General Journal: The transactions which are not recorded in the sales, purchase, cash receipt and cash payment journals are recorded in the general journal. Purchase Journal: The journal where all the credit purchases are recorded is termed as purchase journal. Cash Payment Journal: Cash payment journal shows all the cash payment made by the business organization. Requirement 1: To Prepare: Prepare general journal, purchase journal, and cash payments journal.

Question

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Answer 1

Question

Chapter 7, Problem 3BPSB

To determine

Concept Introduction:

General Journal:

The transactions which are not recorded in the sales, purchase, cash receipt and cash payment journals are recorded in the general journal.

Purchase Journal:

The journal where all the credit purchases are recorded is termed as purchase journal.

Cash Payment Journal:

Cash payment journal shows all the cash payment made by the business organization.

Requirement 1:

To Prepare:

Prepare general journal, purchase journal, and cash payments journal.

Expert Solution

Answer to Problem 3BPSB

Journal Name	Transactions took place
Purchase Journal	Accounts payable, Inventory , Office supplies and Other accounts
Cash payments Journal	Cash, Inventory, Other accounts and Accounts payable

Explanation of Solution

General Journal
Date	Accounts	Debit	Credit
July 8	Accounts Payable − Plaine, Inc.	$250
	Store Supplies		$250

24	Accounts Payable −Drake Company	2,400
	Inventory		2,400

Purchase Journal Page 3
Date	Account	Terms	Accounts Payable Cr.	Inventory Dr.	Office Supplies Dr.	Other Accounts Dr.
July 1	Teton Company	2/10,n/30	$6,500	$6,500
7	Plaine, Inc.	n/30	1,250			$1,250
9	Charm's Supply	n/30	38,220			$38,220
17	Drake Company	2/10,n/30	7,200	7,200
20	Charm's Supply	n/30	650		650
26	Teton Company	2/10,n/30	9,770	9,770
30	Total		63,590	23,470	650	39,470

Cash Payment Journal Page 3
Date	Ck. No.	Payee	Account Debited	Cash Cr.	Inventory Cr.	Other Accounts Dr.	Accounts Payable Dr.
July 3	300	The Weekly	Advertising Expense	$625		$625
10	301	Teton Company	Teton Company	6,370	$130		$6,500
15	302	Payroll	Sales Salaries Expense	31,850		31,850
27	303	Drake Company	Drake Company	4,704	96		4,800
31	304	Payroll	Sales Salaries Expense	31,850		31,850
31	Total			77,799	226	64,325	13,700

To determine

Concept Introduction:

General Ledger:

The grouping of similar nature transactions of a business that helps to prepare the financialstatement 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 payable subsidiary ledger accounts?

Expert Solution

Answer to Problem 3BPSB

Account Name	Balance
Cash	$ 24,601
Office supplies	$ 650
Inventory	$ 220,844
Store supplies	$ 1,000
Store equipment	$ $38,220
Accounts Payable	$ 54,440
Long-Term Notes Payable	$ 200,000
R. Acorn, Capital	$ 100,000
Sales Salaries Expense	$ 63,700
Advertising Expense	$ 625

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

To determine

Concept Introduction:

Journal:

The recording of financial transactions are known as Journal .

Requirement 3:

To Verify:

Verify that amounts that should be posted as individual amounts from the journals have been posted.

Expert Solution

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

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 payable

Expert Solution

Answer to Problem 3BPSB

Account Names	Totals
Trial balance	$ $349,640
Accounts Payable	$ 49,640

Explanation of Solution

Trial Balance

ACORN INDUSTRIES Trial Balance July 31
Accounts	Debit	Credit
Cash	$24,601
Inventory	220,844
Office Supplies	650
Store Supplies	1,000
Store Equipment	$38,220
Accounts Payable		$49,640
Long-Term Notes Payable		200,000
R. Acorn, Capital		100,000
Sales Salaries Expense	63,700
Advertising Expense	625
Total	$349,640	$349,640

Schedule of Accounts Payable

ACORN INDUSTRIES Schedule of Accounts Payable July 31
Teton Company	$9,770
Plaine Inc.	1,000
Charm'sSupply	38,870
Total Accounts Payable	49,640

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Answer 2

Question

Chapter 7, Problem 3BPSB

To determine

Concept Introduction:

General Journal:

The transactions which are not recorded in the sales, purchase, cash receipt and cash payment journals are recorded in the general journal.

Purchase Journal:

The journal where all the credit purchases are recorded is termed as purchase journal.

Cash Payment Journal:

Cash payment journal shows all the cash payment made by the business organization.

Requirement 1:

To Prepare:

Prepare general journal, purchase journal, and cash payments journal.

Expert Solution

Answer to Problem 3BPSB

Journal Name	Transactions took place
Purchase Journal	Accounts payable, Inventory , Office supplies and Other accounts
Cash payments Journal	Cash, Inventory, Other accounts and Accounts payable

Explanation of Solution

General Journal
Date	Accounts	Debit	Credit
July 8	Accounts Payable − Plaine, Inc.	$250
	Store Supplies		$250

24	Accounts Payable −Drake Company	2,400
	Inventory		2,400

Purchase Journal Page 3
Date	Account	Terms	Accounts Payable Cr.	Inventory Dr.	Office Supplies Dr.	Other Accounts Dr.
July 1	Teton Company	2/10,n/30	$6,500	$6,500
7	Plaine, Inc.	n/30	1,250			$1,250
9	Charm's Supply	n/30	38,220			$38,220
17	Drake Company	2/10,n/30	7,200	7,200
20	Charm's Supply	n/30	650		650
26	Teton Company	2/10,n/30	9,770	9,770
30	Total		63,590	23,470	650	39,470

Cash Payment Journal Page 3
Date	Ck. No.	Payee	Account Debited	Cash Cr.	Inventory Cr.	Other Accounts Dr.	Accounts Payable Dr.
July 3	300	The Weekly	Advertising Expense	$625		$625
10	301	Teton Company	Teton Company	6,370	$130		$6,500
15	302	Payroll	Sales Salaries Expense	31,850		31,850
27	303	Drake Company	Drake Company	4,704	96		4,800
31	304	Payroll	Sales Salaries Expense	31,850		31,850
31	Total			77,799	226	64,325	13,700

To determine

Concept Introduction:

General Ledger:

The grouping of similar nature transactions of a business that helps to prepare the financialstatement 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 payable subsidiary ledger accounts?

Expert Solution

Answer to Problem 3BPSB

Account Name	Balance
Cash	$ 24,601
Office supplies	$ 650
Inventory	$ 220,844
Store supplies	$ 1,000
Store equipment	$ $38,220
Accounts Payable	$ 54,440
Long-Term Notes Payable	$ 200,000
R. Acorn, Capital	$ 100,000
Sales Salaries Expense	$ 63,700
Advertising Expense	$ 625

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

To determine

Concept Introduction:

Journal:

The recording of financial transactions are known as Journal .

Requirement 3:

To Verify:

Verify that amounts that should be posted as individual amounts from the journals have been posted.

Expert Solution

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

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 payable

Expert Solution

Answer to Problem 3BPSB

Account Names	Totals
Trial balance	$ $349,640
Accounts Payable	$ 49,640

Explanation of Solution

Trial Balance

ACORN INDUSTRIES Trial Balance July 31
Accounts	Debit	Credit
Cash	$24,601
Inventory	220,844
Office Supplies	650
Store Supplies	1,000
Store Equipment	$38,220
Accounts Payable		$49,640
Long-Term Notes Payable		200,000
R. Acorn, Capital		100,000
Sales Salaries Expense	63,700
Advertising Expense	625
Total	$349,640	$349,640

Schedule of Accounts Payable

ACORN INDUSTRIES Schedule of Accounts Payable July 31
Teton Company	$9,770
Plaine Inc.	1,000
Charm'sSupply	38,870
Total Accounts Payable	49,640

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Answer 3

Question

Chapter 7, Problem 3BPSB

To determine

Concept Introduction:

General Journal:

The transactions which are not recorded in the sales, purchase, cash receipt and cash payment journals are recorded in the general journal.

Purchase Journal:

The journal where all the credit purchases are recorded is termed as purchase journal.

Cash Payment Journal:

Cash payment journal shows all the cash payment made by the business organization.

Requirement 1:

To Prepare:

Prepare general journal, purchase journal, and cash payments journal.

Expert Solution

Answer to Problem 3BPSB

Journal Name	Transactions took place
Purchase Journal	Accounts payable, Inventory , Office supplies and Other accounts
Cash payments Journal	Cash, Inventory, Other accounts and Accounts payable

Explanation of Solution

General Journal
Date	Accounts	Debit	Credit
July 8	Accounts Payable − Plaine, Inc.	$250
	Store Supplies		$250

24	Accounts Payable −Drake Company	2,400
	Inventory		2,400

Purchase Journal Page 3
Date	Account	Terms	Accounts Payable Cr.	Inventory Dr.	Office Supplies Dr.	Other Accounts Dr.
July 1	Teton Company	2/10,n/30	$6,500	$6,500
7	Plaine, Inc.	n/30	1,250			$1,250
9	Charm's Supply	n/30	38,220			$38,220
17	Drake Company	2/10,n/30	7,200	7,200
20	Charm's Supply	n/30	650		650
26	Teton Company	2/10,n/30	9,770	9,770
30	Total		63,590	23,470	650	39,470

Cash Payment Journal Page 3
Date	Ck. No.	Payee	Account Debited	Cash Cr.	Inventory Cr.	Other Accounts Dr.	Accounts Payable Dr.
July 3	300	The Weekly	Advertising Expense	$625		$625
10	301	Teton Company	Teton Company	6,370	$130		$6,500
15	302	Payroll	Sales Salaries Expense	31,850		31,850
27	303	Drake Company	Drake Company	4,704	96		4,800
31	304	Payroll	Sales Salaries Expense	31,850		31,850
31	Total			77,799	226	64,325	13,700

To determine

Concept Introduction:

General Ledger:

The grouping of similar nature transactions of a business that helps to prepare the financialstatement 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 payable subsidiary ledger accounts?

Expert Solution

Answer to Problem 3BPSB

Account Name	Balance
Cash	$ 24,601
Office supplies	$ 650
Inventory	$ 220,844
Store supplies	$ 1,000
Store equipment	$ $38,220
Accounts Payable	$ 54,440
Long-Term Notes Payable	$ 200,000
R. Acorn, Capital	$ 100,000
Sales Salaries Expense	$ 63,700
Advertising Expense	$ 625

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

To determine

Concept Introduction:

Journal:

The recording of financial transactions are known as Journal .

Requirement 3:

To Verify:

Verify that amounts that should be posted as individual amounts from the journals have been posted.

Expert Solution

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

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 payable

Expert Solution

Answer to Problem 3BPSB

Account Names	Totals
Trial balance	$ $349,640
Accounts Payable	$ 49,640

Explanation of Solution

Trial Balance

ACORN INDUSTRIES Trial Balance July 31
Accounts	Debit	Credit
Cash	$24,601
Inventory	220,844
Office Supplies	650
Store Supplies	1,000
Store Equipment	$38,220
Accounts Payable		$49,640
Long-Term Notes Payable		200,000
R. Acorn, Capital		100,000
Sales Salaries Expense	63,700
Advertising Expense	625
Total	$349,640	$349,640

Schedule of Accounts Payable

ACORN INDUSTRIES Schedule of Accounts Payable July 31
Teton Company	$9,770
Plaine Inc.	1,000
Charm'sSupply	38,870
Total Accounts Payable	49,640

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Answer 4

Question

Chapter 7, Problem 3BPSB

To determine

Concept Introduction:

General Journal:

The transactions which are not recorded in the sales, purchase, cash receipt and cash payment journals are recorded in the general journal.

Purchase Journal:

The journal where all the credit purchases are recorded is termed as purchase journal.

Cash Payment Journal:

Cash payment journal shows all the cash payment made by the business organization.

Requirement 1:

To Prepare:

Prepare general journal, purchase journal, and cash payments journal.

Expert Solution

Answer to Problem 3BPSB

Journal Name	Transactions took place
Purchase Journal	Accounts payable, Inventory , Office supplies and Other accounts
Cash payments Journal	Cash, Inventory, Other accounts and Accounts payable

Explanation of Solution

General Journal
Date	Accounts	Debit	Credit
July 8	Accounts Payable − Plaine, Inc.	$250
	Store Supplies		$250

24	Accounts Payable −Drake Company	2,400
	Inventory		2,400

Purchase Journal Page 3
Date	Account	Terms	Accounts Payable Cr.	Inventory Dr.	Office Supplies Dr.	Other Accounts Dr.
July 1	Teton Company	2/10,n/30	$6,500	$6,500
7	Plaine, Inc.	n/30	1,250			$1,250
9	Charm's Supply	n/30	38,220			$38,220
17	Drake Company	2/10,n/30	7,200	7,200
20	Charm's Supply	n/30	650		650
26	Teton Company	2/10,n/30	9,770	9,770
30	Total		63,590	23,470	650	39,470

Cash Payment Journal Page 3
Date	Ck. No.	Payee	Account Debited	Cash Cr.	Inventory Cr.	Other Accounts Dr.	Accounts Payable Dr.
July 3	300	The Weekly	Advertising Expense	$625		$625
10	301	Teton Company	Teton Company	6,370	$130		$6,500
15	302	Payroll	Sales Salaries Expense	31,850		31,850
27	303	Drake Company	Drake Company	4,704	96		4,800
31	304	Payroll	Sales Salaries Expense	31,850		31,850
31	Total			77,799	226	64,325	13,700

To determine

Concept Introduction:

General Ledger:

The grouping of similar nature transactions of a business that helps to prepare the financialstatement 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 payable subsidiary ledger accounts?

Expert Solution

Answer to Problem 3BPSB

Account Name	Balance
Cash	$ 24,601
Office supplies	$ 650
Inventory	$ 220,844
Store supplies	$ 1,000
Store equipment	$ $38,220
Accounts Payable	$ 54,440
Long-Term Notes Payable	$ 200,000
R. Acorn, Capital	$ 100,000
Sales Salaries Expense	$ 63,700
Advertising Expense	$ 625

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

To determine

Concept Introduction:

Journal:

The recording of financial transactions are known as Journal .

Requirement 3:

To Verify:

Verify that amounts that should be posted as individual amounts from the journals have been posted.

Expert Solution

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

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 payable

Expert Solution

Answer to Problem 3BPSB

Account Names	Totals
Trial balance	$ $349,640
Accounts Payable	$ 49,640

Explanation of Solution

Trial Balance

ACORN INDUSTRIES Trial Balance July 31
Accounts	Debit	Credit
Cash	$24,601
Inventory	220,844
Office Supplies	650
Store Supplies	1,000
Store Equipment	$38,220
Accounts Payable		$49,640
Long-Term Notes Payable		200,000
R. Acorn, Capital		100,000
Sales Salaries Expense	63,700
Advertising Expense	625
Total	$349,640	$349,640

Schedule of Accounts Payable

ACORN INDUSTRIES Schedule of Accounts Payable July 31
Teton Company	$9,770
Plaine Inc.	1,000
Charm'sSupply	38,870
Total Accounts Payable	49,640

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Answer 5

Chapter 7, Problem 3BPSB

To determine

Concept Introduction:

General Journal:

The transactions which are not recorded in the sales, purchase, cash receipt and cash payment journals are recorded in the general journal.

Purchase Journal:

The journal where all the credit purchases are recorded is termed as purchase journal.

Cash Payment Journal:

Cash payment journal shows all the cash payment made by the business organization.

Requirement 1:

To Prepare:

Prepare general journal, purchase journal, and cash payments journal.

Expert Solution

Answer to Problem 3BPSB

Journal Name	Transactions took place
Purchase Journal	Accounts payable, Inventory , Office supplies and Other accounts
Cash payments Journal	Cash, Inventory, Other accounts and Accounts payable

Explanation of Solution

General Journal
Date	Accounts	Debit	Credit
July 8	Accounts Payable − Plaine, Inc.	$250
	Store Supplies		$250

24	Accounts Payable −Drake Company	2,400
	Inventory		2,400

Purchase Journal Page 3
Date	Account	Terms	Accounts Payable Cr.	Inventory Dr.	Office Supplies Dr.	Other Accounts Dr.
July 1	Teton Company	2/10,n/30	$6,500	$6,500
7	Plaine, Inc.	n/30	1,250			$1,250
9	Charm's Supply	n/30	38,220			$38,220
17	Drake Company	2/10,n/30	7,200	7,200
20	Charm's Supply	n/30	650		650
26	Teton Company	2/10,n/30	9,770	9,770
30	Total		63,590	23,470	650	39,470

Cash Payment Journal Page 3
Date	Ck. No.	Payee	Account Debited	Cash Cr.	Inventory Cr.	Other Accounts Dr.	Accounts Payable Dr.
July 3	300	The Weekly	Advertising Expense	$625		$625
10	301	Teton Company	Teton Company	6,370	$130		$6,500
15	302	Payroll	Sales Salaries Expense	31,850		31,850
27	303	Drake Company	Drake Company	4,704	96		4,800
31	304	Payroll	Sales Salaries Expense	31,850		31,850
31	Total			77,799	226	64,325	13,700

To determine

Concept Introduction:

General Ledger:

The grouping of similar nature transactions of a business that helps to prepare the financialstatement 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 payable subsidiary ledger accounts?

Expert Solution

Answer to Problem 3BPSB

Account Name	Balance
Cash	$ 24,601
Office supplies	$ 650
Inventory	$ 220,844
Store supplies	$ 1,000
Store equipment	$ $38,220
Accounts Payable	$ 54,440
Long-Term Notes Payable	$ 200,000
R. Acorn, Capital	$ 100,000
Sales Salaries Expense	$ 63,700
Advertising Expense	$ 625

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

To determine

Concept Introduction:

Journal:

The recording of financial transactions are known as Journal .

Requirement 3:

To Verify:

Verify that amounts that should be posted as individual amounts from the journals have been posted.

Expert Solution

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

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 payable

Expert Solution

Answer to Problem 3BPSB

Account Names	Totals
Trial balance	$ $349,640
Accounts Payable	$ 49,640

Explanation of Solution

Trial Balance

ACORN INDUSTRIES Trial Balance July 31
Accounts	Debit	Credit
Cash	$24,601
Inventory	220,844
Office Supplies	650
Store Supplies	1,000
Store Equipment	$38,220
Accounts Payable		$49,640
Long-Term Notes Payable		200,000
R. Acorn, Capital		100,000
Sales Salaries Expense	63,700
Advertising Expense	625
Total	$349,640	$349,640

Schedule of Accounts Payable

ACORN INDUSTRIES Schedule of Accounts Payable July 31
Teton Company	$9,770
Plaine Inc.	1,000
Charm'sSupply	38,870
Total Accounts Payable	49,640

Answer 6

Chapter 7, Problem 3BPSB

To determine

Concept Introduction:

General Journal:

The transactions which are not recorded in the sales, purchase, cash receipt and cash payment journals are recorded in the general journal.

Purchase Journal:

The journal where all the credit purchases are recorded is termed as purchase journal.

Cash Payment Journal:

Cash payment journal shows all the cash payment made by the business organization.

Requirement 1:

To Prepare:

Prepare general journal, purchase journal, and cash payments journal.

Expert Solution

Answer to Problem 3BPSB

Journal Name	Transactions took place
Purchase Journal	Accounts payable, Inventory , Office supplies and Other accounts
Cash payments Journal	Cash, Inventory, Other accounts and Accounts payable

Explanation of Solution

General Journal
Date	Accounts	Debit	Credit
July 8	Accounts Payable − Plaine, Inc.	$250
	Store Supplies		$250

24	Accounts Payable −Drake Company	2,400
	Inventory		2,400

Purchase Journal Page 3
Date	Account	Terms	Accounts Payable Cr.	Inventory Dr.	Office Supplies Dr.	Other Accounts Dr.
July 1	Teton Company	2/10,n/30	$6,500	$6,500
7	Plaine, Inc.	n/30	1,250			$1,250
9	Charm's Supply	n/30	38,220			$38,220
17	Drake Company	2/10,n/30	7,200	7,200
20	Charm's Supply	n/30	650		650
26	Teton Company	2/10,n/30	9,770	9,770
30	Total		63,590	23,470	650	39,470

Cash Payment Journal Page 3
Date	Ck. No.	Payee	Account Debited	Cash Cr.	Inventory Cr.	Other Accounts Dr.	Accounts Payable Dr.
July 3	300	The Weekly	Advertising Expense	$625		$625
10	301	Teton Company	Teton Company	6,370	$130		$6,500
15	302	Payroll	Sales Salaries Expense	31,850		31,850
27	303	Drake Company	Drake Company	4,704	96		4,800
31	304	Payroll	Sales Salaries Expense	31,850		31,850
31	Total			77,799	226	64,325	13,700

Answer 7

Chapter 7, Problem 3BPSB

To determine

Concept Introduction:

General Journal:

The transactions which are not recorded in the sales, purchase, cash receipt and cash payment journals are recorded in the general journal.

Purchase Journal:

The journal where all the credit purchases are recorded is termed as purchase journal.

Cash Payment Journal:

Cash payment journal shows all the cash payment made by the business organization.

Requirement 1:

To Prepare:

Prepare general journal, purchase journal, and cash payments journal.

Answer 8

Expert Solution

Answer to Problem 3BPSB

Journal Name	Transactions took place
Purchase Journal	Accounts payable, Inventory , Office supplies and Other accounts
Cash payments Journal	Cash, Inventory, Other accounts and Accounts payable

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

General Journal
Date	Accounts	Debit	Credit
July 8	Accounts Payable − Plaine, Inc.	$250
	Store Supplies		$250

24	Accounts Payable −Drake Company	2,400
	Inventory		2,400

Purchase Journal Page 3
Date	Account	Terms	Accounts Payable Cr.	Inventory Dr.	Office Supplies Dr.	Other Accounts Dr.
July 1	Teton Company	2/10,n/30	$6,500	$6,500
7	Plaine, Inc.	n/30	1,250			$1,250
9	Charm's Supply	n/30	38,220			$38,220
17	Drake Company	2/10,n/30	7,200	7,200
20	Charm's Supply	n/30	650		650
26	Teton Company	2/10,n/30	9,770	9,770
30	Total		63,590	23,470	650	39,470

Cash Payment Journal Page 3
Date	Ck. No.	Payee	Account Debited	Cash Cr.	Inventory Cr.	Other Accounts Dr.	Accounts Payable Dr.
July 3	300	The Weekly	Advertising Expense	$625		$625
10	301	Teton Company	Teton Company	6,370	$130		$6,500
15	302	Payroll	Sales Salaries Expense	31,850		31,850
27	303	Drake Company	Drake Company	4,704	96		4,800
31	304	Payroll	Sales Salaries Expense	31,850		31,850
31	Total			77,799	226	64,325	13,700

Answer 13

To determine

Concept Introduction:

General Ledger:

The grouping of similar nature transactions of a business that helps to prepare the financialstatement 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 payable subsidiary ledger accounts?

Expert Solution

Answer to Problem 3BPSB

Account Name	Balance
Cash	$ 24,601
Office supplies	$ 650
Inventory	$ 220,844
Store supplies	$ 1,000
Store equipment	$ $38,220
Accounts Payable	$ 54,440
Long-Term Notes Payable	$ 200,000
R. Acorn, Capital	$ 100,000
Sales Salaries Expense	$ 63,700
Advertising Expense	$ 625

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

Answer 14

To determine

Concept Introduction:

General Ledger:

The grouping of similar nature transactions of a business that helps to prepare the financialstatement 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 payable subsidiary ledger accounts?

Answer 15

Expert Solution

Answer to Problem 3BPSB

Account Name	Balance
Cash	$ 24,601
Office supplies	$ 650
Inventory	$ 220,844
Store supplies	$ 1,000
Store equipment	$ $38,220
Accounts Payable	$ 54,440
Long-Term Notes Payable	$ 200,000
R. Acorn, Capital	$ 100,000
Sales Salaries Expense	$ 63,700
Advertising Expense	$ 625

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

Answer 20

To determine

Concept Introduction:

Journal:

The recording of financial transactions are known as Journal .

Requirement 3:

To Verify:

Verify that amounts that should be posted as individual amounts from the journals have been posted.

Expert Solution

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

Answer 21

To determine

Concept Introduction:

Journal:

The recording of financial transactions are known as Journal .

Requirement 3:

To Verify:

Verify that amounts that should be posted as individual amounts from the journals have been posted.

Answer 22

Expert Solution

Explanation of Solution

General Ledger Accounts

Cash
Date	Debit	Credit	Balance
July 1			$100,000
3		$625	99,375
10		6,370	93,005
15		31,850	61,155
27		4,704	56,451
31		31,850	24,601

Inventory
Date	Debit	Credit	Balance
July 1			$200,000
1	$6,500		206,500
10		$130	206,370
17	7,200		213,570
24		2,400	211,170
26	9,770		220,940
27		96	220,844

Office Supplies
Date	Debit	Credit	Balance
July 20	$650		$650

Store Supplies
Date	Debit	Credit	Balance
July 7	$1,250		$1,250
8	250		1,000

Store Equipment
Date	Debit	Credit	Balance
July 9	$38,220		$38,220

Accounts Payable
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
7		1,250	7,750
8	$250		7,500
9		38,220	45,720
10	6,500		39,220
17		7,200	46,420
20		650	47,070
24	2,400		44,670
26		9,770	54,440
27	4,800		49,640

Long-Term Notes Payable
Date	Debit	Credit	Balance
July 1			$200,000

R. Acorn, Capital
Date	Debit	Credit	Balance
July 1			$100,000

Sales Salaries Expense
Date	Debit	Credit	Balance
July 15	$31,850		$31,850
31	31,850		63,700

Advertising Expense
Date	Debit	Credit	Balance
July 3	$625		$625

Accounts Payable Subsidiary Ledger Accounts

Teton Company
Date	Debit	Credit	Balance
July 1		$6,500	$6,500
10	$6,500		0
26		9,770	9,770

Plaine Inc.
Date	Debit	Credit	Balance
July 7		$1,250	$1,250
8	$250		1,000

Charm's Supply
Date	Debit	Credit	Balance
July 9		$38,220	$38,220
20		650	38,870

Drake Company
Date	Debit	Credit	Balance
July 17		$7,200	$7,200
24	$2,400		4,800
27	4,800		0

Answer 23

Expert Solution

Answer 24

Expert Solution

Answer 25

Expert Solution

Answer 26

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 payable

Expert Solution

Answer to Problem 3BPSB

Account Names	Totals
Trial balance	$ $349,640
Accounts Payable	$ 49,640

Explanation of Solution

Trial Balance

ACORN INDUSTRIES Trial Balance July 31
Accounts	Debit	Credit
Cash	$24,601
Inventory	220,844
Office Supplies	650
Store Supplies	1,000
Store Equipment	$38,220
Accounts Payable		$49,640
Long-Term Notes Payable		200,000
R. Acorn, Capital		100,000
Sales Salaries Expense	63,700
Advertising Expense	625
Total	$349,640	$349,640

Schedule of Accounts Payable

ACORN INDUSTRIES Schedule of Accounts Payable July 31
Teton Company	$9,770
Plaine Inc.	1,000
Charm'sSupply	38,870
Total Accounts Payable	49,640

Answer 27

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 payable

Answer 28

Expert Solution

Answer to Problem 3BPSB

Account Names	Totals
Trial balance	$ $349,640
Accounts Payable	$ 49,640

Answer 29

Expert Solution

Answer 30

Expert Solution

Answer 31

Expert Solution

Answer 32

Explanation of Solution

Trial Balance

ACORN INDUSTRIES Trial Balance July 31
Accounts	Debit	Credit
Cash	$24,601
Inventory	220,844
Office Supplies	650
Store Supplies	1,000
Store Equipment	$38,220
Accounts Payable		$49,640
Long-Term Notes Payable		200,000
R. Acorn, Capital		100,000
Sales Salaries Expense	63,700
Advertising Expense	625
Total	$349,640	$349,640

Schedule of Accounts Payable

ACORN INDUSTRIES Schedule of Accounts Payable July 31
Teton Company	$9,770
Plaine Inc.	1,000
Charm'sSupply	38,870
Total Accounts Payable	49,640

Answer 33

Ch. 7 - Prob. 1DQ Ch. 7 - Prob. 2DQ Ch. 7 - Prob. 3DQ Ch. 7 - Prob. 4DQ Ch. 7 - What purpose is served by the output devices of an...Ch. 7 - When special journals are used, they are usually...Ch. 7 - Prob. 7DQ Ch. 7 - Prob. 8DQ Ch. 7 - Credits to customer accounts and credits to Other...Ch. 7 - Prob. 10DQ

Concept explainers

Videos

Answer to Problem 3BPSB

Explanation of Solution

Answer to Problem 3BPSB

Explanation of Solution

Concept Introduction:

Journal:

The recording of financial transactions are 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

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 payable

Answer to Problem 3BPSB

Explanation of Solution

Want to see more full solutions like this?

Chapter 7 Solutions

Concept explainers

Videos

Answer to Problem 3BPSB

Explanation of Solution

Answer to Problem 3BPSB

Explanation of Solution

Concept Introduction: Journal: The recording of financial transactions are 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

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 payable

Answer to Problem 3BPSB

Explanation of Solution

Want to see more full solutions like this?

Chapter 7 Solutions

Concept Introduction:

Journal:

The recording of financial transactions are known as Journal .

Requirement 3:

To Verify:

Verify that amounts that should be posted as individual amounts from the journals have been posted.

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 payable