Chapter 7, Problem 2APSA

To determine

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 cash inflows or received during the period is recorded is called a cash receipt journal.

Requirement 1:

To Show:

Show all these transactions in a sales journal and cash receipts journal.

Answer to Problem 2APSA

Journal Name	Transactions took place
Sales Journal	Accounts receivable ,Sales, COGS, inventory
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

To determine

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?

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

To determine

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.

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

To determine

Concept Introduction:

Trial Balance:

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

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