Lemon Ice Company produces a unique 4-oz cup of frozen ice treats to many growing stores. Its chart of accounts includes the following selected accounts. LO4 101 Cash 401 Sales 112 Accounts Receivable 414 Sales Discounts 120 Merchandise Inventory 505 Cost of Goods Sold 311 Common Stock On April 1 the accounts receivable ledger of Lemon Ice Company showed the following balances:

Horner Foods $1,550, Harris Grocery $1,200, Northeast $2,900, and Smith Foods $1,700.

The April transactions involving the receipt of cash were as follows.

Apr. 1 Stockholders invested additional cash in the business, $6,000, for common stock.

4 Received check for payment of account from Smith Foods less 2 percent cash discount.

5 Received check for $620 in payment of invoice no. 307 from Northeast.

8 Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was $4,347.

10 Received check for $800 in payment of invoice no. 309 from Horner Foods.

11 Received cash refund from a supplier for damaged merchandise $550.

23 Received check for $1,500 in payment of invoice no. 310 from Northeast.

29 Received check for payment of account from Harris Grocery.

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 Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Merchandise Inventory Cr. Foot and cross-foot 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.