AB-17E - Horngren'S Financial And Managerial Accounting

Question

Analyzing postings from the cash receipts journal

The cash receipts journal of Silver Plastics follows:

 

Cash Receipt Journal                                                                                Page 7
Date	Account Credited	Post. Ref.	Cash DR	Accounts Receivable CR	Sales Revenue DR	Sales Discounts Forfeited CR	Other Accounts CR	Cost of Goods Sold DR Merchandise Inventory CR
2018
Jan 2	Awesome, Corp.	(g)	830	810		20
9	King, Inc.	(h)	490	490
19	Note Receivable	(i)	4,480				4,000
	Interest Revenue	(j)					480
30	J.T. Folk	(k)	330	320		10
31			4,230		4,230			3,500
Jan 31	Total		10,360	1,620	4,230	30	4,480	3,500
			(a)	(c)	(d)	(b)	(e)	(f)

 

Silver’s general ledger includes the following selected accounts, along with theiraccount numbers:

Number Account

110 Cash

115 Accounts Receivable

118 Merchandise Inventory

125 Notes Receivable

510 Sales Revenue

512 Sales Discounts Forfeited

520 Interest Revenue

611 Cost of Goods Sold

 

 

Indicate whether each posting reference (a) through (k) should be a

• Check mark (✓) for a posting to a customer account in the accounts 

receivablesubsidiary ledger.

• Account number for a posting to an account in the general ledger. If so, give 

theaccount number.

• Letter (X) for an amount not posted.

Step-by-Step Solution

Answer

Receivables transaction on Jan 2, 9, and 30 requires the checkmark.

The Other transaction on Jan 19 requires an account number.

No Transaction requires letter X. 

Step1: Posting reference with Checkmark ( ✓ ) for posting accounts receivables general ledger

Date	Account Credited	Post. Ref.	Cash DR	Accounts Receivable CR	Sales Revenue DR	Sales Discounts Forfeited CR	Other Accounts CR	Cost of Goods Sold DR Merchandise Inventory CR
2018
Jan 2	Awesome, Corp.	(✓)	830	810		20
9	King, Inc.	(✓)	490	490
30	J.T. Folk	(k)	330	320		10

 

Step 2: Posting reference with the account number for posting in the general ledger

Date	Account Credited	Post. Ref.	Cash DR	Accounts Receivable CR	Sales Revenue DR	Sales Discounts Forfeited CR	Other Accounts CR	Cost of Goods Sold DR Merchandise Inventory CR
2018
19	Note Receivable	21	4,480				4,000
	Interest Revenue	22					480

Step 3: Posting reference with the letter (X) for the missing amount

There is no posting reference that requires the letter X.