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P7-31 Using all journals
This problem continues the Crystal Clear Cleaning problem. Crystal Clear Cleaning has decided that, in addition to providing cleaning services, it will sell cleaning products. Crystal Clear uses the perpetual inventory system. During December 2017, Crystal Clear completed the following transactions:
Dec. 2 Purchased 475 units of inventory for $2,850 on account from Sparkle, Co. on terms 3/10, n/20.
5 Purchased 600 units of inventory from Borax on account with terms 2/10, n/30. The total invoice was for $4,500, which included a $150 freight charge.
7 Returned 75 units of inventory to Sparkle from the December 2 purchase (cost, $450).
9 Paid Borax.
11 Sold 285 units of goods to Happy Maids for $3,990 on account on terms 3/10, n/30. Crystal dear's cost of the goods was $1,710.
12 Paid Sparkle.
15 Received 22 units with a retail price of $308 of goods back from customer Happy Maids. The goods cost Crystal Clear $132.
21 Received payment from Happy Maids, settling the amount due in full.
28 Sold 265 units of goods to Bridget, Inc. for cash of $3,975 (cost, $1,691).
29 Received bill and paid cash for utilities of $415.
30 Paid cash for Sales Commission Expense of $550.
31 Recorded the following
a. Physical count of inventory on December 31 showed 428 units of goods on hand, $3,148
b.
c. Accrued salaries expense of $725
d. Prepared all other adjustments necessary for December. (Hint: You will need to review the adjustment information in Chapter 3 to determine the remaining adjustments.) Assume cleaning supplies at December 31 are $30.
Crystal Clear Cleaning had the following selected accounts with account numbers and normal balances:
Requirements
1. Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice No. column), a cash receipts journal, a purchases journal, a cash payments journal (omit the Check No. column), and a general journal.
2. Total each column of the special journals. Show that total debits equal total credits in each special journal.
3. Show how postings would be made from the journals by writing the account Numbers and check marks in the appropriate places in the journals.
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Chapter 7 Solutions
Horngren's Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText, Access Card Package
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