Question

In: Accounting

Lewis Company's chart of accounts includes the following selected accounts. 101 Cash 401 Sales 112 Accounts...

Lewis Company's chart of accounts includes the following selected accounts.

101

Cash

 401 Sales
112

Accounts Receivable

 414 Discount Allowed
120

Inventory

 505 Cost of Sales
301 J. Lewis, Capital

On 1 June the accounts receivable ledger of Lewis Company showed the following balances: Bernard & Son $3 500, Festa Company $1 900, Grima Bros. $1 600, and Massis Company $1 300. The June transactions involving the receipt of cash were as follows.

June 1 The owner, J. Lewis, invested additional cash in the business $10 000.
3 Received cheque in full from Massis Company less 2% cash discount.
6 Received cheque in full from Festa Company less 2% cash discount.
7 Made cash sales of inventory totalling $6 135. The cost of the inventory sold was $4 090.
9 Received cheque in full from Bernard & Son less 2% cash discount.
11 Received cash refund from a supplier for damaged merchandise $320.
15 Made cash sales of inventory totalling $4 800. The cost of the inventory sold was $3 200.
20 Received cheque in full from Grima Bros. $1 600.



Instructions
(a) Journalise the transactions above in a six-column cash receipts journal with columns for Cash Dr., Discounts Allowed Dr., Accounts Receivable Cr., Sales Cr., Other Accounts Cr., and Cost of Sales Dr./Inventory Cr. Foot and crossfoot the journal.

(b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the June transactions to these accounts.

Solutions

Expert Solution

(a) Journalise the transactions above in a six-column cash receipts journal with columns for Cash Dr., Discounts Allowed Dr., Accounts Receivable Cr., Sales Cr., Other Accounts Cr., and Cost of Sales Dr./Inventory Cr. Foot and crossfoot the journal.

Date

Account Credited

Cash Dr

Discounts Allowed Dr

Accounts Receivables Cr.

Sales Cr.

Other Accounts Cr.

Cost of Sales Dr/Inventory Cr.

Jun-01

Owner's capital

10000

10000

Jun-03

Massis Company

1274

26

1300

Jun-06

Festa Company

1862

38

1900

Jun-07

Sales

6135

6135

4090

Jun-09

Bernard & Son

3430

70

3500

Jun-11

Inventory

320

320

Jun-15

Sales

4800

4800

3200

Jun-20

Grima Bros.

1600

1600

29421

134

8300

10935

10320

7290

101

414

112

401

X

505/120

b)  Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the June transactions to these accounts.

Answer)

Accounts Receivable-subsidiary ledger
Massis
Date Explanation Debit Credit Balance
Jun-01 Balance 1300
Jun-03 1300
Accounts Receivable-subsidiary ledger
Festa Company
Date Explanation Debit Credit Balance
Jun-01 Balance 1900
Jun-06 1900
Accounts Receivable-subsidiary ledger
Bernard & Son
Date Explanation Debit Credit Balance
Jun-01 Balance 3500
Jun-09 3500
Accounts Receivable-subsidiary ledger
Grima Bros.
Date Explanation Debit Credit Balance
Jun-01 Balance 1600
Jun-20 1600

ekkarill92 answered 5 months ago
Next > < Previous

Related Solutions

the chart of accounts of pete's delivery services includes the following: cash 111 accounts receivable 112...
the chart of accounts of pete's delivery services includes the following: cash 111 accounts receivable 112 office equipment 121 delivery trucks 122 accounts payable 211 pete jean capital 311 pete jean withdrawals 312 delivery fees earned 411 advertising expense 511 gas expense 512 salaries expense 513 telephone expense 514 the following tranactions resulted for pete's delivery service during the month of march? a. pete invested $40,000 in the business for his personal savings account b. bought delivery trucks on account...
the chart of accounts of pete's delivery services includes the following: cash 111 accounts receivable 112...
the chart of accounts of pete's delivery services includes the following: cash 111 accounts receivable 112 office equipment 121 delivery trucks 122 accounts payable 211 pete jean capital 311 pete jean withdrawals 312 delivery fees earned 411 advertising expense 511 gas expense 512 salaries expense 513 telephone expense 514 the following tranactions resulted for pete's delivery service during the month of march? a. pete invested $40,000 in the business for his personal savings account b. bought delivery trucks on account...
Problem 7-4A Selected accounts from the chart of accounts of Mercer Company are shown below. 101...
Problem 7-4A Selected accounts from the chart of accounts of Mercer Company are shown below. 101 Cash 401 Sales Revenue 112 Accounts Receivable 412 Sales Returns and Allowances 120 Inventory 414 Sales Discounts 126 Supplies 505 Cost of Goods Sold 157 Equipment 726 Salaries and Wages Expense 201 Accounts Payable The cost of all merchandise sold was 60% of the sales price. During January, Mercer completed the following transactions. Jan. 3 Purchased merchandise on account from Gallagher Co. $10,200. 4...
Chart of Accounts for Techno Engineering Supplies Company Assets: 101       Cash 105       Accounts Receivable 110       Note...
Chart of Accounts for Techno Engineering Supplies Company Assets: 101       Cash 105       Accounts Receivable 110       Note Receivable 115       Inventory 120       Prepaid Insurance 125       Warehouse Building 130       Equipment Liabilities: 201       Account Payable 205       Note Payable 210       Wages Payable 215       Loan Payable 220       Interest Payable Owners’ Equity: 301       Capital Stock 310       Dividends Revenues: 401       Sales Revenue 405       Interest Revenue Expenses: 501       Cost of Goods Sold 505       Wages Expense 510       Utilities Expense 515       Insurance Expense 520       Income Tax Expense ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Assume...
Chart of Accounts Assets 111 Cash 112 Accounts Receivable 114 Prepaid Insurance 121 Land 122 Building...
Chart of Accounts Assets 111 Cash 112 Accounts Receivable 114 Prepaid Insurance 121 Land 122 Building 123 Accumulated Depreciation, Building 124 Pool/Slide Facility 125 Accumulated Depreciation, Pool/Slide Facility 126 Pool Furniture 127 Accumulated Depreciation, Pool Furniture Liabilities 221 Accounts Payable 222 Wages Payable 223 Mortgage Payable Owner's Equity 311 L. Judar, Capital 312 L. Judar, Drawing 313 Income Summary Revenue 411 Income from Services 412 Concessions Income Expenses 511 Pool Maintenance Expense 512 Wages Expense 513 Advertising Expense 514 Utilities...
Problem 7-1A Kozma Company’s Problem 7-1A Kozma Company’s chart of accounts includes the following selected accounts....
Problem 7-1A Kozma Company’s Problem 7-1A Kozma Company’s chart of accounts includes the following selected accounts. 101 Cash 401 Sales Revenue 112 Accounts Receivable 414 Sales Discounts 120 Inventory 505 Cost of Goods Sold 301 Owner’s Capital On April 1, the accounts receivable ledger of Kozma Company showed the following balances: Morrow $1,550, Rose $1,200, Jennings Co. $2,900, and Dent $2,200. The April transactions involving the receipt of cash were as follows. Apr. 1 The owner, T. Kozma, invested additional...
Journalize the March transactions. Use only accounts from the company's chart of accounts, which are cash,...
Journalize the March transactions. Use only accounts from the company's chart of accounts, which are cash, accounts receivable, prepaid insurance, equipment, accumulated depreciation-equipment, accounts payable, salaries payable, unearned service revenue, common stock, retained earnings, dividends, income summary, service revenue, salaries expense, utilities expense, insurance expense and depreciation expense. Omit journal entry descriptions. Mar. 2 Stockholders invested $68,500 cash in the business in exchange for common stock of the corporation. Mar. 3 Purchased equipement for $42,800 cash. Mar. 6 Purchased a...
Journalize the March transactions. Use only accounts from the company's chart of accounts, which are cash,...
Journalize the March transactions. Use only accounts from the company's chart of accounts, which are cash, accounts receivable, prepaid insurance, equipment, accumulated depreciation-equipment, accounts payable, salaries payable, unearned service revenue, common stock, retained earnings, dividends, income summary, service revenue, salaries expense, utilities expense, insurance expense and depreciation expense. Omit journal entry descriptions. Mar. 2 Stockholders invested $68,500 cash in the business in exchange for common stock of the corporation. Mar. 3 Purchased equipement for $42,800 cash. Mar. 6 Purchased a...
Solve the follwing problem. CHART OF ACCOUNTSSherwood Co.General Ledger ASSETS 110 Cash 111 Accounts Receivable 112...
Solve the follwing problem. CHART OF ACCOUNTSSherwood Co.General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment 127 Tools 128 Accumulated Depreciation-Tools LIABILITIES 210 Accounts Payable-Kirkwood Co. 211 Accounts Payable-Greenwood Co. 212 Accounts Payable-Poulin Co. 213 Interest Payable 214 Notes Payable 215 Salaries Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees...
The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000;...
The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated Depreciation, $25,000; Accounts Payable, $10,000; Owner, Capital, $59,000; Owner, Withdrawals, $2,000; Fees Earned, $56,000; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have normal balances. Prepare closing entry #4 by selecting the account names and dollar amounts from the drop-down menus.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT