Concept explainers
Videos
(a)
Sales Journal: A sales journal is a special journal which records the credit sales transactions and the transactions which are of sales on account.
Purchases Journal: A purchases journal is a special journal which is made to record the credit purchases and the purchases made on the account in a business.
General Journal: A general journal is that journal which records those transactions which are not recorded in the special journal. The closing, correcting and
Cash Receipts Journal: A cash receipts journal is a special journal. This special journal records all the cash collections made in the business. The cash collections are made from the customers and the creditors. As these collections are very frequent in the business, this special journal is prepared.
Cash Payments Journal: The cash payments journal is a special journal. This special journal record all the cash payments and disbursements in the business. The cash payments are made in business for the purchases, expenses and for many other transactions. So, a special journal is prepared and the transactions are recorded in the special journal called as the cash payments journal.
Subsidiary Ledger: The subsidiary ledger is that ledger which is prepared for support of the main ledger. It contains all the details of the individual account of that particular ledger.
To prepare: The accounts in the general ledger and in the subsidiary ledger.
(b)
To prepare: The sales, purchases, cash receipts, cash payments and general journal and record the transactions into it.
(c)
To prepare: The accounts to be posted with the appropriate amounts in the general ledger.
(d)
To prepare: The trial balance at January 31, 2018.
(e)
The balance agreement of the control account and the subsidiary account.
Want to see the full answer?
Check out a sample textbook solution
Chapter 7 Solutions
ACCOUNTING PRINCIPLES
- The difference between the balance in a company's cash account and its bank statement is documented in the __________ of the bank statement.arrow_forwardLarge corporations should report revenues on their income statements when the __________. Cash Is Received Revenues Are Earnedarrow_forwardPLEASE HELP WITH THIS PROBLEMarrow_forward
- The KLM Medical Clinic has two auxiliary departments: the Building Maintenance Department and the Energy Production Department as well as three main production departments: the Department of Paediatrics, the Department of Internal Medicine and the Department of Surgery. The CLM allocates the cost of the building maintenance department based on the area occupied by the departments in square meters and the cost of the energy department based on the days of hospitalization of patients. No distinction is made between variable and fixed cost elements. The budgeted operating figures for the previous year were as follows: Auxiliary sections Main production departments Building maintenance Energy production Pediatrics Department of Internal Medicine Surgical Estimated cost before allocation 18.000,00 8.000,00 80.000,00 50.000,00 90.000,00 Area (in sq.m) 1.000,00 4.000,00 6.000,00 18.000,00 12.000,00 Patient Hospitalization…arrow_forwardwhat is financial accounting? explain its parts and all things.arrow_forwardSystematic relationship quarrow_forward
- 4. ABG produces and sells a single product at the price of 20 euros. During its first year of operation (20X7), the company had no initial stocks. The production cost of a product unit is as follows: Variable production cost of 8 euros per unit. Fixed production cost 9,600 euros. Also, the company has fixed sales expenses of 5,400 euros. In the first year of operation, the company had budgeted that it would produce and sell 3,200 units of product. In fact, during the period production and sales amounted to 3,200 units of product. Requested: To calculate the operating result of the company for the first year of its operation using absorption and marginal costing. Calculate the operating result of the company for the first year of its operation using absorption and marginal costing, assuming that sales for the period amounted to 2,700 units and 500 units remained as final inventory. What is the value of the final inventory of stocks with both costing techniques in this case?arrow_forwardHello experts solve this qnarrow_forwardPlease help me draw a flowchart for the breakfast drive-through scenarios.arrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education