AB-5SE - Horngren'S Financial And Managerial Accounting

Question

Review your results from Short Exercise SB-4.

Requirements

1. Total each column of the sales journal.

2. Open the following four-column accounts in the accounts receivable subsidiary ledger: Accounts Receivable—Frank; Accounts Receivable—Jack; Accounts Receivable—Thompson; Accounts Receivable—West. Post the transactions to the accounts receivable subsidiary ledger.

3. Open the following selected four-column accounts in the general ledger: Accounts Receivable (112); Merchandise Inventory (118), Bal. $5,000; Sales Revenue (411); Cost of Goods Sold (511). Post the total of each column to the general ledger.

4. Balance the total of the customer ending balances in the accounts receivable subsidiary ledger against Accounts Receivable in the general ledger.

Step-by-Step Solution

Answer

Total Sales on account: $4,485

Total Cost of goods sold: $3,450

Sales Journal’s Total

				Sales Journal
Date	Invoice No.	Customer Account Debited	Post. Ref.	Accounts Receivables Dr Sales Revenue Cr	Cost of Goods Sold Dr. Merchandise Inventory Cr.
June 1	101	Frank Jack		$1,220	$980
8	102	Ireland Frank		$2,025	$1,640
13	103	Jake Thompson		$420	$210
28	104	Gabe West		$820	$620
June 30		Total		$4,485	$3,450

Accounts Receivables Subsidiary Ledger

Frank Jack
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
June 1		$1,220		$1,220

 

Ireland Frank
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
June 8		$2,025		$2,025

 

Jake Thompson
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
June 13		$420		$420

 

Gabe West
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
June 28		$820		$820

General Ledger

Accounts Receivables                                                                                          112
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
June 30		$4,485		$4,485

 

Merchandise Inventory                                                                                         118
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
June 1				$5,000
June 30			$3,450	$1,550

 

Sales revenue                                                                                                        411
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
June 30			$4,485		$4,485

 

 

Cost of goods sold                                                                                                511
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
June 30		$3,450		$3,450

Accounts Receivables Subsidiary ledger Total

Ledger Name	Amount
Frank Jake	$1,220
Ireland Frank	2,025
Jake Thompson	420
Gabe West	820
Total	$4,485

The total of accounts receivables subsidiary ledger matches with the accounts receivables general ledger.