Question
Portsmouth Computer Security uses the perpetual inventory system and makes all credit sales on terms of n/30. Portsmouth completed the following transactions during May :
Portsmouth
Computer Security uses the perpetual inventory system and makes all credit sales on terms of n/30.
Portsmouth
completed the following transactions during
May
:
LOADING...
(Click
the icon to view the transactions.)
Read the
requirements LOADING...
Enter the transactions in a sales journal (page 7), a cash receipts journal (page 5, omit Sales Discounts Forfeited column), a purchases journal (page 10), a cash payments journal (page 8), and a general journal (page 6), as appropriate.
2.
Total each column of the special journals. Show that total debits equal total credits in each special journal.
3.
The following four-column accounts in the subsidiary ledgers have been opened for you (with beginning balances as of
May
1, if any). Accounts receivable
ledgerlong dash
Abelli Co.,
$ 1 comma 600
;
Cantu Co.
,
$ 0
;
Sesnie Co.
,
$ 0
;
and
K.M. Forbes
,
$ 0
.
Accounts payable
ledgerlong dash
Cleary Co.,
$ 0
;
Marston comma Inc.
,
$ 0
;
Sciacca Inc.
,
$ 0
;
and
Yilmaz Inc.
,
$ 1 comma 100
.
4.
Post daily to the accounts receivable subsidiary ledger and to the accounts payable subsidiary ledger.
5.
The following four-column general ledger accounts have been opened for you using
Portsmouth
's
account numbers and balances as of
May
1,
2018
.
All accounts have normal balances.
Number
Account
Bal.
111
Cash
$15,300
112
Accounts Receivable
1,600
114
Merchandise Inventory
6,500
116
Office Supplies
900
117
Prepaid Insurance
0
151
Furniture
2,400
211
Accounts Payable
1,100
311
Okeson, Capital
21,450
411
Sales Revenue
7,900
419
Interest Revenue
600
511
Cost of Goods Sold
2,300
531
Salaries Expense
1,600
541
Utilities Expense
450
On
May
31, post to the general ledger.
6.
Prepare a trial balance as of
May
31,
2018
,
to verify the equality of the general ledger. Balance the total of the customer account ending balances in the accounts receivable subsidiary ledger against Accounts Receivable in the general ledger. Do the same for the accounts payable subsidiary ledger and Accounts Payable in the general ledger.
Requirements 1 and 2. Enter the transactions in a sales journal (page 7), a cash receipts journal (page 5), a purchases journal (page 10), a cash payments journal (page 8), and a general journal (page 6), as appropriate. Show how postings would be referenced in each journal by selecting the account numbers and posting marks in the appropriate places in the journals. Total each column of the special journals. Show that total debits equal total credits in each special journal. (Select "T." in place of a check mark to reflect posting to a subsidiary ledger. Enter an "X" if the column total is not posted. If a box is not used in the journal leave the box empty; do not select any information and do not enter a zero.)
Begin with page 7 of the sales journal. Enter the transactions and total the journal.
Sales Journal
Page 7
Invoice
Customer
Post.
Accounts Receivable DR
Cost of Goods Sold DR
Date
No.
Account Debited
Ref.
Sales Revenue CR
Merchandise Inventory CR
2018
May
May
31
Totals
Show how total debits equal total credits.
Total debits
=
Total credits
Sales journal
=
Next complete page 5 of the cash receipts journal. Enter the transactions and total the journal. (If a box is not used in the journal leave the box empty; do not select any information and do not enter a zero. Abbreviation used: Disc. = Discounts, Rec. = Receivable, Rev. = Revenue, Accts = Accounts, Inv. = Inventory)
Cash Receipts Journal
Page 5
Post.
Accounts
Sales
Other
Cost of Goods Sold DR
Date
Account Credited
Ref.
Cash DR
Rec. CR
Rev. CR
Accts CR
Merchandise Inv. CR
2018
May
May
31
Totals
Show how total debits equal total credits.
Total debits
=
Total credits
Cash receipts journal
=
Now complete page 10 of the purchases journal. Enter the transactions and total the journal. (If a box is not used in the journal leave the box empty; do not select any information and do not enter a zero. Abbreviation used: Supp. = Supplies)
Purchases Journal
Page 10
Other Accounts DR
Vendor
Post.
Accounts
Merchandise
Office
Account
Post.
Date
Account Credited
Terms
Ref.
Payable CR
Inventory DR
Supp. DR
Title
Ref.
Amount
2018
May
May
31
Totals
Show how total debits equal total credits.
Total debits
=
Total credits
Purchases journal
=
Next complete page 8 of the cash payments journal. Enter the transactions and total the journal. (If a box is not used in the journal leave the box empty; do not select any information and do not enter a zero. Round your answers to the nearest whole dollar.)
Cash Payments Journal
Page 8
Ck.
Post.
Other
Accounts
Merchandise
Date
No.
Account Debited
Ref.
Accounts DR
Payable DR
Inventory CR
Cash CR
May
May
31
Totals
Show how total debits equal total credits.
Total debits
=
Total credits
Cash payments journal
=
Finally complete the required entries to page 6 of the general journal. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Select "T." in place of a check mark to reflect posting to a subsidiary ledger.)
May
29: Returned damaged merchandise inventory to
Marston comma Inc.
,
issuing a debit memo for
$ 650
.
General Journal
Page 6
Date
Accounts and Explanation
Post. Ref.
Debit
Credit
May
29
Requirements 3 and 4. The following four-column accounts in the subsidiary ledgers have been opened for you (with beginning balances as of
May
1, if any): Accounts receivable
ledgerlong dash
Abelli Co.,
$ 1 comma 600
;
Cantu Co.
,
$ 0
;
Sesnie Co.
,
$ 0
;
and
K.M. Forbes
,
$ 0
.
Accounts payable
ledgerlong dash
Cleary Co.,
$ 0
;
Marston comma Inc.
,
$ 0
;
Sciacca Inc.
,
$ 0
;
and
Yilmaz Inc.
,
$ 1 comma 100
.
Post daily to the accounts receivable subsidiary ledger and to the accounts payable subsidiary ledger.
Begin with the accounts receivable subsidiary ledger. Post the beginning balances and the daily transactions for
Abelli Co.
and
Cantu Co.
,
then for
Sesnie Co.
and
K.M. Forbes
.
Review the
sales journalLOADING...
,
cash receipts journalLOADING...
,
purchases journalLOADING...
,
cash payments journalLOADING...
,
and
general journalLOADING...
.
(For accounts with a $0 balance, make sure to enter "0" in the appropriate cells. Enter the transactions in chronological order in the next available row. If a box is not used in the ledger leave the box empty; do not select any information and do not enter a zero. Abbreviations used: CR = Cash Receipts Journal, CP = Cash Payments Journal, J. = General Journal, P = Purchases Journal, S = Sales Journal)
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
Abelli Co.
Cantu Co.
Balance
Balance
Date
Post. Ref.
Debit
Credit
Debit
Credit
Date
Post. Ref.
Debit
Credit
Debit
Credit
Balance
Balance
May
May
Sesnie Co.
K.M. Forbes
Balance
Balance
Date
Post. Ref.
Debit
Credit
Debit
Credit
Date
Post. Ref.
Debit
Credit
Debit
Credit
Balance
Balance
May
May
Now complete the accounts payable subsidiary ledger. Post the beginning balances for
Cleary Co.
,
$ 0
,
and
Marston comma Inc.
,
$ 0
,
and the daily transactions. Then post the beginning balances for
Sciacca Inc.
,
$ 0
,
and
Yilmaz Inc.
,
$ 1 comma 100
and post the daily transactions. Review the
sales journalLOADING...
,
cash receipts journalLOADING...
,
purchases journalLOADING...
,
cash payments journalLOADING...
,
and
general journalLOADING...
.
(For accounts with a $0 balance, make sure to enter "0" in the appropriate cells. Enter the transactions in chronological order. If a box is not used in the ledger leave the box empty; do not select any information and do not enter a zero. Abbreviations used: CR = Cash Receipts Journal, CP = Cash Payments Journal, J. = General Journal, P = Purchases Journal, S = Sales Journal)
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Cleary Co.
Marston, Inc.
Balance
Balance
Date
Post. Ref.
Debit
Credit
Debit
Credit
Date
Post. Ref.
Debit
Credit
Debit
Credit
Balance
Balance
May
May
Sciacca Inc.
Yilmaz Inc.
Balance
Balance
Date
Post. Ref.
Debit
Credit
Debit
Credit
Date
Post. Ref.
Debit
Credit
Debit
Credit
Balance
Balance
May
May
Requirement 5. The following four-column general ledger accounts have been opened for you using
Portsmouth
's
account numbers and
balances LOADING...
as of
May
1,
2018
.
On
May
31, post to the general ledger.
Begin by posting the beginning balances, the transactions entered in the "other accounts" columns of the special journals, and the transactions in the general journal in chronological
order.
Next post the column totals for the sales journal, the cash receipts journal, the purchases journal and the cash payments in that
order.
(For accounts with a $0 balance, make sure to enter "0" in the appropriate cells. Enter the transactions in chronological order. If a box is not used in the ledger leave the box empty; do not select any information and do not enter a zero. Abbreviations used: CR = Cash Receipts Journal, CP = Cash Payments Journal, J. = General Journal, P = Purchases Journal, S = Sales Journal.)
GENERAL LEDGER
Cash
No. 111
Accounts Receivable
No. 112
Balance
Balance
Date
Post. Ref.
Debit
Credit
Debit
Credit
Date
Post. Ref.
Debit
Credit
Debit
Credit
Balance
Balance
May
May
Merchandise Inventory
No. 114
Office Supplies
No. 116
Balance
Balance
Date
Post. Ref.
Debit
Credit
Debit
Credit
Date
Post. Ref.
Debit
Credit
Debit
Credit
Balance
Balance
May
May
Prepaid Insurance
No. 117
Furniture
No. 151
Balance
Balance
Date
Post. Ref.
Debit
Credit
Debit
Credit
Date
Post. Ref.
Debit
Credit
Debit
Credit
Balance
Balance
May
May
Accounts Payable
No. 211
Okeson, Capital
No. 311
Balance
Balance
Date
Post. Ref.
Debit
Credit
Debit
Credit
Date
Post. Ref.
Debit
Credit
Debit
Credit
Balance
Balance
May
May
Sales Revenue
No. 411
Interest Revenue
No. 419
Balance
Balance
Date
Post. Ref.
Debit
Credit
Debit
Credit
Date
Post. Ref.
Debit
Credit
Debit
Credit
Balance
Balance
May
May
Cost of Goods Sold
No. 511
Salaries Expense
No. 531
Balance
Balance
Date
Post. Ref.
Debit
Credit
Debit
Credit
Date
Post. Ref.
Debit
Credit
Debit
Credit
Balance
Balance
May
May
Utilities Expense
No. 541
Balance
Date
Post. Ref.
Debit
Credit
Debit
Credit
Balance
May
Requirement 6. Prepare a trial balance as of
May
31,
2018
to verify the equality of the general
ledger.
Balance the total of the customer balances in the accounts receivable subsidiary ledger against Accounts Receivable in the general ledger. Do the same for the accounts payable subsidiary ledger and Accounts Payable in the general ledger.
Begin by preparing the trial balance. Review the
general ledgerLOADING...
and do not include accounts with a $0
balance.
Portsmouth Computer Security
Trial Balance
May 31, 2018
Balance
Account Title
Debit
Credit
Total
Balance the total of the customer balances in the
accounts receivable subsidiary ledgerLOADING...
against Accounts Receivable in the general ledger. (For accounts with a $0 balance, make sure to enter "0" in the appropriate cell.)
GENERAL LEDGER
Accounts Receivable
balance
SUBSIDIARY LEDGER: CUSTOMER ACCOUNTS RECEIVABLE
Customer
Balance
Abelli Co.
Cantu Co.
K.M. Forbes
Sesnie Co.
Total Accounts Receivable
Balance the total of the vendor balances in the
accounts payable subsidiary ledgerLOADING...
and Accounts Payable in the general ledger. (For accounts with a $0 balance, make sure to enter "0" in the appropriate cell.)
GENERAL LEDGER
Accounts Payable
balance
SUBSIDIARY LEDGER: ACCOUNTS PAYABLE
Vendor
Balance
Cleary Co.
Marston, Inc.
Sciacca Inc.
Yilmaz Inc.
Total Accounts Payable
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Managerial Accounting
Authors: Susan V. Crosson, Belverd E. Needles
11th Edition
0538742801, 978-0538742801
