Problem 7-3A
Required
1. Identify the correct entry in the cash receipts journal above.
2. Identify the error in each of the other four entries.
3. Using the following format, prepar a corrected cash receipts journal. All column totals
are correct in the cash receipts journal that follows.
& Accounting Book Horngren's.pdf - Adobe Acrobat Reader DC File Edit View Window Help Home Tools Accounting Book H... x A Sign In X 441 / 756 Share Sales Revenue .......:..:4::4::::5:::51945 41001 Miscellaneous Expenses... 59001 Cash... 11001 T. Pioneer, Withdrawals .. 21002 Land . 18001 Notes Payable ... 25001 Accounts Receivable. 12001 Salaries Expense . 54001 Required 1. Can you see a problem with the numbering system that has be decided upon by Winnie? How would this affect the financial reports? 2. What could happen during the closing process? Correcting errors in the cash Problem 7-3A receipts journal (perpetual The cash receipts journal shown below contains five entries. All five entries are for legiti- inventory system) mate cash receipt transactions, but the journal contains some errors in recording the 3 transactions. In fact, only one entry is correct, and each of the other four entries contains Corrected cash receipts journal: one error. Total debit to Cash, $83,000 Chapter 7 Accounting Information Systems 423 Cash Receipts Journal Page 22 Debits Credits Other Accounts Cost of Goods Sales Accounts Sales Post. Sold Dr Date Cash Discounts Receivable Revenue Account Title Ref. Amount Inventory Cr Jan. 4 4,200 4,200 2,030 7 6,000 220 Debbie Hughes 6,220 13 57,400 Note Receivable 13 53,900 Interest Revenue 3,500 20 4,620 2,100 30 15,400 10,780 31 78,800 4,420 10,780 8,820 Totals 63,620 4,130 (11) (42) (12) (41) ( V ) (51/13) Total Dr = $83,220 Total Cr = $83,220 Required 1. Identify the correct entry in the cash receipts journal above. 2. Identify the error in each of the other four entries. 3. Using the following format, prepare a corrected cash receipts journal. All column totals are correct in the cash receipts journal that follows. Cash Receipts Journal Page 22 Debits Credits Other Accounts Cost of Goods Sales Accounts Sales Post Sold Dr Date Cash Discounts Receivable Revenue Account Title Ref. Amount Inventory Cr Jan. 4 7 Debbie Hughes 13 Note Receivable 13 Interest Revenue 45 20 30 31 83,000 220 17,000 8,820 Totals 57,400 4,130 (11) (42) (12) (41) ( V ) (51/13) Total Dr = $83,220 Total Cr = $83,220 Problem 7-4A Using all the journals, the McMillan Distributors, which uses the perpetual inventory system and makes all credit accounts receivable subsidiary ledger, and the accounts payable sales on terms of 2/10, n/30, completed the following transactions during July. McMillan subsidiary ledger records all sales returns and all purchase returns in the general journal 3 4 5 Jul. 2 Issued invoice no. 913 for sale on account to Teranishi Inc., $12,300. McMillan's cost of this inventory was $5,400. 3 Purchased inventory on credit terms of 3/10, n/60 from Chicosky Corp., $7,401. The invoice was dated July 3. 5 8.50 x 11.00 in Sold inventory for cash. $3.231 (cost. $1.440). O 9 W ENG 02:13 PM 19-05-2019
