Appendix G: Subsidiary Ledgers and Special Journals

APPENDIX G
Subsidiary Ledgers and Special Journals
ASSIGNMENT CLASSIFICATION TABLE
Brief A B
Learning Objectives Questions Exercises Exercises Problems Problems
1. Describe the nature and 1, 2, 5, 1, 2 1, 2, 3, 4, 1A, 2A, 3A, 1B, 2B, 3B,
purpose of a subsidiary 7, 12 5, 6, 7, 9, 4A, 5A, 6A 4B, 5B
ledger. 11, 12
2. Explain how companies 3, 4, 6, 3, 4, 6, 7, 8, 1A, 2A, 3A, 1B, 2B, 3B,

use special journals in 8, 9, 5, 6 10, 12 4A, 5A, 6A 4B, 5B
journalizing. 10, 13
3. Indicate how companies 11 7 1, 3, 9, 11, 1A, 2A, 3A, 1B, 2B, 3B,
post a multi-column journal. 13, 14 4A, 5A, 6A 4B, 5B
Copyright © 2016 John Wiley & Sons, Inc. Weygandt Financial Accounting IFRS 3e Solutions Manual (For Instructor Use Only) G-1
ASSIGNMENT CHARACTERISTICS TABLE
Problem Difficulty Time

Number Description Level Allotted (min.)
G-1A Journalize transactions in cash receipts journal; Simple 30–40

post to control account and subsidiary ledger.
G-2A Journalize transactions in cash payments journal; Simple 30–40

post to control account and subsidiary ledgers.
G-3A Journalize transactions in multi-column purchases Moderate 40–50

journal; post to the general and subsidiary ledgers.
G-4A Journalize transactions in special journals. Moderate 50–60
G-5A Journalize in sales and cash receipts journals; post; Moderate 60–70
prepare a trial balance; prove control to subsidiary;
prepare adjusting entries; prepare an adjusted
trial balance.
G-6A Journalize in special journals; post; prepare Complex 60–70

a trial balance.
G-1B Journalize transactions in cash receipts journal; Simple 30–40

post to control account and subsidiary ledger.
G-2B Journalize transactions in cash payments journal; Simple 30–40

post to the general and subsidiary ledgers.
G-3B Journalize transactions in multi-column purchases Moderate 40–50

journal; post to the general and subsidiary ledgers.
G-4B Journalize transactions in special journals. Moderate 50–60
G-5B Journalize in purchases and cash payments journals; post; Moderate 60–70
prepare a trial balance; prove control to subsidiary;
prepare adjusting entries; prepare an adjusted trial
balance.
Copyright © 2015 John Wiley & Sons, Inc.
BLOOM’ S TAXONOMY TABLE

Correlation Chart between Bloom’s Taxonomy, Learning Objectives and End-of-Chapter Exercises and Problems
Learning Objective Knowledge Comprehension Application Analysis Synthesis Evaluation

1. Describe the nature and purpose QG-1 QG-2 EG-1 EG-9 PG-5A QG-7
of a subsidiary ledger. QG-5 EG-3 EG-11 PG-6A
QG-12 EG-4 EG-12 PG-1B
BEG-1 EG-5 PG-1A PG-2B
BEG-2 EG-6 PG-2A PG-3B
Weygandt Financial, IFRS, 3/e, Solution’ s Manual
EG-2 EG-7 PG-3A PG-4B

EG-11 PG-4A PG-5B
2. Explain how companies use QG-3 BEG-3 EG-6 PG-4A PG-5B
special journals in journalizing. QG-4 BEG-4 EG-7 PG-5A
QG-6 BEG-5 EG-10 PG-6A
QG-8 BEG-6 EG-12 PG-1B
QG-9 EG-8 PG-1A PG-2B
QG-10 EG-10 PG-2A PG-3B
QG-13 PG-3A PG-4B
3. Indicate how companies post QG-11 EG-1 PG-2A PG-2B
a multi-column journal. BEG-7 EG-3 PG-3A PG-3B
EG-11 EG-9 PG-4A PG-4B
EG-13 PG-5A PG-5B
EG-14 PG-6A
PG-1A PG-1B
Broadening Your Perspective Real-World Focus Financial Reporting Decision Making
(For Instructor Use Only)
(Mini Practice Set) Across the

Organization
Communication
Ethics Case
G-3
ANSWERS TO QUESTIONS
1. A subsidiary ledger is a group of accounts with a common characteristic. The accounts are assembled
together to facilitate the accounting process by freeing the general ledger from details concerning
individual balances. The advantages of using subsidiary ledgers are that they:
 Permit transactions affecting a single customer or single creditor to be shown in a single

account, thus providing necessary up-to-date information on specific account balances.
 Free the general ledger of excessive details relating to accounts receivable and accounts
payable. As a result, a trial balance of the general ledger does not contain potentially thousands
and thousands of individual account balances.
 Assist in locating errors in individual accounts by reducing the number of accounts in one ledger
and by using control accounts.
 Permit a division of labor in posting by having one employee post to the general ledger and
(a) different employee(s) post to the subsidiary ledgers.
2. (a) (1) Transactions to individual accounts are generally posted daily to the subsidiary ledger.
(2) In contrast, postings to the control accounts are usually made in total at the end of the month.
(b) A control account is a general ledger account that summarizes subsidiary ledger data. Subsidiary
ledger accounts keep track of specific account activity (i.e., specific debtors or creditors).
A subsidiary ledger is an addition to, and an expansion of, the general ledger.
3. Sales journal. Records entries for all sales of merchandise on account.

Cash receipts journal. Records entries for all cash received by the business.
Purchases journal. Records entries for all purchases of merchandise on account.
Cash payments journal. Records entries for all cash paid.
Some advantages of each journal are given below:
 Sales journal. (1) Since the sales journal employs only one line to record a sales transaction,
its use reduces recording time; (2) the column totals are only posted to the general ledger
once an accounting period; and (3) the journal’s use separates responsibilities between
employees.
 Cash receipts journal. (1) Its use aids in the posting process since the totals for Cash, Sales
Discounts, Accounts Receivable, and Sales Revenue are all recorded in the general ledger
only at the end of the month; and (2) it allows all accounts receivable credits to be posted to
the appropriate subsidiary ledger accounts daily.
 Purchases journal. The advantages are similar to those of the sales journal except that
items involved are Inventory debits and Accounts Payable credits.
 Cash payments journal. Similar advantages to cash receipts journal except the columns
involved are different.
In general, special journals: (1) allow greater division of labor because various individuals can
record entries in different journals at the same time; and (2) reduce posting time of journals.
4. The entry for the sales return should be recorded in the general journal. Since Burguet Company
has a single-column sales journal, only credit sales can be recorded there. A purchase by Burguet
Company has not taken place, so the use of the purchases journal is inappropriate. Finally, no
cash is received or paid, so neither the cash receipts or cash payments journal should be used.
Questions Appendix G (Continued)
5. At the end of the month, after all postings to both the general ledger and the subsidiary accounts
have been made, the total of the subsidiary account balances should equal the balance of the
control account in the general ledger. In this case, the control account balance will be ₤450 larger
than the total of the subsidiary accounts.
6. The purpose of special journals is to facilitate the recording process of the business entity. Therefore,
the columns included in any special journal should correspond to the unique needs of the entity.
In particular, one type of business which might not require an Accounts Receivable column would
be grocery stores. These businesses rarely sell on credit to their customers. The minimum
frequency of the transaction implies no need for an Accounts Receivable column in the cash
receipts journal.
7. (a) No, the customers’ ledger will not agree with the Accounts Receivable control account. The
customers’ ledger will be posted correctly, but the Accounts Receivable control account will
be incorrect.
(b) The trial balance will balance, although Cash will be €4,000 too high and Accounts Receivable
€4,000 too low.
8. The special journal is the sales journal. The other account is Sales Revenue. (The cash receipts
journal is an incorrect answer because there would be more than two month-end postings to
general ledger accounts.)
9. (a) General journal. (d) Sales journal.

(b) General journal. (e) Cash receipts journal.
(c) Cash receipts journal. (f) General journal.
10. (a) Cash receipts journal. (d) Purchases journal.

(b) Cash receipts journal. (e) General journal.
(c) General journal. (f) Cash payments journal.
11. Typically included would be credit purchases of equipment, office supplies, and store supplies.
However, any other item purchased on credit could also be included in a special column or the
“other” column.
12. One such example is a purchase return. Here the Accounts Payable control and subsidiary account
must be debited for the same amount. The debit/credit equality is unaffected since the
accounting equation is computed using general ledger (control) accounts only. The subsidiary
accounts should prove to the control account balance.
13. The general journal may be used to record such transactions as the granting of credit to a
customer for a sales return or allowance, the receipt of credit from a supplier for purchases
returned, acceptance of a note receivable from a customer, or the purchase of a plant asset by
issuing a note payable. In addition, all correcting, adjusting, and closing entries should be made
in the general journal.
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE G-1
Accounts Receivable Subsidiary Ledger General Ledger

Austin Co. Accounts Receivable
Date Ref. Debit Credit Balance Date Ref. Debit Credit Balance
Jan. 7 10,000 10,000 Jan. 31 26,000 26,000
17 7,600 2,400 31 21,600 4,400
Diaz Co.
Date Ref. Debit Credit Balance
Jan. 15 7,000 7,000
24 5,000 2,000
Nichols Co.
Date Ref. Debit Credit Balance
Jan. 23 9,000 9,000
29 9,000 0
BRIEF EXERCISE G-2
(a) General ledger (c) General ledger

(b) Subsidiary ledger (d) Subsidiary ledger
BRIEF EXERCISE G-3
(a) Cash Receipts Journal (d) Sales Journal

(b) Cash Payments Journal (e) Purchases Journal
(c) Cash Payments Journal (f) Cash Receipts Journal
BRIEF EXERCISE G-4
(a) No (c) Yes

(b) Yes (d) No
BRIEF EXERCISE G-5
(a) General Journal (if a one-column Purchases Journal)

Purchases Journal (if a multi-column Purchases Journal)
(b) Purchases Journal
(c) Cash Payments Journal
(d) Sales Journal
BRIEF EXERCISE G-6
(a) Cash Receipts Journal

(b) Cash Receipts Journal
(c) Cash Receipts Journal
(d) Sales Journal and Cash Receipts Journal
(e) Purchases Journal
BRIEF EXERCISE G-7
(a) Both in total and daily (c) In total

(b) In total (d) Only daily
SOLUTIONS TO EXERCISES
EXERCISE G-1
(a) ₤340,400. Beginning balance of ₤310,000 plus ₤161,400 debit from sales
journal less ₤131,000 credit from cash receipts journal.
(b) ₤83,600. Beginning balance of ₤77,000 plus ₤54,100 credit from purchases
journal less ₤47,500 debit from cash payments journal.
(c) The column total of ₤161,400 in the sales journal would be posted to
the credit side of the Sales Revenue account and the debit side of the
Accounts Receivable account in the general ledger.
(d) The accounts receivable column total of ₤131,000 in the cash receipts
journal would be posted to the credit side of the Accounts Receivable
account in the general ledger.
EXERCISE G-2
To: Erica Henes, Chief Financial Officer
From: Student
Subject: Mailee Long account
The explanation of the three entries in the subsidiary ledger for the Mailee
Long account is as follows:
Sept. 2 This was a credit sale of merchandise to Long. The entry was
recorded on page 31 of the Sales Journal.
Sept. 9 This was a sales return or allowance granted to Long. The entry
was recorded on page 4 of the General Journal.
Sept. 27 This was a payment by Long of the balance due. The entry was
recorded on page 8 of the Cash Receipts Journal.
If I can be of further help, please let me know.
EXERCISE G-3
(a) & (b) General Ledger
Accounts Receivable
Date Explanation Ref. Debit Credit Balance
Sept. 1 Balance  10,960
S 4,690 15,650
CR 7,160 8,490
G 185 8,305
Accounts Receivable Subsidiary Ledger
Bohn
Sept. 1 Balance  2,060
S 1,260 3,320
CR 1,440 1,880
Cao
S 840 5,660
CR 2,300 3,360
G 185 3,175
Han
Sept. 1 0
S 1,330 1,330
CR 380 950
Lahr
CR 1,800 840
EXERCISE G-3 (Continued)
Zeyen
Sept. 1 Balance  1,440
S 1,260 2,700
CR 1,240 1,460
(c) THONE PLC

Schedule of Accounts Receivable
As of September 30, 2017
Bohn.............................................................................................. ₤1,880
Cao ............................................................................................... 3,175
Han ............................................................................................... 950
Lahr ............................................................................................... 840
Zeyen ............................................................................................ 1,460
Total ...................................................................................... ₤8,305
Accounts Receivable .................................................................. ₤8,305
EXERCISE G-4
(a) €3,700 [€10,200 – (€4,000 + €2,500)].

(b) €12,000 [€10,200 + (€9,000 + €7,000 + €8,300) – (€8,000 + €2,500 + €9,000) – €3,000].
(c) Burris (€4,000 + €9,000 – €8,000) € 5,000
Uhlig (€2,500 + €7,000 – €2,500 – €3,000) 4,000
Lopata (€3,700 + €8,300 – €9,000) 3,000
€12,000
(d) The sales return (€3,000) would be recorded in the general journal.
EXERCISE G-5
(a) NT$101,250 [NT$247,500 – (NT$90,000 + NT$56,250)].

(b) NT$289,250 [NT$247,500 + (NT$196,500 + NT$157,500 + NT$191,250) – (NT$180,000
+ NT$52,000 + NT$202,500) – NT$69,000].
(c) Tym (NTS$90,000 + NT$196,500 – NT$180,000) NT$106,500
Keyes (NT$56,250 + NT$157,500 – NT$52,000 – NT$69,000) 92,750
Byrne (NT$101,250 + NT$191,250 – NT$202,500) 90,000
NT$289,250
(d) The purchase return (NT$69,000) would be recorded in the general journal.
EXERCISE G-6
(a) & (b) PASHAK OAO

Sales Journal S1
Account Invoice Accounts Receivable Dr. Cost of Goods Sold Dr.
Date Debited No. Ref. Sales Revenue Cr. Inventory Cr.
2017
Sept. 2 J. Witten 101 780 420
21 K. Morgan 102 800 480
1,580 900
PASHAK OAO
Purchases Journal P1
Inventory Dr.
Date Account Credited Terms Ref. Accounts Payable Cr.
2017
Sept. 10 H. Gilles 2/10, n/30 600
25 G. Harvey n/30 835
1,435
EXERCISE G-7
(a) & (b) NEWELL LTD.

Cash Receipts Journal CR1
Cost of Goods Sold
Sales Accounts Sales Other Dr.
Account Cash Discounts Receivable Revenue Accounts Inventory
Date Credited Ref. Dr. Dr. Cr. Cr. Cr. Cr.
2017
May 1 Share Capital—
Ordinary 50,000 50,000
2 6,340 6,340 4,200
22 N. Eggert 9,000 9,000
65,340 9,000 6,340 50,000 4,200
NEWELL LTD.
Cash Payments Journal CP1
Other Accounts
Ck. Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr.
2017
May 3 101 Inventory 7,200 7,200
14 102 Salaries and Wages Expense 740 740
7,940 7,940
EXERCISE G-8
(a) Journal (b) Columns in the journal
1. Cash Payments Cash (Cr.), Other Accounts (Dr.).

2. Cash Receipts Cash (Dr.), Sales Discounts (Dr.), and
Accounts Receivable (Cr.).
4. Cash Payments Cash (Cr.), Inventory (Cr.), and
Accounts Payable (Dr.).
5. Cash Receipts Cash (Dr.), Accounts Receivable (Cr.).
8. Cash Receipts Cash (Dr.), Other Accounts (Cr.).
10. Cash Receipts Cash (Dr.), Sales Revenue (Cr.), Cost of Goods
Sold (Dr.), and Inventory (Cr.).
EXERCISE G-9
(a) Mar. 2 Equipment ....................................................... 9,400

Accounts Payable—Aleksic
Company ............................................. 9,400
5 Accounts Payable—Dumont
Company ..................................................... 410
Inventory.................................................. 410
7 Sales Returns and Allowances..................... 365

Accounts Receivable—Gavin
Company ............................................. 365
Inventory ......................................................... 245

Cost of Goods Sold ................................ 245
(b) To: President, Moncado plc
From: Chief Accountant
Subject: Posting of Control and Subsidiary Accounts
The posting of these accounts varies with the journals used in recording
the transactions.
Sales and purchases journals—the total for the month is posted to

the control accounts. The individual entries are posted daily to the
subsidiary accounts.
Columnar cash receipts and cash payments journals—the total of
the control account column for the month is posted to the control
account. The individual amounts in the column are posted daily to
the subsidiary accounts.
General journal—the individual entries are posted daily. Each entry
that pertains to a control and a subsidiary account is dual posted.
That is, it is posted to both the control account and the subsidiary
account.
I hope this memo answers your questions about posting.
EXERCISE G-10
1. Cash Payments Journal 8. Cash Receipts Journal

2. General Journal 9. Cash Payments Journal
3. Cash Receipts Journal 10. Cash Payments Journal
4. Cash Receipts Journal 11. General Journal
5. Sales Journal 12. Cash Payments Journal
6. Cash Receipts Journal 13. Purchases Journal
7. General Journal
EXERCISE G-11
(a) The debit posting reference on February 28 should be from the cash
payments journal to record the payments made during the month. The
general ledger debit amount should be €29,370 to balance. Robillard’s
ending balance must be €2,500. (Accounts Payable control balance of
€9,400 less Lawlor, €4,600, and Tilev, €2,300.)
(b) Only the general journal amounts were dual posted. Thus, the amounts
were €1,400 (Dr.), €195 (Cr.), and €550 (Cr.).
EXERCISE G-12
(a)
Inventory Dr.
Date Account Credited Ref. Accounts Payable Cr.
July 3 Dakota Co.  2,400
12 Montana Co.  500
14 Kansas Co.  1,300
17 Georgia Ltd.  1,400
20 Dakota Co.  700
21 Montana Co.  600
29 Georgia Corp.  1,600
8,500
120/201
(b)
General Journal
Date Accounts and Explanations Ref. Debit Credit
July 1 Equipment ........................................... 153/ 3,900
Accounts Payable—Alaska
Equipment Co. ...................... 201/ 3,900
15 Inventory ............................................. 120/ 600

Accounts Payable—
Oklahoma Ltd.. ...................... 201/ 600
(This entry should have been recorded in the Purchases Journal.)
18 Accounts Payable—Georgia
Ltd.. .................................................. 201/ 380
Inventory .................................... 120/ 380
25 Accounts Payable—Kansas Co. ...... 201/ 200

Inventory .................................... 120/ 200
EXERCISE G-13
€1,150 (€280 + €240 + €310 + €190 + €130). All of the debit postings to the
subsidiary ledger accounts should be from sales invoices. The total of all
these debits should therefore be the total credit sales for the month, which
would be the same amount as the end-of-month debit to Accounts
Receivable.
EXERCISE G-14
(a) €19,000 + €72,000 – €46,000 = €45,000

(b) €22,000 + €100,000 – €48,000 = €74,000
(c) €17,000 + €64,000 – €55,000 = €26,000
(d) €13,500 + €72,000 – €1,000 – €63,600 = €20,900
(e) €100,000 + €6,000 = €106,000
SOLUTIONS TO PROBLEMS
PROBLEM G-1A
(a)
Cost of Goods Sold
Apr. 1 Share
Capital—
Ordinary 311 7,500 7,500
4 Afzal  1,764 36 1,800
5 Jury Co.  1,050 1,050
8 7,845 7,845 4,460
10 Siem  600 600
11 Inventory 120 680 680
23 Jury Co.  1,500 1,500
29 Milkie  1,200 1,200
22,139 36 6,150 7,845 8,180 4,460
(101) (414) (112) (401) (X) (505)(120)
(b) General Ledger
Accounts Receivable No. 112

Apr. 1 Balance  7,450
30 CR1 6,150 1,300

Siem
Apr. 1 Balance  1,550
10 CR1 600 950
PROBLEM G-1A (Continued)
Milkie
Apr. 1 Balance  1,200
29 CR1 1,200 0
Jury Co.
5 CR1 1,050 1,850
23 CR1 1,500 350
Afzal
4 CR1 1,800 0
(c) Accounts receivable balance: €1,300
Subsidiary account balances:

Siem € 950
Jury Co. 350
Total €1,300
PROBLEM G-2A
(a)
Other Accounts
Ck. Accounts Payable Inventory Cash
Date No. Account Debited Ref. Dr. Dr. Cr. Cr.
Oct. 1 63 Inventory 120 300 300
3 64 Equipment 157 1,200 1,200
5 65 Deavers Company  2,700 54 2,646
10 66 Inventory 120 2,250 2,250
15 67 May Co.  2,100 2,100
16 68 Cash Dividends 332 400 400
19 69 Greer Co.  1,800 36 1,764
29 70 Snell Company  2,500 2,500
4,150 9,100 90 13,160
(X) (201) (120) (101)
(b) General Ledger
Accounts Payable No. 201

Oct. 1 Balance  11,000
31 CP1 9,100 1,900
Accounts Payable Subsidiary Ledger
Deavers Company
Oct. 1 Balance  2,700
5 CP1 2,700 0
Greer Co.
19 CP1 1,800 700
May Co.
15 CP1 2,100 0
Snell Company
29 CP1 2,500 1,200
(c) Accounts payable balance: 1,900

Greer Co. 700
Snell Company 1,200
1,900
PROBLEM G-3A
(a)
Accounts Other
Payable Inventory Accounts
Date Account Credited (Debited) Ref. Cr. Dr. Dr.
July 1 Chad Company  7,600 7,600
2 Pegasus Shipping  400 400
5 Kivlin Company  3,400 3,400
13 Bowe Supply 126/ 910 910
(Supplies)
15 Chad Company  3,600 3,600
15 Goran Company  3,300 3,300
18 Wei Advertisements 610/ 640 640
(Advertising Expense)
24 Kivlin Company  3,000 3,000
26 Bowe Supply 157/ 900 900
(Equipment)
28 Pegasus Shipping  380 380
24,130 21,680 2,450
(201) (120) (X)
Sales Journal S1
Accounts Receivable Dr. Cost of Goods Sold Dr.
Date Account Debited Ref. Sales Revenue Cr. Inventory Cr.
July 3 Effron Company  1,300 910
3 Pitas Bros.  2,000 1,400
16 Felber Company  3,450 2,415
16 Pitas Bros.  1,570 1,099
21 Effron Company  310 217
21 Musky Company  2,680 1,876
30 Felber Company  5,600 3,920
16,910 11,837
(112)(401) (505)(120)
General Journal G1
July 8 Accounts Payable—Kivlin
Company ......................................... 201/ 300
Inventory .................................... 120/ 300
22 Sales Returns and Allowances 412/ 65

Accounts Receivable— 
Effron Company .................... 112/ 65
(b) General Ledger

July 31 S1 16,910 16,910
22 G1 65 16,845
Inventory No. 120

July 31 P1 21,680 21,680
8 G1 300 21,380
31 S1 11,837 9,543
Supplies No. 126

July 13 P1 910 910
Equipment No. 157

July 26 P1 900 900

July 31 P1 24,130 24,130
8 G1 300 23,830
Sales Revenue No. 401

July 31 S1 16,910 16,910
Sales Returns and Allowances No. 412

July 22 G1 65 65
Cost of Goods Sold No. 505

July 31 S1 11,837 11,837
Advertising Expense No. 610

July 18 P1 640 640
Pitas Bros.
July 3 S1 2,000 2,000
16 S1 1,570 3,570
Effron Company
July 3 S1 1,300 1,300
21 S1 310 1,610
22 G1 65 1,545
Felber Company
July 16 S1 3,450 3,450
30 S1 5,600 9,050
Musky Company
July 21 S1 2,680 2,680
Bowe Supply
July 13 P1 910 910
26 P1 900 1,810
Pegasus Shipping
July 2 P1 400 400
28 P1 380 780
Chad Company
July 1 P1 7,600 7,600
15 P1 3,600 11,200
Kivlin Company
July 5 P1 3,400 3,400
8 G1 300 3,100
24 P1 3,000 6,100
Wei Advertisements
July 18 P1 640 640
Goran Company
July 15 P1 3,300 3,300
(c) Accounts receivable balance ................................. ₤16,845
Subsidiary account balances

Pitas Bros. ......................................................... ₤ 3,570
Effron Company ............................................... 1,545
Felber Company ............................................... 9,050
Musky Company ............................................... 2,680
Total ........................................................... ₤16,845
Accounts payable balance...................................... ₤23,830

Bowe Supply ..................................................... ₤ 1,810
Pegasus Shipping ............................................ 780
Chad Company ................................................. 11,200
Kivlin Company ................................................ 6,100
Wei Advertisements ......................................... 640
Goran Company ............................................... 3,300
Total ........................................................... ₤23,830
PROBLEM G-4A
(a), (b) & (c)

Sales Journal S1
Account Invoice Accounts Receivable Dr. Cost of Goods Sold Dr.

Date Debited No. Ref. Sales Revenue Cr. Inventory Cr.
Jan. 4 Hull 371  5,600 3,360
9 Phelan Ltd. 372  6,400 3,840
17 Mayr Co. 373  1,200 720
31 Hull 374  9,330 5,598
22,530 13,518
(112)(401) (505)(120)
Inventory Dr.
Jan. 3 Pirkov Co.  10,000
8 Dubois Co.  4,500
11 Akers Co.  3,700
23 Pirkov Co.  7,800
24 Fifer Ltd.  5,100
31,100
(120)(201)
General Journal G1
Jan. 5 Accounts Payable—Pirkov Co. ............. 201/ 300
Inventory..................................... 120 300
19 Equipment ........................................... 157/ 5,500

Accounts Payable—Barb 201/
Ltd.. ......................................... 5,500

Cost of Goods Sold
Jan. 6 3,750 3,750 2,250
13 6,260 6,260 3,756
15 Phelan Ltd.  6,336 64 6,400
17 Hull  5,600 5,600
20 3,200 3,200 1,920
27 4,230 4,230 2,538
30 Mayr Co.  1,200 1,200
30,576 64 13,200 17,440 0 10,464
(101) (414) (112) (401) (X) (505)(120)

Other Accounts
Accounts Payable Inventory Cash
Date Account Debited Ref. Dr. Dr. Cr. Cr.
Jan. 4 Supplies 126 80 80
13 Pirkov Co.  9,700 194 9,506
15 Salaries and
Wages Expense 726 14,300 14,300
20 Dubois Co.  4,500 90 4,410
31 Salaries and
Wages Expense 726 14,300 14,300
28,680 14,200 284 42,596
(X) (201) (120) (101)
PROBLEM G-5A
(a), (d) & (g) General Ledger
Cash No. 101

July 31 CR1 101,735 101,735
31 CP1 38,766 62,969

July 31 S1 20,400 20,400
31 CR1 15,400 5,000
Inventory No. 120

July 31 P1 43,720 43,720
29 CR1 520 43,200
31 CP1 234 42,966
31 S1 13,260 29,706
31 CR1 3,835 25,871
Supplies No. 127

July 4 CP1 600 600
31 Adjusting entry G1 390 210
Prepaid Rent No. 131

July 11 CP1 6,000 6,000
31 Adjusting entry G1 500 5,500

July 31 P1 43,720 43,720
31 CP1 29,900 13,820
Share Capital—Ordinary No. 311

July 1 CR1 80,000 80,000
Cash Dividends No. 332

July 19 CP1 2,500 2,500

July 31 S1 20,400 20,400
31 CR1 5,900 26,300
Sales Discounts No. 414

July 31 CR1 85 85

July 31 S1 13,260 13,260
31 CR1 3,835 17,095
Supplies Expense No. 631

July 31 Adjusting entry G1 390 390
Rent Expense No. 729

July 31 Adjusting entry G1 500 500
(b)
Sales Journal S1
July 6 Dorfner Co.  6,900 4,485
8 Bonilha  3,600 2,340
10 L. Ortiz  4,900 3,185
21 M.Putzi  5,000 3,250
20,400 13,260
(112)(401) (505)(120)

Cost of Goods Sold
July 1 Share
Capital—
Ordinary 311 80,000 80,000
7 5,900 5,900 3,835
13 Bonilha  3,564 36 3,600
16 L. Ortiz  4,851 49 4,900
20 Dorfner Co.  6,900 6,900
29 Inventory 120 520 520
101,735 85 15,400 5,900 80,520 3,835
(101) (414) (112) (401) (X) (505)(120)
(c) Accounts Receivable Subsidiary Ledger
Dorfner Co.
July 6 S1 6,900 6,900
20 CR1 6,900 0
M. Putzi
July 21 S1 5,000 5,000
L. Ortiz
July 10 S1 4,900 4,900
16 CR1 4,900 0
Bonilha
July 8 S1 3,600 3,600
13 CR1 3,600 0
D. Talbert
July 13 P1 15,300 15,300
21 CP1 15,300 0
K. Emmons
July 5 P1 8,100 8,100
10 CP1 8,100 0
G. Young
July 20 P1 7,900 7,900
T. Cigale
July 4 P1 6,500 6,500
15 CP1 6,500 0
M. Huang
July 11 P1 5,920 5,920
(e) ROSALEZ CO.

Trial Balance
July 31, 2017
Debit Credit
Cash ................................................................... € 62,969
Accounts Receivable ....................................... 5,000
Inventory ........................................................... 25,871
Supplies ............................................................ 600
Prepaid Rent ..................................................... 6,000
Accounts Payable ............................................ € 13,820
Share Capital—Ordinary ................................. 80,000
Cash Dividends ................................................ 2,500
Sales Revenue .................................................. 26,300
Sales Discounts ............................................... 85
Cost of Goods Sold ......................................... 17,095
€120,120 €120,120
(f) Accounts receivable balance .................................................. € 5,000
Subsidiary accounts balance

M. Putzi ............................................................................... € 5,000
Accounts payable balance....................................................... €13,820
Subsidiary accounts balance

G. Young ............................................................................. € 7,900
M. Huang ............................................................................ 5,920
€13,820
(g)
General Journal G1
July 31 Supplies Expense .............................. 631 390
Supplies ..................................... 127 390
31 Rent Expense ..................................... 729 500

Prepaid Rent .............................. 131 500
(h) ROSALEZ CO.

Adjusted Trial Balance
July 31, 2017
Debit Credit
Cash ................................................................... € 62,969
Inventory............................................................ 25,871
Supplies ............................................................. 210
Prepaid Rent ..................................................... 5,500
Accounts Payable ............................................ € 13,820
Share Capital—Ordinary .................................. 80,000
Cash Dividends................................................. 2,500
Sales Revenue .................................................. 26,300
Sales Discounts ................................................ 85
Cost of Goods Sold .......................................... 17,095
Supplies Expense ............................................. 390
Rent Expense .................................................... 500
€120,120 €120,120
PROBLEM G-6A
(b) & (c)

Cost of Goods Sold
Cash Discounts Receivable Revenue Accounts Inventory
Date Account Credited Ref. Dr. Dr. Cr. Cr. Cr. Cr.
Jan. 7 E.Divine  3,500 3,500
13 T.Payton  4,508 92 4,600
23 9,100 9,100 5,460
29 Notes Receivable 115 37,000 0 37,000
54,108 92 8,100 9,100 37,000 5,460
(101) (414) (112) (401) (X) (505)(120)

Other Accounts
Jan. 11 Inventory 120 300 300
12 Rent Expense 729 1,000 1,000
15 A. Qazi  15,000 150 14,850
18 Salaries and Wages
Expense 726 4,500 4,500
27 P.Yang  950 950
5,800 15,950 150 21,600
(X) (201) (120) (101)
Sales Journal S1
Account Accounts Receivable Dr. Cost of Goods Sold Dr.
Date Debited Ref. Sales Revenue Cr. Inventory Cr.
Jan. 3 T. Payton  4,600 2,760
24 J. Clare  7,400 4,440
12,000 7,200
(112)(401) (505)(120)
Inventory Dr.
Jan. 5 P. Yang  2,800
17 E. Monty  1,600
4,400
(120)(201)
General Journal G1
Jan. 14 Sales Returns and Allowances ........ /412 300
Accounts Receivable—
M. Barajas .............................. /112 300
Inventory (€300 X .60) ........................ 120 180
Cost of Goods Sold .................. /505 180
20 Accounts Payable—L. Gold .............. /201 18,000

Notes Payable ........................... /200 18,000
30 Accounts Payable—E. Monty ........... /201 300

Inventory .................................... 120 300
(a) & (c)

General Ledger
Cash No. 101
Jan. 1 Balance  41,500
31 CR1 54,108 95,608
31 CP1 21,600 74,008

14 G1 300 14,700
31 CR1 8,100 6,600
31 S1 12,000 18,600
Notes Receivable No. 115

29 CR1 37,000 8,000
Inventory No. 120

11 CP1 300 20,300
14 G1 180 20,480
30 G1 300 20,180
31 P1 4,400 24,580
31 CP1 150 24,430
31 CR1 5,460 18,970
31 S1 7,200 11,770
Equipment No. 157

Accumulated Depreciation—Equipment No. 158

Notes Payable No. 200

Jan. 20 G1 18,000 18,000

20 G1 18,000 25,000
30 G1 300 24,700
31 P1 4,400 29,100
31 CP1 15,950 13,150


Jan. 31 CR1 9,100 9,100
31 S1 12,000 21,100

Jan. 14 G1 300 300

Jan. 31 CR1 92 92

Jan. 31 CR1 5,460 5,460
31 S1 7,200 12,660
14 G1 180 12,480
Salaries and Wages Expense No. 726

Jan. 18 CP1 4,500 4,500

Jan. 12 CP1 1,000 1,000
M. Barajas
14 G1 300 2,200
J. Clare
24 S1 7,400 14,900
E. Divine
7 CR1 3,500 1,500
T. Payton
Jan. 3 S1 4,600 4,600
13 CR1 4,600 0
E. Monty
Jan. 17 P1 1,600 1,600
30 G1 300 1,300
B. Forrest
L. Gold
20 G1 18,000 0
A. Qazi
15 CP1 15,000 0
P. Yang
Jan. 5 P1 2,800 2,800
27 CP1 950 1,850
(d) AMLAND AG
Trial Balance
January 31, 2017
Debit Credit
Cash ................................................................... € 74,008
Notes Receivable ............................................. 8,000
Inventory ........................................................... 11,770
Equipment ......................................................... 7,500
Accumulated Depreciation—Equipment....... € 1,500
Notes Payable................................................... 18,000
Accounts Payable ............................................ 13,150
Sales Revenue .................................................. 21,100
Sales Returns and Allowances ...................... 300
Sales Discounts ............................................... 92
Cost of Goods Sold ......................................... 12,480
Salaries and Wages Expense ......................... 4,500
Rent Expense ................................................... 1,000
€138,250 €138,250
(e) Accounts Receivable Subsidiary Ledger

M. Barajas ............................................................................ € 2,200
J. Clare ................................................................................. 14,900
E. Divine .............................................................................. 1,500
€18,600
Accounts Receivable Control ................................................... €18,600

E. Monty ............................................................................... € 1,300
B. Forrest ............................................................................. 10,000
P. Yang................................................................................. 1,850
€13,150
Accounts Payable Control ........................................................ €13,150
PROBLEM G-1B
(a)
Cost of Goods Sold
June 1 Share Capital─
Ordinary 311 12,000 12,000
3 Loomis Co.  1,764 36 1,800
6 Flores Co.  1,862 38 1,900
7 7,220 7,220 4,800
9 Detwiler & Son  2,450 50 2,500
11 Inventory 120 370 370
15 4,900 4,900 3,180
20 Glaimo Bros.  1,600 1,600
32,166 124 7,800 12,120 12,370 7,980
(101) (414) (112) (401) (X) (505/120)
(b) General Ledger

June 1 Balance  7,800
30 CR1 7,800 0
Detwiler & Son

9 CR1 2,500 0
PROBLEM G-1B (Continued)
Flores Co.
6 CR1 1,900 0
Glaimo Bros.
20 CR1 1,600 0
Loomis Co.
3 CR1 1,800 0
(c) Accounts receivable balance = ₤0.

Sum of all subsidiary accounts = ₤0.
PROBLEM G-2B
(a)
Other Accounts
Ck. Accounts Payable Inventory Cash
Date No. Account Debited Ref. Dr. Dr. Cr. Cr.
Nov. 1 11 Inventory 120 1,190 1,190
3 12 Equipment 157 1,700 1,700
5 13 Weber Bros.  1,500 30 1,470
11 14 Inventory 120 2,000 2,000
15 15 K. Radaj  1,000 30 970
16 16 Cash Dividends 332 500 500
19 17 O. Kroll  1,200 12 1,188
25 18 Prepaid Insurance 130 3,000 3,000
30 19 C. Holt & Co.  3,500 00 3,500
8,390 7,200 72 15,518
(X) (201) (120) (101)
(b) General Ledger

Nov. 1 Balance  9,350
30 CP1 7,200 2,150

C. Holt & Co.
Nov. 1 Balance  4,500
30 CP1 3,500 1,000
O. Kroll
19 CP1 1,200 1,150
K. Radaj
15 CP1 1,000 0
Weber Bros.
5 CP1 1,500 0
(c) Accounts payable balance: €2,150

C. Holt & Co. €1,000
O. Kroll 1,150
€2,150
PROBLEM G-3B
(a)
Accounts Other
Payable Inventory Accounts
Date Account Credited (Debited) Ref. Cr. Dr. Dr.
May 2 Yan Company  7,600 7,600
3 Porter Freight  360 360
8 Quirk Company  8,000 8,000
8 Zamora Company  8,700 8,700
15 Rizio Supply (Supplies) 126/ 900 900
16 Yan Company  4,500 4,500
16 Quirk Company  7,200 7,200
18 Porter Freight  500 500
25 Anshus Advertising (Adv. Exp.) 610/ 950 950
28 Rizio Supply (Equipment) 157/ 0 500 500
39,210 36,860 2,350
(201) (120) (X)
Sales Journal S1
May 5 Eder Company  2,200 1,430
5 Dixon Bros.  2,700 1,755
5 Lamb Company  1,800 1,170
23 Dixon Bros.  1,900 1,235
23 Lamb Company  3,600 2,340
12,200 7,930
(112)(401) (505)(120)
General Journal
May 10 Accounts Payable—Zamora
Company ......................................... 201/ 800
Inventory .................................... 120/ 800
17 Accounts Payable—Rizio
Supply ............................................. 201/ 100
Supplies ..................................... 126 100
20 Accounts Payable—Yan
Company ......................................... 201/ 300
Inventory .................................... 120/ 300
26 Sales Returns and Allowances ........ 412/ 240

Accounts Receivable— 112/
Lamb Company..................... 240
(b) General Ledger

May 31 S1 12,200 12,200
26 G1 240 11,960
Inventory No. 120

May 31 P1 36,860 36,860
10 G1 800 36,060
20 G1 300 35,760
31 S1 7,930 27,830
Supplies No. 126

May 15 P1 900 900
17 G1 100 800
Equipment No. 157

May 28 P1 500 500

May 31 P1 39,210 39,210
10 G1 800 38,410
17 G1 100 38,310
20 G1 300 38,010

May 31 S1 12,200 12,200

May 26 G1 240 240

May 31 S1 7,930 7,930
Advertising Expense No. 610

May 25 P1 950 950
Eder Company
May 5 S1 2,200 2,200
Dixon Bros.
May 5 S1 2,700 2,700
23 S1 1,900 4,600
Lamb Company
May 5 S1 1,800 1,800
23 S1 3,600 5,400
26 G1 240 5,160
Porter Freight
May 3 P1 360 360
18 P1 500 860
Yan Company
May 2 P1 7,600 7,600
16 P1 4,500 12,100
20 G1 300 11,800
Rizio Supply
May 15 P1 900 900
17 G1 100 800
28 P1 500 1,300
Quirk Company
May 8 P1 8,000 8,000
16 P1 7,200 15,200
Zamora Company
May 8 P1 8,700 8,700
10 G1 800 7,900
Anshus Advertising
May 25 P1 950 950
(c) Accounts receivable balance ................................... 11,960

Eder Company .................................................... 2,200
Dixon Bros. ......................................................... 4,600
Lamb Company .................................................. 5,160
Total ............................................................. 11,960
Accounts payable balance........................................ 38,010

Porter Freight .................................................... 860
Yan Company ................................................... 11,800
Rizio Supply ...................................................... 1,300
Quirk Company ................................................. 15,200
Zamora Company ............................................. 7,900
Anshus Advertising ......................................... 950
Total ........................................................... 38,010
PROBLEM G-4B
(a), (b) & (c)

Sales Journal S1
Invoice Accounts Receivable Dr. Cost of Goods Sold Dr.
Date Account Debited No. Ref. Sales Revenue Cr. Inventory Cr.
Oct. 4 Ebert Co. 204  7,700 5,390
17 B. Reblin & Co. 205  5,350 3,745
25 Marco Ltd. 206  5,220 3,654
30 B. Reblin & Co. 207  4,760 3,332
23,030 16,121
(112)(401) (505)(120)
Inventory Dr.
Oct. 2 Cutler Company  13,500
10 Frinzi Ltd.  3,500
27 Lisa Co.  8,500
30 Cutler Company  14,000
39,500
(120)(201)
General Journal G1
Oct. 13 Accounts Payable—Frinzi
Ltd.. .................................................. 201/ 210
Inventory .................................... 120/ 210
25 Supplies .............................................. 126/ 310

Accounts Payable— 
Lewis Co. ............................... 201/ 310

Cost of Goods Sold
Oct. 7 8,800 8,800 6,160
12 Ebert Co.  7,546 154 7,700
14 8,180 8,180 5,726
16 Land 140 27,000 27,000
21 8,200 8,200 5,740
25 B. Reblin &
Co.  5,243 107 5,350
28 7,540 000 00 7,540 5,278
72,509 261 13,050 32,720 27,000 22,904
(101) (414) (112) (401) (X) (505)(120)

Other Accounts
Oct. 5 Supplies 126 80 80
9 Cutler Co.  13,500 270 13,230
18 Inventory 120 2,450 2,450
23 Frinzi Ltd.  3,290 3,290
26 Land 140 21,000
Buildings 145 14,000 35,000
30 Advertising
Expense 610 400 400
37,930 16,790 270 54,450
(X) (201) (120) (101)
PROBLEM G-5B
(b)
Inventory Dr.
Feb. 2 T. Valentine  4,600
7 B. Kucera  28,000
16 E. Nicks  2,700
21 D. Hachey  7,800
43,100
(120)(201)

Other Accounts
Feb. 9 Supplies 126 1,300 1,300
12 T. Valentine  4,600 138 4,462
15 Equipment 157 7,700 7,700
17 B. Kucera  28,000 280 27,720
20 Cash Dividends 332 1,100 1,100
28 E. Nicks  2,700 2,700
10,100 35,300 418 44,982
(X) (201) (120) (101)
(a), (d) & (g) General Ledger
Cash No. 101

Feb. 28 CR1 47,495 47,495
28 CP1 44,982 2,513

Feb. 28 S1 27,400 27,400
28 CR1 12,000 15,400
Inventory No. 120

Feb. 28 P1 43,100 43,100
18 CR1 150 42,950
28 CP1 418 42,532
28 S1 18,084 24,448
28 CR1 3,564 20,884
Supplies No. 126

Feb. 9 CP1 1,300 1,300
28 Adjusting entry G1 910 390
Equipment No. 157

Feb. 15 CP1 7,700 7,700

Feb. 28 Adjusting entry G1 160 160

Feb. 28 P1 43,100 43,100
28 CP1 35,300 7,800

Feb. 1 CR1 30,000 30,000

Feb. 20 CP1 1,100 1,100

Feb. 28 S1 27,400 27,400
28 CR1 5,400 32,800

Feb. 28 CR1 55 55

Feb. 28 S1 18,084 18,084
28 CR1 3,564 21,648

Depreciation Expense No. 711

(c) Accounts Receivable Subsidiary Ledger
S. Armour
Feb. 3 S1 5,500 5,500
13 CR1 5,500 0
V. Ciatti
Feb. 12 S1 8,400 8,400
M. Barajas
Feb. 9 S1 6,500 6,500
26 CR1 6,500 0
A. Dobbs
Feb. 26 S1 7,000 7,000
D. Hachey
Feb. 21 P1 7,800 7,800
T. Valentine
Feb. 2 P1 4,600 4,600
12 CP1 4,600 0
B. Kucera
Feb. 7 P1 28,000 28,000
17 CP1 28,000 0
E. Nicks
Feb. 16 P1 2,700 2,700
28 CP1 2,700 0
(e) WESLEY CO.

Trial Balance
February 28, 2017
Debit Credit
Cash ....................................................................... € 2,513
Accounts Receivable ........................................... 15,400
Inventory ............................................................... 20,884
Supplies................................................................. 1,300
Equipment ............................................................. 7,700
Accounts Payable ................................................ € 7,800
Share Capital—Ordinary ..................................... 30,000
Cash Dividends .................................................... 1,100
Sales Revenue ...................................................... 32,800
Sales Discounts ................................................... 55
Cost of Goods Sold.............................................. 21,648
€70,600 €70,600
(f) Accounts Receivable control account ................. €15,400
Accounts Receivable subsidiary accounts

V. Ciatti ............................................................. €8,400
A. Dobbs ........................................................... 7,000 €15,400
Accounts Payable control account....................... € 7,800
Accounts Payable subsidiary account

D. Hachey ......................................................... € 7,800
(g)
General Journal G1
Feb. 28 Supplies Expense .............................. 631 910
Supplies ..................................... 126 910
28 Depreciation Expense ....................... 711 160

Accumulated Depreciation—
Equipment ............................. 158 160
(h) WESLEY CO.

Adjusted Trial Balance
February 28, 2017
Debit Credit
Cash ....................................................................... € 2,513
Accounts Receivable ........................................... 15,400
Inventory ............................................................... 20,884
Supplies................................................................. 390
Equipment ............................................................. 7,700
Accumulated Depreciation—Equipment ........... € 160
Accounts Payable ................................................ 7,800
Share Capital—Ordinary ..................................... 30,000
Cash Dividends .................................................... 1,100
Sales Revenue ...................................................... 32,800
Sales Discounts ................................................... 55
Cost of Goods Sold.............................................. 21,648
Supplies Expense ................................................ 910
Depreciation Expense ......................................... 160
€70,760 €70,760
COMPREHENSIVE PROBLEM: CHAPTERS 3 TO 6 AND APPENDIX G
Note: If the working papers that accompany this text are not used in
solving this problem, account numbers may differ from those presented in
this solution.
(a)
Sales Journal S1
Accounts Receivable Dr.
Date Account Debited Invoice No. Ref. Sales Revenue Cr.
Jan. 3 W. Rayms 510  3,600
3 M. Fischer 511  1,800
11 G. Dukes 512  1,900
11 L. Longhini 513  900
22 W. Rayms 514  3,700
22 G. Dukes 515  800
25 M. Hall 516  3,500
25 M. Fischer 517  6,100
22,300
(112)(401)
Purchases Dr.
Date Account Credited Terms Ref. Accounts Payable Cr.
Jan. 5 K. Zapfel  3,000
5 J. Liotta  2,400
16 L. Quinn  15,000
16 O. Kitson  13,900
16 K. Zapfel  1,500
27 L. Quinn  12,500
27 J. Liotta  1,200
27 K. Zapfel  2,800
52,300
(510)(201)
COMPREHENSIVE PROBLEM (Continued)

Accounts Sales Other
Account Cash Receivable Revenue Accounts
Date Credited Ref. Dr. Cr. Cr. Cr.
Jan. 7 L. Longhini  4,000 4,000
7 M. Hall  2,000 2,000
10 15,500 15,500
13 W. Rayms  3,600 3,600
13 M. Fischer  1,560 1,560
20 17,750 17,750
21 L. Longhini  900 900
31 22,920 22,920
68,230 12,060 56,170
(101) (112) (401)

Other Accounts
Accounts Payable Supplies Cash
Date Account Debited Ref. Dr. Dr. Dr. Cr.
Jan. 8 Freight-In 516 180 180
9 O. Kitson  9,000 9,000
9 L. Quinn  11,000 11,000
12 Rent Expense 729 1,000 1,000
15 Cash Dividends 332 650 650
17 400 400
23 L. Quinn  15,000 15,000
23 O. Kitson  13,700 13,700
28 200 200
31 Salaries and Wages
Expense 627 7,400 7,400
9,230 48,700 600 58,530
(X) (201) (125) (101)
(a) & (e)

General Journal G1
Date Account Titles and Explanations Ref. Debit Credit
Jan. 9 Sales Returns and
Allowances ..................................... 412 240
Accounts Receivable—
M. Fischer .............................. 112/ 240
(Issued credit for
merchandise returned)
18 Accounts Payable—O. Kitson .......... 201/ 200

Purchase Returns and
Allowances ............................ 512 200
(Received credit for
returned goods)
21 Accounts Payable—
D. Markoff ....................................... 201/ 15,000
Notes Payable ........................... 200 15,000
(Issued note for
balance due)
Adjusting Entries
31 Supplies Expense .............................. 728 1,020
Supplies ..................................... 125 1,020
31 Insurance Expense /
(1/10 × €2,000) ................................ 722 200
Prepaid Insurance..................... 130/ 200
31 Depreciation Expense
(1/12 × €1,500) ................................ 711 125
Accumulated Depreciation—
Equipment ............................. 158 125
31 Interest Expense ................................ 718 30

Interest Payable ........................ 230 30
General Journal G1
Date Account Titles and Explanations Ref. Debit Credit
Jan. 31 Inventory (Jan. 31) ............................. 120 12,600
Sales Revenue .................................... 401 78,470
Purchase Returns and
Allowances ..................................... 512 200
Income Summary ...................... 350 91,270
31 Income Summary ............................... 350 82,495

Inventory
(Jan. 1) ................................... 120 20,000
Sales Returns and
Allowances ............................ 412 240
Purchases .................................. 510 52,300
Freight-In ................................... 516 180
Rent Expense ............................ 729 1,000
Salaries and Wages
Expense ................................. 627 7,400
Supplies Expense ..................... 728 1,020
Insurance Expense ................... 722 200
Depreciation Expense .............. 711 125
Interest Expense ....................... 718 30
31 Income Summary ............................... 350 8,775

Retained Earnings .................... 320 8,775
31 Retained Earnings ............................. 320 650

Cash Dividends ......................... 332 650
(b) & (e) General Ledger
Cash No. 101

Jan. 1 Balance  32,750
31 CR1 68,230 100,980
31 CP1 58,530 42,450

Jan. 1 Balance  13,000
31 S1 22,300 35,300
31 CR1 12,060 23,240
9 G1 240 23,000
Notes Receivable No. 115

Inventory No. 120

31 G1 12,600 32,600
31 G1 20,000 12,600
Supplies No. 125

31 CP1 600 1,600
31 G1 1,020 580
Prepaid Insurance No. 130

31 G1 200 1,800
Equipment No. 157

Jan. 1  6,450

31 G1 125 1,625
Notes Payable No. 200

Jan. 21 Balance G1 15,000 15,000

31 P1 52,300 87,300
31 CP1 48,700 38,600
18 G1 200 38,400
21 G1 15,000 23,400
Interest Payable No. 230

Jan. 31 G1 30 30

Jan. 1  70,000
Retained Earnings No. 320

31 G1 8,775 19,475
31 G1 650 18,825

Jan. 15 CP1 650 650
31 G1 650 0
Income Summary No. 350

Jan. 31 G1 91,270 91,270
31 G1 82,495 8,775
31 G1 8,775 0

Jan. 31 S1 22,300 22,300
31 CR1 56,170 78,470
31 G1 78,470 0

Jan. 9 G1 240 240
31 G1 240 0
Purchases No. 510

Jan. 31 P1 52,300 52,300
31 G1 52,300 0
Purchase Returns and Allowances No. 512

Jan. 18 G1 200 200
31 G1 200 0
Freight-In No. 516

Jan. 8 CP1 180 180
31 G1 180 0
Salaries and Wages Expense No. 627

Jan. 31 CP1 7,400 7,400
31 G1 7,400 0
Depreciation Expense No. 711

Jan. 31 G1 125 125
31 G1 125 0
Interest Expense No. 718

Jan. 31 G1 30 30
31 G1 30 0
Insurance Expense No. 722

Jan. 31 G1 200 200
31 G1 200 0

Jan. 31 G1 1,020 1,020
31 G1 1,020 0

Jan. 12 CP1 1,000 1,000
31 G1 1,000 0
G. Dukes
11 S1 1,900 3,700
22 S1 800 4,500
M. Fischer
Jan. 3 S1 1,800 1,800
9 G1 240 1,560
13 CR1 1,560 0
25 S1 6,100 6,100
M. Hall
7 CR1 2,000 5,200
25 S1 3,500 8,700
L. Longhini
7 CR1 4,000 0
11 S1 900 900
21 CR1 900 0
W. Rayms
Jan. 3 S1 3,600 3,600
13 CR1 3,600 0
22 S1 3,700 3,700
J. Liotta
Jan. 5 P1 2,400 2,400
27 P1 1,200 3,600
O. Kitson
9 CP1 9,000 0
16 P1 13,900 13,900
18 G1 200 13,700
23 CP1 13,700 0
D. Markoff
21 G1 15,000 0
L. Quinn
9 CP1 11,000 0
16 P1 15,000 15,000
23 CP1 15,000 0
27 P1 12,500 12,500
K. Zapfel
Jan. 5 P1 3,000 3,000
16 P1 1,500 4,500
27 P1 2,800 7,300
Copyright © 2015 John Wiley & Sons, Inc.

(c) ZWEIFEL SE
Worksheet
For the Month Ended January 31, 2017
Statement of
Adjusted Income Financial
Trial Balance Adjustments Trial Balance Statement Position
Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 42,450 42,450 42,450
Accounts Receivable 23,000 23,000 23,000
Notes Receivable 42,000 42,000 42,000
Inventory 20,000 20,000 20,000 12,600 12,600
Weygandt Financial, IFRS, 3/e, Solution’ s Manual
Supplies 1,600 (1) 1,020 580 580

Prepaid Insurance 2,000 (2) 200 1,800 1,800
Equipment 6,450 6,450 6,450
Accum. Depreciation—Equipment 1,500 (3) 125 1,625 1,625
Notes Payable 15,000 15,000 15,000
Accounts Payable 23,400 23,400 23,400
Interest Payable (4) 30 30 30
Share Capital—Ordinary 70,000 70,000 70,000
Retained Earnings 10,700 10,700 10,700
Cash Dividends 650 650 650
Sales Revenue 78,470 78,470 78,470
Sales Returns and Allowances 240 240 240
Purchases 52,300 52,300 52,300
Purchase Returns and Allowances 200 200 200
Freight-In 180 180 180
Salaries and Wages Expense 7,400 7,400 7,400
Rent Expense 1,000 1,000 1,000
(For Instructor Use Only)
Totals 199,270 199,270

Supplies Expense (1) 1,020 1,020 1,020
Insurance Expense (2) 200 200 200
Depreciation Expense (3) 125 125 125
Interest Expense (4) 30 30 , 30
Totals 1,375 1,375 199,425 199,425 82,495 91,270 129,530 120,755
Net Income 8,775 8,775
Totals 91,270 91,270 129,530 129,530
G-73
(d) ZWEIFEL SE
Income Statement
Sales
Sales revenue .................................. €78,470
Less: Sales returns and
allowances ....................... 240
Net sales .......................................... 78,230
Cost of goods sold
Inventory, 1/1/17 .............................. €20,000
Purchases ........................................ €52,300
Less: Purchase returns and
allowances ........................... 200
Net purchases ................................. 52,100
Freight-in .......................................... 180 52,280
Cost of goods available for
sale ............................................... 72,280
Less: Inventory,
1/31/17 ........................................ 12,600
Cost of goods sold ................... 59,680
Gross profit ..................................... 18,550
Operating expenses
Salaries and wages expense ......... 7,400
Supplies expense............................ 1,020
Rent expense ................................... 1,000
Insurance expense ......................... 200
Depreciation expense..................... 125
Total oper. expenses ................ 9,745
Income from operations ....................... 8,805
Interest expense .................................... 30
Net income ............................................. € 8,775
ZWEIFEL SE
Retained Earnings Statement
Retained earnings, January 1, 2017 ........................................ € 10,700
Add: Net income ...................................................................... 8,775
19,475
Less: Dividends ......................................................................... 650
Retained earnings, January 31, 2017 ...................................... €18,825
ZWEIFEL SE
Statement of Financial Position
January 31, 2017
Assets
Property, Plant, and Equipment
Equipment ..................................................... €6,450
Less: Accumulated
depreciation—equip. ..................... 1,625 €4,825
Current assets
Prepaid insurance ........................................ 1,800
Supplies ......................................................... 580
Inventory ....................................................... 12,600
Accounts receivable .................................... 23,000
Notes receivable ........................................... 42,000
Cash ............................................................... 42,450
Total current assets ............................. 122,430
Total assets ........................................... €127,255
Equity and Liabilities

Equity
Share capital—ordinary ............................... €70,000
Retained earnings ........................................ 18,825
Total equity ........................................... €88,825
Current liabilities
Notes payable ............................................... 15,000
Accounts payable ........................................ 23,400
Interest payable ............................................ 30
Total liabilities....................................... 38,430
Total equity and liabilities ................... €127,255
(f) ZWEIFEL SE
Post-Closing Trial Balance
January 31, 2017
Debit Credit
Cash ................................................................... € 42,450
Notes Receivable ............................................. 42,000
Inventory ........................................................... 12,600
Supplies ............................................................ 580
Prepaid Insurance ............................................ 1,800
Equipment ......................................................... 6,450
Accumulated Depreciation—Equipment ....... € 1,625
Notes Payable ................................................... 15,000
Accounts Payable ............................................ 23,400
Interest Payable ................................................ 30
Retained Earnings ........................................... 18,825
€128,880 €128,880
Accounts Receivable balance ............................... €23,000

G. Dukes ........................................................... € 4,500
M. Fischer ......................................................... 6,100
M. Hall ............................................................... 8,700
W. Rayms ......................................................... 3,700
€23,000
Accounts Payable balance .................................... €23,400

J. Liotta ............................................................. € 3,600
L. Quinn ............................................................ 12,500
K. Zapfel ........................................................... 7,300
€23,400

Appendix G: Subsidiary Ledgers and Special Journals

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Appendix G: Subsidiary Ledgers and Special Journals

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APPENDIX G

Subsidiary Ledgers and Special Journals

ASSIGNMENT CLASSIFICATION TABLE

2. Explain how companies 3, 4, 6, 3, 4, 6, 7, 8, 1A, 2A, 3A, 1B, 2B, 3B,

Problem Difficulty Time

G-1A Journalize transactions in cash receipts journal; Simple 30–40

G-2A Journalize transactions in cash payments journal; Simple 30–40

G-3A Journalize transactions in multi-column purchases Moderate 40–50

G-4A Journalize transactions in special journals. Moderate 50–60

G-6A Journalize in special journals; post; prepare Complex 60–70

G-1B Journalize transactions in cash receipts journal; Simple 30–40

G-2B Journalize transactions in cash payments journal; Simple 30–40

G-3B Journalize transactions in multi-column purchases Moderate 40–50

G-4B Journalize transactions in special journals. Moderate 50–60

BLOOM’ S TAXONOMY TABLE

Learning Objective Knowledge Comprehension Application Analysis Synthesis Evaluation

EG-2 EG-7 PG-3A PG-4B

(Mini Practice Set) Across the

 Permit transactions affecting a single customer or single creditor to be shown in a single

3. Sales journal. Records entries for all sales of merchandise on account.

Some advantages of each journal are given below:

9. (a) General journal. (d) Sales journal.

10. (a) Cash receipts journal. (d) Purchases journal.

BRIEF EXERCISE G-1

Accounts Receivable Subsidiary Ledger General Ledger

BRIEF EXERCISE G-2

(a) General ledger (c) General ledger

BRIEF EXERCISE G-3

(a) Cash Receipts Journal (d) Sales Journal

BRIEF EXERCISE G-4

(a) No (c) Yes

(a) General Journal (if a one-column Purchases Journal)

BRIEF EXERCISE G-6

(a) Cash Receipts Journal

BRIEF EXERCISE G-7

(a) Both in total and daily (c) In total

To: Erica Henes, Chief Financial Officer

Subject: Mailee Long account

If I can be of further help, please let me know.

(a) & (b) General Ledger

Accounts Receivable Subsidiary Ledger

(c) THONE PLC

Accounts Receivable .................................................................. ₤8,305

(a) €3,700 [€10,200 – (€4,000 + €2,500)].

(a) NT$101,250 [NT$247,500 – (NT$90,000 + NT$56,250)].

(a) & (b) PASHAK OAO

(a) & (b) NEWELL LTD.

(a) Journal (b) Columns in the journal

1. Cash Payments Cash (Cr.), Other Accounts (Dr.).

(a) Mar. 2 Equipment ....................................................... 9,400

7 Sales Returns and Allowances..................... 365

Inventory ......................................................... 245

(b) To: President, Moncado plc

From: Chief Accountant

Subject: Posting of Control and Subsidiary Accounts

Sales and purchases journals—the total for the month is posted to

I hope this memo answers your questions about posting.

1. Cash Payments Journal 8. Cash Receipts Journal

15 Inventory ............................................. 120/ 600