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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Question
Chapter C, Problem C.29BP
Requirement 1
To determine
General Journal: It is a book where all the monetary transactions are recorded in the form of
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 K’s account numbers and balances as of March 1, 2016.
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 8), a cash receipts journal (page 3), a purchases journal (page 6), a cash payments journal (page 9), and a general journal (page 4)
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:
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Recording Purchase and Sales Transactions
Raymond Company and Geeslin Company both use a perpetual inventory system. The following transactions occurred during the month of January:
Jan. 1
Raymond purchased $5,000 of merchandise on account from Geeslin with credit terms of 2/10, n/30. The cost of the merchandise was $3,750. Assume that Geeslin uses the net method to record sales discounts.
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Raymond returned $500 of themerchandise to Geeslin. The cost of the merchandise returned was $375.
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Raymond paid invoices totaling $3,000 to Geeslin for the merchandise purchased on January 1.
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Raymond paid Geeslin the balance due.
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the
gross method.
Apr. 2 Purchased $6,600 of merchandise from Lyon Company with credit terns of 2/15, n/60, invoice dated April 2, and
FOB shipping point.
3 Paid $270 cash for shipping charges on the April 2 purchase.
4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $400.
17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18 Purchased $12,500 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and
FOB destination.
21 After negotiations, received from Frist a $500 allowance toward the $12,500 owed on the April 18 purchase.
28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
O Answer is not complete.
No
Date
General Journal
Debit
Credit
Apr 02
Merchandise inventory
6,600 O
Accounts…
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the
gross method.
Apr. 2 Purchased $4,300 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and
FOB shipping point.
3 Paid $210 cash for shipping charges on the April 2 purchase.
4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $800.
17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18 Purchased $7,900 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and
FOB destination.
21 After negotiations, received from Frist a $400 allowance toward the $7,900 owed on the April 18 purchase.
28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
View transaction list
Journal entry worksheet
1
2
3 4 5 6 7
Purchased $4,300 of merchandise from Lyon Company with credit…
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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