AB-7SE - Horngren'S Financial And Managerial Accounting

Question

Review your results from Short Exercise SB-6.

Requirements

1. Total each column of the cash receipts journal.

 

2. Open the following four-column accounts in the accounts receivable subsidiary ledger: Accounts Receivable—Dylan, Bal. \(5,280; Accounts Receivable—Next, Bal. \)2,250. Post the transactions to the accounts receivable subsidiary ledger.

 

3. Open the following selected four-column accounts in the general ledger: Cash (111), Bal. \(4,550; Accounts Receivable (112), Bal. \)7,530; Merchandise Inventory (118), Bal. \(3,250; Sales Revenue (411), Bal. \)25,000; Sales Discounts Forfeited (412); Interest Revenue (419); Cost of Goods Sold (511), Bal. $14,500. Post the total of each column to the general ledger. Also, post the Other Accounts 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 balance of cash ledger: $14,800

Cash Receipts Journal’s Total

					Cash Receipt Journal
Date	Account Credited	Post. Ref.	Cash Dr	Accounts Receivables Cr	Sales Revenue Cr	Sales Discount Forfeited Cr	Other Accounts Cr	Cost of goods sold Dr Merchandise Inventory Cr
July 5			$1,700		$1,700			$1,400
12	Interest revenue		$2,050				$2,050
18	Heidi Next		$1,200	$1,200
29	Mitch Dylan		$5,300	$5,280		$20
31	Total		$10,250	$6,480	$1,700	$20	$2,050	$1,400

Accounts Receivables Subsidiary Ledger

Mitch Dylan
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
July 1		$5,280		$5,280
29			$5,280	0

 

Heidi Next
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
July 1		$2,250		$2,250
18			$1,200	$1,050

General Ledger

Cash                                                                                                                        111
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
July 1		$4,550		$4,550
31		10,250		14,800

 

Accounts Receivables                                                                                          112
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
July 1		$7,530		$7,530
31			$6,480	1,050

 

Merchandise Inventory                                                                                         118
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
July 1		$3,250		$3,250
31			$1,400	1,850

 

Sales Revenue                                                                                                    411
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
July 1			$25,000		$25,000
31			$1,700		26,700

 

Sales Discount Forfeited                                                                                   412
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
July 31			$20		$20

 

Interest Revenue                                                                                                   419
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
July 12			$2,050		$2,050

 

Cost of Goods Sold                                                                                               511
				Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
July 1		$14,500		$14,500
31		1,400		15,900