12th Edition

ISBN: 9780134486444

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

Videos

Textbook Question

Chapter 7, Problem 6CP

Comprehensive Problem for Chapter 7

Completing the Accounting Cycle for a Merchandising Entity—Using Special Journals

Amherst Networking Systems adjusts and closes its books and then prepares financial statements monthly Amherst uses the perpetual inventory system and all sales on credit ha terms of n/30. The company completed the following transactions during August

Aug. 1 Issued check no. 682 for August office rent of $1300.
2 Issued check no. 683 to pay the salaries payable of $1300 from July 31.
2 Issued invoice no. 503 for sale on account R.T. Loeb, $700. Amherst’s cost of this merchandise inventory was $210.
3 Purchased merchandise inventory on credit terms of 1/15, n/60 from Goldner, Inc.. $1,400.
4 Received cash on account from friend Company, $2400.
4 Sold merchandise inventory for cash, $370 (cost, $111).
5 Issued check no. 684 to purchase office supplies for cash, $730.
7 Issued invoice no. 504 for sale on account to K.D. Sanders, $2100 (cost,
$630).
8 Issued check no. 685 to pay Filter Company $2,500 of the amount owed at July 31. This payment occurred after the end of the discount period
11 Issued check no. 686 to pay Goldner, Inc. the net amount owed from August 3.
12 Received cash from R.T. Loeb in full settlement of her account receivable from August 2.
16 Issued check no.687 to pay salaries expense of $1,290.
19 Purchased merchandise inventory for cash, $850. issuing check no. 688.
22 Purchased furniture on credit terms of 3/15, n/60 from Bradford Corporation, $510.
23 Sold merchandise inventory on account to Friend Company, issuing invoice no. 505 for $9,000 (cost, $2,700).
24 Received half the July 31 amount receivable from K.D. Sanders.
26 Purchased office supplies on credit terms of 2/10, n/30 from Filter Company, $240.
30 Returned damaged merchandise inventory to the company from whom Amherst made the cash purchase on August 19, receiving cash of $850.
31 Purchased merchandise inventory on credit terms of 1/10, n/30 from Seacrest Supply, $8,000.
31 Issued check no. 689 to Lenny Moore, owner of the business, for personal withdrawal, $600.

6. Prepare an adjusted trial balance.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 7, Problem 5CP

Chapter 7, Problem 7CP

Students have asked these similar questions

Current Attempt in Progress Blossom Products uses both special journals and a general journal. Blossom also posts customers' accounts in the accounts receivable subsidiary ledger. The postings for the most recent month are included in the subsidiary T-accounts below. Estes Bal. 260 Bal. 175 Truong 0 100 Gehrke Bal. 185 295 Weiser Bal. 195 220 240 290 100 185 195 Determine the correct amount of the end-of-month posting from the sales journal to the Accounts Receivable control account. Amount of the end-of-month posting from the sales journal to the Accounts Receivable control account $

Exercise 7-12 (Algo) Posting to subsidiary ledger accounts; preparing a schedule of accounts receivable LO P1 At the end of May, the sales journal of Mountain View appears as follows. Assume beginning inventory balance for May to be $7,398. Date: May 6 May 10 May 17 May 25 May 31 Account Debited Aaron Reckers Sara Reed Anna Page. Sara Reed Totals Date May 20 Sales Journal Invoice Number PR 190 191 192 193 Accounts Receivable Debit Sales Credit 2,470 1,530 681 272 4,953 General Journal Sales Returns and Allowances Accounts Receivable-Anna Page Record allowance to customer. Page 2 Cost of Goods Sold Debit Inventory Credit 1,877 1,262 Mountain View also recorded an allowance (price reduction) given to Anna Page with the following entry. 400 160 3,699 Debit 200 Credit 200 Required: 1. Post to the customer accounts the entries in the sales journal and any portion of the general journal entry that affects a customer's account. 2. Post the sales journal and any portion of the general journal…

View Policies Current Attempt in Progress Your accounts receivable clerk, Helen Adams, to whom you pay a salary of $1,540 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $85,700 as shown in the ledger. The following information is available for your first year in business. Collections from customers Merchandise purchased (1) (2) (3) Ending merchandise inventory (4) Goods are marked to sell at 40% above cost $196,400 321,300 98,550 Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account. The ending balance of accounts receivable from customers $ Apparent shortage

Chapter 7 Solutions

Horngren's Accounting (12th Edition)

Ch. 7 - Which of the following benefits of an effective...Ch. 7 - Prob. 2QC Ch. 7 - Which of the following is not a special journal?...Ch. 7 - Mountain Day Spa sold merchandise inventory on...Ch. 7 - Prob. 5QC Ch. 7 - Centex Sound Systems purchased merchandise...Ch. 7 - Every transaction recorded in the cash payments...Ch. 7 - Prob. 8QC Ch. 7 - Which is a disadvantage of an enterprise resource...Ch. 7 - Prob. 1RQ

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.