ACIS 2115 Chapter 3.3: ACIS 2115 Chapter 3.: ACIS-2115 - Reading Notes - 3-3- Journals

PLEASE FOLLOW THE INSTRUCTIONS↓

Assignment: Special Journals: Sales and Cash Receipts (12 Points)

Prepare a cash receipts journal based on the information given below and post it to the Accounts Receivable Subsidiary Ledger.

On Nov 17, Ms. Don & Co. received $1,450 from Gians Graze to apply on account. The source document for this transaction is Receipt 30.

Instructions:

1. Prepare a sales journal entry based on the information given above and post it to the Accounts Receivable General Ledger account and to the Accounts Receivable Subsidiary Ledger. (Use November 7 for this transaction date.) ***This is the same entry that you made for the previous assignment. However, use the transaction date given (Nov. 7).

2. Enter the above transaction (Nov 17) into the Cash Receipts Journal and post it to the Accounts Receivable General Ledger account and to the Accounts Receivable Subsidiary Ledger.

3. Prepare a Schedule of Accounts Receivable and check to see that the total agrees with the Accounts Receivable ledger account.

Purchases and Cash Payments Journals; Accounts Payable Subsidiary and General Ledgers

AquaFresh Water Testing Service was established on April 16. AquaFresh uses field equipment and field supplies (chemicals and other supplies) to analyze water for unsafe contaminants in streams, lakes, and ponds. Transactions related to purchases and cash payments during the remainder of April are as follows:

Required:

1. Journalize the transactions (in chronological order as presented in the data) for April. Use a purchases journal and a cash payments journal, and a two-column general journal. Use debit columns for Field Supplies, Office Supplies, and Other Accounts in the purchases journal. Refer to the following partial chart of accounts:

At the points indicated in the narrative of transactions, post to the following accounts in chronological order in the accounts payable subsidiary ledger:

For those boxes in which no entry is required, leave the box blank. If no other account is needed in the "Other Accounts Dr." column select "No Entry Required".

2. Post the individual entries in chronological order (Other Accounts columns of the purchases journal and the cash payments journal and both columns of the general journal) to the appropriate general ledger accounts. Post to the subsidiary ledger in chronological order. When posting to the general ledger, post in chronological order. However, if there is more than one entry on the same date, post transactions from the purchases journal first, then the cash payments journal before posting from the general journal.

3. Total each of the columns of the purchases journal and the cash payments journal, and post the appropriate totals to the general ledger.

For those boxes in which no entry is required, leave the box blank.

Post transactions in chronological order. However, if there is more that one transaction on the same date, post from the purchases journal first, then from the cash payments journal before posting from the general journal. (Because the problem does not include transactions related to cash receipts, the cash account in the ledger will have a credit balance.)

4. Prepare a schedule of the accounts payable creditor balances.

5. All are reasons why AquaFresh might consider using a subsidiary ledger for the field equipment EXCEPT:

To secure lower pricing on equipment purchases

American Laser, Inc., reported the following account balances on January 1. Accounts Receivable $ 5,000 Accumulated Depreciation 30,000 Additional Paid-in Capital 90,000 Allowance for Doubtful Accounts 2,000 Bonds Payable 0 Buildings 247,000 Cash 10,000 Common Stock, 10,000 shares of $1 par 10,000 Notes Payable (long-term) 10,000 Retained Earnings 120,000 Treasury Stock 0 The company entered into the following transactions during the year. Jan. 15 Issued 5,000 shares of $1 par common stock for $50,000 cash. Feb. 15 Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. Mar. 15 Reissued 2,000 shares of treasury stock for $24,000 cash. Aug. 15 Reissued 600 shares of treasury stock for $4,600 cash. Sept. 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. Oct. 1 Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. Oct. 3 Wrote off a $500 balance due from a customer who went bankrupt.

Prepare the journal entries to record each transaction. Review the accounts as shown in the General Ledger and Trial Balance tabs. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

1

Issued 5,000 shares of $1 par common stock for $50,000 cash. Record the transaction.

2

Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. Record the transaction.

3

Reissued 2,000 shares of treasury stock for $24,000 cash. Record the transaction.

4

Reissued 600 shares of treasury stock for $4,600 cash. Record the transaction.

5

Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. Record the transaction.

6

Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. Record the transaction.

7

Wrote off a $500 balance due from a customer who went bankrupt. Record the transaction.

8

Prepare the closing entry for Dividends. Record the transaction.

Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances.

UnadjustedPost-closing Unadjusted

Unadjusted

Post-closing

Dates:Jan 01

Jan 01

Jan 31

Jan 01

Jan 31

Jan 15

Jan 31

Feb 15

Feb 28

Mar 15

Mar 31

Aug 15

Aug 31

Sep 15

Sep 30

Oct 01

Oct 03

Oct 31

to:Oct 03

Jan 01

Jan 31

Jan 01

Jan 31

Jan 15

Jan 31

Feb 15

Feb 28

Mar 15

Mar 31

Aug 15

Aug 31

Sep 15

Sep 30

Oct 01

Oct 03

Oct 31