bus101 working papers

SELF-REVIEW QUIZ 1-1

GRACIE RYAN REAL ESTATE

SG-1

Introductionto accountingconcepts andprocedures

1

OWNER’SASSETS = LIABILITIES + EQUITY

Computer Accounts Gracie Ryan,Cash + Equipment = Payable + Capital

TRANSACTION 1

NEW BALANCE =

TRANSACTION 2

NEW BALANCE =

TRANSACTION 3

ENDING BALANCE + = +

=

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Pearson Learning Solutions

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Name __________________________________ Class ____________________ Date ____________________


ASSETS LIABILITIES AND OWNER’S EQUITY

SG-2

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Name __________________________________ Class ____________________ Date ____________________


SG-3

B. B

ING

CO

.

ASS

ETS

=LI

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Name __________________________________ Class ____________________ Date ____________________


(1)

(2)

SG-4

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Name __________________________________ Class ____________________ Date ____________________

(3)


SG-5

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Name __________________________________ Class ____________________ Date ____________________

FORMS FOR DEMONSTRATION PROBLEM

(A)

SG-6

MIC

HA

EL B

RO

WN

, ATT

OR

NEY

AT

LAW

ASS

ETS

=LI

AB

ILIT

IES

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WN

ER’S

EQ

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Y

Acc

ount

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ffice

Acc

ount

sM

. Bro

wn,

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With

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s–

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1. Bal

ance

2. Bal

ance

3. Bal

ance

4. Bal

ance

5. Bal

ance

6. Bal

ance

7. Bal

ance

8. Bal

ance

9. Endi

ngB

alan

ce+

+=

+–

+–

=

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Name __________________________________ Class ____________________ Date ____________________

DEMONSTRATION PROBLEM (CONTINUED)

B-1

MICHAEL BROWN, ATTORNEY AT LAWINCOME STATEMENT

FOR MONTH ENDED JUNE 30, 200X

B-2MICHAEL BROWN, ATTORNEY AT LAW

STATEMENT OF OWNER’S EQUITYFOR MONTH ENDED JUNE 30, 200X

B-3MICHAEL BROWN, ATTORNEY AT LAW

BALANCE SHEETJUNE 30, 200X


SG-7

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CHAPTER 1FORMS FOR CLASSROOM DEMONSTRATION EXERCISES SET A OR SET B

1. A. 2. A.B. B.C. C.D.E.F.

3. A. 4.B.

5. 6.

7. A. 8. A.B. B.C. C.D. D.

E.F.

9. A. G.B. H.C.D.

Name __________________________________ Class ____________________ Date ____________________

SG-8

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Name __________________________________ Class ____________________ Date ____________________

SG-9

FORMS FOR EXERCISES

1-1.

A.

B.

C.

1-2.

ASSETS = LIABILITIES + OWNER’S EQUITY

A.

B.

C.

1-3.

RANGE CO.BALANCE SHEET

NOVEMBER 30, 200X


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EXERCISES (CONTINUED)

1-4.

Name __________________________________ Class ____________________ Date ____________________

SG-10

ASS

ETS

=LI

AB

ILIT

IES

+O

WN

ER’S

EQ

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Y

Acc

ount

sC

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ter

Acc

ount

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Bel

lB.

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t=

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+C

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With

d.+

Rev

enue

–Ex

pens

es

A.

B C.

D E. F G.

Endi

ngB

alan

ce

=

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Name __________________________________ Class ____________________ Date ____________________

SG-11

EXERCISES (CONCLUDED)

1-5.(A)

FRENCH REALTYINCOME STATEMENT


(B)FRENCH REALTY


(C)FRENCH REALTYBALANCE SHEETJUNE 30, 200X


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END OF CHAPTER PROBLEMS

PROBLEM 1A-1 OR PROBLEM 1B-1

MIA’S NAIL SPA

OWNER’SASSETS = LIABILITIES + EQUITY

Store Accounts Mia Annabelle,Cash + Equipment = Payable + Capital

TRANSACTION A

NEW BALANCE

TRANSACTION B

NEW BALANCE

TRANSACTION C

NEW BALANCE

TRANSACTION D

ENDING BALANCE


SEE’S INTERNET SERVICEBALANCE SHEET

SEPTEMBER 30, 200X


Name __________________________________ Class ____________________ Date ____________________

SG-12

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Name __________________________________ Class ____________________ Date ____________________

SG-13


RIC

K F

OX

TYPI

NG

SER

VIC

E

ASS

ETS

=LI

AB

ILIT

IES

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ffice

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ent

=Pa

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ithd.

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even

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Expe

nses

A.

BALA

NC

E

B. BALA

NC

E

C.

BALA

NC

E

D.

BALA

NC

E

E. BALA

NC

E

F. BALA

NC

E

G.

BALA

NC

E

H.

END

ING

BALA

NC

E

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(A)

WEST STENCILING SERVICEINCOME STATEMENT


(B)WEST STENCILING SERVICE


Name __________________________________ Class ____________________ Date ____________________

SG-14

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Name __________________________________ Class ____________________ Date ____________________

SG-15

PROBLEM 1A-4 OR PROBLEM 1B-4 (CONCLUDED)

(C)

WEST STENCILING SERVICEBALANCE SHEETJUNE 30, 200X


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Name __________________________________ Class ____________________ Date ____________________

SG-16

TOB

EY’S

CA

TER

ING

SER

VIC

E

(A)

ASS

ETS

=LI

AB

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10/2

5

BALA

NC

E

10/2

7

BALA

NC

E

10/2

8

BALA

NC

E

10/2

9

BALA

NC

E

11/1

BALA

NC

E

11/5

BALA

NC

E

11/8

BALA

NC

E

11/1

0

BALA

NC

E

11/1

5

BALA

NC

E

11/1

7

BALA

NC

E

11/2

0

BALA

NC

E

11/2

5

BALA

NC

E

11/2

8

BALA

NC

E

11/3

0

END

. BA

L.

=

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Name __________________________________ Class ____________________ Date ____________________

SG-17

PROBLEM 1A-5 OR PROBLEM 1B-5 (CONTINUED)

(B)TOBEY’S CATERING SERVICE

BALANCE SHEETOCTOBER 31, 200X


(C)TOBEY’S CATERING SERVICE

INCOME STATEMENTFOR MONTH ENDED NOVEMBER 30, 200X

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(D)

TOBEY’S CATERING SERVICESTATEMENT OF OWNER’S EQUITY

FOR MONTH ENDED NOVEMBER 30, 200X

(E)TOBEY’S CATERING SERVICE

BALANCE SHEETNOVEMBER 30, 200X


Name __________________________________ Class ____________________ Date ____________________

SG-18

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Name __________________________________ Class ____________________ Date ____________________

SG-19

CHAPTER 1SUMMARY PRACTICE TEST:

INTRODUCTION TO ACCOUNTING CONCEPTS AND PROCEDURES

Part I Instructions

Fill in the blank(s) to complete the statement.

1. was passed to prevent corporate fraud.

2. – Liabilities = Owner’s Equity

3. The owner’s current investment or equity in the assets of a business is called .

4. A list of assets, liabilities, and owner’s equity as of a particular date is reported on a(n)

.

5. create an outward or potential outward flow of assets.

6. Revenue earned not on account creates an asset entitled .

7. record personal expenses that are not related to the business. They are a subdivision

of owner’s equity.

8. The reports how well a business performs for a period of time.

9. The is a report that

shows changes in capital.

10. The ending figure for capital from the statement of owner’s equity is placed on the

.

Part II Instructions

Answer true or false to the following statements.

1. Accounts Receivable is a liability.2. Liabilities produce revenue.3. Revenue is an asset.4. Capital means cash.5. Bookkeeping is 50% of accounting.6. The balance sheet lists assets, revenue, and owner’s equity.7. The balance sheet shows where we are now for a specific period of time.8. Revenue creates an outward flow of assets.9. Expenses are a subdivision of owner’s equity.

10. Withdrawals are the only subdivision of owner’s equity.11. Withdrawals are listed on the income statement.12. Revenue is a subdivision of owner’s equity.13. Revenues and withdrawals are listed on the income statement.14. The income statement helps update the statement of owner’s equity, and the statement of owner’s

equity helps update the balance sheet.15. Withdrawals are listed on the statement of owner’s equity.

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Part III Instructions

In column B, record the appropriate code(s) that result from recording the transaction in column A.

1. Increase in assets 5. Increase in capital2. Decrease in assets 6. Increase in revenues3. Increase in liabilities 7. Increase in expenses4. Decrease in liabilities 8. Increase in withdrawals

COLUMN A COLUMN B

1. EXAMPLE: Pete Smith invested $5,000 in his business. 1,52. Bought computer equipment on account for $600.3. Paid salaries of $70.4. Bought additional computer equipment for $750 cash.5. Paid rent expense of $90.6. Received $5,000 in cash from revenue earned.7. Paid heat expense of $15.8. Earned revenue of $500 that will not be received until next month.9. Paid amount owed on equipment previously purchased on account.

10. Paid for cleaning supplies expense, $15.11. Customers paid $10 of amount previously owed.12. Bought additional equipment of $1,000, half paid in cash and half charged.13. Charged customer $100 for services performed.14. Pete paid home phone bill from the company’s cash.15. Advertising expense incurred but not to be paid until next month.

CHAPTER 1 SOLUTIONS TO SUMMARY PRACTICE TEST

Part I

1. The Sarbanes-Oxley Act 5. Expenses 9. statement of owner’s 2. Assets 6. Cash equity3. capital 7. Withdrawals 10. balance sheet4. balance sheet 8. income statement

Name __________________________________ Class ____________________ Date ____________________

SG-20

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Name __________________________________ Class ____________________ Date ____________________

SG-21

Part II

1. false 6. false 11. false2. false 7. false 12. true3. false 8. false 13. false4. false 9. true 14. true5. false 10. false 15. true

Part III

1. 1,5 6. 1,6 11. 1,22. 1,3 7. 7,2 12. 1,2,33. 7,2 8. 1,6 13. 1,64. 1,2 9. 4,2 14. 8,25. 7,2 10. 7,2 15. 7,3

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CONTINUING PROBLEM FOR CHAPTER 1

Name __________________________________ Class ____________________ Date ____________________

SG-22

SAN

CH

EZ C

OM

PUTE

R C

ENTE

R

ASS

ETS

=LI

AB

ILIT

IES

+O

WN

ER’S

EQ

UIT

Y

Com

pute

r Sh

opO

ffice

Acc

ount

sFr

eedm

anFr

eedm

an,

Cas

h+

Supp

lies

+Eq

uipm

ent

+Eq

uipm

ent

=Pa

yabl

e+

Cap

ital

–W

ithdr

awal

s+

Reve

nue

–Ex

pens

es

a BALA

NC

E

b BALA

NC

E

c BALA

NC

E

d BALA

NC

E

e BALA

NC

E

f BALA

NC

E

g BALA

NC

E

h BALA

NC

E

i BALA

NC

E

j END

BA

L.+

++

=+

–+

–

=

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Name __________________________________ Class ____________________ Date ____________________

SG-23

SANCHEZ COMPUTER CENTERINCOME STATEMENT

FOR THE MONTH ENDED JULY 31, 200X

SANCHEZ COMPUTER CENTERSTATEMENT OF OWNER’S EQUITY

FOR MONTH ENDED JULY 31, 200X

SANCHEZ COMPUTER CENTERBALANCE SHEETJULY 31, 200X


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SG-24



A. 1. 2. 3. 4. 5.

Accounts Affected Category ↑↓ Rules T Account Update

B. 1. 2. 3. 4. 5.


Debits andcredits:analyzing andrecordingbusinesstransactions

2

1. 4.

2. 5.

3.

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Name __________________________________ Class ____________________ Date ____________________

C. 1. 2. 3. 4. 5.


D. 1. 2. 3. 4. 5.


E. 1. 2. 3. 4. 5.


SG-25

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Name __________________________________ Class ____________________ Date ____________________

SG-26


Cash 111 Accounts Payable 211 Salon Fees 411

4,500 300 300 700 3,500

2,000 100 1,000

1,000 1,200

300 1,300

2,600

Accounts Receivable 121 Pam Jay, Capital 311 Rent Expense 511

1,000 300 4,000 1,200

Salon Equipment 131 Pam Jay, Withdrawals 321 Salon Supplies Exp. 521

700 100 1,300

Salaries Expense 531

2,600

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(1)

(2)

Name __________________________________ Class ____________________ Date ____________________

SG-27

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Name __________________________________ Class ____________________ Date ____________________

SG-28

(3)

(4)

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Name __________________________________ Class ____________________ Date ____________________


(1,2,3)

SG-29

Cas

h11

1A

ccou

nts

Paya

ble

211

Adv

ertis

ing

Expe

nse

511

Acc

ount

s R

ecei

vabl

e11

2M

el F

ree,

Cap

ital

311

Gas

Exp

ense

512

Offi

ce E

quip

men

t12

1M

el F

ree,

With

draw

als

312

Sala

ries

Exp

ense

513

Del

iver

y Tr

ucks

122

Del

iver

y Fe

es E

arne

d41

1Te

leph

one

Expe

nse

514

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Name __________________________________ Class ____________________ Date ____________________

SG-30

FORMS FOR DEMONSTRATION PROBLEM (CONTINUED)

(4)

MEL’S DELIVERY SERVICETRIAL BALANCEJULY 31, 200X

Dr. Cr.

(5A)

MEL’S DELIVERY SERVICEINCOME STATEMENT


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Name __________________________________ Class ____________________ Date ____________________

FORMS FOR DEMONSTRATION PROBLEM (CONCLUDED)

(5B)

MEL’S DELIVERY SERVICESTATEMENT OF OWNER’S EQUITY


(5C)

MEL’S DELIVERY SERVICEBALANCE SHEET

JULY 31, 200X


SG-31

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1.

2. A.

B.

C.

D.

E.

F.

G.

3.

4. 5. A.B.C.D.E.F.G.H.I.J.K.

Name __________________________________ Class ____________________ Date ____________________

SG-32

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Name __________________________________ Class ____________________ Date ____________________

FORMS FOR EXERCISES

2-1.

2-2.

1. 2. 3. 4. 5.Accounts Affected Category Rules T Account Update

2-3.

Account Category Financial Statement

SG-33

↑ ↓

↑ ↓

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Name __________________________________ Class ____________________ Date ____________________


2-4.

Dr. Cr.

A. 8 1

B.

C.

D.

E.

F.

G.

H.

I.

2-5.

(1)

HALL’S CLEANERSINCOME STATEMENT


(2)

HALL’S CLEANERSSTATEMENT OF OWNER’S EQUITY


SG-34

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Name __________________________________ Class ____________________ Date ____________________


(3)

HALL’S CLEANERSBALANCE SHEETJULY 31, 200X


SG-35

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Name __________________________________ Class ____________________ Date ____________________



SG-36

Inc.

Dec

.

Acc

ount

s A

ffect

edC

ateg

ory

Rul

esT

Acc

ount

Upd

ate

A.

B. C.

D.

E. F.

↑↓

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Name __________________________________ Class ____________________ Date ____________________


Cash 111 Bernie Pillows, Withdrawals 312

Office Equipment 121 Consulting Fees Earned 411

Accounts Payable 211 Advertising Expense 511

Bernie Pillows, Capital 311 Rent Expense 512

SG-37

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Name __________________________________ Class ____________________ Date ____________________


(A)

Cash 111 Accounts Payable 211 Fees Earned 411

Accounts Receivable 112 Barry Joy, Capital 311 Rent Expense 511

Office Equipment 121 Barry Joy, Withdrawals 312 Utilities Expense 512

(B)

BARRY’S CLEANING SERVICETRIAL BALANCEMAY 31, 200X

Dr. Cr.

SG-38

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Name __________________________________ Class ____________________ Date ____________________


(A)

GRACIE LANTZ, ATTORNEY AT LAWINCOME STATEMENT

FOR MONTH ENDED MAY 31, 200X

(B)

GRACIE LANTZ, ATTORNEY AT LAWSTATEMENT OF OWNER’S EQUITY

FOR MONTH ENDED MAY 31, 200X

SG-39

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Name __________________________________ Class ____________________ Date ____________________


(C)

SG-40

GR

AC

IE L

AN

TZ, A

TTO

RN

EY A

T LA

WBA

LAN

CE

SHEE

TM

AY 3

1, 2

00X

ASS

ETS

LIA

BIL

ITIE

S A

ND

OW

NER

’S E

QU

ITY

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Name __________________________________ Class ____________________ Date ____________________


(1,2,3)

SG-41

Cas

h11

1A

ccou

nts

Paya

ble

211

Adv

ertis

ing

Expe

nse

511

Acc

ount

s R

ecei

vabl

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2A

. Ang

el, C

apita

l31

1G

as E

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2

Offi

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. Ang

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2Sa

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se51

3

Del

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Del

iver

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d41

1Te

leph

one

Expe

nse

514

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Name __________________________________ Class ____________________ Date ____________________

PROBLEM 2A-5 OR PROBLEM 2-B5 (CONTINUED)

(4)

ANGEL’S DELIVERY SERVICETRIAL BALANCEMARCH 31, 200X

Dr. Cr.

(5A)

ANGEL’S DELIVERY SERVICEINCOME STATEMENT

FOR MONTH ENDED MARCH 31, 200X

SG-42

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Name __________________________________ Class ____________________ Date ____________________


(5B)

ANGEL’S DELIVERY SERVICESTATEMENT OF OWNER’S EQUITY

FOR MONTH ENDED MARCH 31, 200X

(5C)

ANGEL’S DELIVERY SERVICEBALANCE SHEETMARCH 31, 200X


SG-43

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Name __________________________________ Class ____________________ Date ____________________


DEBITS AND CREDITS: ANALYZING AND RECORDINGBUSINESS TRANSACTIONS

Part I Instructions


1. Financial reports do not contain or .2. The right side of any T account is called the .3. Assets are increased by .4. The process of balancing an account involves .5. Transaction analysis charts are an aid in recording .6. The indicates the names and numbering

system of accounts.7. A(n) is a group of accounts.8. A(n) is an informal report that lists accounts and their

balances.9. Withdrawals are increased by .

10. The income statement, statement of owner’s equity, and balance sheet may be prepared from a(n) .

11. Cash, Accounts Receivable, and Equipment are examples of .12. Increasing expenses ultimately cause owner’s equity to .13. An increase in rent expense is a(n) by the rules of debits and credits.14. A debit to one asset and a credit to another asset for the same transaction reflect

a(n) in assets.15. The category of accounts receivable is a(n) .


Bea Paul opened a shuttle service company. From the following chart of accounts, indicate in column B (byaccount number) which account (s) will be debited or credited as related to the transaction in column A.

SG-44

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Chart of Accounts

ASSETS LIABILITIES EXPENSES10 Cash 50 Accounts Payable 80 Advertising20 Accounts Receivable 90 Gas30 Equipment OWNER’S EQUITY 100 Salaries40 Shuttle Bus 60 B. Paul, Capital 110 Telephone

62 B. Paul, Withdrawals

REVENUE70 Taxi Fees Earned

COLUMN A COLUMN B

DEBIT(S) CREDIT(S)1. EXAMPLE: Bea Paul invested $40,000 in the shuttle service. 10 60

2. Purchased a shuttle bus on account for $25,000.

3. Bought equipment on account for $3,000.

4. Advertising bill received, but not paid until next month, $60.

5. Bea paid home telephone bill from company checkbook, $20.

6. Collected $100 in cash from daily shuttle fees earned.

7. Customer charged a shuttle ride of $20.

8. Received partial payment for Transaction #7 of $10.

9. Paid business telephone bill, $32.

10. Purchased additional equipment for cash, $550.

11. Paid shuttle driver salaries of $150.

12. Drove customer on account to local train station for $6.

13. Received $5 from customer who hired a shuttle for ride across town.

14. Collected from past charged revenue, $15.

15. Bought office equipment on account for $110.



1. There are no debit and credit columns found on the three financial statements.

2. A trial balance could balance but be wrong.

3. Withdrawals are listed on the credit column of the trial balance.

4. Double entry bookkeeping results in a system where the sum of all the debits is equal to the sum of allthe credits.

5. The ledger is numbered like a textbook.

SG-45

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6. Withdrawals are always increased by credits.

7. An expense could create a liability.

8. A shift in assets means the total of assets must change.

9. The rules of debit and credit are constantly changing.

10. The transaction analysis chart is a teaching device.

11. The chart of accounts makes locating and identifying accounts easier.

12. The left side of any account is a credit.

13. A debit means all accounts are decreasing.

14. Financial statements are prepared from a trial balance.

15. The statement of owner’s equity is prepared before the income statement.

16. Liabilities increase by credits.

17. Footings aid in balancing accounts.

18. Withdrawals are listed on the income statement.

19. The balance sheet contains the old figure for capital.

20. Think of a credit as always meaning something good.

CHAPTER 2SOLUTIONS TO SUMMARY PRACTICE TEST

Part I

1. debits/credits 6. chart of accounts 11. assets2. credit side 7. ledger (general) 12. decrease3. debits 8. trial balance 13. debit4. footings 9. debits 14. shift5. business transactions 10. trial balance 15. asset

Part II

Debit Credit Debit Credit Debit Credit

1. 10 60 6. 10 70 11. 100 102. 40 50 7. 20 70 12. 20 703. 30 50 8. 10 20 13. 10 704. 80 50 9. 110 10 14. 10 205. 62 10 10. 30 10 15. 30 50

Part III

1. true 6. false 11. true 16. true

2. true 7. true 12. false 17. true

3. false 8. false 13. false 18. false

4. true 9. false 14. true 19. false

5. false 10. true 15. false 20. false

SG-46

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SG-47

Cas

h10

00A

ccou

nts

Rec

eiva

ble

1020

Supp

lies

1030

Com

pute

r Sh

op E

quip

men

t10

80

Bal

.3,

850

Bal

.25

0B

al.

1,20

0

Offi

ce E

quip

men

t10

90A

ccou

nts

Paya

ble

2000

Free

dman

, Cap

ital

3000

Bal

.60

033

5B

al.

4,50

0B

al.

Free

dman

, With

draw

als

3010

Serv

ice

Rev

enue

4000

Adv

ertis

ing

Expe

nse

5010

Ren

t Exp

ense

5020

Bal

.10

0 B

al.

400

Util

ities

Exp

ense

5030

Phon

e Ex

pens

e50

40Su

pplie

s Ex

pens

e50

50In

sura

nce

Expe

nse

5060

Bal

. 85

Post

age

Expe

nse

5070

1,65

0B

al.

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SANCHEZ COMPUTER CENTERTRIAL BALANCE

AUGUST 31, 200X

Dr. Cr.


FOR THE TWO MONTHS ENDED AUGUST 31, 200X

SG-48

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Name __________________________________ Class ____________________ Date ____________________


FOR THE TWO MONTHS ENDED AUGUST 31, 200X

SANCHEZ COMPUTER CENTERBALANCE SHEET

AUGUST 31, 200X


SG-49

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SG-50


LOWE’S REPAIR SERVICEGENERAL JOURNAL

PAGE 1

Date Account Titles and Description PR Dr. Cr.

Beginning theAccounting Cycle:Journalizing,Posting, and theTrial Balance

3

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Name __________________________________ Class ____________________ Date ____________________

LOWE’S REPAIR SERVICEGENERAL JOURNAL

PAGE 1 (Cont.)


SG-51

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Name __________________________________ Class ____________________ Date ____________________


CLARK’S WORD PROCESSING SERVICESGENERAL JOURNAL

PAGE 1

Date200X Account Titles and Description PR Dr. Cr.

May 1 Cash 10 0 0 0 00

Brenda Clark, Capital 10 0 0 0 00

Initial investment of cash by owner

1 Word Processing Equipment 6 0 0 0 00

Cash 1 0 0 0 00

Accounts Payable 5 0 0 0 00

Purchase of equip. from Ben Co.

1 Prepaid Rent 1 2 0 0 00

Cash 1 2 0 0 00

Rent paid in advance (3 months)

3 Office Supplies 6 0 0 00

Accounts Payable 6 0 0 00

Purchase of supplies on acct. from Norris

7 Cash 3 0 0 0 00

Word Processing Fees 3 0 0 0 00

Cash received for services rendered

13 Office Salaries Expense 6 5 0 00

Cash 6 5 0 00

Payment of office salaries

18 Advertising Expense 2 5 0 00

Accounts Payable 2 5 0 00

Bill received but not paid from AI’s News

20 Brenda Clark, Withdrawals 6 2 5 00

Cash 6 2 5 00

Personal withdrawal of cash

22 Accounts Receivable 5 0 0 0 00

Word Processing Fees 5 0 0 0 00

Billed Morris Co. for fees earned

SG-52

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Name __________________________________ Class ____________________ Date ____________________

CLARK’S WORD PROCESSING SERVICESGENERAL JOURNAL

PAGE 2

Date200X Account Titles and Description PR Dr. Cr.

May 27 Office Salaries Expense 6 5 0 00Cash 6 5 0 00

Payment of office salaries

28 Accounts Payable 2 5 0 0 00Cash 2 5 0 0 00

Paid half the amount owed Ben Co.

29 Telephone Expense 2 2 0 00Cash 2 2 0 00

Paid telephone bill

SG-53

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Name __________________________________ Class ____________________ Date ____________________

PARTIAL LEDGER OF CLARK’S WORD PROCESSING SERVICE

CASH ACCOUNT NO. 111

SG-54

BalanceDate Explanation Post Debit Credit

Ref. Debit Credit


Ref. Debit Credit

ACCOUNTS RECEIVABLE ACCOUNT NO. 112

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Name __________________________________ Class ____________________ Date ____________________

OFFICE SUPPLIES ACCOUNT NO. 114

SG-55


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

PREPAID RENT ACCOUNT NO. 115

WORD PROCESSING EQUIPMENT ACCOUNT NO. 121

ACCOUNTS PAYABLE ACCOUNT NO. 211

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Name __________________________________ Class ____________________ Date ____________________

BRENDA CLARK, CAPITAL ACCOUNT NO. 311

SG-56


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

BRENDA CLARK, WITHDRAWALS ACCOUNT NO. 312


Ref. Debit Credit

WORD PROCESSING FEES ACCOUNT NO. 411

OFFICE SALARIES EXPENSE ACCOUNT NO. 511

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Distribution

Name __________________________________ Class ____________________ Date ____________________

ADVERTISING EXPENSE ACCOUNT NO. 512

SG-57


Ref. Debit Credit


Ref. Debit Credit

TELEPHONE EXPENSE ACCOUNT NO. 513

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Name __________________________________ Class ____________________ Date ____________________


1.

SG-58


GENERAL JOURNAL

2. PAGE 4

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Name __________________________________ Class ____________________ Date ____________________

FORMS FOR DEMONSTRATION PROBLEM(A, B)

ABBY’S EMPLOYMENT AGENCYGENERAL JOURNAL

PAGE 1


SG-59

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Name __________________________________ Class ____________________ Date ____________________


GENERAL LEDGER OF ABBY’S EMPLOYMENT AGENCY


SG-60


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


SUPPLIES ACCOUNT NO. 131

EQUIPMENT ACCOUNT NO. 141

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Name __________________________________ Class ____________________ Date ____________________



SG-61


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

A. TODD, CAPITAL ACCOUNT NO. 311

A. TODD, WITHDRAWALS ACCOUNT NO. 321

EMPLOYMENT FEES EARNED ACCOUNT NO. 411

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Distribution

Name __________________________________ Class ____________________ Date ____________________


WAGE EXPENSE ACCOUNT NO. 511

SG-62


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit



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Name __________________________________ Class ____________________ Date ____________________


ABBY’S EMPLOYMENT AGENCYTRIAL BALANCEMARCH 31, 200X

Dr. Cr.

SG-63

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1. A. E.

B. F.

C. G.

D. H.I.

2. A.

B.

C.

3.

4.LEE CO.

TRIAL BALANCEOCTOBER 31, 200X

Dr. Cr.

Name __________________________________ Class ____________________ Date ____________________

SG-64



Ref. Debit Credit

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Name __________________________________ Class ____________________ Date ____________________

SG-65

5.

FORMS FOR EXERCISES

3-1.



FORMS FOR CLASSROOM DEMONSTRATION EXERCISES SET A OR SET B (CONCLUDED)

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3-2.

Name __________________________________ Class ____________________ Date ____________________

SG-66


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Name __________________________________ Class ____________________ Date ____________________

SG-67


3-3.


200X

April 6 Cash 15 0 0 0 —

A. King, Capital 15 0 0 0 —

Cash investment

14 Equipment 9 0 0 0 —

Cash 4 0 0 0 —

Accounts Payable 5 0 0 0 —

Purchase of Equipment



Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit



A. KING, CAPITAL ACCOUNT NO. 311

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Name __________________________________ Class ____________________ Date ____________________

SG-68


3-4.(A) PAGE 1





Ref. Debit Credit


Ref. Debit Credit

(B)

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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-69




J. LOWE, CAPITAL ACCOUNT NO. 311

J. LOWE, WITHDRAWALS ACCOUNT NO. 312


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

FEES EARNED ACCOUNT NO. 411

SALARIES EXPENSE ACCOUNT NO. 511


Ref. Debit Credit


Ref. Debit Credit

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(C)LOWE COMPANYTRIAL BALANCEJULY 31, 200X

Dr. Cr.

Name __________________________________ Class ____________________ Date ____________________

SG-70

3-5.SUNG CO.

TRIAL BALANCEMARCH 31, 200X

Dr. Cr.

3-6.Dr. Cr.

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Name __________________________________ Class ____________________ Date ____________________

SG-71



JACK’S CLEANING SERVICEGENERAL JOURNAL

PAGE 1


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Name __________________________________ Class ____________________ Date ____________________

SG-72


JACK’S CLEANING SERVICEGENERAL JOURNAL

PAGE 2


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Name __________________________________ Class ____________________ Date ____________________

PROBLEM 3A-2 OR PROBLEM 3B-2(A, B)

BETTY’S ART STUDIOGENERAL JOURNAL

PAGE 1


SG-73

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GENERAL LEDGER OF BETTY’S ART STUDIO


Name __________________________________ Class ____________________ Date ____________________



ART SUPPLIES ACCOUNT NO. 121


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

SG-74

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SG-75




BETTY RICE, CAPITAL ACCOUNT NO. 311

BETTY RICE, WITHDRAWALS ACCOUNT NO. 312


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

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ART FEES EARNED ACCOUNT NO. 411

Name __________________________________ Class ____________________ Date ____________________

SG-76


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

ELECTRICAL EXPENSE ACCOUNT NO. 511



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SG-77


(C)

BETTY’S ART STUDIOTRIAL BALANCEJUNE 30, 200X

Dr. Cr.

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PROBLEM 3A-3 OR PROBLEM 3B-3(A, B)

A. FRENCH’S PLACEMENT AGENCYGENERAL JOURNAL

PAGE 1

Name __________________________________ Class ____________________ Date ____________________

SG-78


65724_03_ch03_p050-096 4/16/09 2:42 PM Page SG-78


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Distribution

Name __________________________________ Class ____________________ Date ____________________


GENERAL LEDGER OF A. FRENCH’S PLACEMENT AGENCY






Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

SG-79

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Distribution



Name __________________________________ Class ____________________ Date ____________________

SG-80


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

A. FRENCH, CAPITAL ACCOUNT NO. 311

A. FRENCH,WITHDRAWALS ACCOUNT NO. 312

PLACEMENT FEES EARNED ACCOUNT NO. 411

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Name __________________________________ Class ____________________ Date ____________________

SG-81


WAGE EXPENSE ACCOUNT NO. 511




Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

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(C)

A. FRENCH’S PLACEMENT AGENCYTRIAL BALANCEJUNE 30, 200X

Dr. Cr.

Name __________________________________ Class ____________________ Date ____________________

SG-82

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Name __________________________________ Class ____________________ Date ____________________

SG-83


BEGINNING THE ACCOUNTING CYCLE: JOURNALIZING,POSTING, AND THE TRIAL BALANCE

Part I Instructions


1. A fiscal year runs for __________________ months.

2. __________________ __________________ are prepared for parts of a fiscal year (monthly, quarterly, etc.).

3. The __________________ __________________ __________________ eliminates the need for footings.

4. The positive balance of each account is referred to as its __________________ __________________.

5. The process of recording transactions in a journal is called __________________.

6. Entries are journalized in __________________ __________________.

7. A ledger is often called a(n) __________________ __________________ __________________

__________________ .

8. The __________________ portion of a journal entry is indented and placed below the__________________ portion.

9. A journal entry requiring three or more accounts is called a(n) __________________ ____________________________________.

10. Accounts receivable is a(n) __________________ on the balance sheet.

11. When supplies are used up or consumed they become a(n) __________________.

12. The book of original entry usually refers to a(n) __________________.

13. The process of transferring information from a journal to a ledger is called __________________.

14. __________________ __________________ deals with the process of updating the PR of the journal fromthe account number of the ledger to indicate to which account in the ledger information has beenposted.

15. Recording $995.00 as $99.50 is an example of a(n) __________________.

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Match the term in column A to the definition, example, or phrase in column B. Be sure to use a letter only once.

Name __________________________________ Class ____________________ Date ____________________

SG-84

COLUMN A

1. EXAMPLE: Book of original entry

2. Non-Business Expense

3. Slide

4. Transposition

5. Posting

6. General Journal

7. Cross-reference

8. Journalizing

9. Balance Sheet prepared monthly

10. A fiscal year

COLUMN Ba. 243 — 2430

b. Transferring information from a generaljournal to a ledger

c. Chronological order

d. Increased by a credit

e. Withdrawal

f. Compound journal entry

g. General journal

h. Rearrangement of digits of a number by accident

i. Updating PR column of journal from ledger account

j. Trial balance

k. Place to record transactions

l. Accounting cycle

m. Accounting period

n. Interim statements



1. A slide cannot affect position of numbers.

2. The totals of a trial balance may possibly not balance due to transpositions.

3. Withdrawals has a normal balance of a credit.

4. The running balance of an account can be kept in a four-column account.

5. The journal links debits and credits in alphabetical order.

6. The ledger accumulates information from the journal.

7. The post reference column of a ledger records the account number of that account.

8. An accounting cycle must be from January 1 to December 31.

9. The ledger is the book of original entry.

10. The income statement is prepared for a specific accounting period.

11. Interim statements are prepared for an entire fiscal year.

12. A calendar year could be a fiscal year.

13. 390 written by mistake as 3,900 is an example of a slide.

g

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SG-85

14. If the totals of a trial balance balance, the individual balance of items must be correct.

15. The equality of debits and credits on a trial balance does not guarantee that transactions have beenproperly recorded.

16. The trial balance is prepared from the journal.

17. Cross-referencing means never updating the post reference column of the journal.

18. Journals and ledgers are always in the same book.

19. The normal balance of each account is located on the same side that increases the acccount.

20. Ruling of four-column accounts is eliminated.


Part I

1. 12 6. chronological order 11. expense2. Interim statements 7. book of final entry 12. journal3. four-column ledger 8. credit, debit 13. posting4. normal balance 9. compound journal entry 14. Cross-reference5. journalizing 10. asset 15. slide

Part II

1. g 6. k2. e 7. i3. a 8. c4. h 9. n5. b 10. m

Part III

1. false 6. true 11. false 16. false2. true 7. false 12. true 17. false3. false 8. false 13. true 18. false4. true 9. false 14. false 19. true5. false 10. true 15. true 20. true

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SANCHEZ COMPUTER CENTERGENERAL JOURNAL

PAGE 1

Name __________________________________ Class ____________________ Date ____________________

SG-86


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-87


PAGE 1 (Cont.)


65724_03_ch03_p050-096 4/15/09 11:50 AM Page SG-87


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Distribution


Name __________________________________ Class ____________________ Date ____________________

SG-88


Ref. Debit Credit

9/1 0X Balance forward � 2 8 6 5 00

65724_03_ch03_p050-096 4/15/09 11:50 AM Page SG-88


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Distribution


Ref. Debit Credit

9/1 0X � 1 2 0 0 00


Ref. Debit Credit


Ref. Debit Credit

Name __________________________________ Class ____________________ Date ____________________

SG-89




COMPUTER SHOP EQUIPMENT ACCOUNT NO. 1080


Ref. Debit Credit

9/1 0X Balance forward � 8 5 0 00


Ref. Debit Credit


Ref. Debit Credit


65724_03_ch03_p050-096 4/15/09 11:50 AM Page SG-89


Not For ResaleOr

Distribution


Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit


OFFICE EQUIPMENT ACCOUNT NO. 1090

Name __________________________________ Class ____________________ Date ____________________

SG-90


FREEDMAN, CAPITAL ACCOUNT NO. 3000

FREEDMAN, WITHDRAWALS ACCOUNT NO. 3010

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Not For ResaleOr

Distribution


Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit


Name __________________________________ Class ____________________ Date ____________________

SG-91

SERVICE REVENUE ACCOUNT NO. 4000


RENT EXPENSE ACCOUNT NO. 5020

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Distribution


Ref. Debit Credit



Ref. Debit Credit

9/1 0X Balance forward � 8 5 00

UTILITIES EXPENSE ACCOUNT NO. 5030

Name __________________________________ Class ____________________ Date ____________________

SG-92


Ref. Debit Credit

PHONE EXPENSE ACCOUNT NO. 5040

SUPPLIES EXPENSE ACCOUNT NO. 5050

65724_03_ch03_p050-096 4/15/09 11:50 AM Page SG-92


Not For ResaleOr

Distribution


Ref. Debit Credit



Ref. Debit Credit


Name __________________________________ Class ____________________ Date ____________________

SG-93

INSURANCE EXPENSE ACCOUNT NO. 5060

POSTAGE EXPENSE ACCOUNT NO. 5070

65724_03_ch03_p050-096 4/15/09 11:50 AM Page SG-93


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Distribution


SEPTEMBER 30, 200X

Dr. Cr.

Name __________________________________ Class ____________________ Date ____________________

SG-94

65724_03_ch03_p050-096 4/15/09 11:50 AM Page SG-94


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-95


FOR THE QUARTER ENDED 9/30/0X


FOR THE QUARTER ENDED 9/30/0X

65724_03_ch03_p050-096 4/15/09 11:50 AM Page SG-95


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Distribution

SAN

CH

EZC

OM

PUTE

R C

ENTE

RBA

LAN

CE

SHEE

T9/

30/0

X

Name __________________________________ Class ____________________ Date ____________________

SG-96

ASS

ETS

LIA

BIL

ITIE

S A

ND

OW

NER

’S E

QU

ITY

65724_03_ch03_p050-096 4/15/09 11:50 AM Page SG-96


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SG-97


Use one of the blank fold-out worksheets that accompanied your textbook.

The AccountingCycle Continued:PreparingWorksheets and FinancialStatements

4

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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-98


(1)

(2)

65724_04_ch04_p097-116 4/15/09 11:50 AM Page SG-98


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Distribution

Name __________________________________ Class ____________________ Date ____________________

(3)

ASS

ETS

LIA

BIL

ITIE

S A

ND

OW

NER

’S E

QU

ITY

SG-99

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Name __________________________________ Class ____________________ Date ____________________

SG-100


(1)Use one of the blank fold-out worksheets that accompanied your textbook.(2)

FROST COMPANYINCOME STATEMENT

FOR MONTH ENDED DECEMBER 31, 200X

(2)

FROST COMPANYSTATEMENT OF OWNER’S EQUITY


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DEMONSTRATION PROBLEM (CONCLUDED)

(2)

SG-101

FRO

ST C

OM

PAN

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1. A.

B.

1. 2. 3. 4. 5.Accounts Affected Category Rules T Account

C.

2. A.

B.


C.

3. A. ____________________B. ____________________C.


D.

Name __________________________________ Class ____________________ Date ____________________

SG-102

↑ ↓

↑ ↓

↑ ↓

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4. A.


B.

5.A. ________________ H. ________________B. ________________ I. ________________C. ________________ J. ________________D. ________________ K. ________________E. ________________ L. ________________F. ________________ M. ________________G. ________________ N. ________________

6.A.

B.

SG-103

↑ ↓

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FORMS FOR EXERCISES

4-1.

Account Category Normal FinancialBalance Statement(s)

Found on

4-2.

Accounts Affected Category Rules Amount

A.

B.

4-3.A.

B.

4-4.Use one of the blank fold-out worksheets that accompanied your textbook.

SG-104

↑ ↓

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4-5.(A)

J. TRENTINCOME STATEMENT


(B)

J. TRENTSTATEMENT OF OWNER’S EQUITY


SG-105

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EXERCISES (CONCLUDED)(C)

SG-106

J. T

REN

TBA

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TD

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31,

200

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’S E

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(2)

KEVIN’S MOVING CO.INCOME STATEMENT

FOR MONTH ENDED OCTOBER 31, 200X

KEVIN’S MOVING CO.STATEMENT OF OWNER’S EQUITY

FOR MONTH ENDED OCTOBER 31, 200X

(2)

SG-107

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(2)

SG-108

KEV

IN’S

MO

VIN

G C

O.

BALA

NC

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OC

TOB

ER 3

1, 2

00X

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(2)

DICK’S REPAIR SERVICEINCOME STATEMENT


(2)

DICK’S REPAIR SERVICESTATEMENT OF OWNER’S EQUITY


SG-109

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(2)

SG-110

DIC

K’S

REP

AIR

SER

VIC

EBA

LAN

CE

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TN

OV

EMB

ER 3

0, 2

00X

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THE ACCOUNTING CYCLE CONTINUED:PREPARING WORKSHEETS AND FINANCIAL STATEMENTS

Part I Instructions


1. _______________ is an estimate.2. A(n) _______________ will decrease accumulated depreciation.3. _______________ affect both the income statement and balance sheet.4. The adjustment for supplies reflects the amount of supplies _______________ _______________.5. Supplies Expense is found on the income statement. Supplies are found on the _______________

_______________.6. _______________ _______________ reflects the cost of equipment at time of purchase.7. Depreciation Expense is found on the _______________ _______________.8. _______________ _______________ is a contra asset that has a credit balance.9. Accumulated Depreciation, a contra asset, is found on the _______________ _______________.

10. Historical or original cost of an auto less _______________ _______________ reflects the unusedamount of the auto on the accounting books.

11. Withdrawals are found in the _______________ column of the balance sheet section of theworksheet.

12. Salaries Payable is a liability that will appear in the _______________ ______________________________ _______________ of the worksheet.

13. The figure for net income on the worksheet is carried over to the _______________ column of thebalance sheet.

14. A worksheet is a(n) _______________ report.15. _______________ _______________ are prepared after the completion of the worksheet.


Complete the following statements by circling the letter of the appropriate answer.

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1. The adjustment for depreciation results in Accumulated Depreciation

a. decreasing.b. staying the same.c. increasing.

2. The historical or original cost of an asset on the worksheet

a. never changes.b. sometimes changes.c. continually changes.

3. Net income on the worksheet is carried over to the

a. trial balance.b. adjusted trial balance.c. balance sheet column.

4. Accumulated Depreciation is found on

a. a worksheet.b. an income statement.c. both a worksheet and an income statement.

5. Accumulated Depreciation, a contra asset, is increased by a

a. debit.b. credit.c. both a and b.

6. A worksheet is usually completed

a. one column at a time.b. two columns at a time.c. three columns at a time.

7. Withdrawals on the worksheet are found in the

a. debit column of the income statement.b. debit column of the balance sheet.c. both a and b.

8. The worksheet specifically shows the

a. beginning figure for owner capital.b. ending figure for owner capital.c. average figure for owner capital.

9. The total of the assets on a formal balance sheet will ___________ equal the total of the debitcolumn of the balance sheet on the worksheet.

a. alwaysb. sometimesc. never

10. The adjustment for depreciation affects

a. the income statement.b. the balance sheet.c. both a and b.

11. The adjustment for supplies requires one to know

a. beginning supplies plus supplies purchased.b. supplies on hand.c. both a and b.

SG-112

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12. The purpose of adjustments is to

a. bring general journals up to date.b. bring ledger accounts up to proper balances in the journal.c. bring ledger accounts to proper balance.

13. Book values equals cost less

a. expenses.b. accumulated depreciation.c. neither a nor b.

14. The ___________ is an informal report.

a. income statementb. balance sheetc. worksheet



1. The normal balance of accumulated depreciation is a credit.2. Liabilities are only income statement accounts.3. The total of the adjustments column may balance but be incorrect.4. Prepaid rent is found on the income statement.5. Rent expense is found on the income statement.6. Debits and credits are found on financial statements.7. Historical cost relates only to automobiles.8. Accumulated Depreciation is found on the income statement.9. As Accumulated Depreciation increases, the historical cost changes.

10. The adjustment for depreciation directly affects cash.11. An expense is only recorded when it is paid.12. The ending figure for owner capital does not have to be calculated from the worksheet.13. Withdrawals have the same balance as Accumulated Depreciation.14. Salaries Payable is an asset on the income statement.15. Net loss would never be shown on a worksheet.16. The net income on the worksheet is the same amount on the income statement.17. Worksheets must use dollar signs.18. The worksheet eliminates the need to prepare financial statements.19. Cost less accumulated depreciation equals book value.20. Accrued Salaries are expenses that have already been paid for.

SG-113

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Part I

1. Depreciation 9. balance sheet2. debit 10. accumulated depreciation3. Adjustments 11. debit4. used up 12. balance sheet credit column5. balance sheet 13. credit6. Historical (original) cost 14. informal7. income statement 15. Financial statements8. Accumulated Depreciation

Part II

1. c 6. b 11. c2. a 7. b 12. c3. c 8. a 13. b4. a 9. c 14. c5. b 10. c

Part III

1. true 6. false 11. false 16. true2. false 7. false 12. true 17. false3. true 8. false 13. false 18. false4. false 9. false 14. false 19. true5. true 10. false 15. false 20. false

SG-114

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CONTINUING PROBLEM FOR CHAPTER 4*


FOR THE THREE MONTHS ENDED SEPTEMBER 30, 200X


FOR THE THREE MONTHS ENDED SEPTEMBER 30, 200X

*Use one of the blank fold-out worksheets that accompanied your textbook.

SG-115

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SAN

CH

EZC

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PUTE

R C

ENTE

RBA

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SG-116

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(1) PAGE 2


SG-117

The AccountingCycle Completed:Adjusting,Closing, and thePost-ClosingTrial Balance

5

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Name __________________________________ Class ____________________ Date ____________________

(2) Partial Ledger

Depreciation Expense, Accumulated Depreciation,Store Equipment 511 Store Equipment 122

4

Prepaid Insurance 116 Insurance Expense 516

3

Store Supplies 114 Supplies Expense 514

5

Salaries Expense 512 Salaries Payable 212

8

SG-118

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SELF-REVIEW QUIZ 5-2(1)

P. Logan, Capital 310 Revenue from Clients 410 Supplies Expense 514

14 25 4

Depreciation Expense,P. Logan, Withdrawals 311 Store Equipment 510 Insurance Expense 516

3 1 2

Income Summary 312 Salaries Expense 512 Rent Expense 518

11 2

SG-119

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(2)


SG-120

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FORMS FOR DEMONSTRATION PROBLEMUse one of the blank fold-out worksheets that accompanied your textbook.

ROLO COMPANYGENERAL JOURNAL

PAGE 1


SG-121

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ROLO COMPANYGENERAL JOURNAL

PAGE 2


SG-122

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SG-123


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit




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SG-124

ACCUMULATED DEPRECIATION, OFFICE EQUIPMENT ACCOUNT NO. 122


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


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Name __________________________________ Class ____________________ Date ____________________


SALARIES PAYABLE ACCOUNT NO. 212

SG-125

ROLO KERN, CAPITAL ACCOUNT NO. 311

ROLO KERN, WITHDRAWALS ACCOUNT NO. 312

INCOME SUMMARY ACCOUNT NO. 313

FEES EARNED ACCOUNT NO. 411


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

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SG-126



OFFICE SUPPLIES EXPENSE ACCOUNT NO. 514

DEPRECIATION EXPENSE, OFFICE EQUIPMENT ACCOUNT NO. 515


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

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Name __________________________________ Class ____________________ Date ____________________


ROLO COMPANYINCOME STATEMENT

FOR MONTH ENDED JANUARY 31, 200X

ROLO COMPANYSTATEMENT OF OWNER’S EQUITY


SG-127

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SG-128

FOR

MS

FOR

DEM

ON

STR

ATI

ON

PR

OB

LEM

(C

ON

TIN

UED

)

RO

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NU

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Name __________________________________ Class ____________________ Date ____________________


ROLO COMPANYPOST-CLOSING TRIAL BALANCE

JANUARY 31, 200X

Dr. Cr.

SG-129

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GENERAL JOURNAL

1.

PAGE 3


Prepaid Insurance 115 Insurance Expense 510

Depreciation Expense,Store Supplies 116 Store Equipment 512

Accumulated DepreciationStore Equipment 119 Supplies Expense 514

Salaries Payable 210 Salaries Expense 516

2.

Name __________________________________ Class ____________________ Date ____________________

SG-130

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SG-131

GENERAL JOURNAL

3.

PAGE 4


4.

Income Summary 314

5.

Mel Blanc, Capital 310

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FORMS FOR EXERCISES

5-1.


5-2.

TEMPORARY PERMANENT WILL BE CLOSED

1. Income Summary2. Jen Rich, Capital3. Salary Expense4. Jen Rich, Withdrawals5. Fees Earned6. Accounts Payable7. Cash

Name __________________________________ Class ____________________ Date ____________________

SG-132

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SG-133


5-3.


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5-4.


5-5.

WEY CO.POST-CLOSING TRIAL BALANCE

DECEMBER 31, 200X

Dr. Cr.

Name __________________________________ Class ____________________ Date ____________________

SG-134

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SG-135




(2)DEBBIE’S DANCE STUDIO

GENERAL JOURNAL

PAGE 3


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(1)

POTTER CLEANING SERVICEGENERAL JOURNAL

PAGE 2


Name __________________________________ Class ____________________ Date ____________________

SG-136

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SG-137




Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

PREPAID INSURANCE ACCOUNT NO. 114

CLEANING SUPPLIES ACCOUNT NO. 115

AUTO ACCOUNT NO. 121

ACCUMULATED DEPRECIATION, AUTO ACCOUNT NO. 122

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SG-138




Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


B. POTTER, CAPITAL ACCOUNT NO. 312

B. POTTER, WITHDRAWALS ACCOUNT NO. 313


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SG-139


CLEANING FEES ACCOUNT NO. 412


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit



Ref. Debit Credit



GAS EXPENSE ACCOUNT NO. 516

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Name __________________________________ Class ____________________ Date ____________________

SG-140


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

CLEANING SUPPLIES EXPENSE ACCOUNT NO. 518

DEPRECIATION EXPENSE, AUTO ACCOUNT NO. 519

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SG-141


(2)

POTTER CLEANING SERVICEPOST-CLOSING TRIAL BALANCE

MARCH 31, 200X

Dr. Cr.



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PETE’S PLOWINGGENERAL JOURNAL

PAGE 1


Name __________________________________ Class ____________________ Date ____________________

SG-142

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SG-143



PAGE 2


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PAGE 3


Name __________________________________ Class ____________________ Date ____________________

SG-144

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Name __________________________________ Class ____________________ Date ____________________

SG-145




Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit



SNOW SUPPLIES ACCOUNT NO. 115


Ref. Debit Credit

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Name __________________________________ Class ____________________ Date ____________________

SG-146


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


SNOW EQUIPMENT ACCOUNT NO. 123

ACCUMULATED DEPRECIATION, SNOW EQUIPMENT ACCOUNT NO. 124


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SG-147




Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

PETE MACK, CAPITAL ACCOUNT NO. 311

PETE MACK, WITHDRAWALS ACCOUNT NO. 312


PLOWING FEES ACCOUNT NO. 411

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SG-148


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit




SNOW SUPPLIES EXPENSE ACCOUNT NO. 515

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SG-149




Ref. Debit Credit


Ref. Debit Credit

DEPRECIATION EXPENSE, SNOW EQUIPMENT ACCOUNT NO. 517

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PETE’S PLOWINGINCOME STATEMENT


PETE’S PLOWINGSTATEMENT OF OWNER’S EQUITY


Name __________________________________ Class ____________________ Date ____________________

SG-150

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SG-151


PETE

’S P

LOW

ING

BALA

NC

E SH

EET

JAN

UA

RY 3

1, 2

00X

ASS

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LIA

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’S E

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PETE’S PLOWINGPOST-CLOSING TRIAL BALANCE

JANUARY 31, 200X

Dr. Cr.

Name __________________________________ Class ____________________ Date ____________________

SG-152

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SG-153


THE ACCOUNTING CYCLE COMPLETED:ADJUSTING, CLOSING, AND

THE POST-CLOSING TRIAL BALANCE

Part I Instructions


1. After the closing process only accounts remain with balances.2. Revenue, Expenses, and Withdrawals are examples of .3. in temporary accounts will not be carried over to the next accounting period.4. After closing entries are posted, owner’s Capital in the ledger will contain the

.5. Revenue is closed to Income Summary by a(n) to each revenue account and a(n)

to Income Summary.6. Expenses are closed to Income Summary by the individual expenses and

Income Summary.7. If the balance of Income Summary is a credit, it will be closed by Income

Summary and owner’s Capital.8. The balance of Withdrawals is closed by a(n) and the amount transferred to

owner’s Capital by a(n) .9. At the end of the closing process, all temporary accounts in the ledger will have a(n)

balance.10. The contains a list

of permanent accounts after the adjusting and closing entries have been posted to the ledger from ajournal.

11. Closing entries can be prepared from a(n) .12. After closing entries are posted, Income Summary will have a(n) balance.13. Journalizing adjustments can be done from the .14. Cash, Equipment, and Supplies are not part of the process.15. Income Summary is a(n) account.


The following is a chart of accounts for Al’s Auto Shop. From the chart, indicate in Column B (by accountnumber) which accounts will be debited or credited as related to the transactions in Column A.

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CHART OF ACCOUNTS

ASSETS OWNER’S EQUITY

112 Cash 340 A. Jones, Capital

114 Accounts Receivable 341 A. Jones, Withdrawals

116 Prepaid Rent 342 Income Summary

118 Auto Supplies

120 Delivery Truck REVENUE

121 Accumulated Depreciation, Delivery Truck 450 Fees Earned

LIABILITIES EXPENSES

230 Accounts Payable 560 Salaries

232 Salaries Payable 562 Advertising

564 Rent

566 Auto Supplies

568 Depreciation Expense, Delivery Truck

COLUMN A COLUMN BDebit(s) Credit(s)

1. Closed balance in revenue account to Income Summary.

2. Closed balance in individual expenses to Income Summary.

3. Closed balance in Income Summary to owner’s Capital. (Assume that it is a net income.)

4. Closed Withdrawals to owner’s Capital.

5. Recorded auto supplies used up.

6. Recorded depreciation on delivery truck.

7. Brought Salaries Expense up to date (an adjustment).



1. Closing entries are done every other month.2. Adjustments are journalized before preparing the worksheet.3. Closing entries can only clear permanent accounts.4. Income summary is a temporary account.5. Interim statements can be prepared from worksheets.6. To clear expenses in the closing process, a compound entry is appropriate.7. Withdrawals is a temporary account on the income statement.8. Income Summary helps update withdrawals.

Name __________________________________ Class ____________________ Date ____________________

SG-154

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SG-155

9. Accumulated Depreciation is a permanent account on the income statement.

10. Cash, Rent Expense, and Accounts Receivable need to be closed at the end of the period.

11. Closing entries do not relate to the worksheet.

12. Revenue is closed by a credit.

13. Expenses are placed on the debit side of the Income Summary account.

14. A post-closing trial balance closely resembles the ending balance sheet.

15. Accumulated Depreciation never has to be adjusted.

16. Interim statements are always prepared monthly.

17. A post-closing trial balance is prepared before adjustments are journalized.

18. Income Summary is shown on the balance sheet.

19. The process of closing entries will help update owner’s Capital.

20. The normal balance of the Income Summary is a debit.

21. The normal balance of the Income Summary is a credit.

22. The income statement is listed in terms of debits and credits.

23. Closing updates only permanent accounts.

24. The completion of financial statements means that the Capital account in the ledger has beenupdated.

25. Withdrawals is closed to Income Summary.

SOLUTIONS TO SUMMARY PRACTICE TEST

Part I

1. permanent 9. zero2. temporary accounts 10. post-closing trial balance3. Balances 11. worksheet4. ending figure (balance) 12. zero5. debit, credit 13. worksheet6. crediting, debiting 14. closing7. debiting, crediting 15. temporary8. credit, debit

Part II

Debit Credit

1. 450 3422. 342 560, 562, 564, 566, 5683. 342 3404. 340 3415. 566 1186. 568 1217. 560 232

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Part III

1. false 7. false 13. true 19. true 25. false2. false 8. false 14. true 20. false3. false 9. false 15. false 21. false4. true 10. false 16. false 22. false5. true 11. false 17. false 23. false6. true 12. false 18. false 24. false

Name __________________________________ Class ____________________ Date ____________________

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Ref. Debit Credit



Ref. Debit Credit




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Ref. Debit Credit



Ref. Debit Credit

ACCUMULATED DEPRECIATION, COMPUTER SHOP EQUIPMENT ACCOUNT NO. 1081



Ref. Debit Credit



Ref. Debit Credit


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Name __________________________________ Class ____________________ Date ____________________

SG-160


Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit


T. FREEDMAN, CAPITAL ACCOUNT NO. 3000

T. FREEDMAN, WITHDRAWALS ACCOUNT NO. 3010

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Ref. Debit Credit




Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit



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Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit


Ref. Debit Credit





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Ref. Debit Credit


DEPRECIATION EXPENSE C.S. EQUIPMENT ACCOUNT NO. 5080

DEPRECIATION EXPENSE OFFICE EQUIPMENT ACCOUNT NO. 5090


Ref. Debit Credit


Ref. Debit Credit

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SANCHEZ COMPUTER CENTERPOST-CLOSING TRIAL BALANCE

SEPTEMBER 30, 200X

Dr. Cr.

Name __________________________________ Class ____________________ Date ____________________

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MINI PRACTICE SETSULLIVAN REALTY

SULLIVAN REALTYGENERAL JOURNAL

PAGE 1


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Name __________________________________ Class ____________________ Date ____________________

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Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

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MINI PRACTICE SET: SULLIVAN REALTY



Ref. Debit Credit

AUTOMOBILE ACCOUNT NO. 123


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

ACCUMULATED DEPRECIATION, AUTOMOBILE ACCOUNT NO. 124



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JOHN SULLIVAN, CAPITAL ACCOUNT NO. 311

Name __________________________________ Class ____________________ Date ____________________


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

JOHN SULLIVAN, WITHDRAWALS ACCOUNT NO. 312


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COMMISSIONS EARNED ACCOUNT NO. 411


Ref. Debit Credit



Ref. Debit Credit


Ref. Debit Credit


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GAS EXPENSE ACCOUNT NO. 513

Name __________________________________ Class ____________________ Date ____________________

SG-176


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

REPAIRS EXPENSE ACCOUNT NO. 514




Ref. Debit Credit

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OFFICE SUPPLIES EXPENSE ACCOUNT NO. 517


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


DEPRECIATION EXPENSE, AUTOMOBILE ACCOUNT NO. 519

MISCELLANEOUS EXPENSE ACCOUNT NO. 524

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Use the blank fold-out worksheets that accompanied your textbook.

SULLIVAN REALTYINCOME STATEMENT


Name __________________________________ Class ____________________ Date ____________________

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SULLIVAN REALTYSTATEMENT OF OWNER’S EQUITY


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SULL

IVA

NR

EALT

YBA

LAN

CE

SHEE

TJU

NE

30, 2

00X

ASS

ETS

LIA

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ITIE

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’S E

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SULLIVAN REALTYPOST-CLOSING TRIAL BALANCE

JUNE 30, 200X

Dr. Cr.

You can find the worksheet for July with the blank fold-out worksheets that accompanied your textbook.

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SULLIVAN REALTYINCOME STATEMENT


Name __________________________________ Class ____________________ Date ____________________

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SULLIVAN REALTYSTATEMENT OF OWNER’S EQUITY


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SULL

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TJU

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1, 2

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’S E

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SULLIVAN REALTYPOST-CLOSING TRIAL BALANCE

JULY 31, 200X

Dr. Cr.

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Add to Deduct from Add to Deduct fromSituation Bank Balance Bank Balance Checkbook Balance Checkbook Balance

12345678


PAGE 6


BankingProceduresand Control of Cash

6

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CHAPTER 6SET A FORMS FOR CLASSROOM DEMONSTRATION EXERCISES

1.A. ___________________ E. ___________________B. ___________________ F. ___________________C. ___________________D. ___________________

2. ________ _______ _______ ______

3.

ACE CO.BANK RECONCILIATION

JUNE 30, 200X

Checkbook Bank

4.A. ______ _______ ______ E. ______ _______ ______B. ______ _______ ______ F. ______ _______ ______C. ______ _______ ______D. ______ _______ ______

5.

6.

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CHAPTER 6SET B FORMS FOR CLASSROOM DEMONSTRATION EXERCISES

1.A. ___________________ E. ___________________B. ___________________ F. ___________________C. ___________________D. ___________________

2. ________ _______ _______ ______

3.

ACE CO.BANK RECONCILIATION

JUNE 30, 200X

Checkbook Bank

4.A. ______ _______ ______ E. ______ _______ ______B. ______ _______ ______ F. ______ _______ ______C. ______ _______ ______D. ______ _______ ______

5.

6.

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FORMS FOR EXERCISES

6-1.

BING CO.BANK RECONCILIATION AS OF JULY 31, 200X

CHECKBOOK BALANCE BALANCE PER BANKEnding Checkbook Balance _________________ Ending Bank Statement Balance ________________

Deduct: _________________ Add: ________________Bank Service Charge _________________ Deposit in Transit ________________

_________________ _________________________________ Deduct: _________________________________ Outstanding Checks _________________________________ ________________

Reconciled Balance _________________ Reconciled Balance ________________

6-2.

6-3.

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6-4.

6-5.Beg. Change Fund

+Cash Register Total=Cash should have on hand– Counted Cash= Cash Shortage

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LEE.COMBANK RECONCILIATION AS OF JULY 31, 200X

BALANCE PER BANK CHECKBOOK BALANCE

Bank Statement Balance Checkbook Balance

Add: _________________ Add:

Deduct: _________ _________________

_________________ Deduct:

_________________

Reconciled Balance _________________ Reconciled Balance _________________

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LOWELL NATIONAL BANKRIO MEAN BRANDBUGNA, TEXAS TELEPHONE 555-8311

This form is provided to help you balance your bank statement. If no errors are reported to auditors inten days, the account will be considered correct.

Please notify us of any change in address.

Checks outstanding(not charged to account)

Check No. Amount

Total

Sort the checks numerically orby date issued.Check off on the stubs of yourcheckbook each check paid by bank.List the numbers and amounts ofchecks still outstanding in thespace provided at the left.Verify the deposits in your checkbook withdeposits credited on this statement. Bankbalance show on this statement $_____________Plus: Deposits not

credited on this statement $_____________Subtotal $_____________

Less: Checks outstanding $_____________Balance $_____________

If your checkbook does not agree, enter anynecessary adjustments:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Correct checkbook balance $_____________

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GENERAL JOURNAL

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MERRY CO.GENERAL JOURNAL


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MER

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O.

AU

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LOGAN CO.GENERAL JOURNAL

PAGE 2


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LOG

AN

CO

.A

UX

ILIA

RY P

ETTY

CA

SH R

ECO

RD

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Am

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CHAPTER 6SUMMARY PRACTICE TEST

BANKING PROCEDURES AND CONTROL OF CASH

Part I Instructions


1. Online banking is _______________ due to the internet.2. Today, use of the _______________ _______________ has greatly increased.3. All adjustments to the checkbook balance in the reconciliation process will

require _______________ _______________.4. Petty cash is a(n) _______________ found on the balance sheet.5. The auxiliary petty cash record is not a(n) _______________.6. A(n) _______________ _______________ is an asset used to make change for customer.7. A cash overage will be _______________ _______________ on the income statement.8. _______________ _______________ represents checks not processed by the bank at the time the

bank statement was prepared.9. When a bank credits your account, your balance will _______________.

10. _______________ is a procedure whereby the bank does not return the processed checks.


Indicate which of the following procedures are involved in each of the transactions below.

a. Recorded in General Journalb. Recorded in both general journal and auxiliary petty cash recordc. Recorded only in auxiliary petty cash recordd. New check is writtene. Account petty cash is increased

1. EXAMPLE: Check issued to establish petty cash b,d,e

2. Paid donation from petty cash __________

3. Paid postage from petty cash __________

4. Paid past purchases previously charged __________

5. Paid for business luncheon with petty cash __________

6. Issued check to pay for office supplies __________

7. Replenished petty cash __________

8. Paid local donation from petty cash __________

9. Paid for past purchases bought on account __________

10. Replenished petty cash __________

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1. Online banking is decreasing today.

2. Petty cash is a liability found on the balance sheet.

3. Checks returned from the bank are placed in alphabetical order.

4. ATMs are being used less today than in the past.

5. Bank service charges represent an expense to the business.

6. The bank statement is the same as the bank reconciliation.

7. The balance in the company cash account will always equal the bank balance before the bankstatement is received.

8. Deposit slips are needed in writing checks.

9. The signature must be presented when cashing a check.

10. The auxiliary petty cash record is posted monthly.

11. The petty cash account has a debit balance.

12. Replenishment of petty cash requires a new check.

13. The expenses paid from petty cash are journalized at time of replenishment.

14. Internal control only affects large companies.

15. A petty cash voucher records the expense into the ledger.

16. The petty cash fund must be replenished monthly.

17. The petty cash voucher identifies the account that will be charged.

18. The establishment of petty cash may require some judgment as to the amount of petty cash needed.

19. EFT is the same as safekeeping.

20. The drawer is the person who receives the check.

21. A debit memo will increase the depositor’s balance.

22. A change fund uses only one denomination.

23. The payer is the person or company the check is payable to.

Part IV Instructions

Based on the following situation, prepare a bank reconciliation.

The checkbook balance of Logan Company is $5,263.08. The bank statement shows a bank balance of$7,980. The bank statement shows interest earned of $42 and a service charge of $29.76. There is a depositin transit of $2,558.22. Outstanding checks total $3,762.90. The bank collected a note for Moore for$4,200. Moore Company forgot to deduct a check for $2,700 during the month.

SG-201

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Part I

1. increasing 6. change fund2. debit card 7. miscellaneous income3. journal entries 8. Checks outstanding4. asset 9. increase5. journal 10. Safekeeping

Part II

1. b, d, e 6. a, d2. c 7. b, d3. c 8. c4. a, d 9. a, d5. c 10. b, d

Part III

1. false 6. false 11. true 16. false 21. false2. false 7. false 12. true 17. true 22. false3. false 8. false 13. true 18. true 23. false4. false 9. true 14. false 19. false5. true 10. false 15. false 20. false

Part IV

LOGAN CO. BANK BALANCE

Checkbook Balance $5,263.08 Bank Balance $7,980.00

ADD: ADD:

Deposit

Interest $ 42 in Transit 2,558.22

Collection of note 4,200 4,242.00 $9,038.22

8,005.08

DEDUCT: DEDUCT:

Service Chg. $ 29.76 Check outstanding $3,762.90

Error 2,700.00 2,729.76

Reconciled Balance $6,775.32 Reconciled Balance $6,775.32

Name __________________________________ Class ____________________ Date ____________________

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Ref. Debit Credit



Ref. Debit Credit

PETTY CASH ACCOUNT NO. 1010

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Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit




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SG-206



Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit





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T. FREEDMAN, CAPITAL ACCOUNT NO. 3000

SG-207

T. FREEDMAN, WITHDRAWALS ACCOUNT NO. 3010



Ref. Debit Credit



Ref. Debit Credit


Ref. Debit Credit

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Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


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Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit




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SG-210



Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

DEPRECIATION EXPENSE, COMPUTER SHOP EQUIPMENT ACCOUNT NO. 5080



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OCTOBER 31, 200X

Name __________________________________ Class ____________________ Date ____________________

SG-211

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AU

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SANCHEZ COMPUTER CENTERBANK RECONCILIATION AS OF SEPTEMBER 30, 200X

BALANCE PER BANK CHECKBOOK BALANCE

Bank Statement Balance Checkbook Balance

Add: _________________ Add:

Deduct: _________ _________________

_________________ Deduct:

_________________

Reconciled Balance _________________ Reconciled Balance _________________

SG-213

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REGULAR EARNINGSOVERTIMEGROSS EARNINGS


FITSITFICA - OASDIFICA - MedicareNET PAY

PayrollConcepts andProcedures—Employee Taxes

7

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FICA - OASDIFICA - MedicareFUTASUTA

SG-215

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CHAPTER 7SET A FORMS FOR CLASSROOM DEMONSTRATION EXERCISES

1. A.

B.

2.

3.

4. A. D.

B. E.

C. F.

5.A. B.C.D.

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CHAPTER 7SET B FORMS FOR CLASSROOM DEMONSTRATION EXERCISES

1. A.

B.

2.

3.

4. A. D.

B. E.

C. F.

5.A.B.C.D.

Name __________________________________ Class ____________________ Date ____________________

SG-217

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FORMS FOR EXERCISES

7-1.Carmen

Jill

Fred

7-2.Alvin Angelina

7-3.

7-4.

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7-5.

7-6.

7-7.

7-8.

Employee Weekly Pay Weeks Total Taxable Tax Rate Tax

Name __________________________________ Class ____________________ Date ____________________

SG-219


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Hourly # of Hours Gross

Employee Rate Worked Earnings

A.

B.

C.

D.

A. B.

C. D.


Use the fold-out payroll register that accompanied your textbook.





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PAYROLL CONCEPTS AND PROCEDURES—EMPLOYEE TAXES

PART I INSTRUCTIONS


1. _______________ _______________ is gross pay less deductions.

2. Form _______________ aids the employer in knowing how much to deduct for federal income tax.

3. The base for OASDI-Medicare will _______________ _______________ from year to year.

4. _______________ _______________ of the employer’s tax guide has tables available for deductionsfor FIT and FICA (OASDI and Medicare).

5. _______________ _______________ _______________ protects employees against losses due toinjury or death incurred while on the job.

6. The two primary records used to keep track of payroll information are the ______________________________ and _______________ _______________ _______________.

7. The employer is responsible for paying for_______________.

8. _______________ _______________ is paid every two weeks.

9. A(n) _______________ employee will only be paid for the hours actually worked.

10. An employer must pay FUTA on wages earned by each employee up to a maximum of$_______________.


Answer true or false to the following.

1. OASDI is the tax form for SUTA.

2. Employers only pay FUTA and SUTA.

3. Employers pay a higher FICA-OASDI tax rate than employees do.

4. Gross pay plus deductions equals net pay.

5. Form W-4 aids in calculating FICA-OASDI.

6. The employer will match the employee’s contribution for FICA (OASDI and Medicare).

7. The maximum tax credit for state unemployment tax is .8%.

8. A company may have different types of employees.

9. The Wage-Bracket Table makes it more difficult to calculate the amount of deductions for FIT.

10. A calendar year has no effect on taxes for FICA-Social Security.

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Distribution


Complete the chart below (use table in text as needed). Use the following information: Before this payrollPete Bloom had earned $101,000. This week Pete earned $2,000 for the past two weeks. Assume anOASDI rate of Social Security of 6.2% up to $102,000. Medicare, 1.45%. FIT is $238.50. The state incometax is 7 percent.

DEDUCTIONS

GROSS PAY TAXABLE FICA FIT SIT NET

FICA OASDI Med. PAY


Part I

1. Net Pay 6. payroll register, employee earnings record2. W-4 7. FUTA (SUTA)3. not change 8. Biweekly payroll4. Circular E 9. hourly5. Workers’ Compensation Insurance 10. 7,000

Part II

1. false 6. true2. false 7. false3. false 8. true4. false 9. false5. false 10. false

Part III

OASDI $1,000 x.062 = $ 62.00Medicare 2,000 x.0145 = 29.00FIT 238.50 $2,000.00SIT 2,000 x.07 140.00 – 469.50Total deductions $469.50 $1,530.50

Name __________________________________ Class ____________________ Date ____________________

SG-222

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Name __________________________________ Class ____________________ Date ____________________

SG-223


(1)


PAGE 4


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Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-224


PAGE 5


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-225



Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit


PETTY CASH ACCOUNT NO. 1010


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Distribution


Name __________________________________ Class ____________________ Date ____________________

SG-226


Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit





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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-227



Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit



WAGES PAYABLE ACCOUNT NO. 2010

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Distribution

FICA—OASDI PAYABLE ACCOUNT NO. 2020

Name __________________________________ Class ____________________ Date ____________________

SG-228


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

FICA—MEDICARE PAYABLE ACCOUNT NO. 2030

FIT PAYABLE ACCOUNT NO. 2040

SIT PAYABLE ACCOUNT NO. 2050

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Name __________________________________ Class ____________________ Date ____________________

SG-229

T. FREEDMAN CAPITAL ACCOUNT NO. 3000

T. FREEDMAN WITHDRAWALS ACCOUNT NO. 3010





Ref. Debit Credit


Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit


Ref. Debit Credit


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Distribution


Name __________________________________ Class ____________________ Date ____________________

SG-230






Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit



Ref. Debit Credit

10/31 0X � 4 2 00


Ref. Debit Credit

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Name __________________________________ Class ____________________ Date ____________________

SG-231

DEPRECIATION EXPENSE C. S. EQUIPMENT ACCOUNT NO. 5080


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


DEPRECIATION EXPENSE OFFICE EQUIPMENT ACCOUNT NO. 5090


WAGES EXPENSE ACCOUNT NO. 5110

(2) Use the fold-out payroll register that accompanied your textbook.

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(3)


NOVEMBER 30, 200X

Dr. Cr.

Name __________________________________ Class ____________________ Date ____________________

SG-232

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SG-233


GENERAL JOURNAL

PAGE 1


The Employer’s TaxResponsibilities:Principles andProcedures

8

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SG-234


1.

2.


1. 2. 3. 4. 5. 6.

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Name __________________________________ Class ____________________ Date ____________________

SG-235

CHAPTER 8

SET A FORMS FOR CLASSROOM DEMONSTRATION EXERCISES

1.A.

B.

C.

D.

E.

2.A. ____________________________________________________________________________

B. ____________________________________________________________________________

C. ____________________________________________________________________________

D. ____________________________________________________________________________

3.

4.A. ____________________________________________________________________________

B. ____________________________________________________________________________

C. ____________________________________________________________________________

D. ____________________________________________________________________________

E. ____________________________________________________________________________

F. ____________________________________________________________________________

G. ____________________________________________________________________________

5.A. _____________

B. _____________

C. _____________

D. _____________

E. _____________

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SG-236

CHAPTER 8

SET B FORMS FOR CLASSROOM DEMONSTRATION EXERCISES

1.A.

B.

C.

D.

E.

2.A. ____________________________________________________________________________

B. ____________________________________________________________________________

C. ____________________________________________________________________________

D. ____________________________________________________________________________

3.

4.A. ____________________________________________________________________________

B. ____________________________________________________________________________

C. ____________________________________________________________________________

D. ____________________________________________________________________________

E. ____________________________________________________________________________

F. ____________________________________________________________________________

G. ____________________________________________________________________________

5.A. _____________

B. _____________

C. _____________

D. _____________

E. _____________

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FORMS FOR EXERCISES

8-1. ACCOUNT CATEGORY DR/CR STATEMENT FOUND ON

8-2.

8-3.

Name __________________________________ Class ____________________ Date ____________________

SG-237

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Name __________________________________ Class ____________________ Date ____________________

SG-238


8-4.

8-5.

8-6.

8-7.

8-8.

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Name __________________________________ Class ____________________ Date ____________________

SG-239



Allowance FICA&

Employee Marital Status Gross OASDI Medicare Federal Income Tax

(2)

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Distribution


Name __________________________________ Class ____________________ Date ____________________

SG-240


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-241



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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-242

PROBLEM 8A-3 OR PROBLEM 8B-3PROBLEM 8A-3 OR PROBLEM 8B-3

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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-243


65724_08_ch08_p233-257 4/15/09 11:50 AM Page SG-243


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-244


65724_08_ch08_p233-257 4/15/09 11:50 AM Page SG-244


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-245


65724_08_ch08_p233-257 4/15/09 11:50 AM Page SG-245


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-246


65724_08_ch08_p233-257 4/15/09 11:50 AM Page SG-246


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-247


65724_08_ch08_p233-257 4/15/09 11:51 AM Page SG-247


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-248


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-249


THE EMPLOYER’S TAX RESPONSIBILITIES:PRINCIPLES AND PROCEDURES

Part I Instructions


1. Form 941 is completed _______________.

2. The payroll tax expense for the employer is made up of _______________, _______________, andFUTA.

3. Data from the _______________ _______________ will provide the needed information to recordthe payroll in the general journal.

4. SUTA is usually paid _______________.

5. FUTA Payable is a _______________ found on the _______________ _______________.

6. Form 941 summarizes the taxes owed for _______________ and _______________.

7. _______________ _______________ _______________ will tell if a deposit is to be mademonthly or semiweekly for FIT and Social Security.

8. Form _______________ is prepared quarterly to summarize tax liabilities for FICA (Social Securityand Medicare) and FIT.

9. The _______________ _______________ _______________ _______________ is required to begiven to employees by January 31 following the year employed.

10. _______________ does not have a merit rating like SUTA.


Answer true or false to the following.

1. Prepaid Workers’ Compensation Insurance is a liability.

2. Payroll taxes are recorded as assets for a business.

3. Payroll Tax Expense is made up of FICA, SUTA, and FIT.

4. Frequency of deposits relating to Form 941 is based on amount of tax liability in look-back periods.

5. The normal balance of FIT payable is a debit.

6. The individual earnings record provides the data to prepare W-2s.

7. A tax calendar provides little help to the employer involving the payment of tax liabilities.

8. Form 941 is completed twice a year.

9. A year-end adjusting entry is needed for workers’ compensation.

10. Form 8109 relates only to Form 940.

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Name __________________________________ Class ____________________ Date ____________________

SG-250


Complete the following table:

ACCOUNT CATEGORY FOUND ON WHICH REPORT

1. Salaries Payable

2. FUTA Payable

3. SUTA Payable

4. OASDI Tax Payable—Medicare

5. FIT Payable

6. Office Salaries Expense

Part IV Instructions


4 QUARTERSLOOK-BACK PERIOD

LIABILITY PAYROLL PAID WEEKLY TAX PAID BY:

Sit. A $40,000 October ?

Sit. B 75,000

on Wed. ?

on Thurs. ?

on Fri ?

on Sat. ?

on Sun. ?

on Mon. ?

on Tues. ?

Why is the depositor in situation A classified as a monthly depositor while in situation B the depositor isclassified as semiweekly?


Part I

1. quarterly 6. FICA (OASDI and 2. FICA (OASDI and Medicare), FIT

Medicare), SUTA 7. Look-back periods3. payroll register 8. 9414. quarterly 9. Wage and Tax Statement5. liability, balance sheet 10. FUTA

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SG-251

Part III

1. Liability; Balance Sheet





6. Expense; Income Statement

Part IV

Situation A Nov. 15

B on Wed.

on Thurs.on Wed. of Week 2

on Fri.

on Sat.

on Sun. Due Fri. of that week

on Mon.

on Tues.

The depositor in situation A is classified as a monthly depositor because its tax liability of $40,000 during the look-back period was less than the $50,000 limit.

On the other hand, the depositor in situation B owed $75,000 during the look-back period. Since this is greater thanthe $50,000 limit, it was classified as a semiweekly depositor.

Part II

1. false 6. true

2. false 7. false

3. false 8. false

4. true 9. true

5. false 10. false

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Name __________________________________ Class ____________________ Date ____________________

SG-252

CONTINUING PROBLEM FOR CHAPTER 8SANCHEZ COMPUTER CENTER


PAGE 5


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Name __________________________________ Class ____________________ Date ____________________

SG-253



PAGE 6


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-254


65724_08_ch08_p233-257 4/15/09 11:51 AM Page SG-254


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-255


65724_08_ch08_p233-257 4/15/09 11:51 AM Page SG-255


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-256

65724_08_ch08_p233-257 4/15/09 11:51 AM Page SG-256


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-257

65724_08_ch08_p233-257 4/15/09 11:51 AM Page SG-257


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Distribution

SG-258

1. 2. 3. 4. 5.


Sales and CashReceipts

9

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Name __________________________________ Class ____________________ Date ____________________

SG-259


Date Explanation Post Debit Credit Dr. BalanceRef.


BERNIE COMPANYGENERAL JOURNAL PAGE 1

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGERNAME LEE CORP.

ADDRESS 118 MORRIS RD., BOSTON, MA 01935

NAME RING COMPANY

ADDRESS 31 NORRIS ROAD, BOSTON, MA 01935


65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-259


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-260


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

PARTIAL GENERAL LEDGER

ACCOUNT RECEIVABLE ACCOUNT NO. 141

SALES ACCOUNT NO. 310

SALES RETURNS AND ALLOWANCES ACCOUNT NO. 312

65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-260


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Name __________________________________ Class ____________________ Date ____________________

SG-261


MABEL CORPORATIONGENERAL JOURNAL

PAGE 3


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-262




STORE EQUIPMENT ACCOUNT NO. 130


BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit

May 1 Balance � 6 0 0 00







65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-262


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Name __________________________________ Class ____________________ Date ____________________

SG-263

SALES DISCOUNT ACCOUNT NO. 420

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER

NAME IRENE WELCH

ADDRESS 10 RONG RD., BEVERLY, MA 01215

NAME JANIS FROSS

ADDRESS 81 FOSTER RD., BEVERLY, MA 09125


Date Explanation Post Debit Credit Dr. Balance200X Ref.




65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-263


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Name __________________________________ Class ____________________ Date ____________________

SG-264


1.

2.

3.A. ________ ________ ________

B. ________ ________ ________

C. ________ ________ ________

4.

65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-264


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Name __________________________________ Class ____________________ Date ____________________

SG-265

5.

PAGE 6


BLUE CO.SCHEDULE OF ACCOUNTS RECEIVABLE

MAY 31, 200X

6.

65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-265


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Name __________________________________ Class ____________________ Date ____________________

SG-266

FORMS FOR EXERCISES

9-1.

Amazon.com Accounts Receivable 112

Bill Valley Co. Sales 412

9-2.

GENERAL JOURNAL

PAGE 1

Bass Co. Sales 411

Ronald Co. Accounts Receivable 112 Sales Returns & Allowances 412


65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-266


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Name __________________________________ Class ____________________ Date ____________________

SG-267

9-4.

PAGE 1


9-3.


EDNA CO.GENERAL JOURNAL

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ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER PARTIAL GENERAL LEDGER

Boston Co. Cash 111

Gary Co. Accounts Receivable 113

Edna Cares, Capital 311

Sales 411

Sales Returns &Allowances 412

Sales Discount 413

EDNA CO.SCHEDULE OF ACCOUNTS RECEIVABLE

JUNE 30, 200X

9-5.

Name __________________________________ Class ____________________ Date ____________________

SG-268


GENERAL JOURNAL (CONTINUED) PAGE 1


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Name __________________________________ Class ____________________ Date ____________________

SG-269




PIZZA AND MOREGENERAL JOURNAL

PAGE 1

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Name __________________________________ Class ____________________ Date ____________________

SG-270



NAME CINDY CO.

ADDRESS 942 MOSE ST., REVERE, MA 01938




NAME FRENCH CO.

ADDRESS 8 JOSS AVE., LYNN, MA 01947

NAME GROOM CO.

ADDRESS 10 LOST RD., TOPSFIELD, MA 01998

65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-270


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-271


Ref. Debit Credit


PIZZA AND MOREGENERAL LEDGER



Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

PIZZA SALES ACCOUNT NO. 410

GROCERY SALES ACCOUNT NO. 411


65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-271


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-272


PIZZA AND MORESCHEDULE OF ACCOUNTS RECEIVABLE

JUNE 30, 200X


TED’S AUTO SUPPLYGENERAL JOURNAL

PAGE 2


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Name __________________________________ Class ____________________ Date ____________________

SG-273



NAME LANCE CORNER

ADDRESS 9 ROE ST., BARTLETT, NH 01382


Nov 1 Balance � 4 0 0 00




Nov 1 Balance � 1 0 0 0 00

NAME J. SETH

ADDRESS 22 REESE ST., LACONIA, NH 04321

NAME R. VOLAN

ADDRESS 12 ASTER RD., MERRIMACK, NH 02134

65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-273


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-274


TED’S AUTO SUPPLYPARTIAL GENERAL LEDGER



Nov 1 Balance � 1 6 0 0 00


Nov 1 Balance � 1 6 0 0 00


Ref. Debit Credit


Ref. Debit Credit

SALES TAX PAYABLE ACCOUNT NO. 210

AUTO PARTS SALES ACCOUNT NO. 410


65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-274


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-275


(3)

TED’S AUTO SUPPLYSCHEDULE OF ACCOUNTS RECEIVABLE

NOVEMBER 30, 200X

65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-275


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Name __________________________________ Class ____________________ Date ____________________

SG-276

PROBLEM 9A-3 OR PROBLEM 9B-3(1,2)

PEAKER’S SNEAKER SHOPGENERAL JOURNAL

PAGE 2


65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-276


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Name __________________________________ Class ____________________ Date ____________________

SG-277

PROBLEM 9A-3 OR PROBLEM 9B-3 (CONTINUED)(1,2)

PEAKER’S SNEAKER SHOPGENERAL JOURNAL

PAGE 3


65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-277


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Name __________________________________ Class ____________________ Date ____________________

SG-278



NAME B. DALE

ADDRESS 1822 RIVER RD., MEMPHIS, TN 09111

NAME RON LESTER

ADDRESS 18 MASS. AVE., SAN DIEGO, CA 01999








NAME PAM PRY

ADDRESS 918 MOORE DR., HOMEWOOD, IL 60430

65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-278


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-279


NAME JIM ZON

ADDRESS 2 CHESTNUT ST., SWAMPSCOTT, MA 01970



PEAKER’S SNEAKER SHOPPARTIAL GENERAL LEDGER

CASH ACCOUNT NO. 10


May 1 Balance � 15 5 0 0 00

65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-279


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-280



SNEAKER RACK EQUIPMENT ACCOUNT NO. 14

MARK PEAKER, CAPITAL ACCOUNT NO. 30


May 1 Balance � 1 0 0 0 00


May 1 Balance � 2 2 0 0 00


May 1 Balance � 40 0 0 0 00

65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-280


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-281


May 1 Balance � 2 2 0 0 00

SALES DISCOUNT ACCOUNT NO. 42



SALES RETURNS & ALLOWANCES ACCOUNT NO. 44



65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-281


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-282


(3)

PEAKER’S SNEAKER SHOPSCHEDULE OF ACCOUNTS RECEIVABLE

MAY 31, 200X

65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-282


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-283


BILL’S COSMETIC MARKETGENERAL JOURNAL

PAGE 1


65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-283


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-284


BILL’S COSMETIC MARKETGENERAL JOURNAL

PAGE 2


65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-284


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-285


Date Explanation Post Debit Credit DebitRef. Balance


NAME ALICE KOY CO.

ADDRESS 2 RYAN RD., BUFFALO, NY 09113

65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-285


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-286



NAME RUSTY NEAL CO.

ADDRESS 4 REEL RD., LANCASTER, PA 04332




NAME MARIKA SANCHEZ CO.

ADDRESS 14 BONE DR., ENGLEWOOD CLIFFS, NJ 07632

NAME JEFF TONG CO.

ADDRESS 2 MARION RD., BOSTON, MA 01981

65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-286


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-287


BILL’S COSMETIC MARKETGENERAL LEDGER

CASH ACCOUNT NO. 10


Ref. Debit Credit


Ref. Debit Credit


65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-287


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-288

LIPSTICK SALES ACCOUNT NO. 40


Ref. Debit Credit


Ref. Debit Credit


BILL MURRAY, CAPITAL ACCOUNT NO. 30


Ref. Debit Credit


65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-288


Not For ResaleOr

Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-289


Ref. Debit Credit


Ref. Debit Credit

SALES RETURNS & ALLOWANCES, LIPSTICK ACCOUNT NO. 42

EYE SHADOW SALES ACCOUNT NO. 44

(3) BILL’S COSMETIC MARKETSCHEDULE OF ACCOUNTS RECEIVABLE

APRIL 30, 200X


65724_09_ch09_p258-297 4/15/09 11:51 AM Page SG-289


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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-290

CHAPTER 9SUMMARY PRACTICE TESTSALES AND CASH RECEIPTS

Part I Instructions


1. The normal balance of sales returns and allowances is _______________.2. _______________ _______________ and _______________ is a contra-revenue account.3. Sales is a(n) _______________ account.4. A discount period is less time than the _______________ _______________.5. A debit to accounts receivable and a credit to sales records the sale of merchandise _______________

_______________.6. The _______________ _______________ _______________ _______________ lists in

alphabetical order an account for each customer.7. _______________ _______________ in the general ledger is called the controlling account.8. The (�) in the PR column of the general journal indicates that the accounts receivable ledger has

been updated _______________ _______________ _______________.9. Issuing _______________ _______________ results in a debit to sales returns and allowancs and a

credit to accounts receivable.10. In a wholesale company there is no _______________ tax.11. Sales Tax Payable is a(n) _______________ in the general ledger.12. Cash sales result in a(n) _______________ to cash and a _______________ to sales.13. Sales Returns and Allowances is a(n) _______________ _______________ account.14. The _______________ _______________ has to be posted to the general as well as the sales ledger.15. No _______________ _______________ are taken on sales tax.16. A(n) _______________ _______________ _______________ _______________ lists the ending

balances from the accounts receivable ledger.

Part II

Complete the following chart:

Transaction Dr. Cr.

1. Sale for cash ________________ ______________

2. Issued credit memo ________________ ______________

3. Sale on account ________________ ______________

4. Received cash payment less discount ________________ ______________

Partial Chart of Accounts

10 Cash 40 Sales20 Accounts Receivable 42 Sales Discount

44 Sales Returns and Allowances

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1. A schedule of accounts receivable shows what customers do not owe.2. A perpetual system would keep continual track of inventory.3. Sales Discount policies can never change.4. Sales Tax Payable is an asset.5. Sales Discount is a contra asset.6. Issuing a credit memorandum results in Sales, Returns and Allowances decreasing with Accounts

Receivable increasing.7. The sum of the accounts receivable subsidiary ledger is equal to the balance in the controlling account

at the end of the month.8. The buyer issues the credit memo.9. The accounts receivable subsidiary ledger is listed in numerical order.

10. Sales Discount is a contra-revenue account.11. Net sales = gross sales − SRA-SD.12. The normal balance of an Accounts Receivable ledger is a debit.13. Discounts are taken on sales tax.14. 2/10, N/30 means a cash discount is good for 30 days.15. The accounts receivable subsidiary ledger is always located in the general ledger.16. Gross profit plus operating expenses equals net income.17. A credit period is longer than the discount period.18. In the accounts receivable subsidiary ledger each account is debited to record amounts customers owe.19. Sales Tax Payable is an asset.


Part I

1. debit 9. credit memorandum2. Sales Returns, Allowances 10. sales3. revenue 11. liability4. credit period 12. debit, credit5. on account 13. contra-revenue6. accounts receivable subsidiary ledger 14. journalized transaction7. Accounts Receivable 15. cash discounts8. during the month 16. schedule of accounts receivable

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Part II

Dr. Cr.

1. 10 40

2. 44 20

3. 20 40

4. 10 20

42

Part III1. false 11. true

2. true 12. true

3. false 13. false

4. false 14. false

5. false 15. false

6. false 16. false

7. true 17. true

8. false 18. true

9. false 19. false

10. true

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SANCHEZ COMPUTER CENTERSCHEDULE OF ACCOUNTS RECEIVABLE

1/31/0X



Ref. Debit Credit

1/1 0X Balance Forward � 3 3 3 6 65

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Ref. Debit Credit

1/1 0X Balance Forward � 13 6 0 0 00

SANCHEZ COMPUTER CENTERPARTIAL GENERAL LEDGER



Ref. Debit Credit


Ref. Debit Credit


SALES RETURNS & ALLOWANCES ACCOUNT NO. 4020

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NAME TAYLOR GOLF ACCOUNT NO. 100

ADDRESS 1010 MOCKINGBIRD LANE, CARLSBAD, CA 92008




1/1 0X Balance � 6 8 0 0 00

NAME VITA NEEDLE ACCOUNT NO. 101

ADDRESS 144 CANTATA, IRVINE, CA 92606

ACCOUNTS RECEIVABLESUBSIDIARY LEDGER


Ref. Debit Credit

SALES DISCOUNTS ACCOUNT NO. 4030

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NAME ANTHONY J. PITALE ACCOUNT NO. 104

ADDRESS 600 NEWPORT BEACH, NEWPORT, CA 91600



1/1 0X Balance � 3 9 0 0 00


NAME ACCU PAC ACCOUNT NO. 103

ADDRESS 1717 JORDAN ST., SAN CLEMENTE, CA 91607

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Purchases andCash Payments

10

1. –––––––––– 2. –––––––––– 3. –––––––––– 4. –––––––––– 5. ––––––––––

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MUNROE CO.GENERAL JOURNAL

PAGE 1

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ACCOUNTS PAYABLE SUBSIDIARY LEDGER

NAME JOHN BUTLER COMPANY

ADDRESS 18 REED RD., HOMEWOOD, IL 60430

Date Explanation Post Debit Credit Cr. BalanceRef.


NAME FLYNN COMPANY

ADDRESS 15 FOSS AVE., ENGLEWOOD CLIFFS, NJ 07632




Ref. Debit Credit

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Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

PURCHASES ACCOUNT NO. 512

PURCHASES RETURNS AND ALLOWANCES ACCOUNT NO. 513

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MELISSA COMPANYGENERAL JOURNAL

NAME BOB FINKELSTEIN

ADDRESS 112 FLYING HIGHWAY, TRENTON, NJ 00861

Date Explanation Post Debit Credit Cr. Balance200X Ref.

June 1 Balance � 3 0 0 00



NAME AL JEEP

ADDRESS 118 WANG RD., SAUGUS, MA 01432

ACCOUNTS PAYABLE SUBSIDARY LEDGER

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PURCHASES DISCOUNT ACCOUNT NO. 511


Ref. Debit Credit


Ref. Debit Credit


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PETE’S CLOCK SHOPGENERAL JOURNAL

PAGE 2


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PETE’S CLOCK SHOPGENERAL JOURNAL

PAGE 3


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1. A. ____________________

B. ____________________

C. ____________________

2.

3. ____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

4. A. ____________________

B. ____________________

C. ____________________

5.

D. ____________________

E. ____________________

F. ____________________

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6.WEB.COM

SCHEDULE OF ACCOUNTS PAYABLEMAY 31, 200X


FORM FOR CLASSROOM DEMONSTRATION EXERCISES 8, 9, 10

7.

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FORMS FOR EXERCISES

10-1.

Lee’s.com Equipment 120

Lane.com Accounts Payable 210

Sail.com Purchases 510

10-2. PAGE 1

Purchases Returns andReel Co. Accounts Payable 211 Allowances 513

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10-3. PAGE 2


A. James

1,000

B. Foss

400

J. Ranch

900

B. Swanson

100


Cash 110

3,000

Accounts Payable 210

2,400

Purchases Discount 511

Advertising Expense 610

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10-4.

MORGAN’S CLOTHINGSCHEDULE OF ACCOUNTS PAYABLE

APRIL 30, 200X

Accounts Payable 210

10-5.

Accounts Affected Category Rules

10-6.

↑ ↓

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FORM FOR EXERCISES 10-7, 10-8, 10-9, 10-10

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CALCULATIONS PAGE FOR 10-7 TO 10-10


FORM FOR EXERCISES 10-7, 10-8, 10-9, 10-10 (CONTINUED)

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RON’S SKATE SHOPGENERAL JOURNAL

PAGE 2


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NAME MAIL.COM

ADDRESS 12 SMITH ST., DEARBORN, MI 09113




NAME NORTON CO.

ADDRESS 1 RANTOUL RD., CHARLOTTE, NC 01114

NAME ROLO CO.

ADDRESS 2 WEST RD., LYNN, MA 01471


STORE SUPPLIES ACCOUNT NO. 115


Ref. Debit Credit

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Name __________________________________ Class ____________________ Date ____________________

SG-315




Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit



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MABEL’S NATURAL FOODPAGE 2


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NAME ATON CO.

ADDRESS 11 LYNNWAY AVE., NEWPORT, RI 03112








May 1 Balance � 1 2 0 0 00

NAME BROWARD CO.

ADDRESS 21 RIVER ST., ANAHEIM, CA 43110

NAME MIDDEN CO.

ADDRESS 10 ASTER RD., DUBUQUE, IA 80021

NAME RELAR CO.

ADDRESS 22 GERALD RD., SMITH, CO 43138

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Ref. Debit Credit


Ref. Debit Credit


May 1 Balance � 2 7 0 0 00


May 1 Balance � 16 0 0 0 00




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MABEL’S NATURAL FOOD

SCHEDULE OF ACCOUNTS PAYABLEMAY 31, 200X


Ref. Debit Credit

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Distribution

Name __________________________________ Class ____________________ Date ____________________

SG-320


PAGE 5


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NAME ALVIN CO.

ADDRESS 1 REACH RD., IPSWICH, MA 01932


May 1 Balance � 1 2 0 0 00






May 1 Balance � 1 4 0 0 00

NAME HENRY CO.

ADDRESS 1 RALPH RD., REVERE, MA 01321

NAME SOY CO.

ADDRESS 7 PLYMOUTH AVE., GLENN, NH 01218

NAME XON CO.

ADDRESS 22 REY RD., BOCA RATON, FL 99132

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May 1 Balance � 17 0 0 0 00


May 1 Balance � 4 0 0 0 00



DELIVERY TRUCK ACCOUNT NO. 150


COMPUTER PURCHASES ACCOUNT NO. 510

SG-322

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COMPUTER PURCHASES DISCOUNT ACCOUNT NO. 511




Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

JONES COMPUTER CENTERSCHEDULE OF ACCOUNTS PAYABLE

MAY 31, 200X

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(1)

ABBY’S TOY HOUSEGENERAL JOURNAL

PAGE 1


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PAGE 2



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PAGE 3



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PAGE 4



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(2) ACCOUNTS PAYABLE SUBSIDIARY LEDGER

NAME MINNIE KATZ

ADDRESS 87 GARFIELD AVE., REVERE, MA 01245





NAME SAM KATZ GARAGE

ADDRESS 22 REGIS RD., BOSTON, MA 01950

NAME EARL MILLER CO.

ADDRESS 22 RETTER ST., SAN DIEGO, CA 01211

NAME WOODY SMITH

ADDRESS 2 SPRING ST., WEERS, ND 02118

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NAME BILL BURTON

ADDRESS 24 RYAN RD., BUIKE, OH 02183




NAME BONNIE FLOW CO.

ADDRESS 2 SMITH RD., DALLAS, TX 22210

NAME JIM REX

ADDRESS 1 SCHOOL ST., CLEVELAND, OH 22441

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PROBLEM 10A-4 OR PROBLEM 10B-4 (CONTINUED)NAME AMY ROSE

ADDRESS 18 VEEK RD., CHESTER, CT 80111


GENERAL LEDGER



Ref. Debit Credit

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SG-332



Ref. Debit Credit



Ref. Debit Credit




Ref. Debit Credit

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Ref. Debit Credit


TOY SALES ACCOUNT NO. 410


Ref. Debit Credit

A. ELLEN, CAPITAL ACCOUNT NO. 310


Ref. Debit Credit

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TOY PURCHASES ACCOUNT NO. 510



Ref. Debit Credit



Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit


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CLEANING EXPENSE ACCOUNT NO. 612


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

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(3)

ABBY’S TOY HOUSESCHEDULE OF ACCOUNTS RECEIVABLE

MARCH 31, 200X

(3)

ABBY’S TOY HOUSESCHEDULE OF ACCOUNTS PAYABLE

MARCH 31, 200X

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PAGE 3



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CHAPTER 10SUMMARY PRACTICE TEST

PURCHASES AND CASH PAYMENTS

Part I Instructions


1. The trend in accounting is more to inventory rather than inventory.

2. Purchase discounts are categorized as a(n) account.

3. The Purchases account has a balance.

4. Purchases are defined as merchandise for to customers.

5. The accounts payable subsidiary ledger represents a potential of cash.

6. The controlling account in the general ledger for the accounts payable subsidiary ledger is called.

7. The accounts payable subsidiary ledger would be recorded .

8. The balance in the Accounts Payable controlling account should be equal to the sum of the accountspayable subsidiary ledger accounts

.

9. In perpetual inventory, purchases are recorded as .

10. The � in the reference column indicates that the has been updated.

11. A(n) that is issued means the buyer owes less money, asmerchandise is being returned or an allowance received.

12. A debit memorandum issued or a credit memorandum received results in a(n) toAccounts Payable and a credit to Purchases, Returns and Allowances.

13. List price � net price = amount.

14. The accounts payable subsidiary ledger is listed in .

15. Purchases Returns and Allowances is increased by a(n) .

16. Cost of goods sold is classified as a(n) .

17. In a perpetual inventory system, freight is recorded in the account.

18. Purchases Discounts is increased by .

19. A(n) provides the purchasing department the information tothen prepare a purchase order.

20. A(n) is made out after a company inspects receivedshipments.

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Part II


FinancialAccount Title CAT ↑ ↓ Statement

1. Purchases

2. Purchase Discount

3. Accounts Receivable

4. Cost of Goods Sold

5. Salary Expenses

6. Accounts Payable

7. Purchase Returns and Allowances

8. Cash

9. Supplies

10. Sale Discount

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1. F.O.B. shipping point means the seller is responsible to cover shipping costs.

2. The Purchases account is a contra-cost of goods sold account.

3. Purchases discounts are the result of paying for equipment within the discount period.

4. F.O.B. Destination means the seller is responsible to cover shipping costs.

5. Purchases discounts are taken on freight.

6. Merchandise inventory is an asset.

7. Cost of goods sold is a cost.

8. The balance in Accounts Payable, the controlling account, will be equal to the sum of the accountsreceivable subsidiary ledger at the end of the month.

9. A purchase order is completed after the purchase requisition.

10. On receiving a purchase order, the seller may issue a sales invoice.

11. The normal balance of Purchases Discount is a debit balance.

12. The seller will often issue a debit memorandum to the buyer.

13. Cost of goods sold is used in a periodic inventory system.

14. Returned equipment by a buyer results in a change in Purchases Returns and Allowances.

15. Trade discounts do not occur because of early payments of one’s bills.

16. A seller’s sales discount on purchases is the buyer’s purchases discount.

17. Buying of equipment on account is only recorded in the general ledger.

18. On receiving a debit memorandum, the seller will issue a credit memorandum.

19. Returns in a perpetual accounting system are recorded in the merchandise inventory account.

20. Purchases are contra costs.


Part I

1. perpetual, periodic

2. contra-cost

3. debit

4. resale

5. outflow

6. accounts payable

7. daily

8. at end of month

9. merchandise inventory

10. accounts payable subsidiary ledger

11. debit memorandum

12. debit

13. trade discount

14. alphabetical order

15. credit

16. cost

17. merchandise inventory

18. credits

19. purchase requisition

20. receiving report

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Part II1. cost Dr Cr Income Statement

2. contra-cost Cr Dr Income Statement

3. asset Dr Cr Balance Sheet

4. cost Dr Cr Income Statement

5. expense Dr Cr Income Statement

6. liability Cr Dr Balance Sheet

7. contra-cost Cr Dr Income Statement



10. contra-revenue Dr Cr Income Statement

1. false

2. false

3. true

4. true

5. false

6. true

7. true

8. false

9. true

10. true

11. false

12. false

13. false

14. true

15. true

16. true

17. false

18. true

19. true

20. false

Part III

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Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit


MERCHANDISE INVENTORY ACCOUNT NO. 1040

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Ref. Debit Credit



Ref. Debit Credit




PURCHASE DISCOUNTS ACCOUNT NO. 6020


Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit

PURCHASE RETURNS AND ALLOWANCES ACCOUNT NO. 6010

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SANCHEZ COMPUTER CENTERSCHEDULE OF ACCOUNTS PAYABLE

2/28/0X


NAME MULTI SYSTEMS, INC. # 6A3

ADDRESS 1919 MORAN ST., ANAHEIM, CA 92606





NAME OFFICE DEPOT # 6A4

ADDRESS 460 ESCONDIDO BLVD., ESCONDIDO, CA 92025

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NAME SAN DIEGO ELECTRIC # 6A5

ADDRESS 606 INDUSTRIAL ST., SAN DIEGO, CA 92121

NAME PAC BELL # 6A6

ADDRESS 101 BELL AVE., SAN DIEGO, CA 92101

NAME COMPUTER CONNECTION # 6A7

ADDRESS 1020 WIL LANE, LOS ANGELES, CA 92405





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NAME SYSTEM DESIGN FURNITURE # 6A8

ADDRESS 2070 FIRST ST., SAN DIEGO, CA 92101



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APPENDIX 10AFORMS FOR CLASSROOM DEMONSTRATION PROBLEM — SPECIAL JOURNALS

J. LING CO.SALES JOURNAL

PAGE 1

Date Account Debited Terms Invoice No. Post Dr. Acc. Receivable

Ref. Cr. Sales

Sales AccountsSundry

Date Cash Discounts Receivable Sales Account AmountDr. Dr. Cr. Cr. Name PR Cr.

CASH RECEIPTS JOURNAL PAGE 1

Accounts Sundry Dr.Date Account Terms PR Payable Purchases

Credited Cr. Dr. Account PR Amount

PURCHASES JOURNAL PAGE 1

CASH PAYMENTS JOURNAL PAGE 1

Sundry Accounts PurchasesDate Check Accounts Debited PR Account Payable Discounts Cash

No. Dr. Dr. Cr. Cr.

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NAME BALDER CO.

ADDRESS 1 ROCK RD., DENVER, CO 66083



NAME LEWIS CO.

ADDRESS 15 SMITH AVE., REVERE, MA 01545

DEMONSTRATION PROBLEM (CONTINUED)

GENERAL JOURNALPAGE 1


SG-350

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Name __________________________________ Class ____________________ Date ____________________

SG-351

DEMONSTRATION PROBLEM (CONCLUDED)


NAME CASE CO.

ADDRESS 1 LONG RD., MARLBOROUGH, MA 01545



NAME NOONE CO.

ADDRESS 11 MILL RD., MALDEN, OK 01143


Cash 111 Sales 410 Purchases Discounts 530

Accounts Receivable 112 Sales Returns & Allowances 420 Salaries Expense 610

Equipment 116 Sales Discount 430

Accounts Payable 210 Purchases 510

Purchases Returns &J. Ling, Capital 310 Allowances 520

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PAGE 1


(1,2)

FOOD.COMGENERAL JOURNAL

CHAPTER 10A APPENDIX FORMS

PROBLEM A-1

(1,2)

FOOD.COMSALES JOURNAL

PAGE 1

Accounts Pizza GroceryDate Account Debited Invoice Receivable Sales Sales

No. PR Dr. Cr. Cr.

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SG-353


PROBLEM A-1 (CONTINUED)


NAME DUNCAN CO.

ADDRESS 942 MOSE ST., REVERE, MA 01938


NAME LONG CO.

ADDRESS 8 JOSS AVE., LYNN, MA 01947


NAME SUE MOORE CO.

ADDRESS 10 LOST RD., TOPSFIELD, MA 01998

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Name __________________________________ Class ____________________ Date ____________________

SG-354



Ref. Debit Credit

PIZZA SALES ACCOUNT NO. 410


Ref. Debit Credit

GROCERY SALES ACCOUNT NO. 411


Ref. Debit Credit



Ref. Debit Credit


FOOD.COMGENERAL LEDGER

SG-354

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Name __________________________________ Class ____________________ Date ____________________

SG-355

PROBLEM A-1 (CONCLUDED)

FOOD.COMSCHEDULE OF ACCOUNTS RECEIVABLE

JUNE 30, 200X

PROBLEM A-2

(1,2)

TED’S AUTO SUPPLYSALES JOURNAL

PAGE 4

Customer’s Accounts Sales Tax Auto PartsDate Name Invoice Receivable Payable Sales

Account Receivable No. PR Dr. Cr. Cr.

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Name __________________________________ Class ____________________ Date ____________________

SG-356


(1,2)


PAGE 2


SG-356

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Name __________________________________ Class ____________________ Date ____________________

SG-357

NAME LANCE CORNER

ADDRESS 9 ROE ST., BARTLETT, NH 01382



NAME J. SETH

ADDRESS 22 REESE ST., LACONIA, NH 04321



NAME R. VOLAN

ADDRESS 12 ASTER RD., MERRIMACK, NH 02134


Nov 1 Balance � 1 0 0 0 00



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SG-358




Nov 1 Balance � 1 6 0 0 00




Nov 1 Balance � 1 6 0 0 00

AUTO PARTS SALES ACCOUNT NO. 410


Ref. Debit Credit



Ref. Debit Credit

SG-358

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SG-359


(3)

TED’S AUTO SUPPLYSCHEDULE OF ACCOUNTS RECEIVABLE

NOVEMBER 30, 200X

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Name __________________________________ Class ____________________ Date ____________________

SG-360SG-360

PROBLEM A-3

SKA

TES.

CO

MPU

RC

HA

SES

JOU

RN

AL

PAG

E 3

Acc

ount

sSu

ndry

Dr.

Acc

ount

Dat

e of

Inv.

Paya

ble

Purc

hase

sD

ate

Cre

dite

dIn

voic

eN

o.Te

rms

PRC

r.D

r.A

ccou

ntPR

Am

ount

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Name __________________________________ Class ____________________ Date ____________________

SG-361



NAME MAIL.COM

ADDRESS 12 SMITH ST., DEARBORN, MI 09113




NAME NORTON CO.

ADDRESS 1 RANTOUL RD., CHARLOTTE, NC 01114

NAME ROLO CO.

ADDRESS 2 WEST RD., LYNN, MA 01471




Ref. Debit Credit

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Name __________________________________ Class ____________________ Date ____________________

SG-362SG-362




Ref. Debit Credit


Ref. Debit Credit


Ref. Debit Credit



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SG-363

PROBLEM A-4

MA

BEL

’S N

ATU

RA

L FO

OD

STO

RE

PUR

CH

ASE

S JO

UR

NA

LPA

GE

10

Acc

ount

sSt

ore

Sund

ry D

r.A

ccou

ntD

ate

ofIn

v.Pa

yabl

ePu

rcha

ses

Supp

lies

Dat

eC

redi

ted

Invo

ice

No.

Term

sPR

Cr.

Dr.

Dr.

Acc

ount

PRA

mou

nt

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Name __________________________________ Class ____________________ Date ____________________

SG-364SG-364



NAME ATON CO.

ADDRESS 11 LYNNWAY AVE., NEWPORT, RI 03112








May 1 Balance � 1 2 0 0 00

NAME BROWARD CO.

ADDRESS 21 RIVER ST., ANAHEIM, CA 43110

NAME MIDDEN CO.

ADDRESS 10 ASTER RD., DUBUQUE, IA 80021

NAME RELAR CO.

ADDRESS 22 GERALD RD., SMITH, CO 43138

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Name __________________________________ Class ____________________ Date ____________________

SG-365





Ref. Debit Credit


Ref. Debit Credit


May 1 Balance � 2 7 0 0 00


May 1 Balance � 16 7 0 0 00




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Name __________________________________ Class ____________________ Date ____________________

SG-366SG-366



MABEL’S NATURAL FOOD STORESCHEDULE OF ACCOUNTS PAYABLE

MAY 31, 200X


Ref. Debit Credit

GENERAL JOURNAL PAGE 2


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SG-367

PROBLEM A-5

(1,3)

AB

BY

’S T

OY

HO

USE

PUR

CH

ASE

S JO

UR

NA

L

PAG

E 1

Dat

eA

ccou

nts

Toy

Sund

ry D

r.A

ccou

ntof

Inv.

Term

sPR

Paya

ble

Purc

hase

sD

ate

Cre

dite

dIn

v.N

o.C

r.D

r.A

ccou

nts

PRA

mou

nt

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Name __________________________________ Class ____________________ Date ____________________

SG-368SG-368


AB

BY

’S T

OY

HO

USE

CA

SH R

ECEI

PTS

JOU

RN

AL

PAG

E 1

Sale

sA

ccou

nts

Sund

ry

Cas

hD

isco

unts

Rec

eiva

ble

Toy

Sale

sA

mou

ntD

ate

Dr.

Dr.

Cr.

Cr.

Acc

ount

PRC

r.

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Name __________________________________ Class ____________________ Date ____________________

SG-369


AB

BY

’S T

OY

HO

USE

CA

SH P

AYM

ENTS

JO

UR

NA

L

PAG

E 1

Acc

ount

sPu

rcha

ses

Che

ckA

ccou

nt D

ebite

dPR

Sund

ryPa

yabl

eD

isco

unt

Cas

hD

ate

No.

Dr.

Dr.

Cr.

Cr.

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Name __________________________________ Class ____________________ Date ____________________

SG-370SG-370


ABBY’S TOY HOUSESALES JOURNAL MARCH 31, 200X

PAGE 1

Invoice Accounts Rec. – Dr.Date Account Debited No. Terms PR Toy Sales – Cr.

ABBY’S TOY HOUSEGENERAL JOURNAL

MARCH 31, 200X

PAGE 1


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SG-371


(2) ACCOUNTS PAYABLE SUBSIDIARY LEDGER

NAME MINNIE KATZ

ADDRESS 87 GARFIELD AVE., REVERE, MA 01245




NAME SAM KATZ GARAGE

ADDRESS 22 REGIS RD., BOSTON, MA 01950

NAME EARL MILLER CO.

ADDRESS 22 RETTER ST., SAN DIEGO, CA 01211

NAME WOODY SMITH

ADDRESS 2 SPRING ST., WEERS, ND 02118


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NAME BILL BURTON

ADDRESS 24 RYAN RD., BUIKE, OH 02183




NAME BONNIE FLOW CO.

ADDRESS 2 SMITH RD., DALLAS, TX 22210

NAME JIM REX

ADDRESS 1 SCHOOL ST., CLEVELAND, OH 22441

SG-372

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SG-373


NAME AMY ROSE

ADDRESS 18 VEEK RD., CHESTER, CT 80111



GENERAL LEDGER



Ref. Debit Credit


Ref. Debit Credit



Ref. Debit Credit

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Name __________________________________ Class ____________________ Date ____________________

SG-374




Ref. Debit Credit



Ref. Debit Credit

A. ELLEN, CAPITAL ACCOUNT NO. 310


Ref. Debit Credit

TOY SALES ACCOUNT NO. 410


Ref. Debit Credit

SG-374

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Ref. Debit Credit



Ref. Debit Credit



Ref. Debit Credit

TOY PURCHASES ACCOUNT NO. 510


Ref. Debit Credit

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Name __________________________________ Class ____________________ Date ____________________

SG-376




Ref. Debit Credit



Ref. Debit Credit

CLEANING EXPENSE ACCOUNT NO. 612


Ref. Debit Credit

SG-376

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SG-377


(4)

ABBY’S TOY HOUSESCHEDULE OF ACCOUNTS RECEIVABLE

MARCH 31, 200X

(4)

ABBY’S TOY HOUSESCHEDULE OF ACCOUNTS PAYABLE

MARCH 31, 200X

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398 CHAPTER 10

SPECIAL JOURNALS WITH PROBLEM MATERIAL

Classroom Demonstration Problem: Periodic MethodAll credit sales are 2/10, n/30. All merchandise purchased on account has 3/10, n/30 creditterms. Record the following transactions into special or general journals. Record and postas appropriate.

Solution Tips to Journalizing

200X

Mar. 1 J. Ling invested $2,000 into the business. CRJ

1 Sold merchandise on account to Balder Co., $500, invoice no. 1. SJ

2 Purchased merchandise on account from Case Co., $500. PJ

4 Sold $2,000 of merchandise for cash. CRJ

6 Paid Case Co. from previous purchases on account, check no. 1. CPJ

8 Sold merchandise on account to Lewis Co., $1,000, invoice no. 2. SJ

10 Received payment from Balder for invoice no. 1. CRJ

12 Issued a credit memorandum to Lewis Co. for $200 for faulty merchandise. GJ

14 Received payment from Lewis Co. CRJ

16 Purchased merchandise on account from Noone Co., $1,000. PJ

17 Purchased equipment on account from Case Co., $300. PJ

18 Issued a debit memorandum to Noone Co. for $500 for defective merchandise. GJ

20 Paid salaries, $300, check no. 2. CPJ

24 Paid Noone balance owed, check no. 3. CPJ

J. LING, CO.SALES JOURNAL

5 0 0 001 0 0 0 001 5 0 0 00

(112) (410)

FIGURE A.1 Sales Journal

APPENDIX A

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APPENDIX A • SPECIAL JOURNALS WITH PROBLEM MATERIAL 399

J. LING, CO.PURCHASES JOURNAL

5 0 0 001 0 0 0 00

5 0 0 001 0 0 0 00

1 5 0 0 00

3 0 0 00 3 0 0 003 0 0 001 8 0 0 00

(X)(210) (510)

FIGURE A.2 Purchases Journal

2 0 0 0 002 0 0 0 002 0 0 0 00

4 9 0 002 0 0 0 00

2 0 0 0 00

1 0 001 6 00

2 6 00

5 0 0 008 0 0 00

1 3 0 0 00

7 8 4 00

5 2 7 4 00 2 0 0 0 00

(X)(111) (430) (112) (410)

FIGURE A.3 Cash Receipts Journal

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400 CHAPTER 10

J. LING, CO.CASH PAYMENTS JOURNAL

5 0 0 00 4 8 5 00

3 0 0 001 5 00

1 5 003 0 00

4 8 5 001 2 7 0 001 0 0 0 00

5 0 0 003 0 0 00

3 0 0 00

(X) (210) (530) (111)

FIGURE A.4 CashPayments Journal

GENERAL JOURNAL

2 0 0 00

2 0 0 00

5 0 0 00

5 0 0 00

FIGURE A.5 GeneralJournal

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FIGURE A.6 Subsidiary andGeneral Ledgers

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402 CHAPTER 10

Summary of Solution Tips

Seller Buyer

Sales journal Purchases journal

Cash receipts journal Cash payments journal

Accounts receivable subsidiary ledger Accounts payable subsidiary ledger

Sales (Cr.) Purchases (Dr.)

Sales Returns and Allowances (Dr.) Purchase Returns and Allowances (Cr.)

Sales Discounts (Dr.) Purchase Discounts (Cr.)

Accounts Receivable (Dr.) Accounts Payable (Cr.)

Issue a credit memo Receive a credit memo

or or

Receive a debit memo Issue a debit memo

Schedule of accounts receivable Schedule of accounts payable

A Step-by-Step Walk-Through of This Classroom Demonstration Problem

Transaction What to Do Step-by-Step

200X

Mar. 1 Money Received: Record in cash receipts journal. Post immediately to J. Ling,Capital, because it is in sundry.

1 Sale on Account: Record in sales journal. Record immediately to Balder Co. inaccounts receivable subsidiary ledger. Place a ✓ in Post. Ref. column of salesjournal when subsidiary is updated.

2 Buy Merchandise on Account: Record in purchases journal. Record to Case Co.immediately in the accounts payable subsidiary ledger.

4 Money In: Record in cash receipts journal. No posting needed (put an × in Post.Ref. column).

6 Money Out: Record in cash payments journal. Save $15, which is a PurchasesDiscount. Record immediately to Case Co. in accounts payable subsidiaryledger (the full amount of $500).

8 Sales on Account: Record in sales journal. Update immediately to Lewis inaccounts receivable subsidiary ledger.

10 Money In: Record in cash receipts journal. Because Balder pays within 10 days,it gets a $10 discount. Record the full amount immediately to Balder in theaccounts receivable subsidiary ledger.

12 Returns: Record in general journal. Seller issues credit memo resulting inhigher sales returns and customers owing less. All postings and recordings aredone immediately.

14 Money In: Record in cash receipts journal:

$1,000 � $200 returns � $800� .02

$ 16 discount

Record immediately the $800 to Lewis in the accounts receivable subsidiary ledger.

16 Buy Now, Pay Later: Record in purchases journal. Record immediately toNoone Co. in the accounts payable subsidiary ledger.

17 Buy Now, Pay Later: Record in purchases journal in Sundry. This item is notmerchandise for resale. Record and post immediately.

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Check Figure: Schedule ofaccounts receivable $3,310


18 Returns: Record in general ledger. Buyer issues a debit memo reducing the AccountsPayable due to purchases return and allowances. Post and record immediately.

20 Salaries: Record in cash payments journal, sundry column. Post immediately toSalaries Expense.

24 Money Out: Record in cash payments journal. Save 3% ($15), a purchases dis-count. Record immediately to accounts payable subsidiary ledger that youreduce Noone by $500.

End of Month Post totals (except sundry) of special journal to the general ledger.Note: In this problem at the end of the month, (1) Accounts Receivable in the general

ledger, the controlling account, has a zero balance, as does each title in the accounts receiv-able subsidiary ledger; and (2) the balance in Accounts Payable (the controlling account) is$300. In the accounts payable subsidiary ledger, we owe Case $300. The sum of theaccounts payable subsidiary ledger does equal the balance in the controlling account at theend of the month.

Appendix A ProblemsA-1. Jill Blue opened Food.com, a wholesale grocery and pizza company. The fol-

lowing transactions occurred in June:

200X

June 1 Sold grocery merchandise to Duncan Co. on account, $500, invoice no. 1.

4 Sold pizza merchandise to Sue Moore Co. on account, $600, invoice no. 2.

8 Sold grocery merchandise to Long Co. on account, $700, invoice no. 3.

10 Issued credit memorandum no. 1 to Duncan Co. for $150 of grocery merchandisereturned due to spoilage.

15 Sold pizza merchandise to Sue Moore Co. on account, $160, invoice no. 4.

19 Sold grocery merchandise to Long Co. on account, $300, invoice no. 5.

25 Sold pizza merchandise to Duncan Co. on account, $1,200, invoice no. 6.

Required

1. Journalize the transactions in the appropriate journals.2. Record to the accounts receivable subsidiary ledger and post to the general

ledger as appropriate.3. Prepare a schedule of accounts receivable.

A-2. The following transactions of Ted’s Auto Supply occurred in November (yourworking papers have balances as of November 1 for certain general ledgerand accounts receivable ledger accounts):

200X

Nov. 1 Sold auto parts merchandise to R. Volan on account, $1,000, invoice no. 60, plus5% sales tax.

5 Sold auto parts merchandise to J. Seth on account, $800, invoice no. 61, plus 5%sales tax.

8 Sold auto parts merchandise to Lance Corner on account, $9,000, invoice no. 62,plus 5% sales tax.

10 Issued credit memorandum no. 12 to R. Volan for $500 for defective auto parts mer-chandise returned from Nov. 1 transaction. (Be careful to record the reduction inSales Tax Payable as well.)

12 Sold auto parts merchandise to J. Seth on account, $600, invoice no. 63, plus 5%sales tax.

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Check Figure: Schedule ofaccounts receivable $13,045

Check Figure: Total of purchases column $2,100

Check Figure: Total schedule ofaccounts payable $5,810

404 CHAPTER 10

Required

1. Journalize the transactions in the appropriate journals.2. Record to the accounts receivable subsidiary ledger and post to the general

ledger as appropriate.3. Prepare a schedule of accounts receivable.

A-3. Abby Kim recently opened Skates.com. As the bookkeeper of her company,please journalize, record, and post when appropriate the following transac-tions (account numbers are Store Supplies, 115; Store Equipment, 121;Accounts Payable, 210; Purchases, 510):

200X

June 4 Bought $700 of merchandise on account from Mail.com, invoice no. 442, datedJune 5; terms 2/10, n/30.

5 Bought $4,000 of store equipment from Norton Co., invoice no. 502, datedJune 6.

8 Bought $1,400 of merchandise on account from Rolo Co., invoice no. 401, datedJune 9; terms 2/10, n/30.

14 Bought $900 of store supplies on account from Mail.com, invoice no. 419, datedJune 14.

A-4. Mabel’s Natural Food Store uses a purchases journal and a general jour-nal to record the following transactions (continued from April):

200X

May 8 Purchased $600 of merchandise on account from Aton Co., invoice no. 400, datedMay 9; terms 2/10, n/60.

10 Purchased $1,200 of merchandise on account from Broward Co., invoice no. 420,dated May 11; terms 2/10, n/60.

12 Purchased $500 of store supplies on account from Midden Co., invoice no. 510,dated May 13.

14 Issued debit memo no. 8 to Aton Co., for merchandise returned, $400, frominvoice no. 400.

17 Purchased $560 of office equipment on account from Relar Co., invoice no. 810,dated May 18.

24 Purchased $650 of additional store supplies on account from Midden Co., invoiceno. 516, dated May 25; terms 2/10, n/30.

The food store decided to keep a separate column for the purchases of sup-plies in the purchases journal. Your tasks are to1. Journalize the transactions.2. Post and record as appropriate.3. Prepare a schedule of accounts payable.

A-5. Abby Ellen opened Abby’s Toy House. As her newly hired accountant, yourtasks are to1. Journalize the transactions for the month of March.2. Record to subsidiary ledgers and post to the general ledger as appropriate.3. Total and rule the journals.4. Prepare a schedule of accounts receivable and a schedule of accounts payable.

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Check Figures: Total of schedule of accounts receivable $7,600

Total of schedule of accountspayable $9,000

The following is the partial chart of accounts for Abby’s Toy House:

Abby’s Toy House Chart of Accounts

Assets Revenue

110 Cash 410 Toy Sales

112 Accounts Receivable 412 Sales Returns and Allowances

114 Prepaid Rent 414 Sales Discounts

121 Delivery Truck Cost of Goods

Liabilities 510 Toy Purchases

210 Accounts Payable 512 Purchases Returns and Allowances

Owner’s Equity 514 Purchases Discount

310 A. Ellen, Capital Expenses

610 Salaries Expense

612 Cleaning Expense

200X

Mar. 1 Abby Ellen invested $8,000 in the toy store.

1 Paid three months’ rent in advance, check no. 1, $3,000.

1 Purchased merchandise from Earl Miller Company on account, $4,000, invoice no. 410,dated March 2; terms 2/10, n/30.

3 Sold merchandise to Bill Burton on account, $1,000, invoice no. 1; terms 2/10, n/30.

6 Sold merchandise to Jim Rex on account, $700, invoice no. 2; terms 2/10, n/30.

8 Purchased merchandise from Earl Miller Co. on account, $1,200, invoice no. 415,dated March 9; terms 2/10, n/30.

9 Sold merchandise to Bill Burton on account, $600, invoice no. 3; terms 2/10, n/30.

9 Paid cleaning service, check no. 2, $300.

10 Jim Rex returned merchandise that cost $300 to Abby’s Toy House. Abby issuedcredit memorandum no. 1 to Jim Rex for $300.

10 Purchased merchandise from Minnie Katz on account, $4,000, invoice no. 311,dated March 11; terms 1/15, n/60.

12 Paid Earl Miller Co. invoice no. 410, dated March 2, check no. 3.

13 Sold $1,300 of toy merchandise for cash.

13 Paid salaries, $600, check no. 4.

14 Returned merchandise to Minnie Katz in the amount of $1,000. Abby’s Toy Houseissued debit memorandum no. 1 to Minnie Katz.

15 Sold merchandise for $4,000 cash.

16 Received payment from Jim Rex, invoice no. 2 (less returned merchandise) less discount.

16 Bill Burton paid invoice no. 1.

16 Sold toy merchandise to Amy Rose on account, $4,000, invoice no. 4; terms 2/10, n/30.

20 Purchased delivery truck on account from Sam Katz Garage, $3,000, invoice no. 111,dated March 21 (no discount).

22 Sold to Bill Burton merchandise on account, $900, invoice no. 5; terms 2/10, n/30.

23 Paid Minnie Katz balance owed, check no. 5.

24 Sold toy merchandise on account to Amy Rose, $1,100, invoice no. 6; terms 2/10, n/30.


(continued on next page)

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25 Purchased toy merchandise, $600, check no. 6.

26 Purchased toy merchandise from Woody Smith on account, $4,800, invoice no. 211,dated March 27; terms 2/10, n/30.

28 Bill Burton paid invoice no. 5, dated March 22.

28 Amy Rose paid invoice no. 6, dated March 24.

28 Abby invested an additional $5,000 in the business.

28 Purchased merchandise from Earl Miller Co., $1,400, invoice no. 436, datedMarch 29; terms 2/10, n/30.

30 Paid Earl Miller Co. invoice no. 436, check no. 7.

30 Sold merchandise to Bonnie Flow Company on account, $3,000, invoice no. 7;terms 2/10, n/30.

Sales and Cash Receipts Journal in a PerpetualAccounting System for Art’s Wholesale Clothing

406 CHAPTER 10

ART’S WHOLESALE CLOTHING COMPANYSALES JOURNAL

8 0 0 001 6 0 0 002 0 0 0 00

5 0 0 009 0 0 007 0 0 00

6 5 0 0 00

5 6 0 001 1 2 0 001 4 0 0 00

3 5 0 006 3 0 004 9 0 00

4 5 5 0 00

(113) (411) (510) (114)

FIGURE A.7 A Sales JournalUnder a Perpetual System

What’s new:In the journal: New columns for Cost of Goods Sold (Dr.) and Inventory (Cr.). Each

time a charge sale is earned, the Cost of Goods Sold increases and the amount ofInventory at cost is reduced.

In the general ledger: New ledger accounts for Inventory and Cost of Goods Sold.

Example: On April 3, Art’s Wholesale sold Hal’s Clothing $800 of merchandise onaccount. This sale cost Art’s $560 to bring this merchandise into the store.

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What’s new:In the journal: New columns for Cost of Goods Sold (Dr.) and Inventory (Cr.). Each

time a cash sale is earned, the Cost of Goods Sold increases and the amount ofInventory at cost is reduced.


ART’S WHOLESALE CLOTHING COMPANYCASH RECEIPTS JOURNAL

8 0 0 0 007 8 4 009 0 0 009 8 0 00

1 9 6 0 005 0 0 00

1 2 0 0 0014 3 2 4 00(111)

8 0 0 00

1 0 0 0 002 0 0 0 00

3 8 0 0 00(113)

9 0 0 00

1 2 0 0 002 1 0 0 00

(411)

8 0 0 0 00

5 0 0 00

8 5 0 0 00(X)

6 3 0 00

8 4 0 001 4 7 0 00

(510) (114)

1 6 00

2 0 004 0 00

7 6 00(413)

FIGURE A.8 A Cash Receipts Journal Under a Perpetual System

63802_11_ch10B_p398-408 2/26/09 8:27 AM Page 407


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63802_11_ch10B_p398-408 2/26/09 8:27 AM Page 408


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