Nordeen AG's chart of accounts includes the following selected accounts.
101 Cash
112 Accounts Receivable
120 Inventory
311 Share Capital-Ordinary
401 Sales Revenue
414 Sales Discounts
505 Cost of Goods Sold
On April 1, the accounts receivable ledger of Nordeen showed the following balances: Siem €1,550, Milkie €1,200, Jury Co. €2,900, and Afzal €1,800. The April transactions involving the receipt of cash were as follows.
Apr. 1 Shareholders invested €7,500 additional cash in the business, in exchange for ordinary shares.
4 Received check for payment of account from Afzal less 2% cash discount.
5 Received check for €1,050 payment of invoice no. 307 from Jury Co.
8 Made cash sales of merchandise totaling €7,845. The cost of the merchandise sold was €4,460.
10 Received check for €600 in payment of invoice no. 309 from Siem.
11 Received cash refund from a supplier for damaged merchandise €680.
23 Received check for €1,500 in payment of invoice no. 310 from Jury Co.
29 Received check for payment of account from Milkie.
Instructions
(a) 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 crossfoot the journal.
(b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts.
(c) Prove the agreement of the control account and subsidiary account balances.