Horngren's Financial & Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780133866292
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter C, Problem C.25AP
Using the purchases, cash payments, and general journals
The general ledger of Sparkling Lake Golf Shop includes the following selected accounts, along with their account numbers:
| Number | Account |
| 111 | Cash |
| 131 | Merchandise Inventory |
| 161 | Prepaid Insurance |
| 171 | Office Supplies |
| 181 | Equipment |
| 211 | Accounts Payable |
| 564 | Rent Expense |
| 583 | Utilities Expense |
Transactions in December that affected purchases and cash payments follow:
| Dec. 2 | Purchased merchandise inventory on credit from Tighe, $4,300. Terms were 1/10, n/30. |
| 3 | Paid monthly rent, debiting Rent Expense for $2,200. |
| 5 | Purchased office supplies on credit terms of 1/10, n/30 from Ready Supply, $450. |
| 8 | Received and paid electricity utility bill, $570. |
| 9 | Purchased equipment on account from Avery Equipment, $6,800. Payment terms were net 30. |
| 10 | Returned the equipment to Avery Equipment. It was damaged. |
| 11 | Paid Tighe the amount owed on the purchase of December 2. |
| 12 | Purchased merchandise inventory on account from Crystal Golf, $4,500. Terms were 2/10, n/30. |
| 13 | Purchased merchandise inventory for cash, $610. |
| 14 | Paid a semiannual insurance premium, debiting Prepaid Insurance, $1,000. |
| 16 | Paid its account payable to Ready Supply from December 5. |
| 18 | Received and paid gas and water utility bills, $100. |
| 21 | Purchased merchandise inventory on credit terms of 3/10, n/45 from Darling, Inc., $3,800. |
| 21 | Paid its account payable to Crystal Golf from December 12. |
| 22 | Purchased office supplies on account from Office Stuff, Inc., $500. Terms were net 30. |
| 26 | Returned to Darling, Inc. $900 of the merchandise inventory purchased on December 21. |
| 31 | Paid Darling, Inc. the net amount owed from December 21 less the return on December 26. |
Requirements
- 1. Sparkling Lake Golf Shop records purchase returns in the general journal. Use the appropriate journal to record the transactions in a purchases journal, a cash payments journal (omit the Check No. column), and a general journal. The company uses the perpetual inventory system.
- 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 C Solutions
Horngren's Financial & Managerial Accounting (5th Edition)
Ch. C - Prob. 1QCCh. C - Prob. 2QCCh. C - Prob. 3QCCh. C - Prob. 4QCCh. C - Prob. 5QCCh. C - Centex Sound Systems purchased merchandise...Ch. C - Every transaction recorded in the cash payments...Ch. C - Prob. 8QCCh. C - Prob. 9QCCh. C - What is an accounting information system (AIS)?
Ch. C - Prob. 2RQCh. C - Explain the three basic components of an...Ch. C - Prob. 4RQCh. C - What is the purpose of a subsidiary ledger?Ch. C - Prob. 6RQCh. C - List the four special journals often used in a...Ch. C - Explain the posting process of the sales journal.Ch. C - Provide some examples of transactions that would...Ch. C - Explain the posting process of the cash payments...Ch. C - When is the general journal used in a manual...Ch. C - Prob. 14RQCh. C - Prob. 15RQCh. C - Prob. 16RQCh. C - How would a business record a sale of services on...Ch. C - Prob. 18RQCh. C - Evaluating features of an effective accounting...Ch. C - Prob. C.2SECh. C - Identifying special journals Use the following...Ch. C - Prob. C.4SECh. C - Prob. C.6SECh. C - Prob. C.8SECh. C - Prob. C.9SECh. C - Prob. C.10SECh. C - Posting transactions from a cash payments journal...Ch. C - Prob. C.12SECh. C - Prob. C.13SECh. C - Recording transactions-sales journal Feb. 1 Sold...Ch. C - Prob. C.15ECh. C - Prob. C.16ECh. C - Prob. C.17ECh. C - Prob. C.18ECh. C - Prob. C.19ECh. C - Prob. C.20ECh. C - Prob. C.21ECh. C - Prob. C.22ECh. C - Prob. C.23ECh. C - Prob. C.24APCh. C - Using the purchases, cash payments, and general...Ch. C - Prob. C.26APCh. C - Prob. C.27BPCh. C - Prob. C.28BPCh. C - Prob. C.29BPCh. C - Prob. C.30CPCh. C - Prob. C.31PSCh. C - Prob. 1COPCh. C - Prob. C.1CTDCCh. C - Didrikson Rubin, the auditor of Red Barn Farm...Ch. C - Communication Activity C-1 In 150 words or fewer,...
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