Chapter J, Problem 5P

(a) & (d)

To determine

Sales Journal

Sales journal records all the merchandise sales on credit. In a single column sales journal, debit aspect of accounts receivable and credit aspect of inventory are recorded, and then posted to individual subsidiary customer account.

Cash Receipts Journal

Cash receipts journal is used to record merchandise sales and service made in cash and collection of accounts receivable. It also records all other cash receipts from issuance of shares and bonds, bank loans, and proceeds from disposal of assets. To include all these transactions, companies use multi-column cash receipts journal.

Subsidiary Ledger

Subsidiary ledger refers to the individual accounts, the summary of which is merged into the control account. It relives the burden on the general ledger and makes the posting easier and quicker. The most common subsidiary ledgers are:

1. 1. Accounts Receivable subsidiary ledger.
2. 2. Accounts Payable subsidiary ledger.

To prepare: general ledger and make individual entries and totals to general ledger.

(b)

To determine

To journalize: the transactions in a sales journal and cash receipt journal of Company R.

(c)

To determine

To prepare: accounts receivable ledger and accounts payable subsidiary ledger.

(e)

To determine

To prepare: Trial balance at July 31, 2019

(f)

To determine

To Prove: the agreement of control account and subsidiary account balances.

(g)

To determine

To journalize: the transactions in a general journal.

(h)

To determine

To prepare: Adjusted Trialbalance at July 31, 2019