ACCT 23020 Lecture Notes - Lecture 13: Accounts Payable, Financial Statement, Retained Earnings

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emmagennaro

6 Jul 2019

School

Kent State University

Department

Accounting

Course

ACCT 23020

Professor

Wendy M.Tietz

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Document Summary

Learning objective 3, part 2: analyze the impact of business transactions on account. Cedar point example transactions: may 1: sell admission tickets, ,000, cash, may 3: purchase merchandise inventory, ,000, on account, may 6: rent lockers to guests, , cash, may 15: pay employees, ,000, cash, may 20: borrow money, ,000,000. Learning objective 4: journalize transactions and post journal entries to the ledger. Chapter 2, page 1, updated 8/11/2018: posting: copying information from the journal to the ledger. The individual accounts combined make up the ledger. This includes individual asset accounts, such as cash, liability accounts, such as accounts payable, and equity accounts, such as common stock. Journal entries must be copied from the journal to the ledger in a process called posting. A journal entry made on april 1 consisted of a ,000 debit to cash and a. This entry is posted to the t-accounts for cash and common stock.

Related Questions

Palisade Creek Co. is a merchandising business that uses theperpetual inventory system. The account balances for Palisade CreekCo. as of May 1, 2016 (unless otherwise indicated), are asfollows:

110	Cash	$ 83,600
112	Accounts Receivable	233,900
115	Merchandise Inventory	624,400
116	Estimated Returns Inventory	28,000
117	Prepaid Insurance	16,800
118	Store Supplies	11,400
123	Store Equipment	569,500
124	Accumulated Depreciation-Store Equipment	56,700
210	Accounts Payable	96,600
211	Salaries Payable	â
212	Customers Refunds Payable	50,000
310	Lynn Tolley, Capital, June 1, 2015	685,300
311	Lynn Tolley, Drawing	135,000
312	Income Summary	â
410	Sales	5,069,000
510	Cost of Merchandise Sold	2,823,000
520	Sales Salaries Expense	664,800
521	Advertising Expense	281,000
522	Depreciation Expense	â
523	Store Supplies Expense	â
529	Miscellaneous Selling Expense	12,600
530	Office Salaries Expense	382,100
531	Rent Expense	83,700
532	Insurance Expense	â
539	Miscellaneous Administrative Expense	7,800

During May, the last month of the fiscal year, the followingtransactions were completed:

Record the following transactions on page 20 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.

May	1	Paid rent for May, $5,000.
	3	Purchased merchandise on account from Martin Co., terms 2/10,n/30, FOB shipping point, $36,000.
	4	Paid freight on purchase of May 3, $600.
	6	Sold merchandise on account to Korman Co., terms 2/10, n/30,FOB shipping point, $68,500. The cost of the merchandise sold was$41,000.
	7	Received $22,300 cash from Halstad Co. on account.
	10	Sold merchandise for cash, $54,000. The cost of the merchandisesold was $32,000.
	13	Paid for merchandise purchased on May 3.
	15	Paid advertising expense for last half of May, $11,000.
	16	Received cash from sale of May 6.
	19	Purchased merchandise for cash, $18,700.
	19	Paid $33,450 to Buttons Co. on account.
	20	Paid Korman Co. a cash refund of $13,230 for returnedmerchandise from sale of May 6. The invoice amount of the returnedmerchandise was $13,500 and the cost of the returned merchandisewas $8,000.

Record the following transactions on page 21 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.

May	20	Sold merchandise on account to Crescent Co., terms 1/10, n/30,FOB shipping point, $110,000. The cost of the merchandise sold was$70,000.
	21	For the convenience of Crescent Co., paid freight on sale ofMay 20, $2,300.
	21	Received $42,900 cash from Gee Co. on account.
	21	Purchased merchandise on account from Osterman Co., terms 1/10,n/30, FOB destination, $88,000.
	24	Returned of damaged merchandise purchased on May 21, receivinga credit memo from the seller for $5,000.
	26	Refunded cash on sales made for cash, $7,500. The cost of themerchandise returned was $4,800.
	28	Paid sales salaries of $56,000 and office salaries of$29,000.
	29	Purchased store supplies for cash, $2,400.
	30	Sold merchandise on account to Turner Co., terms 2/10, n/30,FOB shipping point, $78,750. The cost of the merchandise sold was$47,000.
	30	Received cash from sale of May 20 plus freight paid on May21.
	31	Paid for purchase of May 21, less return of May 24.

Required:

Download the spreadsheet in the Ledger panel and save the Excelfile to your computer. Use the spreadsheet to post the Maytransactions from the journal to a ledger of four-column accounts.Be sure to save your work in Excel as it will be used to completethe following steps in Part 1 of this problem as well as steps inPart 2 of this problem. Your input into the spreadsheet will not beincluded in your grade in CengageNOW on this problem.

A.	Enter the May 1 balances of each of the accounts in theappropriate balance column of a four-column account. Enter May 1 inthe date column. Write Balance in the item section, and enter âXâin the Posting Reference column.
B.	Journalize the transactions for May, starting on Page 20 of thejournal.*

Post the journal to the general ledger, extending the month-endbalances to the appropriate balance columns after all posting iscompleted. In this problem, you are not required to update or postto the accounts receivable and accounts payable subsidiary ledgers.Add the appropriate posting reference to the journal.

Prepare an unadjusted trial balance. Accounts with zerobalances can be left blank.

At the end of May, the following adjustment data wereassembled. Analyze and use these data to complete (5) and (6).

â¢

Merchandise inventory on May 31, $570,000

â¢

Insurance expired during the year, $12,000

â¢

Store supplies on hand on May 31, $4,000

â¢

Depreciation for the current year, $14,000

â¢

Accrued salaries on May 31:

Sales salaries, $7,000

Office salaries, $6,600

Total accrued salaries: $13,600

â¢

The adjustment for customer returns and allowances is $60,000for sales and $35,000 for cost of merchandise sold.

(Optional) On your own paper or spreadsheet, enter theunadjusted trial balance on a 10-column end-of-period spreadsheet(work sheet), and complete the spreadsheet. Find a blankend-of-period work sheet in the Excel spreadsheet you previouslydownloaded.

A.	Journalize the adjusting entries. Record the adjusting entrieson Page 22 of the journal.*
B.	Post the adjusting entries. Add the appropriate postingreference to the journal.

Prepare an adjusted trial balance. Accounts with zero balancescan be left blank.

* Refer to the Chart of Accounts for exact wording of accounttitles.

sapphirecod7

I need help with the Post References of the Sales and Cash Journal as well as posting them to the General ledger accounts in the End of Month Posting:

Now that you have finished recording all of the transactions for the month of June, you are ready to perform the end of month posting procedure. The purpose of this end of month posting is to transfer the totals from the special journals to the appropriate general ledger accounts so that the balances in those ledger accounts reflect all of the transactions that occurred throughout the period.

Instructions for end of month posting

1)Total the columns in the special journals. Record the amount in the Total row of each journal.

2)Post the totals of the columns in the special journals to their corresponding ledger account. To confirm that the posting has been performed, a posting reference is recorded in the last row of the special journals. If the total of a column is not required to be posted, you need to record an X in the post reference field for that column.

3)Record the final unadjusted balance of each ledger account in the Unadjusted Balance row of each ledger, even for ledgers with a balance of zero. Although each ledger already has a running balance, the Unadjusted Balance row must still be filled out in order to receive full points.

SALES JOURNAL

Date		Account	Invoice No.	Post Ref.	Accounts Receivable	Sales Tax	Sales Revenue	Cost of Goods Sold
Jun	6	ARC - Great Sports	362	110-3	5,712	272	5,440	2,880
Jun	12	ARC - The Locker Room	363	110-6	21,147	1,007	20,140	9,820
Jun	17	ARC - Mick's Sporting	364	110-5	20,202	962	19,240	10,560
Jun	28	ARC - The Locker Room	365	110-6	1,197	57	1,140	600

Total					?	?	?	?
Post Reference					(?)	(?)	(?)	(?) / (?)

CASH PAYMENTS JOURNAL

Date		Account	Check No.	Post Ref.	Debit				Credit
Date		Account	Check No.	Post Ref.	Accounts Payable	Merchandise Inventory	Wages Expense	Other Accounts	Cash
Jun	3	Merchandise Inventory	731	X		3,520			3,520
Jun	4	APC - Sport Borders	732	210-4	9,500				9,500
Jun	5	Wages Payable	733	220			835	1,000	1,835
Jun	6	APC - Addax Sports	734	210-2	5,400				5,400
Jun	9	APC - Sports 'R Us	735	210-5	8,700				8,700
Jun	12	Electricity Payable	736	221				1,420	1,420
Jun	12	Wages Expense	737	X			2,384		2,384
Jun	15	Prepaid Rent	738	140				2,000	2,000
Jun	19	Wages Expense	739	X			1,695		1,695
Jun	22	APC - Extreme Sports	740	210-3	49,313				49,313
Jun	24	APC - J. J. Spud	741	210-1	10,215				10,215
Jun	26	Wages Expense	742	X			2,320		2,320
Jun	30	Merchandise Inventory	743	X		3,200			3,200
Jun	30	Salary Expense	744	545				5,300	5,300

Total					?	?	?	?	?
Post Reference					(?)	(?)	(?)	(?)	(?)

GENERAL LEDGER

Account: Cash
Account No. 100

Date		Description	Ref.	Debit	Credit	Balance
May	31	Balance				65,589 DR
Jun	30
Jun	30
Jun	30
Jun	30	Unadjusted Balance

Account: ARC - Accounts Receivable Control
Account No. 110

Date		Description	Ref.	Debit	Credit	Balance
May	31	Balance				66,657 DR
Jun	30
Jun	30
Jun	30
Jun	30
Jun	30	Unadjusted Balance

Account: Merchandise Inventory
Account No. 120

Date		Description	Ref.	Debit	Credit	Balance
May	31	Balance				66,640 DR
Jun	21	Purchase return to Extreme Sports Inc	GJ		320	66,320 DR
Jun	30
Jun	30
Jun	30
Jun	30
Jun	30	Unadjusted Balance

Account: APC - Accounts Payable Control
Account No. 210

Date		Description	Ref.	Debit	Credit	Balance
May	31	Balance				78,148 CR
Jun	21	Purchase return to Extreme Sports Inc	GJ	320		77,828 CR
Jun	30
Jun	30
Jun	30					DRCR
Jun	30
Jun	30	Unadjusted Balance

Account: Sales Tax Payable
Account No. 240

Date		Description	Ref.	Debit	Credit	Balance
May	31	Balance				14,073 CR
Jun	30
Jun	30
Jun	30
Jun	30
Jun	30	Unadjusted Balance

Account: Sales Revenue
Account No. 400

Date		Description	Ref.	Debit	Credit	Balance
May	31	Balance				0
Jun	30
Jun	30
Jun	30
Jun	30	Unadjusted Balance

Account: Cost of Goods Sold
Account No. 500

Date		Description	Ref.	Debit	Credit	Balance
May	31	Balance				0
Jun	30
Jun	30
Jun	30
Jun	30	Unadjusted Balance

Account: Wages Expense
Account No. 516

Date		Description	Ref.	Debit	Credit	Balance
May	31	Balance				0
Jun	30
Jun	30
Jun	30
Jun	30	Unadjusted Balance

yellowmosquito946

Transactions related to revenue and cash receipts completed byAspen Architects Co. during the period June 2â30, 2016, are asfollows:

June 2.		Issued Invoice No. 793 to Nickle Co., $7,330.
June 5.		Received cash from Mendez Co. for the balance owed on itsaccount.
June 6.		Issued Invoice No. 794 to Preston Co., $2,640.
June 13.		Issued Invoice No. 795 to Shilo Co., $3,930.
		Post revenue and collections to the accounts receivablesubsidiary ledger.
June 15.		Received cash from Preston Co. for the balance owed on June1.
June 16.		Issued Invoice No. 796 to Preston Co., $8,210. Post revenue and collections to the accounts receivablesubsidiary ledger.
June 19.		Received cash from Nickle Co. for the balance due on invoice ofJune 2.
June 20.		Received cash from Preston Co. for invoice of June 6.
June 22.		Issued Invoice No. 797 to Mendez Co., $10,820.
June 25.		Received $2,990 note receivable in partial settlement of thebalance due on the Shilo Co. account.
June 30.		Recorded cash fees earned, $18,460. Post revenue and collections to the accounts receivablesubsidiary ledger.

Required:

1. Insert the following balances in the generalledger as of June 1:

11	Cash	$16,240
12	Accounts Receivable	19,780
14	Notes Receivable	8,610
41	Fees Earned	-

After completing the recording of the transactions in thejournals in part 3, total each of the columns of the specialjournals, and post the individual entries and totals to the generalledger. Insert account balances after the last posting. Whenposting to the general ledger, post in chronological order.However, if there is more than one entry on the same date, be sureto post transactions from the revenue journal before postingtransactions from the cash receipts journal.

If an amount box does not require an entry, leave it blank.

GENERAL LEDGER
Date	Item	Post. Ref.	Debit	Credit	Balance Dr.	Balance Cr.

Account: Cash # 11
2016
June 1	Balance	â


Account: Accounts Receivable # 12
2016
June 1	Balance	â



Account: Notes Receivable # 14
2016
June 1	Balance	â

Account: Fees Earned # 41
2016

2. Insert the following balances in theaccounts receivable subsidiary ledger as of June 1:

Mendez Co.	$11,370
Nickle Co.	-
Preston Co.	8,410
Shilo Co.	-

After completing the recording of the transactions in thejournals in part 3, post to the accounts receivable subsidiaryledger in chronological order, and insert the balances at thepoints indicated in the narrative of transactions. Determine thebalance in the customer's account before recording a cash receipt.If an amount box does not require an entry, leave it blank.

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
Date	Item	Post. Ref.	Debit	Credit	Balance
Account: Mendez Co.
2016
June 1	Balance	â


Account: Nickle Co.
2016


Account: Preston Co.
2016
June 1	Balance	â




Account: Shilo Co.
2016

3. Prepare a single-column revenue journal (p.40) and a cash receipts journal (p. 36). Use the following columnheadings for the cash receipts journal: Fees Earned Cr., AccountsReceivable Cr., and Cash Dr. The Fees Earned column is used torecord cash fees.

4. Using the two special journals and thetwo-column general journal (p. 1), journalize the transactions inchronological order for June. Post to the accounts receivablesubsidiary ledger (in part 2), and insert the balances at thepoints indicated in the narrative of transactions. Determine thebalance in the customer's account before recording a cashreceipt.

5. Total each of the columns of the specialjournals, and post the individual entries and totals to the generalledger (in part 1). Insert account balances after the lastposting.

If an amount box does not require an entry, leave it blank.

REVENUE JOURNAL				PAGE 40
Date	Invoice No.	Account Debited	Post. Ref.	Accounts Rec. Dr. Fees Earned Cr.
2016
			â
			â
			â
			â
			â

CASH RECEIPTS JOURNAL					PAGE 36
Date	Account Credited	Post. Ref.	Fees Earned Cr.	Accts. Rec. Cr.	Cash Dr.
2016
		â
		â
		â
		â
		â

JOURNAL				PAGE 1
Date	Description	Post Ref.	Debit	Credit
2016

6. What is the sum of the customerbalances?
$

Does the sum of the customer balances agree with the accountsreceivable controlling account in the general ledger?

7. Would an automated system omit postings to acontrolling account as performed in step 5 for AccountsReceivable?

yellowcaribou307

ACCT 23020 Lecture Notes - Lecture 13: Accounts Payable, Financial Statement, Retained Earnings

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