Chapter Review
5-6hProblems: Series B
Revenue Journal; Accounts Receivable Subsidiary and General Ledgers
OBJ. 2, 3
Guardian Security Services was established on January 15 to provide security services. The services provided during the remainder of the month are as follows:
Jan. | 18. | Issued Invoice No. 1 to Murphy Co. for $490 on account. |
20. | Issued Invoice No. 2 to Qwik-Mart Co. for $340 on account. | |
24. | Issued Invoice No. 3 to Hopkins Co. for $750 on account. | |
27. | Issued Invoice No. 4 to Carson Co. for $680 on account. | |
28. | Issued Invoice No. 5 to Amber Waves Co. for $120 on account. | |
28. | Provided security services, $100, to Qwik-Mart Co. in exchange for supplies. | |
30. | Issued Invoice No. 6 to Qwik-Mart Co. for $200 on account. | |
31. | Issued Invoice No. 7 to Hopkins Co. for $295 on account. |
Instructions
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Journalize the transactions for January, using a single-column revenue journal and a two-column general journal. Post to the following customer accounts in the accounts receivable ledger and insert the balance immediately after recording each entry: Amber Waves Co.; Carson Co.; Hopkins Co.; Murphy Co.; Qwik-Mart Co.
AnswerCheck Figure: Revenue journal, total fees earned, $2,875
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Post the revenue journal to the following accounts in the general ledger, inserting the account balances only after the last postings:
12
Accounts Receivable
14
Supplies
41
Fees Earned
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What is the sum of the balances of the customer accounts in the subsidiary ledger at January 31?
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What is the balance of the accounts receivable controlling account at January 31?
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Assume Guardian Security Services began using a computerized accounting system to record the sales transactions on February 1. What are some of the benefits of the computerized system over the manual system?
Revenue and Cash Receipts Journals; Accounts Receivable Subsidiary and General Ledgers
OBJ. 2, 3
Transactions related to revenue and cash receipts completed by Affiliate Engineering Services during the period June 2–30 are as follows:
June | 2. | Issued Invoice No. 717 to Yee Co., $2,210. |
3. | Received cash from Auto-Flex Co. for the balance owed on its account. | |
7. | Issued Invoice No. 718 to Cooper Development Co., $1,040. | |
10. | Issued Invoice No. 719 to Ridge Communities, $4,390. | |
Post revenue and collections to the accounts receivable subsidiary ledger. | ||
14. | Received cash from Cooper Development Co. for the balance owed on June 1. | |
16. | Issued Invoice No. 720 to Cooper Development Co., $620. | |
Post revenue and collections to the accounts receivable subsidiary ledger. | ||
18. | Received cash from Yee Co. for the balance due on invoice of June 2. | |
20. | Received cash from Cooper Development Co. for invoice of June 7. | |
23. | Issued Invoice No. 721 to Auto-Flex Co., $1,330. | |
30. | Received cash from fees earned, $6,980. | |
30. | Received office equipment of $2,780 in partial settlement of balance due on the Ridge Communities account. | |
Post revenue and collections to the accounts receivable subsidiary ledger. |
Instructions
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Insert the following balances in the general ledger as of June 1:
11 Cash
$28,340
12 Accounts Receivable
4,090
18 Office Equipment
53,620
41 Fees Earned
—
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Insert the following balances in the accounts receivable subsidiary ledger as of June 1:
Auto-Flex Co.
$2,580
Cooper Development Co.
1,510
Ridge Communities
—
Yee Co.
—
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Prepare a single-column revenue journal (p. 40) and a cash receipts journal (p. 36). Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. The Fees Earned column is used to record cash fees. Insert a check mark (✓) in the Post. Ref. column when recording cash fees.
AnswerCheck Figure: Total cash receipts, $14,320
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Using the two special journals and the two-column general journal (p. 1), journalize the transactions for June. Post to the accounts receivable subsidiary ledger and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer’s account before recording a cash receipt.
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Total each of the columns of the special journals and post the individual entries and totals to the general ledger. Insert account balances after the last posting.
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Determine that the sum of the customer accounts agrees with the accounts receivable controlling account in the general ledger.
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Why would an automated system omit postings to a control account as performed in Step 5 for Accounts Receivable?
Purchases, Accounts Payable Account, and Accounts Payable Subsidiary Ledger
OBJ. 2, 4
Plumb Line Surveyors provides survey work for construction projects. The office staff use office supplies, while surveying crews use field supplies. Purchases on account completed by Plumb Line Surveyors during May are as follows:
May | 1. | Purchased field supplies on account from Wendell Co., $3,240. |
3. | Purchased office supplies on account from Lassiter Co., $340. | |
8. | Purchased field supplies on account from Tri Cities Supplies, $4,500. | |
12. | Purchased field supplies on account from Wendell Co., $3,670. | |
15. | Purchased office supplies on account from J-Mart Co., $500. | |
19. | Purchased office equipment on account from Accu-Vision Supply Co., $8,150. | |
23. | Purchased field supplies on account from Tri Cities Supplies, $2,450. | |
26. | Purchased office supplies on account from J-Mart Co., $265. | |
30. | Purchased field supplies on account from Tri Cities Supplies, $3,040. |
Instructions
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Insert the following balances in the general ledger as of May 1:
14 Field Supplies
$ 6,200
15 Office Supplies
1,490
18 Office Equipment
19,400
21 Accounts Payable
5,145
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Insert the following balances in the accouollowing balances in the accounts payable s
Accu-Vision Supply Co.
$3,900
J-Mart Co.
730
Lassiter Co.
515
Tri Cities Supplies
—
Wendell Co.
—
ayable subsid
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of May 1:
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Journalize the transactions for May, using a purchases journal (p. 30) similar to the one illustrated in this chapter. Prepare the purchases journal with columns for Accounts Payable, Field Supplies, Office Supplies, and Other Accounts. Post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry.
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Post the purchases journal to the accounts in the general ledger.
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What is the sum of the creditor balances in the subsidiary ledger at May 31?
AnswerCheck Figure: $31,300
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What is the balance of the accounts payable controlling account at May 31?
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What type of e-commerce application would be used to plan and coordinate transactions with suppliers?
Purchases and Cash Payments Journals; Accounts Payable Subsidiary and General Ledgers
OBJ. 2
West Texas Exploration Co. was established on October 15 to provide oil-drilling services. West Texas uses field equipment (rigs and pipe) and field supplies (drill bits and lubricants) in its operations. Transactions related to purchases and cash payments during the remainder of October are as follows:
Oct. | 16. | Issued Check No. 1 in payment of rent for the remainder of October, $7,000. |
16. | Purchased field equipment on account from Petro Services Inc., $32,600. | |
Oct. | 17. | Purchased field supplies on account from Midland Supply Co., $9,780. |
18. | Issued Check No. 2 in payment of field supplies, $4,570, and office supplies, $650. | |
20. | Purchased office supplies on account from A-One Office Supply Co., $1,320. | |
Post the journals to the accounts payable subsidiary ledger. | ||
24. | Issued Check No. 3 to Petro Services Inc., in payment of October 16 invoice. | |
26. | Issued Check No. 4 to Midland Supply Co. in payment of October 17 invoice. | |
28. | Issued Check No. 5 to purchase land, $240,000. | |
28. | Purchased office supplies on account from A-One Office Supply Co., $3,670. | |
Post the journals to the accounts payable subsidiary ledger. | ||
30. | Purchased the following from Petro Services Inc. on account: field supplies, $25,300 and office equipment, $5,500. | |
30. | Issued Check No. 6 to A-One Office Supply Co. in payment of October 20 invoice. | |
30. | Purchased field supplies on account from Midland Supply Co., $12,450. | |
31. | Issued Check No. 7 in payment of salaries, $32,000. | |
31. | Rented building for one year in exchange for field equipment having a cost of $15,000. | |
Post the journals to the accounts payable subsidiary ledger. |
Instructions
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Journalize the transactions for October. Use a purchases journal and a cash payments journal similar to those illustrated in this chapter and a two-column general journal. Set debit columns for Field Supplies, Office Supplies, and Other Accounts in the purchases journal. Refer to the following partial chart of accounts:
11 Cash
18 Office Equipment
14 Field Supplies
19 Land
15 Office Supplies
21 Accounts Payable
16 Prepaid Rent
61 Salary Expense
17 Field Equipment
71 Rent Expense
At the points indicated in the narrative of transactions, post to the following subsidiary accounts in the accounts payable ledger:
A-One Office Supply Co.
Midland Supply Co.
Petro Services Inc.
AnswerCheck Figure: Total cash payments, $327,920
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Post the individual entries (Other Accounts columns of the purchases journal and the cash payments journal; both columns of the general journal) to the appropriate general ledger accounts.
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Total each of the columns of the purchases journal and the cash payments journal, and post the appropriate totals to the general ledger. (Because the problem does not include transactions related to cash receipts, the cash account in the ledger will have a credit balance.)
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Sum the balances of the accounts payable creditor balances.
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Why might West Texas consider using a subsidiary ledger for the field equipment?
All Journals and General Ledger; Trial Balance
OBJ. 2
The transactions completed by AM Express Company during March, the first month of the fiscal year, were as follows:
Mar. | 1. | Issued Check No. 205 for March rent, $2,450. |
2. | Purchased a vehicle on account from McIntyre Sales Co., $26,900. | |
3. | Purchased office equipment on account from Office Mate Inc., $1,570. | |
5. | Issued Invoice No. 91 to Ellis Co., $7,000. | |
6. | Received check for $7,950 from Chavez Co. in payment of invoice. | |
7. | Issued Invoice No. 92 to Trent Co., $9,840. | |
9. | Issued Check No. 206 for fuel expense, $820. | |
10. | Received check for $10,000 from Sajeev Co. in payment of invoice. | |
10. | Issued Check No. 207 to Office City in payment of $450 invoice. | |
10. | Issued Check No. 208 to Bastille Co. in payment of $1,890 invoice. | |
11. | Issued Invoice No. 93 to Jarvis Co., $7,200. | |
11. | Issued Check No. 209 to Porter Co. in payment of $415 invoice. | |
12. | Received check for $7,000 from Ellis Co. in payment of March 5 invoice. | |
13. | Issued Check No. 210 to McIntyre Sales Co. in payment of $26,900 invoice of March 2. | |
16. | Cash fees earned for March 1–16, $26,800. | |
16. | Issued Check No. 211 for purchase of a vehicle, $28,500. | |
17. | Issued Check No. 212 for miscellaneous administrative expense, $4,680. | |
18. | Purchased maintenance supplies on account from Bastille Co., $2,430. | |
18. | Received check for rent revenue on office space, $900. | |
19. | Purchased the following on account from Master Supply Co.: maintenance supplies, $2,640, and office supplies, $1,500. | |
20. | Issued Check No. 213 in payment of advertising expense, $8,590. | |
20. | Used maintenance supplies with a cost of $4,400 to repair vehicles. | |
21. | Purchased office supplies on account from Office City, $990. | |
24. | Issued Invoice No. 94 to Sajeev Co., $9,200. | |
25. | Received check for $14,000 from Chavez Co. in payment of invoice. | |
25. | Issued Invoice No. 95 to Trent Co., $6,300. | |
26. | Issued Check No. 214 to Office Mate Inc. in payment of $1,570 invoice of March 3. | |
27. | Issued Check No. 215 to J. Wu as a personal withdrawal, $4,000. | |
30. | Issued Check No. 216 in payment of driver salaries, $33,300. | |
31. | Issued Check No. 217 in payment of office salaries, $21,200. | |
31. | Issued Check No. 218 for office supplies, $600. | |
31. | Cash fees earned for March 17–31, $29,400. |
Instructions
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Enter the following account balances in the general ledger as of March 1:
11 Cash
$ 65,200
32 J. Wu, Drawing
—
12 Accounts Receivable
31,950
41 Fees Earned
—
14 Maintenance Supplies
7,240
42 Rent Revenue
—
15 Office Supplies
3,690
51 Driver Salaries Expense
—
16 Office Equipment
17,300
52 Maintenance Supplies Expense
—
17 Accum. Depr.—Office Equip.
4,250
53 Fuel Expense
—
18 Vehicles
62,400
61 Office Salaries Expense
—
19 Accum. Depr.—Vehicles
17,800
62 Rent Expense
—
21 Accounts Payable
2,755
63 Advertising Expense
—
31 J. Wu, Capital
162,975
64 Miscellaneous Administrative Exp.
—
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Journalize the transactions for March, using the following journals similar to those illustrated in this chapter: single-column revenue journal (p. 35), cash receipts journal (p. 31), purchases journal (p. 37, with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), cash payments journal (p. 34), and two-column general journal (p. 1)neral journal (p. 1). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the ace daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.
AnswerCheck Figure: Total cash receipts, $96,050
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Post the appropriate individual entries to the general ledger.
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Total each of the columns of the special journals and post the appropriate totals to the general ledger; insert the account balances.
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Prepare a trial balance.