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(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.
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Chapter 7 Solutions
Accounting Principles 12th Edition
- Melford Industries sells a product to a wholesaler for $52. The wholesaler applies a 30% markup based on selling price when selling to a retailer. The retailer then applies a 40% markup based on selling price to determine the final price to the consumer. What is the final selling price to the consumer? Answerarrow_forwardI need help with this general accounting problem using proper accounting guidelines.arrow_forwardIf sales revenue is $220 million and accounts receivable decreased by $30 million, the amount of cash received from customers: a. was $150 million. b. was $125 million. c. depends on the mix of cash sales and credit sales. d. was $250 million.arrow_forward
- Please provide the solution to this financial accounting question with accurate financial calculations.arrow_forwardPlease explain this financial accounting problem by applying valid financial principles.arrow_forwardHenry is an all-equity firm that has 63,500 shares of stock outstanding at a market price of $22.80 per share. The firm is considering a capital structure with 45% debt at a rate of 6% and use the proceeds to repurchase shares. Determine the shares outstanding once the debt is issued.arrow_forward
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