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Concept Introduction:
Sales Journal:
Sales journal is concerned with all the credit sales occurred during an accounting period.
Cash Receipt Journal:
The specific journal where all the
Requirement 1:
To Show:
Show all these transactions in a sales journal and cash receipts journal.
![Check Mark](/static/check-mark.png)
Answer to Problem 2APSA
Journal Name | Transactions took place |
Sales Journal | |
Cash receipt Journal | Cash, sales discount, accounts receivable , sales, other accounts , COGS, inventory |
Explanation of Solution
Sales Journal Page 3 | ||||
Date | Account Debited | Invoice Number | Accounts Receivable Dr. Sales Cr. | Cost of Goods Sold Dr. Inventory Cr. |
Apr.3 | Page Alistair | 760 | $4,000 | $3,000 |
5 | Paula Kohr | 761 | 8,000 | 6,500 |
11 | Nic Nelson | 762 | 10,500 | 7,000 |
13 | Page Alistair | 763 | 5,100 | 3,600 |
27 | Paula Kohr | 764 | 3,170 | 2,520 |
27 | Nic Nelson | 765 | 6,700 | 4,305 |
30 | Total | 37,470 | 26,925 |
Cash Receipt Journal Page 3 | |||||||
Date | Account Credited | Cash Dr. | Sales Discount Dr. | Accounts Receivable Cr. | Sales Cr. | Other Accounts Cr. | Cost of Goods Sold Dr. Inventory Cr. |
Apr. 13 | Page Alistair | $3,920 | $80 | $4,000 | |||
14 | Paula Kohr | 7,840 | 160 | 8,000 | |||
16 | Sales | 52,840 | 52,840 | $35,880 | |||
18 | L.T Notes Payable | 60,000 | 60,000 | ||||
20 | Nic Nelson | 10,290 | 210 | 10,500 | |||
23 | Page Alistair | 4,998 | 102 | 5,100 | |||
30 | Sales | 73,975 | 73,975 | 58,900 | |||
30 | Total | 213,863 | 552 | 27,600 | 126,815 | 60,000 | 94,780 |
Concept Introduction:
General Ledger:
The grouping of similar nature transactions of a business that helps to prepare the financial statement is known as General ledger.
Subsidiary Ledger:
It is the supporting ledger for preparing the general ledger that gives detailed information.
Requirement 2:
To Prepare:
Open all the general ledger accounts concerned with the transactions which occurred in the month of April and also prepare all the accounts receivable subsidiary ledger accounts?
![Check Mark](/static/check-mark.png)
Answer to Problem 2APSA
Account Name | Balance |
Cash | $ 298,863 |
Accounts Receivable | $ 9,870 |
Inventory | $ 3,295 |
Long Term Notes payable | $ 170,000 |
Capital | $ 100,000 |
Sales | $ 164,285 |
Sales Discount | $ 552 |
Cost Of Goods Sold | $ 121,705 |
Explanation of Solution
Cash | |||
Date | Debit | Credit | Balance |
Apr. 1 | $85,000 | ||
13 | 3,920 | 88,920 | |
14 | 7,840 | 96,760 | |
16 | 52,840 | 149,600 | |
18 | 60,000 | 209,600 | |
20 | 10,290 | 219,890 | |
23 | 4,998 | 224,888 | |
30 | 73,975 | 298,863 |
Accounts Receivable | |||
Date | Debit | Credit | Balance |
Apr. 3 | $4,000 | $4,000 | |
5 | 8,000 | 12,000 | |
11 | 10,500 | 22,500 | |
13 | $4,000 | 18,500 | |
13 | 5,100 | 23,600 | |
14 | 8,000 | 15,600 | |
20 | 10,500 | 5,100 | |
23 | 5,100 | 0 | |
27 | 3,170 | 3,170 | |
27 | 6,700 | 9,870 |
Inventory | |||
Date | Debit | Credit | Balance |
Apr. 1 | $125,000 | ||
3 | $3,000 | 122,000 | |
5 | 6,500 | 115,500 | |
11 | 7,000 | 108,500 | |
13 | 3,600 | 104,900 | |
16 | 35,880 | 69,020 | |
27 | 2,520 | 66,500 | |
27 | 4,305 | 62,195 | |
30 | 58,900 | 3,295 |
Long-Term Notes Payable | |||
Date | Debit | Credit | Balance |
Apr. 1 | $110,000 | ||
18 | 60,000 | 170,000 |
B. Wiset, Capital | |||
Date | Debit | Credit | Balance |
Apr. 1 | $100,000 |
Sales | |||
Date | Debit | Credit | Balance |
Apr. 3 | $4,000 | $4,000 | |
5 | 8,000 | 12,000 | |
11 | 10,500 | 22,500 | |
13 | 5,100 | 27,600 | |
16 | 52,840 | 80,440 | |
27 | 3,170 | 83,610 | |
27 | 6,700 | 90,310 | |
30 | 73,975 | 164,285 |
Sales Discount | |||
Date | Debit | Credit | Balance |
Apr. 13 | $80 | $80 | |
14 | 160 | 240 | |
20 | 210 | 450 | |
23 | 102 | 552 |
Cost of Goods Sold | |||
Date | Debit | Credit | Balance |
Apr. 3 | $3,000 | $3,000 | |
5 | 6,500 | 9,500 | |
11 | 7,000 | 16,500 | |
13 | 3,600 | 20,100 | |
16 | 35,880 | 55,980 | |
27 | 2,520 | 58,500 | |
27 | 4,305 | 62,805 | |
30 | 58,900 | 121,705 |
Accounts Receivable Subsidiary Ledger Accounts
Page Alistair | |||
Date | Debit | Credit | Balance |
Apr. 3 | $4,000 | $4,000 | |
13 | $4,000 | 0 | |
13 | 5,100 | 5,100 | |
23 | 5,100 | 0 |
Paula Kohr | |||
Date | Debit | Credit | Balance |
Apr. 5 | $8,000 | $8,000 | |
14 | $8,000 | 0 | |
27 | 3,170 | 3,170 |
Nic Nelson | |||
Date | Debit | Credit | Balance |
Apr. 11 | $10,500 | $10,500 | |
20 | $10,500 | 0 | |
27 | 6,700 | 6,700 |
Concept Introduction:
Journal:
The recording of financial transactions in the books of accounts is known as Journal
Requirement 3:
To Verify:
Verify that amounts that should be posted as individual amounts from the journals have been posted.
![Check Mark](/static/check-mark.png)
Explanation of Solution
Cash | |||
Date | Debit | Credit | Balance |
Apr. 1 | $85,000 | ||
13 | 3,920 | 88,920 | |
14 | 7,840 | 96,760 | |
16 | 52,840 | 149,600 | |
18 | 60,000 | 209,600 | |
20 | 10,290 | 219,890 | |
23 | 4,998 | 224,888 | |
30 | 73,975 | 298,863 |
Accounts Receivable | |||
Date | Debit | Credit | Balance |
Apr. 3 | $4,000 | $4,000 | |
5 | 8,000 | 12,000 | |
11 | 10,500 | 22,500 | |
13 | $4,000 | 18,500 | |
13 | 5,100 | 23,600 | |
14 | 8,000 | 15,600 | |
20 | 10,500 | 5,100 | |
23 | 5,100 | 0 | |
27 | 3,170 | 3,170 | |
27 | 6,700 | 9,870 |
Inventory | |||
Date | Debit | Credit | Balance |
Apr. 1 | $125,000 | ||
3 | $3,000 | 122,000 | |
5 | 6,500 | 115,500 | |
11 | 7,000 | 108,500 | |
13 | 3,600 | 104,900 | |
16 | 35,880 | 69,020 | |
27 | 2,520 | 66,500 | |
27 | 4,305 | 62,195 | |
30 | 58,900 | 3,295 |
Long-Term Notes Payable | |||
Date | Debit | Credit | Balance |
Apr. 1 | $110,000 | ||
18 | 60,000 | 170,000 |
B. Wiset, Capital | |||
Date | Debit | Credit | Balance |
Apr. 1 | $100,000 |
Sales | |||
Date | Debit | Credit | Balance |
Apr. 3 | $4,000 | $4,000 | |
5 | 8,000 | 12,000 | |
11 | 10,500 | 22,500 | |
13 | 5,100 | 27,600 | |
16 | 52,840 | 80,440 | |
27 | 3,170 | 83,610 | |
27 | 6,700 | 90,310 | |
30 | 73,975 | 164,285 |
Sales Discount | |||
Date | Debit | Credit | Balance |
Apr. 13 | $80 | $80 | |
14 | 160 | 240 | |
20 | 210 | 450 | |
23 | 102 | 552 |
Cost of Goods Sold | |||
Date | Debit | Credit | Balance |
Apr. 3 | $3,000 | $3,000 | |
5 | 6,500 | 9,500 | |
11 | 7,000 | 16,500 | |
13 | 3,600 | 20,100 | |
16 | 35,880 | 55,980 | |
27 | 2,520 | 58,500 | |
27 | 4,305 | 62,805 | |
30 | 58,900 | 121,705 |
Accounts Receivable Subsidiary Ledger Accounts
Page Alistair | |||
Date | Debit | Credit | Balance |
Apr. 3 | $4,000 | $4,000 | |
13 | $4,000 | 0 | |
13 | 5,100 | 5,100 | |
23 | 5,100 | 0 |
Paula Kohr | |||
Date | Debit | Credit | Balance |
Apr. 5 | $8,000 | $8,000 | |
14 | $8,000 | 0 | |
27 | 3,170 | 3,170 |
Nic Nelson | |||
Date | Debit | Credit | Balance |
Apr. 11 | $10,500 | $10,500 | |
20 | $10,500 | 0 | |
27 | 6,700 | 6,700 |
Concept Introduction:
The listing of all accounts in debits and credits is known as Trial balance.
Requirement 4:
To Prepare:
(a) Prepare a trial balance of the general ledger.
(b) Prove the accuracy of the subsidiary ledgers by preparing schedule of accounts receivable
![Check Mark](/static/check-mark.png)
Answer to Problem 2APSA
Account Names | Totals |
Trial balance | $ 434,285 |
Accounts Receivable | $ 9,870 |
Explanation of Solution
a. Trial Balance
WISET COMPANYTrial Balance April 30 | ||
Accounts | Debit | Credit |
Cash | $298,863 | |
Accounts Receivable | 9,870 | |
Inventory | 3,295 | |
Long-Term Notes Payable | 170,000 | |
B. Wiset, Capital | 100,000 | |
Sales | 164,285 | |
Sales Discount | 552 | |
Cost of Goods Sold | 121,705 | |
434,285 | 434,285 |
b. Schedule of Accounts Receivable
WISET COMPANYSchedule of Accounts ReceivableApril 30 | |
Nic Nelson | $6,700 |
Paula Kohr | 3,170 |
Total Accounts Receivable | $9,870 |
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Connect Access Card For Fundamental Accounting Principles
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