Chapter B, Problem B.26AP

Requirement 1

To determine

General Journal: It is a book where all the monetary transactions are recorded in the form of journal entries on the date of their occurrence in a chronological order.

Special Journal: It is a book where only specific type of monetary transactions such as cash receipts, cash payments, credit sales, and credit purchases are recorded.

Purchase Journal: Special Journal is a book where only specific type of monetary transactions such as cash receipts, cash payments, credit sales, and credit purchases are recorded. Purchases journal records credit purchases transactions.

Sales Journal: It is a special book where only sales transactions that are sold to customer on credit are recorded.

Cash Receipts Journal: It is a special book where only cash receipts transactions that are received from customers or other sources are recorded.

Cash Payments Journal: Cash payment journal is a form of special journal book which records the cash payments transactions which are being paid to suppliers or other sources.

To open: Four - column general ledger accounts using T’s account numbers and balances as of May 1, 2018.

Requirement 2

To determine

To open: Four-column accounts in the subsidiary ledgers with beginning balances.

Requirement 3

To determine

To enter: The transactions in a sales journal (page 7), a cash receipts journal (page 5), a purchase journal (page 10), a cash payment journal (page 8), and a general journal (page 6).

Requirement 4

To determine

To post: The accounts receivable subsidiary ledger and to the accounts payable subsidiary ledger.

Requirement 5

To determine

To total: The debit and credit column’s of the sales journal.  

Requirement 6

To determine

To prepare: Trial balance as of May 31, 2018 to verify the equality of the general ledger.