Accounting Information Systems

Kozma Company's chart of accounts includes the following selected accounts.
101 Cash
112 Accounts Receivable
120 Inventory
301 Owner's Capital
401 Sales Revenue
414 Sales Discounts
505 Cost of Goods Sold

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. 1The owner, T. Kozma, invested additional cash in the business $7,200
4Received check for payment of account from Dent less 2% cash discount.
5Received check for $920 in payment of invoice no. 307 from Jennings Co.
8Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was $4,347.
10Received check for $600 in payment of invoice no. 309 from Morrow
11Received cash refund from a supplier for damaged merchandise $740.
23Received check for $1,000 in payment of invoice no. 310 from Jennings Co.
29Received check for payment of account from Rose (no cash discount allowed).

Instructions

  1. 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.
  2. Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts.
  3. Prove the agreement of the control account and subsidiary account balances.

Reineke Company's chart of accounts includes the following selected accounts.
101 Cash
120 Merchandise Inventory
130 Prepaid Insurance
157 Equipment
201 Accounts Payable
306 Owner's Drawings
505 Cost of Goods Sold

On October 1, the accounts payable ledger of Reineke Company showed the following balances: Uggla Company $2,700, Orr Co. $2,500, Rosenthal Co. $1,800, and Clevenger Company $3,700. The October transactions involving the payment of cash were as follows.

Oct. 1Purchased merchandise, check no. 63, $300.
3Purchased equipment, check no. 64, $800.
5Paid Uggla Company balance due of $2,700, less 2% discount, check no. 65, $2,646.
10Purchased merchandise, check no. 66, $2,550.
15Paid Rosenthal Co. balance due of $1,800, check no. 67.
16Reineke, the owner, pays his personal insurance premium of $400, check no. 68.
19Paid Orr Co. in full for invoice no. 610, $2,000 less 2% discount, check no. 69, $1,960.
29Paid Clevenger Company in full for invoice no. 264, $2,500, check no. 70.

Instructions

  1. Journalize the transactions above in a four-column cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Inventory Cr., and Cash Cr. Foot and cross-foot the Journal.
  2. Insert the beginning balances in the Accounts Payable control and subsidiary accounts, and post the October transactions to these accounts.
  3. Prove the agreement of the control account and subsidiary account balances.

The chart of accounts of LR Company includes the following selected accounts.
112 Accounts Receivable
120 Merchandise Inventory
126 Supplies
157 Equipment
201 Accounts Payable
401 Sales
412 Sales Returns and Allowances
505 Cost of Goods Sold
610 Advertising Expense

In July the following selected transactions were completed. All purchases and sales were on account. The cost of all merchandise sold was 70% of the sales price.

July 1Purchased merchandise from Eby Company $8,000.
2Received freight bill from Shaw Shipping on Eby purchase $400
3Made sales to Fort Company $1,300 and to Hefner Bros. $1,500.
5Purchased merchandise from Getz Company $3,200.
8Received Credit on merchandise returned to Getz Company $300.
13Purchased store supplies from Dayne Supply $720.
15Purchased merchandise from Eby Company $3,600 and from Bosco Company $4,300.
16Made sales to Aybar Company $3,450 and to Hefner Bros. $1,870.
18Received bill for advertising from Welton Advertisements $600.
21Sales were made for Fort Company $310 and to Duncan Company $2,800.
22Granted allowance to Fort Company for merchandise damaged in shipment $40.
24Purchased merchandise from Getz Company $3,000.
26Purchased equipment from Dayne Supply $900.
28Received freight bill from Shaw Shipping on Getz purchased of July 24, $380.
30Sales were made to Aybar Company $5,600.

Instructions

  1. Journalize the transactions above in a purchased journal, a sales journal, and a general journal. The purchases journal should have the following column headings: Date, Account Credited (Debited), Ref., Accounts Payable Cr., Inventory Dr., and Other Accounts Dr.
  2. Post to both the general and subsidiary ledger accounts. (Assume that all accounts have zero beginning balances.)
  3. Prove the agreement of the control and subsidiary accounts.

Selected accounts from the chart of accounts of Mercer Company are shown below
101 Cash
112 Accounts Receivable
120 Inventory
126 Supplies
157 Equipment
201 Accounts Payable
401 Sales
412 Sales Returns and Allowances
414 Sales Discounts
505 Cost of Goods Sold
726 Salaries and Wages Expense

The cost of all merchandise sold was 60% of the sales price. During January, Mercer completed the following transactions.

Jan. 3Purchased merchandise on account to from Gallagher Co. $9,000.
4Purchased supplies for cash $80.
5Returned $300 worth of damaged goods purchased on account from Gallagher Co. on January 3.
6Made cash sales for the week totaling $3,150.
8Purchased merchandise on account from phegle Co. $4,500.
9Sold merchandise on account to Linton Corp. $5,400, Invoice no. 372, terms 1/10, n/30.
11Purchased merchandise on account from Co. $3,700.
13Paid in full Gallagher Co. on account less a 2% discount.
13Made cash sales for the week totaling $6,260.
15Paid semi-monthly salaries of $14,300 to employees.
15Granted allowance to Fort Company for merchandise damaged in shipment $40.
17Received payment from wheeler for invoice no. 371.
17Sold merchandise on account to Delaney Co. $1,200, invoice no. 373, terms 1/10, n/30.
19Purchased equipment on account from Dozier Corp. $5,500.
20 Cash Sales for the week totaled $3,200.
20Paid in full Phegley Co. on account less a 2% discount.
23Purchased merchandise on account from Gallagher Co. $7,800.
24Purchased merchandise on account from Atchison Corp. $5,100.
27Made cash sales for the week totaling $4,230.
30Received payment from Delaney Co. for invoice no. 373.
31Paid semi-monthly salaries of $13,200 to emplyees.
31Sold merchandise on account to wheeler $9,330, invoice .

Instructions

  1. Journalize the transactions above in a purchased journal, a sales journal, and a general journal. The purchases journal should have the following column headings: Date, Account Credited (Debited), Ref., Accounts Payable Cr., Inventory Dr., and Other Accounts Dr.
  2. Post to both the general and subsidiary ledger accounts. (Assume that all accounts have zero beginning balances.)
  3. Prove the agreement of the control and subsidiary accounts.

Solution

a.
LR Company
 
LR Company
 
LR Company
 
b.
 
LR Company
(General Ledger)
 
LR Company
Accounts Receivable Subsidiary Ledger
 
LR Company
Accounts Payable Subsidiary Ledger
c.
 
LR Company
Proof of Agreement (Accounts Receivable)
 
LR Company
Proof of Agreement (Accounts Payable)
Presented below are the purchases and cash payments journals for Fornelli Co. for the first month of operations

The post-closing trial balance for Horner Co. is shown below.
HORNER CO.
Post-Closing Trial Balance
December 31, 2019.

Content Uploading....

112 Accounts Receivable
120 Merchandise Inventory
126 Supplies
157 Equipment
201 Accounts Payable
401 Sales
412 Sales Returns and Allowances
505 Cost of Goods Sold
610 Advertising Expense

In July the following selected transactions were completed. All purchases and sales were on account. The cost of all merchandise sold was 70% of the sales price.

Oct. 1Purchased merchandise, check no. 63, $300.
3Purchased equipment, check no. 64, $800.
5Paid Uggla Company balance due of $2,700, less 2% discount, check no. 65, $2,646.
10Purchased merchandise, check no. 66, $2,550.
15Paid Rosenthal Co. balance due of $1,800, check no. 67.
16Reineke, the owner, pays his personal insurance premium of $400, check no. 68.
19Paid Orr Co. in full for invoice no. 610, $2,000 less 2% discount, check no. 69, $1,960.
29Paid Clevenger Company in full for invoice no. 264, $2,500, check no. 70.

Instructions

  1. Journalize the transactions above in a four-column cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Inventory Cr., and Cash Cr. Foot and cross-foot the Journal.
  2. Insert the beginning balances in the Accounts Payable control and subsidiary accounts, and post the October transactions to these accounts.
  3. Prove the agreement of the control account and subsidiary account balances.

Nex Company uses both special journals and a general journal as described.

Presented below is the subsidiary accounts receivable account of Jill Longley.

On September 1, the balance of the accounts Receivable control account in the general ledger of Montgomery company was $10,960. The customers' subsidiary ledger contained account balance as follows: Hurley $1,440, Andino $2,640, Fowler $2,640, and Sogard $4,820. At the end of September, the various journals contained the following information.

Kieschnick company has a balance in its Account Receivable control account of $10,000 on January 1,2017. The subsidiary ledger contains there accounts: Bixler company, balance $4,000; Cuddyer company, balance $2,500; and Freeze Company. During January, the following receivable related transactions occurred.

Problems: Accounting Information Systems

Problem-1: Accounting Information Systems

Kozma Company's chart of accounts includes the following selected accounts. 101 Cash112 Accounts Receivable120 Inventory301 Owner's Capital 401 Sales Revenue414 Sales Discounts505 Cost of Goods Sold On April 1, the...

Problem-2: Accounting Information Systems

Reineke Company's chart of accounts includes the following selected accounts. 101 Cash120 Merchandise Inventory130 Prepaid Insurance157 Equipment 201 Accounts Payable306 Owner's Drawings505 Cost of Goods Sold On October 1, the...

Problem-3: Accounting Information Systems

The chart of accounts of LR Company includes the following selected accounts. 112 Accounts Receivable120 Merchandise Inventory126 Supplies157 Equipment201 Accounts Payable 401 Sales412 Sales Returns and Allowances505 Cost of Goods...

Problem-4: Accounting Information Systems

Selected accounts from the chart of accounts of Mercer Company are shown below 101 Cash112 Accounts Receivable120 Inventory126 Supplies157 Equipment201 Accounts Payable 401 Sales412 Sales Returns and Allowances414 Sales Discounts505...

Problem-5: Accounting Information Systems

Presented below are the purchases and cash payments journals for Fornelli Co. for the first month of operations

Problem-6: Accounting Information Systems

The post-closing trial balance for Horner Co. is shown below. HORNER CO.Post-Closing Trial BalanceDecember 31, 2019. Content Uploading.... 112 Accounts Receivable120 Merchandise Inventory126 Supplies157 Equipment201 Accounts Payable 401 Sales412 Sales...

Problem-7: Accounting Information Systems

Nex Company uses both special journals and a general journal as described.

Problem-8: Accounting Information Systems

Presented below is the subsidiary accounts receivable account of Jill Longley.

Problem-9: Accounting Information Systems

On September 1, the balance of the accounts Receivable control account in the general ledger of Montgomery company was $10,960. The customers' subsidiary ledger contained account balance as follows: Hurley...

Problem-10: Accounting Information Systems

Kieschnick company has a balance in its Account Receivable control account of $10,000 on January 1,2017. The subsidiary ledger contains there accounts: Bixler company, balance $4,000; Cuddyer company, balance $2,500;...

Problem-11: Accounting Information Systems

Pennington Company has a balance in its Accounts Payable control account of $9,250 on January 1,2017. The subsidiary ledger contains there accounts: Hale Company,balance $3,000; Janish Company, balance $1,875; and...

Problem-12: Accounting Information Systems

Gome Company Uses special journals and a general journal. the following transactions occurred during September 2017.

Problem-13: Accounting Information Systems

Santiago Co.uses special journals and a general journal. The following transactions occurred during May 2017.

Problem-14: Accounting Information Systems

Francisco Company uses the columnar cash journals illustrated in the textbook. In April, the following selected cash transactions occurred.

Problem-15: Accounting Information Systems

Hasselback Company has the following selected transactions during March.

Problem-16: Accounting Information Systems

Below are some typical transactions incurred by. Ricketts Company.

Problem-17: Accounting Information Systems

The general ledger of Hensley company contained the following Accounts payable control account ( in T-account from ). Also shown is the related subsidiary ledger.

Problem-18: Accounting Information Systems

Selected Accounts from the ledgers of Youngblood Company at July 31 showed the following.

Problem-19: Accounting Information Systems

Tresh Products uses both special journals and a general journal as described in this chapter. Tresh also posts customers accounts in the accounts receivable subsidiary ledger. The postings for the...

Problem-20: Accounting Information Systems

Selected account balances for Hulse Company at January 1, 2019 are presented below.

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