. 5 - Accounts receivable subsidiary ledger The debits...Ch. 5 - Prob. 5.3BPECh. 5 - Purchases journal The following purchase...Ch. 5 - Accounts payable subsidiary ledger The debits and...Ch. 5 - Accounts payable subsidiary ledger The debits and...Ch. 5 - Segment analysis McHale Company does business in...Ch. 5 - Prob. 5.5BPECh. 5 - Identify postings from revenue journal Using the...Ch. 5 - Accounts receivable ledger Based on the data...Ch. 5 - Identify journals Assuming the use of a two-column...Ch. 5 - Identify journals Assuming the use of a two-column...Ch. 5 - Identify transactions in accounts receivable...Ch. 5 - Prob. 5.6EXCh. 5 - Posting a revenue journal The revenue journal for...Ch. 5 - Accounts receivable subsidiary ledger The revenue...Ch. 5 - Revenue and cash receipts journals Transactions...Ch. 5 - Revenue and cash receipts journals Lasting Summer...Ch. 5 - Identify postings from purchases journal Using the...Ch. 5 - Identify postings from cash payments journal Using...Ch. 5 - Prob. 5.13EXCh. 5 - Prob. 5.14EXCh. 5 - Prob. 5.15EXCh. 5 - Accounts payable subsidiary ledger The cash...Ch. 5 - Prob. 5.17EXCh. 5 - Prob. 5.18EXCh. 5 - Prob. 5.19EXCh. 5 - Prob. 5.20EXCh. 5 - Cash receipts journal The following cash receipts...Ch. 5 - Computerized accounting systems Most computerized...Ch. 5 - Prob. 5.23EXCh. 5 - Prob. 5.24EXCh. 5 - Prob. 5.25EXCh. 5 - Prob. 5.26EXCh. 5 - Prob. 5.27EXCh. 5 - Revenue journal; accounts receivable subsidiary...Ch. 5 - Revenue and cash receipts journals; accounts...Ch. 5 - Purchases, accounts payable subsidiary account,...Ch. 5 - Purchases and cash payments journals; accounts...Ch. 5 - All journals and general ledger; trial balance The...Ch. 5 - Prob. 5.1BPRCh. 5 - Revenue and cash receipts journals; accounts...Ch. 5 - Purchases, accounts payable account, and accounts...Ch. 5 - Prob. 5.4BPRCh. 5 - All journals and general ledger; trial balance The...Ch. 5 - Ethics in Action Netbooks Inc. provides accounting...Ch. 5 - Manual vs. computerized accounting systems The...Ch. 5 - Accounts receivable and accounts payable A...Ch. 5 - Design of accounting systems For the past few...Ch. 5 - Communication Internet-based accounting software...
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