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In: Accounting

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 cash in the business $7,200.

4

Received check for payment of account from Dent less 2% cash discount.

5

Received check for $920 in payment of invoice no. 307 from Jennings Co.

8

Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was $4,347.

10

Received check for $600 in payment of invoice no. 309 from Morrow.

11

Received cash refund from a supplier for damaged merchandise $740.

23

Received check for $1,000 in payment of invoice no. 310 from Jennings Co.

29

Received check for payment of account from Rose (no cash discount allowed).

Instructions

Journalize the transactions above in a six-column cash receipts journal with columns for Cash Dr, Sales Discounts Dr, Accounts Receivable Cr, Sales Revenue Cr, Other Accounts Cr, and Cost of Goods Sold Dr,/Inventory Cr. Foot and cross-foot the journal.

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

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

Solutions

Expert Solution

Answer 1.
KOZMA COMPANY
Cash Receipts Journal
Date Account Credited Ref. Cash Dr. Sales Discount Dr. Accounts Receivable Cr. Sales Revenue Cr. Other Account Cr. Cost of Goods Sold Dr. Inventory Cr.
1-Apr Owner's Capital       7,200.00      7,200.00
4-Apr Accounts receivable - Dent       2,156.00            44.00          2,200.00
5-Apr Accounts receivable - Jennings           920.00              920.00
8-Apr Cash Sales       7,245.00      7,245.00               4,347.00
10-Apr Accounts receivable - Morrow           600.00              600.00
11-Apr Inventory (Cash Refund)           740.00          740.00
23-Apr Accounts receivable - Jennings       1,000.00          1,000.00
29-Apr Accounts receivable - Rose       1,200.00          1,200.00
Total     21,061.00            44.00          5,920.00      7,245.00      7,940.00               4,347.00
Answer 2.
Accounts Receivable
Beg. Bal.    7,850.00    2,200.00 4-Apr
      920.00 5-Apr
      600.00 10-Apr
   1,000.00 23-Apr
   1,200.00 29-Apr
End. Bal.    1,930.00
Subsidiary Account
Accounts Receivable - Morrow Accounts Receivable - Rose
Beg. Bal.    1,550.00       600.00 10-Apr Beg. Bal.    1,200.00    1,200.00 29-Apr
End. Bal.       950.00 End. Bal.                 -  
Accounts Receivable - Jennings Co. Accounts Receivable - Dent
Beg. Bal.    2,900.00       920.00 5-Apr Beg. Bal.    2,200.00    2,200.00 4-Apr
   1,000.00 23-Apr
End. Bal.       980.00 End. Bal.                 -  
Subsidiary Accounts:
Accounts Receivable - Morrow       950.00
Accounts Receivable - Rose                 -  
Accounts Receivable - Jennings Co.       980.00
Accounts Receivable - Dent                 -  
Total    1,930.00

ekkarill92 answered 1 year ago
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