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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.
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 payable subsidiary ledger accounts?
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:
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
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Chapter 7 Solutions
FUND.ACCT.PRIN.-CONNECT ACCESS
- Mead Incorporated began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 January 20 Purchased Johnson & Johnson bonds for $20,500. February 9 Purchased Sony notes for $55,440. June 12 Purchased Mattel bonds for $40,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $21,500; Sony, $52,500; and Mattel, $46,350. Year 2 April 15 Sold all of the Johnson & Johnson bonds for $23,500. July 5 Sold all of the Mattel bonds for $35,850. July 22 Purchased Sara Lee notes for $13,500. August 19 Purchased Kodak bonds for $15,300. December 31 Fair values for debt in the portfolio are Kodak, $17,325; Sara Lee, $12,000; and Sony, $60,000. Year 3 February 27 Purchased Microsoft bonds for $160,800. June 21 Sold all of the Sony notes for $57,600. June 30 Purchased Black & Decker bonds for $50,400. August 3 Sold all of the Sara…arrow_forwardWhat is the ending inventory?arrow_forwardMaple industries uses the straight line method solution general accounting questionarrow_forward
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