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Pidgeon73 · May 1, 2012, 04:35 PM

Questions 1-3 are based on the following data.

Cotter Corporation had the following selected transactions for the month of May, 20XX.

May 4 Received $300 from E. Gilmour representing the balance from a sale made in March.

6 Made a credit sale of merchandise to W. Jones, invoice No. 506, $890.

7 E. Cotter invested additional cash of $6,000.

8 Sold merchandise on credit to R. Hopkins, invoice No. 507, $2,000.

11 Received payment from W. Jones for invoice No. 506, less a 2% discount.

13 R. Hopkins was granted a $90 credit for merchandise returned.

15 Cash sales for the first half of the month totaled $740.

19 Sold merchandise on account to R. Donovan, invoice No. 508, $1,250.

21 Received payment from R. Hopkins for invoice No. 507, less return of May 13.

25 Sold merchandise on account to D. Ruddy, invoice No. 509, $1,845.

27 Obtained a short-term loan of $1,500 from a local bank.

28 Received payment from R. Donovan for invoice No. 508, less a 2% discount.

31 Cash sales for the second half of the month totaled $620.

REQUIRED: Record the preceding transactions, using the sales journal, cash receipts journal, and the general journal provided at the back of this unit and then answer questions 1-3.

1. The total of the cash column in the cash receipts journal is A. $13,257.20 C. $7,257.20 B. $13,167.20 D. $7,167.20

2. The total of the sales journal for the month is A. $7,485. C. $5,985. B. $7,345. D. $5,895.

3. Which of the following transactions will appear in the general journal? A. May 7 C. May 7 and 13 B. May 13 D. May 7, 13, and 27

Questions 4-8 are based on the following data.

Beezer's Bargain Shop began operations on June 1, 20XX. The company's bookkeeper determined that five books of original entry would have to be maintained: a cash receipts journal, a cash payments journal, a sales journal, a purchases journal, and a general journal. A chart of accounts was also set up and included the following accounts:

Account Number

Account Title 100 Cash

110 Accounts Receivable

120 Office Supplies

130 Prepaid Advertising

140 Store Equipment

200 Accounts Payable

300 Edward Beezer, Capital

310 Edward Beezer, Drawings

400 Sales

410 Sales Returns and Allowances

420 Sales Discounts

500 Purchases

510 Purchase Returns and Allowances

520 Purchase Discounts

530 Transportation In

600 Salaries Expense

610 Utilities Expense

During the month of June the following transactions were completed:

June

1 Edward Beezer invested $20,000 in the business.

1 Purchased merchandise from Zipay Brothers on account, $2,500; terms 2/10, n/30.

2 Purchased store equipment on account from Dante Company, $520.

2 Purchased merchandise for cash, $1,500.

3 Purchased merchandise from the IAC Company on account, $5,500; 1/10, n/30.

4 Sold merchandise to D. Nazar Associated on account, $725; invoice No. 1000; terms 2/10, n/30.

4 Paid $85 for office supplies.

4 Sold merchandise to H. Franklin, Inc. on account, $625; invoice No. 1001; terms 2/10, n/30.

5 Cash sales for week, $920.

5 Returned part of merchandise purchased from Zipay Brothers, who agreed to issue credit memorandum for $230.

8 Purchased merchandise from Roosevelt Company on account $1,100; terms

8 Received payment from D. Nazar Associates for invoice No. 1000, less discount.

9 Sold merchandise to T. Connors & Sons on account, $2,000; invoice No. 1002, terms 2/10, n/30.

9 Paid Zipay Brothers for invoice of June 1, less merchandise returned and discount taken.

10 Paid for three months' advertising expense in advance, $600.

11 Paid IAC Company invoice of June 3, less discount.

12 Cash sales for week, $3,140.

12 Sold merchandise to Leonards Home Builders on account, $2,240; invoice No. 1003; terms 2/10, n/30.

15 Paid salaries for first half of month, $640. Paid Dante Company one-half the amount due.

16 Purchased merchandise on account from the Bosak Company, $4,200; terms 2/10, n/30.

17 Paid Roosevelt Company invoice of June 8, less discount.

17 Leonards Home Builders returned merchandise in the amount of $360. Credit was given.

18 Sold merchandise to Pollocks Hardware Store on account, $1,910; invoice No. 1004, terms 2/10, n/30.

19 Received payment from T. Connors & Sons for invoice No. 1002, less discount.

19 Cash sales for week, $2,720.

22 Received payment from Leonards Home Builders for invoice No. 1003, less merchandise returned and discount taken.

22 Paid balance due to Dante Company.

23 Paid transportation charges on merchandise received from Bosak Company, $95.

24 Sold merchandise to C. Vingsen on account, $1,720; invoice No. 1005; terms 2/10, n/30.

25 Purchased merchandise on account from the Big M Supply House, $8,200; terms 2/10, n/30.

25 Paid Bosak Company invoice of June 16, less discount.

26 Cash sales for week, $2,220.

26 Received payment from Pollocks Hardware Store for invoice No. 1004, less discount.

29 Paid Utility bill of $65.

30 Paid salaries for second half of the month, $640.

30 Received amount due from H. Franklin, Inc.

30 Edward Beezer withdrew $700 from the business for his personal use.

REQUIRED: Record the preceding transactions, using the five journals provided on at the back of this unit, and then answer questions 4-8.

4. The total of the purchases journal on June 30 is A. $23,520. C. $22,020. B. $23,000. D. $21,500.

5. The total of the sales discount in the cash receipts journal is A. $92.10. C. $137.50. B. $130.30. D. $195.40.

6. Entries were recorded in the general journal for transactions on A. June 1, 5, and 17. C. June 1, 2, and 30. B. June 2, 17, and 30. D. June 2, 5, and 17.

7. How many entries were made in the Other Accounts column of the cash payments journal? A. 5 C. 7 B. 6 D. 8

8. On June 30, the totals of the purchases journal and the Accounts Payable column of the cash payments journal are posted to the Accounts Payable general ledger account. In addition, individual postings are made from the general journal. After these entries have been posted to the general ledger from the journals, the balance in the accounts payable account is A. $21,500. C. $8,200. B. $8,430. D. $7,680.

paraclete · May 1, 2012, 04:41 PM

Originally Posted by Pidgeon73

Questions 1-3 are based on the following data.

Cotter Corporation had the following selected transactions for the month of May, 20XX.

May 4 Received $300 from E. Gilmour representing the balance from a sale made in March.

6 Made a credit sale of merchandise to W. Jones, invoice No. 506, $890.

7 E. Cotter invested additional cash of $6,000.

8 Sold merchandise on credit to R. Hopkins, invoice No. 507, $2,000.

11 Received payment from W. Jones for invoice No. 506, less a 2% discount.

13 R. Hopkins was granted a $90 credit for merchandise returned.

15 Cash sales for the first half of the month totaled $740.

19 Sold merchandise on account to R. Donovan, invoice No. 508, $1,250.

21 Received payment from R. Hopkins for invoice No. 507, less return of May 13.

25 Sold merchandise on account to D. Ruddy, invoice No. 509, $1,845.

27 Obtained a short-term loan of $1,500 from a local bank.

28 Received payment from R. Donovan for invoice No. 508, less a 2% discount.

31 Cash sales for the second half of the month totaled $620.

REQUIRED: Record the preceding transactions, using the sales journal, cash receipts journal, and the general journal provided at the back of this unit and then answer questions 1-3.

1. The total of the cash column in the cash receipts journal is A. $13,257.20 C. $7,257.20 B. $13,167.20 D. $7,167.20

2. The total of the sales journal for the month is A. $7,485. C. $5,985. B. $7,345. D. $5,895.

3. Which of the following transactions will appear in the general journal? A. May 7 C. May 7 and 13 B. May 13 D. May 7, 13, and 27

Questions 4-8 are based on the following data.

Beezer's Bargain Shop began operations on June 1, 20XX. The company's bookkeeper determined that five books of original entry would have to be maintained: a cash receipts journal, a cash payments journal, a sales journal, a purchases journal, and a general journal. A chart of accounts was also set up and included the following accounts:

Account Number

Account Title 100 Cash

110 Accounts Receivable

120 Office Supplies

130 Prepaid Advertising

140 Store Equipment

200 Accounts Payable

300 Edward Beezer, Capital

310 Edward Beezer, Drawings

400 Sales

410 Sales Returns and Allowances

420 Sales Discounts

500 Purchases

510 Purchase Returns and Allowances

520 Purchase Discounts

530 Transportation In

600 Salaries Expense

610 Utilities Expense

During the month of June the following transactions were completed:

June

1 Edward Beezer invested $20,000 in the business.

1 Purchased merchandise from Zipay Brothers on account, $2,500; terms 2/10, n/30.

2 Purchased store equipment on account from Dante Company, $520.

2 Purchased merchandise for cash, $1,500.

3 Purchased merchandise from the IAC Company on account, $5,500; 1/10, n/30.

4 Sold merchandise to D. Nazar Associated on account, $725; invoice No. 1000; terms 2/10, n/30.

4 Paid $85 for office supplies.

4 Sold merchandise to H. Franklin, Inc. on account, $625; invoice No. 1001; terms 2/10, n/30.

5 Cash sales for week, $920.

5 Returned part of merchandise purchased from Zipay Brothers, who agreed to issue credit memorandum for $230.

8 Purchased merchandise from Roosevelt Company on account $1,100; terms

8 Received payment from D. Nazar Associates for invoice No. 1000, less discount.

9 Sold merchandise to T. Connors & Sons on account, $2,000; invoice No. 1002, terms 2/10, n/30.

9 Paid Zipay Brothers for invoice of June 1, less merchandise returned and discount taken.

10 Paid for three months' advertising expense in advance, $600.

11 Paid IAC Company invoice of June 3, less discount.

12 Cash sales for week, $3,140.

12 Sold merchandise to Leonards Home Builders on account, $2,240; invoice No. 1003; terms 2/10, n/30.

15 Paid salaries for first half of month, $640. Paid Dante Company one-half the amount due.

16 Purchased merchandise on account from the Bosak Company, $4,200; terms 2/10, n/30.

17 Paid Roosevelt Company invoice of June 8, less discount.

17 Leonards Home Builders returned merchandise in the amount of $360. Credit was given.

18 Sold merchandise to Pollocks Hardware Store on account, $1,910; invoice No. 1004, terms 2/10, n/30.

19 Received payment from T. Connors & Sons for invoice No. 1002, less discount.

19 Cash sales for week, $2,720.

22 Received payment from Leonards Home Builders for invoice No. 1003, less merchandise returned and discount taken.

22 Paid balance due to Dante Company.

23 Paid transportation charges on merchandise received from Bosak Company, $95.

24 Sold merchandise to C. Vingsen on account, $1,720; invoice No. 1005; terms 2/10, n/30.

25 Purchased merchandise on account from the Big M Supply House, $8,200; terms 2/10, n/30.

25 Paid Bosak Company invoice of June 16, less discount.

26 Cash sales for week, $2,220.

26 Received payment from Pollocks Hardware Store for invoice No. 1004, less discount.

29 Paid Utility bill of $65.

30 Paid salaries for second half of the month, $640.

30 Received amount due from H. Franklin, Inc.

30 Edward Beezer withdrew $700 from the business for his personal use.

REQUIRED: Record the preceding transactions, using the five journals provided on at the back of this unit, and then answer questions 4-8.

4. The total of the purchases journal on June 30 is A. $23,520. C. $22,020. B. $23,000. D. $21,500.

5. The total of the sales discount in the cash receipts journal is A. $92.10. C. $137.50. B. $130.30. D. $195.40.

6. Entries were recorded in the general journal for transactions on A. June 1, 5, and 17. C. June 1, 2, and 30. B. June 2, 17, and 30. D. June 2, 5, and 17.

7. How many entries were made in the Other Accounts column of the cash payments journal? A. 5 C. 7 B. 6 D. 8

8. On June 30, the totals of the purchases journal and the Accounts Payable column of the cash payments journal are posted to the Accounts Payable general ledger account. In addition, individual postings are made from the general journal. After these entries have been posted to the general ledger from the journals, the balance in the accounts payable account is A. $21,500. C. $8,200. B. $8,430. D. $7,680.

And your specific question is? You have to do the work yourself

Pidgeon73 · May 1, 2012, 08:15 PM

I am trying to figure the accounts. And what needs to posted to what journals. I got them worked out but not sure why I am not getting the right answers. For instance

June 1 General journal 20,000
June 1 Purchase 2500
June 2 general journal 520
June 2 Purchase journal 1500
June 3 Purchase Journal 5500
June 4 Cash payment 85
June 4 Sales Journal 625
June 5 Sales Journal 920
June 8 Sales Journal 1100
June 8 Cash Payment 580
June 9 Sales Journal 2000
June 9 cash payment 1816
June 10 cash payment 600
June 11 cash receipts 4950
June 12 Sales Journal 3140
June 15 cash payment 640, cash payment 260
June 16 sales journal 4200
June 17 cash receipts journal 990
June 17 general journal 360
June 18 sales journal 1910
June 19 cash receipts journal 1600
June 19 sales journal 2720
June 22 cash receipts journal 1432
June 22 cash payment 260
June 23 cash payment 95
June 24 sales journal 1720
June 25 purchase journal 8200
June 25 cash receipts journal 3360
June 26 cash receipt journal 2220
June 26 cash receipts journal 1528
June 29 cash payments journal 65
June 30 cash payment 640
June 30 cash receipts 500
June 30 general journal 700

I am not sure if I got the proper journals done can u help?

paraclete · May 1, 2012, 10:01 PM

I think you were given the account numbers and the account names for a reason so that both sides of the entry could be shown in the journal

For example 1 Edward Beezer invested $20,000 in the business. One intrepretation
Cash receipts journal
Ist June Edward Breezer 300 Edward Breezer Capital $20000 credit (100 Cash $20000 debit)
Another intrepretation Edward Breezer did not invest cash so what is the balance of the entry (unknown)
It says you have to post the entries in the format provided

You need to grasp the notion of a cash book which is the cash receipts and cash payments journals combined from which the bank accounts can be reconciled. All cash transactions must pass through these journals.
So decide which journal is to be used obviously cash receipts go in a cash receipts journal, cash payments go in a cash payments journal, etc very few entries belong in a General Journal, returns can be shown as a negative in the Sales Journal, discounts as a second line item or dissection in the relevant journal pertaining to the transaction by the way 2/10 means 2% discount if paid within 10 days