The Preparation of sales Journal.

Question

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Answer 1

Question

Chapter 7, Problem 1CP

Requirement-1:

To determine

The Preparation of sales Journal.

Requirement-1:

Expert Solution

Answer to Problem 1CP

Solution: The sales Journal has been prepared on 15 half monthly basis as under:

SALES JOURNAL
Date	Account	Invoice	PR	AR Dr.	COGS Dr.
	Debited	Number		Sales Cr.	Inventory Cr.
2-May	Hensel Company	8785		6100	4100
TOTAL				6100	4100
16-May	Hensel Company	8786		3990	1890
22-May	Lee Services	8787		6850	4990
26-May	Crane Corp.	8788		14210	8230
TOTAL				25050	15110

Explanation of Solution

The credit sales entries are recorded in sales journal with recording of respective cost of goods sold entry as well. On periodic intervals, these total are then posted in General journal by passing the credit sales entries and cost of goods sold entry.

Requirement2:

To determine

The Preparation of Cash receipts journal.

Requirement2:

Expert Solution

Answer to Problem 1CP

Solution: The Cash receipts journal shall also be made half monthly basis as under:

CASH RECEIPTS JOURNAL
Date	Accounts	Explanation	PR	Cash Dr.	Sales	Account	Sales Cr.	Store	COGS Dr.
	Credited				Discount Dr.	Rec. Cr.		Supplies Cr.	Inventory Cr.
5-May	Knox Co.	Receipts		4459	91	4550
9-May	Store Supplies	Sale of supplies		350				350
2-May	Hensel Co.	Receipts		5978	122	6100
15-May	Sales	cash sales		59220			59220		38200
TOTAL				70007	213	10650	59220	350	38200
30-May	Lee Service	Receipts		6713	137	6850
30-May	Sales	Cash sales		66052			66052		42500
TOTAL				72765	137	6850	66052		42500

Explanation of Solution

The cash receipts related to various items has been recorded column-wise like receipts from Accounts payable (This has been bifurcated in to cash and sales discount), cash sales (for which Cost of goods sold is also recorded) and other receipts.

At the end of period these entries are total posted to General journal by debited cash account.

Requirement3:

To determine

The preparation of Purchase Journal.

Requirement3:

Expert Solution

Answer to Problem 1CP

Solution: The Purchase journal has been made as under:

PURCHASE JOURNAL
Date	Account	Invoice	Terms	PR	Accounts	Inventory	Office	Store	Equipment
	Credited	Date			Payable Cr.	Debited	Supplies Dr.	Supplies Dr.	Debited
4-May	Gear Supply Co.	4-May	n/10 EOM		37729	37072	83	574
10-May	Gear Supply Co.	10-May	n/10 EOM		4074				4074
11-May	Garcia Inc.	10-May	2/10, n/30		8800	8800
TOTAL					50603	45872	83	574	4074
17-May	Fink Corp.	14-May	2/10, n/60		13650	13650
24-May	Gear Supply Co.	24-May	n/10 EOM		9030	8120	280	630
25-May	Peyton Products	23-May	2/10 n/30		3080	3080
TOTAL					25760	24850	280	630

Explanation of Solution

The Purchase journal is prepared for recording the entries related to credit purchase of various items. The entries for different items of purchase is sorted in different columns for easy posting of it in General Journal at the end of period.

Requirement4.

To determine

The Cash disbursal Journal to be prepared.

Requirement4.

Expert Solution

Answer to Problem 1CP

Solution: The Cash disbursal Journal has been prepared as under:

CASH DISBURSEMENT JOURNAL
Date	Check	Payee	Account	PR	Cash Cr.	Inventory	Other	Other
			Debited			Cr.	Accounts Dr.	Payable Dr.
1-May	3410	S & P Mgt.	Rent Expense		3710		3710
8-May	3411	Peyton Products	Peyton Products		6174	126		6300
15-May	3412	Salaries	Salaries expense		8470		8470
TOTAL					18354	126	12180	6300
19-May	3413	Garcia	Garcia		8624	176		8800
23-May	3414	Fink Corp.	Fink Corp.		13377	273		13650
26-May	3415	Perennial Power	Utility Expense		1283		1283
29-May	3416	Jenny Colo.	Withdrawals		7000		7000
30-May	3417	Salaries	Salaries expense		8470		8470
TOTAL					38754	449	16753	22450

Explanation of Solution

The various payments being made along explanation has been entered in cash disbursal journal which has also been sorted out in different columns for easy posting of the entries in General Journal. The main sorting is done for Accounts payable payment with discount received and other expense paid is sorted in single columns which has been explained for posting later in general journal.

Requirement5:

To determine

The General Journal has been prepared.

Requirement5:

Expert Solution

Answer to Problem 1CP

Solution: The General Journal has been made:

General Journal
Date	Accounts title and explanations	Debit $	Credit $
2-May	Sales return and allowance Dr.	175
	Accounts receivable Account		175

3-May	Accounts payable Dr.	798
	Merchandise inventory		798

12-May	Accounts payable Account Dr.	854
	Office Equipment Account		854

15-May	Accounts receivable Dr.	6100
	Sales revenue Account		6100

15-May	Cost of Goods sold Account Dr.	4100
	Inventory Account		4100

15-May	Cash account Dr.	70007
	Sales discount Dr.	213
	Accounts receivable Account		10650
	Sales revenue account		59220
	Store supplies Account		350

15-May	Cost f Goods sold Account Dr.	38200
	Inventory Account		38200

15-May	Inventory Account Dr.	45872
	Office Supplies Account Dr.	83
	Store Supplies Account Dr.	574
	Office Equipment Account Dr.	4074
	Accounts payable		50603

15-May	Office rent Account Dr.	2968
	Store rent Expense Account Dr.	742
	Sales salaries expense Account Dr.	5320
	Office Salaries Expense Account Dr.	3150
	Cash		12180

15-May	Accounts payable Dr.	6300
	Cash account		6174
	Inventory account		126

31-May	Accounts receivable Dr.	25050
	Sales revenue		25050

31-May	Cost of Goods sold Dr.	15110
	Inventory Account		15110

31-May	Cash account Dr.	6713
	Sales discount Dr.	137
	Accounts receivable		6850

31-May	Cash account Dr.	66052
	Sales revenue Account		66052

31-May	Cost of Goods sold Account Dr.	42500
	Inventory Account		42500

31-May	Inventory Account Dr.	24850
	Office Supplies Account Dr.	280
	Store supplies account Dr.	630
	Accounts payable		25760

31-May	Accounts payable Dr.	22450
	Cash account		22001
	Inventory Account		449

31-May	Utilities expense Account Dr.	1283
	Office salaries account Dr.	3150
	Sales salaries expense Account Dr.	5320
	Withdrawals Account Dr.	7000
	Cash		16753

Explanation of Solution

The General Journal is prepared to record the entries which have not been recorded in above 4 journals. Also the posting of the totals of above special journals being made in the General Journal at the end of periodic interval.

Conclusion

To conclude, it can be said that special Journal prepared helps in recording the transaction of particular nature at one place and then total of such transaction is only posted in Journal so as to make it easier to compile the ledger and Trial balance.

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Answer 2

Question

Chapter 7, Problem 1CP

Requirement-1:

To determine

The Preparation of sales Journal.

Requirement-1:

Expert Solution

Answer to Problem 1CP

Solution: The sales Journal has been prepared on 15 half monthly basis as under:

SALES JOURNAL
Date	Account	Invoice	PR	AR Dr.	COGS Dr.
	Debited	Number		Sales Cr.	Inventory Cr.
2-May	Hensel Company	8785		6100	4100
TOTAL				6100	4100
16-May	Hensel Company	8786		3990	1890
22-May	Lee Services	8787		6850	4990
26-May	Crane Corp.	8788		14210	8230
TOTAL				25050	15110

Explanation of Solution

The credit sales entries are recorded in sales journal with recording of respective cost of goods sold entry as well. On periodic intervals, these total are then posted in General journal by passing the credit sales entries and cost of goods sold entry.

Requirement2:

To determine

The Preparation of Cash receipts journal.

Requirement2:

Expert Solution

Answer to Problem 1CP

Solution: The Cash receipts journal shall also be made half monthly basis as under:

CASH RECEIPTS JOURNAL
Date	Accounts	Explanation	PR	Cash Dr.	Sales	Account	Sales Cr.	Store	COGS Dr.
	Credited				Discount Dr.	Rec. Cr.		Supplies Cr.	Inventory Cr.
5-May	Knox Co.	Receipts		4459	91	4550
9-May	Store Supplies	Sale of supplies		350				350
2-May	Hensel Co.	Receipts		5978	122	6100
15-May	Sales	cash sales		59220			59220		38200
TOTAL				70007	213	10650	59220	350	38200
30-May	Lee Service	Receipts		6713	137	6850
30-May	Sales	Cash sales		66052			66052		42500
TOTAL				72765	137	6850	66052		42500

Explanation of Solution

The cash receipts related to various items has been recorded column-wise like receipts from Accounts payable (This has been bifurcated in to cash and sales discount), cash sales (for which Cost of goods sold is also recorded) and other receipts.

At the end of period these entries are total posted to General journal by debited cash account.

Requirement3:

To determine

The preparation of Purchase Journal.

Requirement3:

Expert Solution

Answer to Problem 1CP

Solution: The Purchase journal has been made as under:

PURCHASE JOURNAL
Date	Account	Invoice	Terms	PR	Accounts	Inventory	Office	Store	Equipment
	Credited	Date			Payable Cr.	Debited	Supplies Dr.	Supplies Dr.	Debited
4-May	Gear Supply Co.	4-May	n/10 EOM		37729	37072	83	574
10-May	Gear Supply Co.	10-May	n/10 EOM		4074				4074
11-May	Garcia Inc.	10-May	2/10, n/30		8800	8800
TOTAL					50603	45872	83	574	4074
17-May	Fink Corp.	14-May	2/10, n/60		13650	13650
24-May	Gear Supply Co.	24-May	n/10 EOM		9030	8120	280	630
25-May	Peyton Products	23-May	2/10 n/30		3080	3080
TOTAL					25760	24850	280	630

Explanation of Solution

The Purchase journal is prepared for recording the entries related to credit purchase of various items. The entries for different items of purchase is sorted in different columns for easy posting of it in General Journal at the end of period.

Requirement4.

To determine

The Cash disbursal Journal to be prepared.

Requirement4.

Expert Solution

Answer to Problem 1CP

Solution: The Cash disbursal Journal has been prepared as under:

CASH DISBURSEMENT JOURNAL
Date	Check	Payee	Account	PR	Cash Cr.	Inventory	Other	Other
			Debited			Cr.	Accounts Dr.	Payable Dr.
1-May	3410	S & P Mgt.	Rent Expense		3710		3710
8-May	3411	Peyton Products	Peyton Products		6174	126		6300
15-May	3412	Salaries	Salaries expense		8470		8470
TOTAL					18354	126	12180	6300
19-May	3413	Garcia	Garcia		8624	176		8800
23-May	3414	Fink Corp.	Fink Corp.		13377	273		13650
26-May	3415	Perennial Power	Utility Expense		1283		1283
29-May	3416	Jenny Colo.	Withdrawals		7000		7000
30-May	3417	Salaries	Salaries expense		8470		8470
TOTAL					38754	449	16753	22450

Explanation of Solution

The various payments being made along explanation has been entered in cash disbursal journal which has also been sorted out in different columns for easy posting of the entries in General Journal. The main sorting is done for Accounts payable payment with discount received and other expense paid is sorted in single columns which has been explained for posting later in general journal.

Requirement5:

To determine

The General Journal has been prepared.

Requirement5:

Expert Solution

Answer to Problem 1CP

Solution: The General Journal has been made:

General Journal
Date	Accounts title and explanations	Debit $	Credit $
2-May	Sales return and allowance Dr.	175
	Accounts receivable Account		175

3-May	Accounts payable Dr.	798
	Merchandise inventory		798

12-May	Accounts payable Account Dr.	854
	Office Equipment Account		854

15-May	Accounts receivable Dr.	6100
	Sales revenue Account		6100

15-May	Cost of Goods sold Account Dr.	4100
	Inventory Account		4100

15-May	Cash account Dr.	70007
	Sales discount Dr.	213
	Accounts receivable Account		10650
	Sales revenue account		59220
	Store supplies Account		350

15-May	Cost f Goods sold Account Dr.	38200
	Inventory Account		38200

15-May	Inventory Account Dr.	45872
	Office Supplies Account Dr.	83
	Store Supplies Account Dr.	574
	Office Equipment Account Dr.	4074
	Accounts payable		50603

15-May	Office rent Account Dr.	2968
	Store rent Expense Account Dr.	742
	Sales salaries expense Account Dr.	5320
	Office Salaries Expense Account Dr.	3150
	Cash		12180

15-May	Accounts payable Dr.	6300
	Cash account		6174
	Inventory account		126

31-May	Accounts receivable Dr.	25050
	Sales revenue		25050

31-May	Cost of Goods sold Dr.	15110
	Inventory Account		15110

31-May	Cash account Dr.	6713
	Sales discount Dr.	137
	Accounts receivable		6850

31-May	Cash account Dr.	66052
	Sales revenue Account		66052

31-May	Cost of Goods sold Account Dr.	42500
	Inventory Account		42500

31-May	Inventory Account Dr.	24850
	Office Supplies Account Dr.	280
	Store supplies account Dr.	630
	Accounts payable		25760

31-May	Accounts payable Dr.	22450
	Cash account		22001
	Inventory Account		449

31-May	Utilities expense Account Dr.	1283
	Office salaries account Dr.	3150
	Sales salaries expense Account Dr.	5320
	Withdrawals Account Dr.	7000
	Cash		16753

Explanation of Solution

The General Journal is prepared to record the entries which have not been recorded in above 4 journals. Also the posting of the totals of above special journals being made in the General Journal at the end of periodic interval.

Conclusion

To conclude, it can be said that special Journal prepared helps in recording the transaction of particular nature at one place and then total of such transaction is only posted in Journal so as to make it easier to compile the ledger and Trial balance.

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Answer 3

Question

Chapter 7, Problem 1CP

Requirement-1:

To determine

The Preparation of sales Journal.

Requirement-1:

Expert Solution

Answer to Problem 1CP

Solution: The sales Journal has been prepared on 15 half monthly basis as under:

SALES JOURNAL
Date	Account	Invoice	PR	AR Dr.	COGS Dr.
	Debited	Number		Sales Cr.	Inventory Cr.
2-May	Hensel Company	8785		6100	4100
TOTAL				6100	4100
16-May	Hensel Company	8786		3990	1890
22-May	Lee Services	8787		6850	4990
26-May	Crane Corp.	8788		14210	8230
TOTAL				25050	15110

Explanation of Solution

The credit sales entries are recorded in sales journal with recording of respective cost of goods sold entry as well. On periodic intervals, these total are then posted in General journal by passing the credit sales entries and cost of goods sold entry.

Requirement2:

To determine

The Preparation of Cash receipts journal.

Requirement2:

Expert Solution

Answer to Problem 1CP

Solution: The Cash receipts journal shall also be made half monthly basis as under:

CASH RECEIPTS JOURNAL
Date	Accounts	Explanation	PR	Cash Dr.	Sales	Account	Sales Cr.	Store	COGS Dr.
	Credited				Discount Dr.	Rec. Cr.		Supplies Cr.	Inventory Cr.
5-May	Knox Co.	Receipts		4459	91	4550
9-May	Store Supplies	Sale of supplies		350				350
2-May	Hensel Co.	Receipts		5978	122	6100
15-May	Sales	cash sales		59220			59220		38200
TOTAL				70007	213	10650	59220	350	38200
30-May	Lee Service	Receipts		6713	137	6850
30-May	Sales	Cash sales		66052			66052		42500
TOTAL				72765	137	6850	66052		42500

Explanation of Solution

The cash receipts related to various items has been recorded column-wise like receipts from Accounts payable (This has been bifurcated in to cash and sales discount), cash sales (for which Cost of goods sold is also recorded) and other receipts.

At the end of period these entries are total posted to General journal by debited cash account.

Requirement3:

To determine

The preparation of Purchase Journal.

Requirement3:

Expert Solution

Answer to Problem 1CP

Solution: The Purchase journal has been made as under:

PURCHASE JOURNAL
Date	Account	Invoice	Terms	PR	Accounts	Inventory	Office	Store	Equipment
	Credited	Date			Payable Cr.	Debited	Supplies Dr.	Supplies Dr.	Debited
4-May	Gear Supply Co.	4-May	n/10 EOM		37729	37072	83	574
10-May	Gear Supply Co.	10-May	n/10 EOM		4074				4074
11-May	Garcia Inc.	10-May	2/10, n/30		8800	8800
TOTAL					50603	45872	83	574	4074
17-May	Fink Corp.	14-May	2/10, n/60		13650	13650
24-May	Gear Supply Co.	24-May	n/10 EOM		9030	8120	280	630
25-May	Peyton Products	23-May	2/10 n/30		3080	3080
TOTAL					25760	24850	280	630

Explanation of Solution

The Purchase journal is prepared for recording the entries related to credit purchase of various items. The entries for different items of purchase is sorted in different columns for easy posting of it in General Journal at the end of period.

Requirement4.

To determine

The Cash disbursal Journal to be prepared.

Requirement4.

Expert Solution

Answer to Problem 1CP

Solution: The Cash disbursal Journal has been prepared as under:

CASH DISBURSEMENT JOURNAL
Date	Check	Payee	Account	PR	Cash Cr.	Inventory	Other	Other
			Debited			Cr.	Accounts Dr.	Payable Dr.
1-May	3410	S & P Mgt.	Rent Expense		3710		3710
8-May	3411	Peyton Products	Peyton Products		6174	126		6300
15-May	3412	Salaries	Salaries expense		8470		8470
TOTAL					18354	126	12180	6300
19-May	3413	Garcia	Garcia		8624	176		8800
23-May	3414	Fink Corp.	Fink Corp.		13377	273		13650
26-May	3415	Perennial Power	Utility Expense		1283		1283
29-May	3416	Jenny Colo.	Withdrawals		7000		7000
30-May	3417	Salaries	Salaries expense		8470		8470
TOTAL					38754	449	16753	22450

Explanation of Solution

The various payments being made along explanation has been entered in cash disbursal journal which has also been sorted out in different columns for easy posting of the entries in General Journal. The main sorting is done for Accounts payable payment with discount received and other expense paid is sorted in single columns which has been explained for posting later in general journal.

Requirement5:

To determine

The General Journal has been prepared.

Requirement5:

Expert Solution

Answer to Problem 1CP

Solution: The General Journal has been made:

General Journal
Date	Accounts title and explanations	Debit $	Credit $
2-May	Sales return and allowance Dr.	175
	Accounts receivable Account		175

3-May	Accounts payable Dr.	798
	Merchandise inventory		798

12-May	Accounts payable Account Dr.	854
	Office Equipment Account		854

15-May	Accounts receivable Dr.	6100
	Sales revenue Account		6100

15-May	Cost of Goods sold Account Dr.	4100
	Inventory Account		4100

15-May	Cash account Dr.	70007
	Sales discount Dr.	213
	Accounts receivable Account		10650
	Sales revenue account		59220
	Store supplies Account		350

15-May	Cost f Goods sold Account Dr.	38200
	Inventory Account		38200

15-May	Inventory Account Dr.	45872
	Office Supplies Account Dr.	83
	Store Supplies Account Dr.	574
	Office Equipment Account Dr.	4074
	Accounts payable		50603

15-May	Office rent Account Dr.	2968
	Store rent Expense Account Dr.	742
	Sales salaries expense Account Dr.	5320
	Office Salaries Expense Account Dr.	3150
	Cash		12180

15-May	Accounts payable Dr.	6300
	Cash account		6174
	Inventory account		126

31-May	Accounts receivable Dr.	25050
	Sales revenue		25050

31-May	Cost of Goods sold Dr.	15110
	Inventory Account		15110

31-May	Cash account Dr.	6713
	Sales discount Dr.	137
	Accounts receivable		6850

31-May	Cash account Dr.	66052
	Sales revenue Account		66052

31-May	Cost of Goods sold Account Dr.	42500
	Inventory Account		42500

31-May	Inventory Account Dr.	24850
	Office Supplies Account Dr.	280
	Store supplies account Dr.	630
	Accounts payable		25760

31-May	Accounts payable Dr.	22450
	Cash account		22001
	Inventory Account		449

31-May	Utilities expense Account Dr.	1283
	Office salaries account Dr.	3150
	Sales salaries expense Account Dr.	5320
	Withdrawals Account Dr.	7000
	Cash		16753

Explanation of Solution

The General Journal is prepared to record the entries which have not been recorded in above 4 journals. Also the posting of the totals of above special journals being made in the General Journal at the end of periodic interval.

Conclusion

To conclude, it can be said that special Journal prepared helps in recording the transaction of particular nature at one place and then total of such transaction is only posted in Journal so as to make it easier to compile the ledger and Trial balance.

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Answer 4

Question

Chapter 7, Problem 1CP

Requirement-1:

To determine

The Preparation of sales Journal.

Requirement-1:

Expert Solution

Answer to Problem 1CP

Solution: The sales Journal has been prepared on 15 half monthly basis as under:

SALES JOURNAL
Date	Account	Invoice	PR	AR Dr.	COGS Dr.
	Debited	Number		Sales Cr.	Inventory Cr.
2-May	Hensel Company	8785		6100	4100
TOTAL				6100	4100
16-May	Hensel Company	8786		3990	1890
22-May	Lee Services	8787		6850	4990
26-May	Crane Corp.	8788		14210	8230
TOTAL				25050	15110

Explanation of Solution

The credit sales entries are recorded in sales journal with recording of respective cost of goods sold entry as well. On periodic intervals, these total are then posted in General journal by passing the credit sales entries and cost of goods sold entry.

Requirement2:

To determine

The Preparation of Cash receipts journal.

Requirement2:

Expert Solution

Answer to Problem 1CP

Solution: The Cash receipts journal shall also be made half monthly basis as under:

CASH RECEIPTS JOURNAL
Date	Accounts	Explanation	PR	Cash Dr.	Sales	Account	Sales Cr.	Store	COGS Dr.
	Credited				Discount Dr.	Rec. Cr.		Supplies Cr.	Inventory Cr.
5-May	Knox Co.	Receipts		4459	91	4550
9-May	Store Supplies	Sale of supplies		350				350
2-May	Hensel Co.	Receipts		5978	122	6100
15-May	Sales	cash sales		59220			59220		38200
TOTAL				70007	213	10650	59220	350	38200
30-May	Lee Service	Receipts		6713	137	6850
30-May	Sales	Cash sales		66052			66052		42500
TOTAL				72765	137	6850	66052		42500

Explanation of Solution

The cash receipts related to various items has been recorded column-wise like receipts from Accounts payable (This has been bifurcated in to cash and sales discount), cash sales (for which Cost of goods sold is also recorded) and other receipts.

At the end of period these entries are total posted to General journal by debited cash account.

Requirement3:

To determine

The preparation of Purchase Journal.

Requirement3:

Expert Solution

Answer to Problem 1CP

Solution: The Purchase journal has been made as under:

PURCHASE JOURNAL
Date	Account	Invoice	Terms	PR	Accounts	Inventory	Office	Store	Equipment
	Credited	Date			Payable Cr.	Debited	Supplies Dr.	Supplies Dr.	Debited
4-May	Gear Supply Co.	4-May	n/10 EOM		37729	37072	83	574
10-May	Gear Supply Co.	10-May	n/10 EOM		4074				4074
11-May	Garcia Inc.	10-May	2/10, n/30		8800	8800
TOTAL					50603	45872	83	574	4074
17-May	Fink Corp.	14-May	2/10, n/60		13650	13650
24-May	Gear Supply Co.	24-May	n/10 EOM		9030	8120	280	630
25-May	Peyton Products	23-May	2/10 n/30		3080	3080
TOTAL					25760	24850	280	630

Explanation of Solution

The Purchase journal is prepared for recording the entries related to credit purchase of various items. The entries for different items of purchase is sorted in different columns for easy posting of it in General Journal at the end of period.

Requirement4.

To determine

The Cash disbursal Journal to be prepared.

Requirement4.

Expert Solution

Answer to Problem 1CP

Solution: The Cash disbursal Journal has been prepared as under:

CASH DISBURSEMENT JOURNAL
Date	Check	Payee	Account	PR	Cash Cr.	Inventory	Other	Other
			Debited			Cr.	Accounts Dr.	Payable Dr.
1-May	3410	S & P Mgt.	Rent Expense		3710		3710
8-May	3411	Peyton Products	Peyton Products		6174	126		6300
15-May	3412	Salaries	Salaries expense		8470		8470
TOTAL					18354	126	12180	6300
19-May	3413	Garcia	Garcia		8624	176		8800
23-May	3414	Fink Corp.	Fink Corp.		13377	273		13650
26-May	3415	Perennial Power	Utility Expense		1283		1283
29-May	3416	Jenny Colo.	Withdrawals		7000		7000
30-May	3417	Salaries	Salaries expense		8470		8470
TOTAL					38754	449	16753	22450

Explanation of Solution

The various payments being made along explanation has been entered in cash disbursal journal which has also been sorted out in different columns for easy posting of the entries in General Journal. The main sorting is done for Accounts payable payment with discount received and other expense paid is sorted in single columns which has been explained for posting later in general journal.

Requirement5:

To determine

The General Journal has been prepared.

Requirement5:

Expert Solution

Answer to Problem 1CP

Solution: The General Journal has been made:

General Journal
Date	Accounts title and explanations	Debit $	Credit $
2-May	Sales return and allowance Dr.	175
	Accounts receivable Account		175

3-May	Accounts payable Dr.	798
	Merchandise inventory		798

12-May	Accounts payable Account Dr.	854
	Office Equipment Account		854

15-May	Accounts receivable Dr.	6100
	Sales revenue Account		6100

15-May	Cost of Goods sold Account Dr.	4100
	Inventory Account		4100

15-May	Cash account Dr.	70007
	Sales discount Dr.	213
	Accounts receivable Account		10650
	Sales revenue account		59220
	Store supplies Account		350

15-May	Cost f Goods sold Account Dr.	38200
	Inventory Account		38200

15-May	Inventory Account Dr.	45872
	Office Supplies Account Dr.	83
	Store Supplies Account Dr.	574
	Office Equipment Account Dr.	4074
	Accounts payable		50603

15-May	Office rent Account Dr.	2968
	Store rent Expense Account Dr.	742
	Sales salaries expense Account Dr.	5320
	Office Salaries Expense Account Dr.	3150
	Cash		12180

15-May	Accounts payable Dr.	6300
	Cash account		6174
	Inventory account		126

31-May	Accounts receivable Dr.	25050
	Sales revenue		25050

31-May	Cost of Goods sold Dr.	15110
	Inventory Account		15110

31-May	Cash account Dr.	6713
	Sales discount Dr.	137
	Accounts receivable		6850

31-May	Cash account Dr.	66052
	Sales revenue Account		66052

31-May	Cost of Goods sold Account Dr.	42500
	Inventory Account		42500

31-May	Inventory Account Dr.	24850
	Office Supplies Account Dr.	280
	Store supplies account Dr.	630
	Accounts payable		25760

31-May	Accounts payable Dr.	22450
	Cash account		22001
	Inventory Account		449

31-May	Utilities expense Account Dr.	1283
	Office salaries account Dr.	3150
	Sales salaries expense Account Dr.	5320
	Withdrawals Account Dr.	7000
	Cash		16753

Explanation of Solution

The General Journal is prepared to record the entries which have not been recorded in above 4 journals. Also the posting of the totals of above special journals being made in the General Journal at the end of periodic interval.

Conclusion

To conclude, it can be said that special Journal prepared helps in recording the transaction of particular nature at one place and then total of such transaction is only posted in Journal so as to make it easier to compile the ledger and Trial balance.

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Answer 5

Chapter 7, Problem 1CP

Requirement-1:

To determine

The Preparation of sales Journal.

Requirement-1:

Expert Solution

Answer to Problem 1CP

Solution: The sales Journal has been prepared on 15 half monthly basis as under:

SALES JOURNAL
Date	Account	Invoice	PR	AR Dr.	COGS Dr.
	Debited	Number		Sales Cr.	Inventory Cr.
2-May	Hensel Company	8785		6100	4100
TOTAL				6100	4100
16-May	Hensel Company	8786		3990	1890
22-May	Lee Services	8787		6850	4990
26-May	Crane Corp.	8788		14210	8230
TOTAL				25050	15110

Explanation of Solution

The credit sales entries are recorded in sales journal with recording of respective cost of goods sold entry as well. On periodic intervals, these total are then posted in General journal by passing the credit sales entries and cost of goods sold entry.

Requirement2:

To determine

The Preparation of Cash receipts journal.

Requirement2:

Expert Solution

Answer to Problem 1CP

Solution: The Cash receipts journal shall also be made half monthly basis as under:

CASH RECEIPTS JOURNAL
Date	Accounts	Explanation	PR	Cash Dr.	Sales	Account	Sales Cr.	Store	COGS Dr.
	Credited				Discount Dr.	Rec. Cr.		Supplies Cr.	Inventory Cr.
5-May	Knox Co.	Receipts		4459	91	4550
9-May	Store Supplies	Sale of supplies		350				350
2-May	Hensel Co.	Receipts		5978	122	6100
15-May	Sales	cash sales		59220			59220		38200
TOTAL				70007	213	10650	59220	350	38200
30-May	Lee Service	Receipts		6713	137	6850
30-May	Sales	Cash sales		66052			66052		42500
TOTAL				72765	137	6850	66052		42500

Explanation of Solution

The cash receipts related to various items has been recorded column-wise like receipts from Accounts payable (This has been bifurcated in to cash and sales discount), cash sales (for which Cost of goods sold is also recorded) and other receipts.

At the end of period these entries are total posted to General journal by debited cash account.

Requirement3:

To determine

The preparation of Purchase Journal.

Requirement3:

Expert Solution

Answer to Problem 1CP

Solution: The Purchase journal has been made as under:

PURCHASE JOURNAL
Date	Account	Invoice	Terms	PR	Accounts	Inventory	Office	Store	Equipment
	Credited	Date			Payable Cr.	Debited	Supplies Dr.	Supplies Dr.	Debited
4-May	Gear Supply Co.	4-May	n/10 EOM		37729	37072	83	574
10-May	Gear Supply Co.	10-May	n/10 EOM		4074				4074
11-May	Garcia Inc.	10-May	2/10, n/30		8800	8800
TOTAL					50603	45872	83	574	4074
17-May	Fink Corp.	14-May	2/10, n/60		13650	13650
24-May	Gear Supply Co.	24-May	n/10 EOM		9030	8120	280	630
25-May	Peyton Products	23-May	2/10 n/30		3080	3080
TOTAL					25760	24850	280	630

Explanation of Solution

The Purchase journal is prepared for recording the entries related to credit purchase of various items. The entries for different items of purchase is sorted in different columns for easy posting of it in General Journal at the end of period.

Requirement4.

To determine

The Cash disbursal Journal to be prepared.

Requirement4.

Expert Solution

Answer to Problem 1CP

Solution: The Cash disbursal Journal has been prepared as under:

CASH DISBURSEMENT JOURNAL
Date	Check	Payee	Account	PR	Cash Cr.	Inventory	Other	Other
			Debited			Cr.	Accounts Dr.	Payable Dr.
1-May	3410	S & P Mgt.	Rent Expense		3710		3710
8-May	3411	Peyton Products	Peyton Products		6174	126		6300
15-May	3412	Salaries	Salaries expense		8470		8470
TOTAL					18354	126	12180	6300
19-May	3413	Garcia	Garcia		8624	176		8800
23-May	3414	Fink Corp.	Fink Corp.		13377	273		13650
26-May	3415	Perennial Power	Utility Expense		1283		1283
29-May	3416	Jenny Colo.	Withdrawals		7000		7000
30-May	3417	Salaries	Salaries expense		8470		8470
TOTAL					38754	449	16753	22450

Explanation of Solution

The various payments being made along explanation has been entered in cash disbursal journal which has also been sorted out in different columns for easy posting of the entries in General Journal. The main sorting is done for Accounts payable payment with discount received and other expense paid is sorted in single columns which has been explained for posting later in general journal.

Requirement5:

To determine

The General Journal has been prepared.

Requirement5:

Expert Solution

Answer to Problem 1CP

Solution: The General Journal has been made:

General Journal
Date	Accounts title and explanations	Debit $	Credit $
2-May	Sales return and allowance Dr.	175
	Accounts receivable Account		175

3-May	Accounts payable Dr.	798
	Merchandise inventory		798

12-May	Accounts payable Account Dr.	854
	Office Equipment Account		854

15-May	Accounts receivable Dr.	6100
	Sales revenue Account		6100

15-May	Cost of Goods sold Account Dr.	4100
	Inventory Account		4100

15-May	Cash account Dr.	70007
	Sales discount Dr.	213
	Accounts receivable Account		10650
	Sales revenue account		59220
	Store supplies Account		350

15-May	Cost f Goods sold Account Dr.	38200
	Inventory Account		38200

15-May	Inventory Account Dr.	45872
	Office Supplies Account Dr.	83
	Store Supplies Account Dr.	574
	Office Equipment Account Dr.	4074
	Accounts payable		50603

15-May	Office rent Account Dr.	2968
	Store rent Expense Account Dr.	742
	Sales salaries expense Account Dr.	5320
	Office Salaries Expense Account Dr.	3150
	Cash		12180

15-May	Accounts payable Dr.	6300
	Cash account		6174
	Inventory account		126

31-May	Accounts receivable Dr.	25050
	Sales revenue		25050

31-May	Cost of Goods sold Dr.	15110
	Inventory Account		15110

31-May	Cash account Dr.	6713
	Sales discount Dr.	137
	Accounts receivable		6850

31-May	Cash account Dr.	66052
	Sales revenue Account		66052

31-May	Cost of Goods sold Account Dr.	42500
	Inventory Account		42500

31-May	Inventory Account Dr.	24850
	Office Supplies Account Dr.	280
	Store supplies account Dr.	630
	Accounts payable		25760

31-May	Accounts payable Dr.	22450
	Cash account		22001
	Inventory Account		449

31-May	Utilities expense Account Dr.	1283
	Office salaries account Dr.	3150
	Sales salaries expense Account Dr.	5320
	Withdrawals Account Dr.	7000
	Cash		16753

Explanation of Solution

The General Journal is prepared to record the entries which have not been recorded in above 4 journals. Also the posting of the totals of above special journals being made in the General Journal at the end of periodic interval.

Conclusion

To conclude, it can be said that special Journal prepared helps in recording the transaction of particular nature at one place and then total of such transaction is only posted in Journal so as to make it easier to compile the ledger and Trial balance.

Answer 6

Chapter 7, Problem 1CP

Requirement-1:

To determine

The Preparation of sales Journal.

Requirement-1:

Expert Solution

Answer to Problem 1CP

Solution: The sales Journal has been prepared on 15 half monthly basis as under:

SALES JOURNAL
Date	Account	Invoice	PR	AR Dr.	COGS Dr.
	Debited	Number		Sales Cr.	Inventory Cr.
2-May	Hensel Company	8785		6100	4100
TOTAL				6100	4100
16-May	Hensel Company	8786		3990	1890
22-May	Lee Services	8787		6850	4990
26-May	Crane Corp.	8788		14210	8230
TOTAL				25050	15110

Explanation of Solution

The credit sales entries are recorded in sales journal with recording of respective cost of goods sold entry as well. On periodic intervals, these total are then posted in General journal by passing the credit sales entries and cost of goods sold entry.

Answer 7

Chapter 7, Problem 1CP

Requirement-1:

To determine

The Preparation of sales Journal.

Answer 8

Requirement-1:

Expert Solution

Answer to Problem 1CP

Solution: The sales Journal has been prepared on 15 half monthly basis as under:

SALES JOURNAL
Date	Account	Invoice	PR	AR Dr.	COGS Dr.
	Debited	Number		Sales Cr.	Inventory Cr.
2-May	Hensel Company	8785		6100	4100
TOTAL				6100	4100
16-May	Hensel Company	8786		3990	1890
22-May	Lee Services	8787		6850	4990
26-May	Crane Corp.	8788		14210	8230
TOTAL				25050	15110

Answer 9

Requirement-1:

Expert Solution

Answer 10

Requirement-1:

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

The credit sales entries are recorded in sales journal with recording of respective cost of goods sold entry as well. On periodic intervals, these total are then posted in General journal by passing the credit sales entries and cost of goods sold entry.

Answer 13

Requirement2:

To determine

The Preparation of Cash receipts journal.

Requirement2:

Expert Solution

Answer to Problem 1CP

Solution: The Cash receipts journal shall also be made half monthly basis as under:

CASH RECEIPTS JOURNAL
Date	Accounts	Explanation	PR	Cash Dr.	Sales	Account	Sales Cr.	Store	COGS Dr.
	Credited				Discount Dr.	Rec. Cr.		Supplies Cr.	Inventory Cr.
5-May	Knox Co.	Receipts		4459	91	4550
9-May	Store Supplies	Sale of supplies		350				350
2-May	Hensel Co.	Receipts		5978	122	6100
15-May	Sales	cash sales		59220			59220		38200
TOTAL				70007	213	10650	59220	350	38200
30-May	Lee Service	Receipts		6713	137	6850
30-May	Sales	Cash sales		66052			66052		42500
TOTAL				72765	137	6850	66052		42500

Explanation of Solution

The cash receipts related to various items has been recorded column-wise like receipts from Accounts payable (This has been bifurcated in to cash and sales discount), cash sales (for which Cost of goods sold is also recorded) and other receipts.

At the end of period these entries are total posted to General journal by debited cash account.

Answer 14

Requirement2:

To determine

The Preparation of Cash receipts journal.

Answer 15

Requirement2:

Expert Solution

Answer to Problem 1CP

Solution: The Cash receipts journal shall also be made half monthly basis as under:

CASH RECEIPTS JOURNAL
Date	Accounts	Explanation	PR	Cash Dr.	Sales	Account	Sales Cr.	Store	COGS Dr.
	Credited				Discount Dr.	Rec. Cr.		Supplies Cr.	Inventory Cr.
5-May	Knox Co.	Receipts		4459	91	4550
9-May	Store Supplies	Sale of supplies		350				350
2-May	Hensel Co.	Receipts		5978	122	6100
15-May	Sales	cash sales		59220			59220		38200
TOTAL				70007	213	10650	59220	350	38200
30-May	Lee Service	Receipts		6713	137	6850
30-May	Sales	Cash sales		66052			66052		42500
TOTAL				72765	137	6850	66052		42500

Answer 16

Requirement2:

Expert Solution

Answer 17

Requirement2:

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

The cash receipts related to various items has been recorded column-wise like receipts from Accounts payable (This has been bifurcated in to cash and sales discount), cash sales (for which Cost of goods sold is also recorded) and other receipts.

At the end of period these entries are total posted to General journal by debited cash account.

Answer 20

Requirement3:

To determine

The preparation of Purchase Journal.

Requirement3:

Expert Solution

Answer to Problem 1CP

Solution: The Purchase journal has been made as under:

PURCHASE JOURNAL
Date	Account	Invoice	Terms	PR	Accounts	Inventory	Office	Store	Equipment
	Credited	Date			Payable Cr.	Debited	Supplies Dr.	Supplies Dr.	Debited
4-May	Gear Supply Co.	4-May	n/10 EOM		37729	37072	83	574
10-May	Gear Supply Co.	10-May	n/10 EOM		4074				4074
11-May	Garcia Inc.	10-May	2/10, n/30		8800	8800
TOTAL					50603	45872	83	574	4074
17-May	Fink Corp.	14-May	2/10, n/60		13650	13650
24-May	Gear Supply Co.	24-May	n/10 EOM		9030	8120	280	630
25-May	Peyton Products	23-May	2/10 n/30		3080	3080
TOTAL					25760	24850	280	630

Explanation of Solution

The Purchase journal is prepared for recording the entries related to credit purchase of various items. The entries for different items of purchase is sorted in different columns for easy posting of it in General Journal at the end of period.

Answer 21

Requirement3:

To determine

The preparation of Purchase Journal.

Answer 22

Requirement3:

Expert Solution

Answer to Problem 1CP

Solution: The Purchase journal has been made as under:

PURCHASE JOURNAL
Date	Account	Invoice	Terms	PR	Accounts	Inventory	Office	Store	Equipment
	Credited	Date			Payable Cr.	Debited	Supplies Dr.	Supplies Dr.	Debited
4-May	Gear Supply Co.	4-May	n/10 EOM		37729	37072	83	574
10-May	Gear Supply Co.	10-May	n/10 EOM		4074				4074
11-May	Garcia Inc.	10-May	2/10, n/30		8800	8800
TOTAL					50603	45872	83	574	4074
17-May	Fink Corp.	14-May	2/10, n/60		13650	13650
24-May	Gear Supply Co.	24-May	n/10 EOM		9030	8120	280	630
25-May	Peyton Products	23-May	2/10 n/30		3080	3080
TOTAL					25760	24850	280	630

Answer 23

Requirement3:

Expert Solution

Answer 24

Requirement3:

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

The Purchase journal is prepared for recording the entries related to credit purchase of various items. The entries for different items of purchase is sorted in different columns for easy posting of it in General Journal at the end of period.

Answer 27

Requirement4.

To determine

The Cash disbursal Journal to be prepared.

Requirement4.

Expert Solution

Answer to Problem 1CP

Solution: The Cash disbursal Journal has been prepared as under:

CASH DISBURSEMENT JOURNAL
Date	Check	Payee	Account	PR	Cash Cr.	Inventory	Other	Other
			Debited			Cr.	Accounts Dr.	Payable Dr.
1-May	3410	S & P Mgt.	Rent Expense		3710		3710
8-May	3411	Peyton Products	Peyton Products		6174	126		6300
15-May	3412	Salaries	Salaries expense		8470		8470
TOTAL					18354	126	12180	6300
19-May	3413	Garcia	Garcia		8624	176		8800
23-May	3414	Fink Corp.	Fink Corp.		13377	273		13650
26-May	3415	Perennial Power	Utility Expense		1283		1283
29-May	3416	Jenny Colo.	Withdrawals		7000		7000
30-May	3417	Salaries	Salaries expense		8470		8470
TOTAL					38754	449	16753	22450

Explanation of Solution

The various payments being made along explanation has been entered in cash disbursal journal which has also been sorted out in different columns for easy posting of the entries in General Journal. The main sorting is done for Accounts payable payment with discount received and other expense paid is sorted in single columns which has been explained for posting later in general journal.

Answer 28

Requirement4.

To determine

The Cash disbursal Journal to be prepared.

Answer 29

Requirement4.

Expert Solution

Answer to Problem 1CP

Solution: The Cash disbursal Journal has been prepared as under:

CASH DISBURSEMENT JOURNAL
Date	Check	Payee	Account	PR	Cash Cr.	Inventory	Other	Other
			Debited			Cr.	Accounts Dr.	Payable Dr.
1-May	3410	S & P Mgt.	Rent Expense		3710		3710
8-May	3411	Peyton Products	Peyton Products		6174	126		6300
15-May	3412	Salaries	Salaries expense		8470		8470
TOTAL					18354	126	12180	6300
19-May	3413	Garcia	Garcia		8624	176		8800
23-May	3414	Fink Corp.	Fink Corp.		13377	273		13650
26-May	3415	Perennial Power	Utility Expense		1283		1283
29-May	3416	Jenny Colo.	Withdrawals		7000		7000
30-May	3417	Salaries	Salaries expense		8470		8470
TOTAL					38754	449	16753	22450

Answer 30

Requirement4.

Expert Solution

Answer 31

Requirement4.

Expert Solution

Answer 32

Expert Solution

Answer 33

Explanation of Solution

The various payments being made along explanation has been entered in cash disbursal journal which has also been sorted out in different columns for easy posting of the entries in General Journal. The main sorting is done for Accounts payable payment with discount received and other expense paid is sorted in single columns which has been explained for posting later in general journal.

Answer 34

Requirement5:

To determine

The General Journal has been prepared.

Requirement5:

Expert Solution

Answer to Problem 1CP

Solution: The General Journal has been made:

General Journal
Date	Accounts title and explanations	Debit $	Credit $
2-May	Sales return and allowance Dr.	175
	Accounts receivable Account		175

3-May	Accounts payable Dr.	798
	Merchandise inventory		798

12-May	Accounts payable Account Dr.	854
	Office Equipment Account		854

15-May	Accounts receivable Dr.	6100
	Sales revenue Account		6100

15-May	Cost of Goods sold Account Dr.	4100
	Inventory Account		4100

15-May	Cash account Dr.	70007
	Sales discount Dr.	213
	Accounts receivable Account		10650
	Sales revenue account		59220
	Store supplies Account		350

15-May	Cost f Goods sold Account Dr.	38200
	Inventory Account		38200

15-May	Inventory Account Dr.	45872
	Office Supplies Account Dr.	83
	Store Supplies Account Dr.	574
	Office Equipment Account Dr.	4074
	Accounts payable		50603

15-May	Office rent Account Dr.	2968
	Store rent Expense Account Dr.	742
	Sales salaries expense Account Dr.	5320
	Office Salaries Expense Account Dr.	3150
	Cash		12180

15-May	Accounts payable Dr.	6300
	Cash account		6174
	Inventory account		126

31-May	Accounts receivable Dr.	25050
	Sales revenue		25050

31-May	Cost of Goods sold Dr.	15110
	Inventory Account		15110

31-May	Cash account Dr.	6713
	Sales discount Dr.	137
	Accounts receivable		6850

31-May	Cash account Dr.	66052
	Sales revenue Account		66052

31-May	Cost of Goods sold Account Dr.	42500
	Inventory Account		42500

31-May	Inventory Account Dr.	24850
	Office Supplies Account Dr.	280
	Store supplies account Dr.	630
	Accounts payable		25760

31-May	Accounts payable Dr.	22450
	Cash account		22001
	Inventory Account		449

31-May	Utilities expense Account Dr.	1283
	Office salaries account Dr.	3150
	Sales salaries expense Account Dr.	5320
	Withdrawals Account Dr.	7000
	Cash		16753

Explanation of Solution

The General Journal is prepared to record the entries which have not been recorded in above 4 journals. Also the posting of the totals of above special journals being made in the General Journal at the end of periodic interval.

Conclusion

To conclude, it can be said that special Journal prepared helps in recording the transaction of particular nature at one place and then total of such transaction is only posted in Journal so as to make it easier to compile the ledger and Trial balance.

Answer 35

Requirement5:

To determine

The General Journal has been prepared.

Answer 36

Requirement5:

Expert Solution

Answer to Problem 1CP

Solution: The General Journal has been made:

General Journal
Date	Accounts title and explanations	Debit $	Credit $
2-May	Sales return and allowance Dr.	175
	Accounts receivable Account		175

3-May	Accounts payable Dr.	798
	Merchandise inventory		798

12-May	Accounts payable Account Dr.	854
	Office Equipment Account		854

15-May	Accounts receivable Dr.	6100
	Sales revenue Account		6100

15-May	Cost of Goods sold Account Dr.	4100
	Inventory Account		4100

15-May	Cash account Dr.	70007
	Sales discount Dr.	213
	Accounts receivable Account		10650
	Sales revenue account		59220
	Store supplies Account		350

15-May	Cost f Goods sold Account Dr.	38200
	Inventory Account		38200

15-May	Inventory Account Dr.	45872
	Office Supplies Account Dr.	83
	Store Supplies Account Dr.	574
	Office Equipment Account Dr.	4074
	Accounts payable		50603

15-May	Office rent Account Dr.	2968
	Store rent Expense Account Dr.	742
	Sales salaries expense Account Dr.	5320
	Office Salaries Expense Account Dr.	3150
	Cash		12180

15-May	Accounts payable Dr.	6300
	Cash account		6174
	Inventory account		126

31-May	Accounts receivable Dr.	25050
	Sales revenue		25050

31-May	Cost of Goods sold Dr.	15110
	Inventory Account		15110

31-May	Cash account Dr.	6713
	Sales discount Dr.	137
	Accounts receivable		6850

31-May	Cash account Dr.	66052
	Sales revenue Account		66052

31-May	Cost of Goods sold Account Dr.	42500
	Inventory Account		42500

31-May	Inventory Account Dr.	24850
	Office Supplies Account Dr.	280
	Store supplies account Dr.	630
	Accounts payable		25760

31-May	Accounts payable Dr.	22450
	Cash account		22001
	Inventory Account		449

31-May	Utilities expense Account Dr.	1283
	Office salaries account Dr.	3150
	Sales salaries expense Account Dr.	5320
	Withdrawals Account Dr.	7000
	Cash		16753

Answer 37

Requirement5:

Expert Solution

Answer 38

Requirement5:

Expert Solution

Answer 39

Expert Solution

Answer 40

Explanation of Solution

The General Journal is prepared to record the entries which have not been recorded in above 4 journals. Also the posting of the totals of above special journals being made in the General Journal at the end of periodic interval.

Answer 41

Conclusion

To conclude, it can be said that special Journal prepared helps in recording the transaction of particular nature at one place and then total of such transaction is only posted in Journal so as to make it easier to compile the ledger and Trial balance.