怎么写述职报告及实例 95页

Chapter7AccountingInformationSystemsQUESTIONS1.Thefivefundamentalprinciplesofaccountinginformationsystemsare:(a)controlprinciple,(b)relevanceprinciple,(c)compatibilityprinciple,(d)flexibilityprinciple,and(e)cost-benefitprinciple.2.Thefivecomponentsofanaccountingsystemare:sourcedocuments,inputdevices,informationprocessors,informationstorage,andoutputdevices.3.Sourcedocumentscontaindataaboutbusinesstransactionsoreventsthatareputintotheaccountingsystemandprocessed.Examplesofsourcedocumentsareinvoicesfromsuppliers,checksreceivedfromcustomers,andpayrollformsfilledoutbyemployees.4.Aninputdeviceisusedtotransferdatafromsourcedocumentstotheinformationprocessor(s).Examplesofinputdevicesforcomputersystemsincludekeyboards,scanners,andbar-codereaders.5.Datastored"off-line"arenotimmediatelyavailabletotheinformationprocessor(s),while"online"dataareimmediatelyavailable.6.Outputdevicesprovidethemeansbywhichinformationistakenfromtheaccountingsystemandmadeavailableforuse.7.Fourtypesoftransactionsusuallyrecordedinspecialjournalsare:(a)salesoncredit,(b)purchasesoncredit,(c)cashreceipts,and(d)cashdisbursements.8.The(a)initialand(b)pagenumberofthejournalfromwhichtheamountispostedisenteredinthePostingReferencecolumnoftheledgeraccount.9.Thedoublepostingdoesnotcausethetrialbalancetobeoutofbalancebecauseonlyonecreditispostedtothegeneralledger—thesubsidiaryledgerpostinganditsbalancesarenotpartofatrialbalance(theygivedetailsofgeneralledgeraccounts).10.Whencopiesofthesalesinvoicesareusedasasalesjournal,eachinvoicetotalispostedtothepropercustomeraccountinthesubsidiaryAccountsReceivableLedger,afterwhichtheinvoicesareboundinnumericalorder.ThenattheendoftheperiodtheboundinvoicecopiesaretotaledandthetotalisdebitedtoAccountsReceivableandcreditedtoSales.Thismethodiscalleddirectpostingofsalesinvoices.©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 11.BothkindsofcreditsmustnotbeplacedinthesamecolumnbecausethesumofthecreditstothecustomeraccountsmustbepostedtotheAccountsReceivablecontrollingaccount(theOtherAccountscolumntotalisnotposted—instead,eachamountisindividuallypostedtoitsgeneralledgeraccount).PlacingthesecreditsinseparatecolumnsmakesitpossibletoposttheAccountsReceivablecolumntotaltoitscontrollingaccount.12.Immediaterecordingandpostingofcreditsalesandcashreceiptsfromcustomersprovidesup-to-dateinformationforuseindecisionsaboutgrantingcredittocustomers.Also,up-to-dateaccountbalancesareneededifcustomersinquireabouttheirbalances.13.Initsnote11,BestBuydiscussesitstworeportablesegments,DomesticandInternational.Domesticisbyfarthelargerofthetwosegments.14.No.InformationregardingthenetincomeearnedbybusinesssegmentsisnotfoundonCircuitCity’sConsolidatedStatementofOperations(IncomeStatement).However,notestoitsfinancialstatements(notreproducedinAppendixA)includetheinformationregardingbusinesssegments,domesticandinternational.15.RadioShack’stworeportablesegmentsarecompany-operatedstoresandkiosks.16.No.InformationregardinganyassetsownedbyApple’sbusinesssegmentsisnotreportedonthebalancesheet.However,theinformationisdetailedinthenotestoitsfinancialstatements(notreproducedinAppendixA).QUICKSTUDIESQuickStudy7-1(10minutes)1.C4.B2.E5.D3.AQuickStudy7-2(5minutes)1.batch2.network3.scanner4.enterpriseresourceplanning©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 QuickStudy7-3(15minutes)1.B7.B2.B8.E3.A9.E4.D10.E5.B11.A6.D12.CQuickStudy7-4(10minutes)a.CashReceiptsJournalb.PurchasesJournalc.CashDisbursementsJournald.CashDisbursementsJournale.SalesJournalf.PurchasesJournalg.CashDisbursementsJournalh.CashReceiptsJournalQuickStudy7-5(15minutes)GeneralJournalNov.2[InPurchasesJournal]Nov.12Automobiles17,000R.Adrian,Capital17,000Ownercontributedanautotothebusiness.Nov.16[InSalesJournal]Nov.19SalesReturnsandAllowances175AccountsReceivable—L.Norton175Customerreturned(worthless)merchandise.©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 QuickStudy7-6(15minutes)SegmentSegmentIncomeAverageSegmentAssetsSegmentreturnonAssetsAmericas$1,665$800208.1%Europe607380159.7Japan201173116.2Interpretation:TheAmericassegmentreportsthehighestreturnonsegmentassets.However,eachofitsothersegmentshasarelativelyhighreturnonsegmentassetsaswell.ProductProductSalesPercentofTotalSalesiPod$7,67645.3%Desktops3,31919.6Portables4,05623.9Other1,88511.1Total$16,93699.9%**0.1%roundingerrorInterpretation:SalesofApple’siPodmakeupitslargestpercentageoftotalindividualproductsales.Desktopsand“Other”makeupthesmallestpercentageoftotalproductsales.©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 EXERCISESExercise7-1(15minutes)SALESJOURNALDateAccountDebitedInvoiceNumberPRAccountsReceivableDr.SalesCr.CostofGoodsSoldDr.InventoryCr.Mar.7K.Anklam57041,7001,21512B.Swanson570548430325F.Sayers5706785500Exercise7-2(10minutes)Mar.2CashReceiptsJournal5PurchasesJournal7SalesJournal8CashReceiptsJournal12SalesJournal16CashReceiptsJournal19CashReceiptsJournal25SalesJournalExercise7-3A(15minutes)SALESJOURNALDateAccountDebitedInvoiceNumberPRAccountsReceivableDr.SalesCr.Mar.7K.Anklam57041,70012B.Swanson570548425F.Sayers5706785©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Exercise7-4(20minutes)CASHRECEIPTSJOURNALDateAccountCreditedExplanationPRCashDr.SalesDiscountDr.AccountsRecble.Cr.SalesCr.OtherAccountsCr.CostofGoodsSoldDr.InventoryCr.Nov.9NotesPayableNotetobank3,3753,37513I.Uno,CapitalContribution4,6754,67518SalesCashsale26126114727E.HanInvoice,11/7995201,015Exercise7-5(10minutes)Nov.3PurchasesJournal7SalesJournal9CashReceiptsJournal13CashReceiptsJournal18CashReceiptsJournal22CashDisbursementsJournal27CashReceiptsJournal30CashDisbursementsJournalExercise7-6A(25minutes)CASHRECEIPTSJOURNALDateAccountCreditedExplanationPRCashDr.SalesDiscountDr.Accts.Rec.Cr.SalesCr.OtherAccountsCr.Nov.9NotesPayableNotetobank3,3753,37513I.Uno,CapitalContribution4,6754,67518SalesCashsale26126127E.HanInvoice,11/7995201,015©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Exercise7-7(20minutes)PURCHASESJOURNALDateAccountDateofInvoiceTermsPRAccountsPayableCr.InventoryDr.OfficeSuppliesDr.OtherAccountsDr.June1Krause,Inc.6/01n/305,4005,40014StoreSupplies/ChangCo.6/14n/3046046017MonderCompany6/17n/30480480Exercise7-8(10minutes)June1PurchasesJournal8SalesJournal14PurchasesJournal17PurchasesJournal24CashReceiptsJournal28CashDisbursementsJournal29CashDisbursementsJournalExercise7-9A(20minutes)PURCHASESJOURNALDateAccountDateofInvoiceTermsPRAccountsPayableCr.PurchasesDr.OfficeSuppliesDr.OtherAccountsDr.June1Krause,Inc.6/01n/305,4005,40014StoreSupplies/ChangCo.6/14n/3046046017MonderCompany6/17n/30480480©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Exercise7-10(25minutes)CASHDISBURSEMENTSJOURNALDateCk.No.PayeeAccountDebitedPRCashCr.InventoryCr.OtherAccountsDr.AccountsPayableDr.Apr.9210MajorCorp.StoreSupplies43643617211CityBankNotesPayable1,5001,50028212FactowFactow3,267333,30029213M.RobbinsSalariesExpense1,6751,67530214Acco,Inc.Acco,Inc.2,7002,700Exercise7-11(10minutes)April3PurchasesJournal9CashDisbursementsJournal12SalesJournal17CashDisbursementsJournal20PurchasesJournal28CashDisbursementsJournal29CashDisbursementsJournal30CashDisbursementsJournal©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Exercise7-12A(25minutes)CASHDISBURSEMENTSJOURNALDateCk.No.PayeeAccountDebitedPRCashCr.PurchasesDiscountsCr.OtherAccountsDr.AccountsPayableDr.Apr.9210MajorCorp.StoreSupplies43643617211CityBankNotesPayable1,5001,50028212FactowFactow3,267333,30029213M.RobbinsSalariesExpense1,6751,67530214Acco,Inc.Acco,Inc.2,7002,700Exercise7-13(10minutes)a.(i)TheJune5purchasewouldberecordedinthePurchasesJournal.(ii)TheJune14paymentwouldberecordedintheCashDisbursementsJournal.b.TheerrorinjournalizingtheJune14transactionshouldbediscoveredintheprocessofcrossfootingtheCashDisbursementsJournal.©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Exercise7-14(30minutes)Part1ACCOUNTSRECEIVABLESUBSIDIARYLEDGERAnnaPageSaraReedAaronReckersMay171,161May20500May102,610May63,55025464Part2GENERALLEDGERAccountsReceivableSalesSalesReturnsandAllowancesMay317,785May20500May317,785May20500InventoryCostofGoodsSoldMay315,805May315,805Part3RIVERVIEWScheduleofAccountsReceivableMay31AnnaPage$661SaraReed3,074AaronReckers3,550Totalaccountsreceivable$7,285AccountsReceivableControllingAccountTotaldebit$7,785Creditforreturn(500)BalanceasofMay31$7,285©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Exercise7-15(30minutes)Part1ACCOUNTSRECEIVABLELEDGEREricHornerHongJiangJune86,929June1423,329JoeMackTessWilsonJune24,100June1015,252297,4322011,400Part2GENERALLEDGERAccountsReceivableSalesJune3068,442June3068,442Part3BOYARCOMPANYScheduleofAccountsReceivableJune30EricHorner$6,929HongJiang23,329JoeMack11,532TessWilson26,652Totalaccountsreceivable$68,442©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Exercise7-16(10minutes)1.Whenthescheduleofaccountspayableisprepared.2.WhencrossfootingthePurchasesJournal.3.Whenthetrialbalanceisprepared.4.Whenthescheduleofaccountspayableisprepared.5.Whenthescheduleofaccountspayableisprepared.Exercise7-17(20minutes)SegmentIncome(in$mil.)SegmentAssets(in$mil.)SegmentReturnonAssetsSegment20092008200920082009SpecialtySkiingGroup$53$47$539$39811.3%SkatingGroup74483516.9%SpecialtyFootwear181514310614.5%OtherSpecialty93322332.7%Subtotal8769762562GeneralMerchandiseSouthAmerica262928120710.7%UnitedStates66453315.4%Europe42151130.8%Subtotal3637341251Total$123$106$1,103$813Analysisandinterpretation:Thiscompanyshowssolidprofitabilityinallsegmentsbasedonsegmentreturnonassets.Forthespecialtysegments,the“OtherSpecialty”hasthehighestsegmentreturnonassetsat32.7%in2009,whereastheskiingsegmenthasthelowestreturnonsegmentassetsat11.3%.Forthegeographicsegments,thehighestsegmentreturnonassetsisproducedbytheEuropeansegmentwith30.8%in2009,whereastheSouthAmericansegmenthasthelowestreturnof10.7%.©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 PROBLEMSETAProblem7-1A(70minutes)Parts1,2and3SALESJOURNALPage3DateAccountDebitedInvoiceNumberPRAccountsReceivableDr.SalesCr.CostofGoodsSoldDr.InventoryCr.Apr.3TyAfton760ü5,2002,1005DebraKohn761ü9,3007,60011PatOrlof762ü12,3007,30013TyAfton763ü6,9003,60027DebraKohn764ü3,4602,47027PatOrlof765ü7,1004,89530Totals44,26027,965(106/413)(502/119)CASHRECEIPTSJOURNALPage3DateAccountCreditedExplanationPRCashDr.SalesDiscountDr.AccountsReceivableCr.SalesCr.OtherAccts.Cr.CostofGoodsSoldDr.InventoryCr.Apr.13TyAftonSaleof4/3ü5,0961045,20014DebraKohnSaleof4/5ü9,1141869,30016SalesCashSalesü54,24054,24042,40018L.T.NotesPayableNotetobank25155,00055,00020PatOrlofSaleof4/11ü12,05424612,30023TyAftonSaleof4/13ü6,7621386,90030SalesCashsalesü72,100________72,100_____61,50030Totals214,36667433,700126,34055,000103,900(101)(415)(106)(413)(ü)(502/119)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-1A(Continued)Parts2and3GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceMar.3185,000Apr.30R3214,366299,366AccountsReceivableAcct.No.106DateExplanationPRDebitCreditBalanceApr.30S344,26044,26030R333,70010,560InventoryAcct.No.119DateExplanationPRDebitCreditBalanceMar.31152,000Apr.30S327,965124,03530R3103,90020,135Long-TermNotesPayableAcct.No.251DateExplanationPRDebitCreditBalanceMar.31137,000Apr.18R355,000192,000B.Moore,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceMar.31100,000SalesAcct.No.413DateExplanationPRDebitCreditBalanceApr.30S344,26044,26030R3126,340170,600SalesDiscountsAcct.No.415DateExplanationPRDebitCreditBalanceApr.30R3674674CostofGoodsSoldAcct.No.502DateExplanationPRDebitCreditBalanceApr.30S327,96527,96530R3103,900131,865©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-1A(Continued)Parts2and3(continued)ACCOUNTSRECEIVABLELEDGERTyAftonDateExplanationPRDebitCreditBalanceApr.3S35,2005,20013R35,200013S36,9006,90023R36,9000DebraKohnDateExplanationPRDebitCreditBalanceApr.5S39,3009,30014R39,300027S33,4603,460PatOrlofDateExplanationPRDebitCreditBalanceApr.11S312,30012,30020R312,300027S37,1007,100Part4MOORECOMPANYTrialBalanceApril30DebitCreditCash$299,366Accountsreceivable10,560Inventory20,135Long-termnotespayable$192,000B.Moore,Capital100,000Sales170,600Salesdiscounts674Costofgoodssold131,865_______Totals$462,600$462,600©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-1A(Concluded)Part4(continued)MOORECOMPANYScheduleofAccountsReceivableApril30DebraKohn$3,460PatOrlof7,100Totalaccountsreceivable$10,560Part5AnalysiscomponentTofindtheerror(s),firstre-addtheaccountbalancesonthescheduleofaccountsreceivabletoconfirmthattheadditioniscorrect.Then,tracethebalanceslistedonthescheduleofaccountsreceivablebacktothesubsidiaryaccountstoconfirmthattheyarelistedcorrectlyontheschedule.Next,recalculatethebalanceofeachsubsidiaryaccounttoconfirmthattheadditionsandsubtractionsarecorrect.Next,tracethepostingsfromeachsubsidiaryaccountandfromthecontrollingaccountbacktotheappropriatejournals.Sincethesalesandcashreceiptsjournalswerefootedandcrossfootedbeforeposting,thepreviousstepsshoulddisclosetheerror.©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-2AA(70minutes)Parts1and2SALESJOURNALPage3DateAccountDebitedInvoiceNumberPRAccountsReceivableDr.SalesCr.Apr.3TyAfton760ü5,2005DebraKohn761ü9,30011PatOrlof762ü12,30013TyAfton763ü6,90027DebraKohn764ü3,46027PatOrlof765ü7,10030Total44,260(106/413)CASHRECEIPTSJOURNALPage3DateAccountCreditedExplanationPRCashDr.SalesDiscountsDr.AccountsReceivableCr.SalesCr.OtherAccountsCr.Apr.13TyAftonSaleof4/3ü5,0961045,20014DebraKohnSaleof4/5ü9,1141869,30016SalesCashSalesü54,24054,24018L.T.NotesPayableNotetobank25155,00055,00020PatOrlofSaleof4/11ü12,05424612,30023TyAftonSaleof4/13ü6,7621386,90030SalesCashsalesü72,100________72,100_____30Totals214,36667433,700126,34055,000(101)(415)(106)(413)(ü)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-2AA(Continued)Parts2and3GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceMar.3185,000Apr.30R3214,366299,366AccountsReceivableAcct.No.106DateExplanationPRDebitCreditBalanceApr.30S344,26044,26030R333,70010,560InventoryAcct.No.119DateExplanationPRDebitCreditBalanceMar.31152,000Long-TermNotesPayableAcct.No.251DateExplanationPRDebitCreditBalanceMar.31137,000Apr.18R355,000192,000B.Moore,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceMar.31100,000SalesAcct.No.413DateExplanationPRDebitCreditBalanceApr.30S344,26044,26030R3126,340170,600SalesDiscountsAcct.No.415DateExplanationPRDebitCreditBalanceApr.30R3674674©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-2AA(Continued)Parts2and3—continuedACCOUNTSRECEIVABLELEDGERTyAftonDateExplanationPRDebitCreditBalanceApr.3S35,2005,20013R35,200013S36,9006,90023R36,9000DebraKohnDateExplanationPRDebitCreditBalanceApr.5S39,3009,30014R39,300027S33,4603,460PatOrlofDateExplanationPRDebitCreditBalanceApr.11S312,30012,30020R312,300027S37,1007,100Part4MOORECOMPANYTrialBalanceApril30DebitCreditCash$299,366Accountsreceivable10,560Inventory152,000Long-termnotespayable$192,000B.Moore,Capital100,000Sales170,600Salesdiscounts674_______Totals$462,600$462,600©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-2AA(Concluded)Part4—continuedMOORECOMPANYScheduleofAccountsReceivableApril30DebraKohn$3,460PatOrlof7,100Totalaccountsreceivable$10,560Part5AnalysiscomponentTofindtheerror(s),firstre-addtheaccountbalancesonthescheduleofaccountsreceivabletoconfirmthattheadditioniscorrect.Then,tracethebalanceslistedonthescheduleofaccountsreceivablebacktothesubsidiaryaccountstoconfirmthattheyarelistedcorrectlyontheschedule.Next,recalculatethebalanceofeachsubsidiaryaccounttoconfirmthattheadditionsandsubtractionsarecorrect.Next,tracethepostingsfromeachsubsidiaryaccountandfromthecontrollingaccountbacktotheappropriatejournals.Sincethesalesandcashreceiptsjournalswerefootedandcrossfootedbeforeposting,thepreviousstepsshoulddisclosetheerror.©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-3A(120minutes)Parts1and3PURCHASESJOURNALPage3DateAccountDateofInvoiceTermsPRAccountsPayableCr.InventoryDr.OfficeSuppliesDr.OtherAccountsDr.Apr.2NewtCompany4/22/10,n/60ü14,20014,2003OfficeSupplies/CrayInc.4/2n/10,EOMü1,5301,5309StoreEquip./HafmanSupply4/9n/10,EOM165/ü11,43511,43517DannCompany4/172/10,n/30ü12,85012,85020StoreSupp./HafmanSupply4/19n/10,EOM125/ü1,0001,00025NewtCompany4/242/10,n/60ü11,46511,465_________30Totals52,48038,5151,53012,435(201)(119)(124)(ü)CASHDISBURSEMENTSJOURNALPage3DateCk.No.PayeeAccountDebitedPRCashCr.InventoryCr.OtherAccountsDr.AccountsPayableDr.Apr.4587WorldViewAdvertisingExpense65587987912588NewtCompanyNewtCompanyü13,91628414,20016589PayrollSalesSalariesExpense62111,30011,30026590DannCompanyDannCompanyü11,71123911,95030591PayrollSalesSalariesExpense62111,000___11,000_____30Totals48,80652323,17926,150(101)(119)(ü)(201)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-3A(Continued)GENERALJOURNALPage3Apr.6AccountsPayable--CrayInc.201/ü70OfficeSupplies12470Receivedacreditmemorandum.23AccountsPayable--DannCo.201/ü900Inventory.119900Receivedacreditmemorandum.Parts2and3GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceMar.3185,000Apr.30D348,80636,194InventoryAcct.No.119DateExplanationPRDebitCreditBalanceMar.31152,000Apr.23G3900151,10030P338,515189,61530D3523189,092OfficeSuppliesAcct.No.124DateExplanationPRDebitCreditBalanceApr.3P31,5301,5306G3701,460StoreSuppliesAcct.No.125DateExplanationPRDebitCreditBalanceApr.20P31,0001,000StoreEquipmentAcct.No.165DateExplanationPRDebitCreditBalanceApr.9P311,43511,435©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-3A(Continued)GeneralLedger—continuedAccountsPayableAcct.No.201DateExplanationPRDebitCreditBalanceApr.6G370(70)23G3900(970)30P352,48051,51030D326,15025,360Long-TermNotesPayableAcct.No.251DateExplanationPRDebitCreditBalanceMar.31137,000B.Moore,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceMar.31100,000SalesSalariesExpenseAcct.No.621DateExplanationPRDebitCreditBalanceApr.16D311,30011,30030D311,00022,300AdvertisingExpenseAcct.No.655DateExplanationPRDebitCreditBalanceApr.4D3879879ACCOUNTSPAYABLELEDGERCray,Inc.DateExplanationPRDebitCreditBalanceApr.3P31,5301,5306G3701,460DannCompanyDateExplanationPRDebitCreditBalanceApr.17P312,85012,85023G390011,95026D311,9500©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-3A(Concluded)AccountsPayableLedger—continuedHafmanSupplyDateExplanationPRDebitCreditBalanceApr.9P311,43511,43520P31,00012,435NewtCompanyDateExplanationPRDebitCreditBalanceApr.2P314,20014,20012D314,200025P311,46511,465Part4MOORECOMPANYTrialBalanceApril30DebitCreditCash$36,194Inventory189,092Officesupplies1,460Storesupplies1,000Storeequipment11,435Accountspayable$25,360Long-termnotespayable137,000B.Moore,Capital100,000Salessalariesexpense22,300Advertisingexpense879Totals$262,360$262,360MOORECOMPANYScheduleofAccountsPayableApril30CrayInc.$1,460HafmanSupply12,435NewtCompany.11,465Totalaccountspayable$25,360©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-4AA(80minutes)Parts1and3PURCHASESJOURNALPage3DateAccountDateofInvoiceTermsPRAccountsPayableCr.PurchasesDr.OfficeSuppliesDr.OtherAccountsDr.Apr.2NewtCompany4/22/10,n/60ü14,20014,2003OfficeSupplies/CrayInc.4/2n/10,EOMü1,5301,5309StoreEquip./HafmanSupply4/9n/10,EOM165/ü11,43511,43517DannCompany4/172/10,n/30ü12,85012,85020StoreSupp./HafmanSupply4/19n/10,EOM125/ü1,0001,00025NewtCompany4/242/10,n/60ü11,46511,465_________30Totals52,48038,5151,53012,435(201)(505)(124)(ü)CASHDISBURSEMENTSJOURNALPage3DateCk.No.PayeeAccountDebitedPRCashCr.PurchasesDiscountCr.OtherAccountsDr.AccountsPayableDr.Apr.4587WorldViewAdvertisingExpense65587987912588NewtCompanyNewtCompanyü13,91628414,20016589PayrollSalesSalariesExpense62111,30011,30026590DannCompanyDannCompanyü11,71123911,95030591PayrollSalesSalariesExpense62111,000___11,000_____30Totals48,80652323,17926,150(101)(507)(ü)(201)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-4AA(Continued)GENERALJOURNALPage3Apr.6AccountsPayable—Cray,Inc201/ü70OfficeSupplies12470Receivedacreditmemorandum.23AccountsPayable—DannCo.201/ü900PurchaseReturnsandAllowances506900Receivedacreditmemorandum.Parts2and3GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceMar.3185,000Apr.30D348,80636,194InventoryAcct.No.119DateExplanationPRDebitCreditBalanceMar.31152,000OfficeSuppliesAcct.No.124DateExplanationPRDebitCreditBalanceApr.3P31,5301,5306G3701,460StoreSuppliesAcct.No.125DateExplanationPRDebitCreditBalanceApr.20P31,0001,000StoreEquipmentAcct.No.165DateExplanationPRDebitCreditBalanceApr.9P311,43511,435©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-4AA(Continued)GeneralLedger—continuedAccountsPayableAcct.No.201DateExplanationPRDebitCreditBalanceApr.6G370(70)23G3900(970)30P352,48051,51030D326,15025,360Long-TermNotesPayableAcct.No.251DateExplanationPRDebitCreditBalanceMar.31137,000B.Moore,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceMar.31100,000PurchasesAcct.No.505DateExplanationPRDebitCreditBalanceApr.30P338,51538,515PurchaseReturnsandAllowancesAcct.No.506DateExplanationPRDebitCreditBalanceApr.23G3900900PurchasesDiscountsAcct.No.507DateExplanationPRDebitCreditBalanceApr.30D3523523SalesSalariesExpenseAcct.No.621DateExplanationPRDebitCreditBalanceApr.16D311,30011,30030D311,00022,300AdvertisingExpenseAcct.No.655DateExplanationPRDebitCreditBalanceApr.4D3879879©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-4AA(Continued)Parts2and3—continuedACCOUNTSPAYABLELEDGERCray,Inc.DateExplanationPRDebitCreditBalanceApr.3P31,5301,5306G3701,460DannCompanyDateExplanationPRDebitCreditBalanceApr.17P312,85012,85023G390011,95026D311,9500HafmanSupplyDateExplanationPRDebitCreditBalanceApr.9P311,43511,43520P31,00012,435NewtCompanyDateExplanationPRDebitCreditBalanceApr.2P314,20014,20012D314,200025P311,46511,465©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-4AA(Concluded)Part3—continuedMOORECOMPANYTrialBalanceApril30DebitCreditCash$36,194Inventory152,000Officesupplies1,460Storesupplies1,000Storeequipment11,435Accountspayable$25,360Long-termnotespayable137,000B.Moore,Capital100,000Purchases38,515Purchasesreturnsandallowances900Purchasesdiscounts523Salessalariesexpense22,300Advertisingexpense879_______Totals$263,783$263,783MOORECOMPANYScheduleofAccountsPayableApril30Cray,Inc.$1,460HafmanSupply12,435NewtCompany.11,465Totalaccountspayable,$25,360©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-5A(100minutes)Parts1and2SALESJOURNALPage2DateAccountDebitedInvoiceNumberPRAccountsReceivableDr.SalesCr.CostofGoodsSoldDr.InventoryCr.Mar.2ChaoChu854ü16,0008,0503LanceWern855ü9,5004,76010JovitaAltern856ü4,7002,38027JovitaAltern857ü14,3006,28528LanceWern858ü5,4002,30031Totals49,90023,775(106/413)(502/119)PURCHASESJOURNALPage2DateAccountDateofInvoiceTermsPRAccountsPayableCr.InventoryDr.OfficeSuppliesDr.OtherAccountsDr.Mar.1ValueIndustries3/12/15,n/30ü43,30043,3003GlenCompany3/3n/10,EOMü1,3001,3009OfficeEquip./SimonSupply3/9n/10,EOM163/ü21,00021,00014TheAJCompany3/132/10,n/30ü32,20032,20016StoreSupplies/GlenCompany3/16n/10,EOM125/ü1,820_________1,82031Totals99,62075,5001,30022,820(201)(119)(124)(ü)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-5A(Continued)Parts1and2—continuedCASHRECEIPTSJOURNALPage2DateAccountCreditedExplanationPRCashDr.SalesDiscountDr.AccountsReceivableCr.SalesCr.OtherAccts.Cr.CostofGoodsSoldDr.InventoryCr.Mar.6L.T.NotesPay.Notetobank25172,00072,00012ChaoChuInvoice,3/2ü15,68032016,00013LanceWernInvoice3/3ü9,3101909,50015SalesCashsalesü67,57067,57039,08020JovitaAlternInvoice,3/10ü4,606944,70031SalesCashsalesü77,625________77,625_____40,51031Totals246,79160430,200145,19572,00079,590(101)(415)(106)(413)(ü)(502/119)CASHDISBURSEMENTSJOURNALPage2DateCk.No.PayeeAccountDebitedPRCashCr.InventoryCr.OtherAccountsDr.AccountsPayableDr.Mar.13416ValueIndustriesValueIndustriesü42,43486643,30015417PayrollSalesSalariesExpense62117,70017,70023418TheAJCo.TheAJCompanyü29,10659429,70031419PayrollSalesSalariesExpense62117,700____17,700_____31Totals106,9401,46035,40073,000(101)(119)(ü)(201)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-5A(Continued)GENERALJOURNALPage2Mar.17AccountsPayable—AJCo.201/ü2,500Inventory1192,500Receivedacreditmemoforreturns.19AccountsPayable—SimonSupply201/ü630OfficeEquipment163630Receivedacreditmemoforreturns.GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceMar.31R2246,791246,79131D2106,940139,851AccountsReceivableAcct.No.106DateExplanationPRDebitCreditBalanceMar.31S249,90049,90031R230,20019,700InventoryAcct.No.119DateExplanationPRDebitCreditBalanceMar.150,00017G22,50047,50031P275,500123,00031D21,460121,54031S223,77597,76531R279,59018,175OfficeSuppliesAcct.No.124DateExplanationPRDebitCreditBalanceMar.31P21,3001,300StoreSuppliesAcct.No.125DateExplanationPRDebitCreditBalanceMar.16P21,8201,820©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-5A(Continued)OfficeEquipmentAcct.No.163DateExplanationPRDebitCreditBalanceMar.9P221,00021,00019G263020,370AccountsPayableAcct.No.201DateExplanationPRDebitCreditBalanceMar.17G22,500(2,500)19G2630(3,130)31P299,62096,49031D273,00023,490Long-TermNotesPayableAcct.No.251DateExplanationPRDebitCreditBalanceMar.6R272,00072,000Z.Crystal,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceMar.150,000SalesAcct.No.413DateExplanationPRDebitCreditBalanceMar.31S249,90049,90031R2145,195195,095SalesDiscountsAcct.No.415DateExplanationPRDebitCreditBalanceMar.31R2604604CostofGoodsSoldAcct.No.502DateExplanationPRDebitCreditBalanceMar.31S223,77523,775Mar.31R279,590103,365SalesSalariesExpenseAcct.No.621DateExplanationPRDebitCreditBalanceMar.15D217,70017,70031D217,70035,400©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-5A(Continued)ACCOUNTSRECEIVABLELEDGERJovitaAlternDateExplanationPRDebitCreditBalanceMar.10S24,7004,70020R24,700027S214,30014,300ChaoChuDateExplanationPRDebitCreditBalanceMar.2S216,00016,00012R216,0000LanceWernDateExplanationPRDebitCreditBalanceMar.3S29,5009,50013R29,500028S25,4005,400ACCOUNTSPAYABLELEDGERAJCompanyDateExplanationPRDebitCreditBalanceMar.14P232,20032,20017G22,50029,70023D229,7000GlenCompanyDateExplanationPRDebitCreditBalanceMar.3P21,3001,30016P21,8203,120SimonSupplyDateExplanationPRDebitCreditBalanceMar.9P221,00021,00019G263020,370ValueIndustriesDateExplanationPRDebitCreditBalanceMar.1P243,30043,30013D243,3000©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-5A(Concluded)Part3CRYSTALCOMPANYTrialBalanceMarch31DebitCreditCash$139,851Accountsreceivable19,700Inventory18,175Officesupplies1,300Storesupplies1,820Officeequipment20,370Accountspayable$23,490Long-termnotespayable72,000Z.Crystal,Capital50,000Sales195,095Salesdiscounts604Costofgoodssold103,365Salessalariesexpense35,400_______Totals$340,585$340,585CRYSTALCOMPANYScheduleofAccountsReceivableMarch31JovitaAltern$14,300LanceWern5,400Totalaccountsreceivable$19,700CRYSTALCOMPANYScheduleofAccountsPayableMarch31GlenCompany$3,120SimonSupply20,370Totalaccountspayable$23,490©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-6AA(100minutes)Parts1and2SALESJOURNALPage2DateAccountDebitedInvoiceNumberPRAccountsReceivableDr.SalesCr.Mar.2ChaoChu854ü16,0003LanceWern855ü9,50010JovitaAltern856ü4,70027JovitaAltern857ü14,30028LanceWern858ü5,40031Totals49,900(106/413)PURCHASESJOURNALPage2DateAccountDateofInvoiceTermsPRAccountsPayableCr.PurchasesDr.OfficeSuppliesDr.OtherAccountsDr.Mar.1ValueIndustries3/12/15,n/30ü43,30043,3003GlenCompany3/3n/10,EOMü1,3001,3009OfficeEquip./SimonSupply3/9n/10,EOM163/ü21,00021,00014TheAJCompany3/132/10,n/30ü32,20032,20016StoreSupplies/GlenCompany3/16n/10,EOM125/ü1,820_________1,82031Totals99,62075,5001,30022,820(201)(505)(124)(ü)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-6AA(Continued)Parts1and2—continuedCASHRECEIPTSJOURNALPage2DateAccountCreditedExplanationPRCashDr.SalesDiscountDr.AccountsReceivableCr.SalesCr.OtherAccountsCr.Mar.6L.T.NotesPay.Notetobank25172,00072,00012ChaoChuInvoice,3/2ü15,68032016,00013LanceWernInvoice3/3ü9,3101909,50015SalesCashsalesü67,57067,57020JovitaAlternInvoice,3/10ü4,606944,70031SalesCashsalesü77,625________77,625_____31Totals246,79160430,200145,19572,000(101)(415)(106)(413)(ü)CASHDISBURSEMENTSJOURNALPage2DateCk.No.PayeeAccountDebitedPRCashCr.PurchasesDiscountsCr.OtherAccountsDr.AccountsPayableDr.Mar.13416ValueIndustriesValueIndustriesü42,43486643,30015417PayrollSalesSalariesExpense62117,70017,70023418TheAJCo.TheAJCompanyü29,10659429,70031419PayrollSalesSalariesExpense62117,700____17,700_____31Totals106,9401,46035,40073,000(101)(507)(ü)(201)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-6AA(Continued)GENERALJOURNALPage2Mar.17AccountsPayable—AJCo.201/ü2,500PurchasesReturnsandAllowances5062,500Receivedacreditmemoforreturns.19AccountsPayable—SimonSupply201/ü630OfficeEquipment163630Receivedacreditmemoforreturns.GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceMar.31R2246,791246,79131D2106,940139,851AccountsReceivableAcct.No.106DateExplanationPRDebitCreditBalanceMar.31S249,90049,90031R230,20019,700InventoryAcct.No.119DateExplanationPRDebitCreditBalanceMar.150,000OfficeSuppliesAcct.No.124DateExplanationPRDebitCreditBalanceMar.31P21,3001,300StoreSuppliesAcct.No.125DateExplanationPRDebitCreditBalanceMar.16P21,8201,820OfficeEquipmentAcct.No.163DateExplanationPRDebitCreditBalanceMar.9P221,00021,00019G263020,370©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-6AA(Continued)AccountsPayableAcct.No.201DateExplanationPRDebitCreditBalanceMar.17G22,500(2,500)19G2630(3,130)31P299,62096,49031D273,00023,490Long-TermNotesPayableAcct.No.251DateExplanationPRDebitCreditBalanceMar.6R272,00072,000Z.Crystal,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceMar.150,000SalesAcct.No.413DateExplanationPRDebitCreditBalanceMar.31S249,90049,90031R2145,195195,095SalesDiscountsAcct.No.415DateExplanationPRDebitCreditBalanceMar.31R2604604PurchasesAcct.No.505DateExplanationPRDebitCreditBalanceMar.31P275,50075,500PurchasesReturnsandAllowancesAcct.No.506DateExplanationPRDebitCreditBalanceMar.17G22,5002,500PurchasesDiscountsAcct.No.507DateExplanationPRDebitCreditBalanceMar.31D21,4601,460SalesSalariesExpenseAcct.No.621DateExplanationPRDebitCreditBalanceMar.15D217,70017,70031D217,70035,400©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-6AA(Continued)ACCOUNTSRECEIVABLELEDGERJovitaAlternDateExplanationPRDebitCreditBalanceMar.10S24,7004,70020R24,700027S214,30014,300ChaoChuDateExplanationPRDebitCreditBalanceMar.2S216,00016,00012R216,0000LanceWernDateExplanationPRDebitCreditBalanceMar.3S29,5009,50013R29,500028S25,4005,400ACCOUNTSPAYABLELEDGERAJCompanyDateExplanationPRDebitCreditBalanceMar.14P232,20032,20017G22,50029,70023D229,7000GlenCompanyDateExplanationPRDebitCreditBalanceMar.3P21,3001,30016P21,8203,120SimonSupplyDateExplanationPRDebitCreditBalanceMar.9P221,00021,00019G263020,370ValueIndustriesDateExplanationPRDebitCreditBalanceMar.1P243,30043,30013D243,3000©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-6AA(Concluded)Part3CRYSTALCOMPANYTrialBalanceMarch31DebitCreditCash$139,851Accountsreceivable19,700Inventory50,000Officesupplies1,300Storesupplies1,820Officeequipment20,370Accountspayable$23,490Long-termnotespayable72,000Z.Crystal,Capital50,000Sales195,095Salesdiscounts604Purchases75,500Purchasesreturnsandallowances2,500Purchasesdiscounts1,460Salessalariesexpense35,400_______Totals$344,545$344,545CRYSTALCOMPANYScheduleofAccountsReceivableMarch31JovitaAltern$14,300LanceWern5,400Totalaccountsreceivable$19,700CRYSTALCOMPANYScheduleofAccountsPayableMarch31GlenCompany$3,120SimonSupply20,370Totalaccountspayable$23,490©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 PROBLEMSETBProblem7-1B(70minutes)Parts1and2SALESJOURNALPage3DateAccountDebitedInvoiceNumberPRAccountsReceivableDr.SalesCr.CostofGoodsSoldDr.InventoryCr.July5KarenNoyes918ü4,1003,3006MegAzura919ü9,2007,50013TomMurphy920ü13,6007,10014KarenNoyes921ü6,5004,70029MegAzura922ü3,3402,58030TomMurphy923ü6,2004,48031Totals42,94029,660(106/413)(502/119)CASHRECEIPTSJOURNALPage3DateAccountCreditedExplanationPRCashDr.SalesDiscountDr.AccountsReceivableCr.SalesCr.OtherAccts.Cr.CostofGoodsSoldDr.InventoryCr.July15KarenNoyesSaleof7/5ü4,018824,10015SalesCashsalesü59,92059,92042,90016MegAzuraSaleof7/6ü9,0161849,20021L.T.NotesPay.Notetobank25174,00074,00023TomMurphySaleof7/13ü13,32827213,60024KarenNoyesSaleof7/14ü6,3701306,50031SalesCashsalesü74,200________74,200_____67,40031Totals240,85266833,400134,12074,000110,300©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 (101)(415)(106)(413)(ü)(502/119)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-1B(Continued)Parts2and3GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceJune30116,000July31R3240,852356,852AccountsReceivableAcct.No.106DateExplanationPRDebitCreditBalanceJuly31S342,94042,94031R333,4009,540InventoryAcct.No.119DateExplanationPRDebitCreditBalanceJune30150,000July31S329,660120,34031R3110,30010,040Long-TermNotesPayableAcct.No.251DateExplanationPRDebitCreditBalanceJune30166,000July21R374,000240,000R.Burns,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceJune30100,000SalesAcct.No.413DateExplanationPRDebitCreditBalanceJuly31S342,94042,94031R3134,120177,060SalesDiscountsAcct.No.415DateExplanationPRDebitCreditBalanceJuly31R3668668CostofGoodsSoldAcct.No.502DateExplanationPRDebitCreditBalanceJuly31S329,66029,66031R3110,300139,960©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-1B(Continued)Parts2and3(continued)ACCOUNTSRECEIVABLELEDGERMegAzuraDateExplanationPRDebitCreditBalanceJuly6S39,2009,20016R39,200029S33,3403,340TomMurphyDateExplanationPRDebitCreditBalanceJuly13S313,60013,60023R313,600030S36,2006,200KarenNoyesDateExplanationPRDebitCreditBalanceJuly5S34,1004,10014S36,50010,60015R34,1006,50024R36,5000Part4BURNSINDUSTRIESTrialBalanceJuly31DebitCreditCash$356,852Accountsreceivable9,540Inventory10,040Long-termnotespayable$240,000R.Burns,Capital100,000Sales177,060Salesdiscounts668Costofgoodssold139,960_______Totals$517,060$517,060©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-1B(Concluded)Part4—continuedBURNSINDUSTRIESScheduleofAccountsReceivableJuly31MegAzura$3,340TomMurphy6,200Totalaccountsreceivable$9,540Part5AnalysiscomponentTofindtheerror(s),firstre-addtheaccountbalancesonthescheduleofaccountsreceivabletoconfirmthattheadditioniscorrect.Then,tracethebalanceslistedonthescheduleofaccountsreceivablebacktothesubsidiaryaccountstoconfirmthattheyarelistedcorrectlyontheschedule.Next,recalculatethebalanceofeachsubsidiaryaccounttoconfirmthattheadditionsandsubtractionsarecorrect.Next,tracethepostingsfromeachsubsidiaryaccountandfromthecontrollingaccountbacktotheappropriatejournals.Sincethesalesandcashreceiptsjournalswerefootedandcrossfootedbeforeposting,thepreviousstepsshoulddisclosetheerror.©McGraw-HillCompanies,2009457SolutionsManual,Chapter7©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-2BA(70minutes)Parts1and2SALESJOURNALPage3DateAccountDebitedInvoiceNumberPRAccountsReceivableDr.SalesCr.July5KarenNoyes918ü4,1006MegAzura919ü9,20013TomMurphy920ü13,60014KarenNoyes921ü6,50029MegAzura922ü3,34030TomMurphy923ü6,20031Totals42,940(106/413)CASHRECEIPTSJOURNALPage3DateAccountCreditedExplanationPRCashDr.SalesDiscountsDr.AccountsReceivableCr.SalesCr.OtherAccountsCr.July15KarenNoyesSaleof7/5ü4,018824,10015SalesCashsalesü59,92059,92016MegAzuraSaleof7/6ü9,0161849,20021L.T.NotesPayableNotetobank25174,00074,00023TomMurphySaleof7/13ü13,32827213,60024KarenNoyesSaleof7/14ü6,3701306,50031SalesCashsalesü74,200________74,200_____31Totals240,85266833,400134,12074,000(101)(415)(106)(413)(ü)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-2BA(Continued)Parts2and3GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceJune30116,000July31R3240,852356,852AccountsReceivableAcct.No.106DateExplanationPRDebitCreditBalanceJuly31S342,94042,94031R333,4009,540InventoryAcct.No.119DateExplanationPRDebitCreditBalanceJune30150,000Long-TermNotesPayableAcct.No.251DateExplanationPRDebitCreditBalanceJune30166,000July21R374,000240,000R.Burns,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceJune30100,000SalesAcct.No.413DateExplanationPRDebitCreditBalanceJuly31S342,94042,94031R3134,120177,060SalesDiscountsAcct.No.415DateExplanationPRDebitCreditBalanceJuly31R3668668©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-2BA(Continued)Parts2and3—continuedACCOUNTSRECEIVABLELEDGERMegAzuraDateExplanationPRDebitCreditBalanceJuly6S39,2009,20016R39,200029S33,3403,340TomMurphyDateExplanationPRDebitCreditBalanceJuly13S313,60013,60023R313,600030S36,2006,200KarenNoyesDateExplanationPRDebitCreditBalanceJuly5S34,1004,10014S36,50010,60015R34,1006,50024R36,5000Part4BURNSINDUSTRIESTrialBalanceJuly31DebitCreditCash$356,852Accountsreceivable9,540Inventory150,000Long-termnotespayable$240,000R.Burns,Capital100,000Sales177,060Salesdiscounts668_______Totals$517,060$517,060©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-2BA(Concluded)Part4—continuedBURNSINDUSTRIESScheduleofAccountsReceivableJuly31MegAzura$3,340TomMurphy6,200Totalaccountsreceivable$9,540Part5AnalysiscomponentTofindtheerror(s),firstre-addtheaccountbalancesonthescheduleofaccountsreceivabletoconfirmthattheadditioniscorrect.Then,tracethebalanceslistedonthescheduleofaccountsreceivablebacktothesubsidiaryaccountstoconfirmthattheyarelistedcorrectlyontheschedule.Next,recalculatethebalanceofeachsubsidiaryaccounttoconfirmthattheadditionsandsubtractionsarecorrect.Next,tracethepostingsfromeachsubsidiaryaccountandfromthecontrollingaccountbacktotheappropriatejournals.Sincethesalesandcashreceiptsjournalswerefootedandcrossfootedbeforeposting,thepreviousstepsshoulddisclosetheerror.©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-3B(80minutes)Parts1and3PURCHASESJOURNALPage3DateAccountDateofInvoiceTermsPRAccountsPayableCr.InventoryDr.OfficeSuppliesDr.OtherAccountsDr.July1TryonCompany6/302/10,n/60ü15,20015,2007StoreSupp./PattonInc.7/7n/10,EOM125/ü1,5801,5809StoreEquip./CheeverSupply7/8n/10,EOM165/ü11,15511,15517DartCompany7/172/10,n/30ü12,65012,65020OfficeSupp./CheeverSupply7/19n/10,EOMü1,0501,05026TryonCompany7/262/10,n/60ü11,63511,635__________31Totals53,27039,4851,05012,735(201)(119)(124)(ü)CASHDISBURSEMENTSJOURNALPage3DateCk.No.PayeeAccountDebitedPRCashCr.InventoryCr.OtherAccountsDr.AccountsPayableDr.July3300TheWeeklyAdvertisingExpense65589089010301TryonCompanyTryonCompanyü14,89630415,20015302Payroll.SalesSalariesExpense62139,25039,25027303DartCompanyDartCompanyü11,36823211,60031304PayrollSalesSalariesExpense62139,250___39,250_____31Totals105,65453679,39026,800(101)(119)(ü)(201)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-3B(Continued)Parts1and3—continuedGENERALJOURNALPage3July8AccountsPayable—Patton201/ü90StoreSupplies12590Receivedacreditmemorandum.24AccountsPayable—Dart201/ü1,050Inventory.1191,050Receivedacreditmemorandum.Parts2and3GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceJune30116,000July31D3105,65410,346InventoryAcct.No.119DateExplanationPRDebitCreditBalanceJune30150,000July24G31,050148,95031P339,485188,43531D3536187,899OfficeSuppliesAcct.No.124DateExplanationPRDebitCreditBalanceJuly31P31,0501,050StoreSuppliesAcct.No.125DateExplanationPRDebitCreditBalanceJuly7P31,5801,5808G3901,490StoreEquipmentAcct.No.165DateExplanationPRDebitCreditBalanceJuly9P311,15511,155©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-3B(Continued)GeneralLedger—continuedAccountsPayableAcct.No.201DateExplanationPRDebitCreditBalanceJuly8G390(90)24G31,050(1,140)31P353,27052,13031D326,80025,330Long-TermNotesPayableAcct.No.251DateExplanationPRDebitCreditBalanceJune30166,000R.Burns,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceJune30100,000SalesSalariesExpenseAcct.No.621DateExplanationPRDebitCreditBalanceJuly15D339,25039,25031D339,25078,500AdvertisingExpenseAcct.No.655DateExplanationPRDebitCreditBalanceJuly3D3890890ACCOUNTSPAYABLELEDGERCheeverSupplyDateExplanationPRDebitCreditBalanceJuly9P311,15511,15520P31,05012,205DartCompanyDateExplanationPRDebitCreditBalanceJuly17P312,65012,65024G31,05011,60027D311,6000©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-3B(Concluded)AccountsPayableLedger—continuedPatton,Inc.DateExplanationPRDebitCreditBalanceJuly7P31,5801,5808G3901,490TryonCompanyDateExplanationPRDebitCreditBalanceJuly1P315,20015,20010D315,200026P311,63511,635Part4BURNSINDUSTRIESTrialBalanceJuly31DebitCreditCash$10,346Inventory187,899Officesupplies1,050Storesupplies1,490Storeequipment11,155Accountspayable$25,330Long-termnotespayable166,000R.Burns,Capital100,000Salessalariesexpense78,500Advertisingexpense890_______Totals$291,330$291,330BURNSINDUSTRIESScheduleofAccountsPayableJuly31CheeverSupply$12,205Patton,Inc1,490TryonCompany11,635Totalaccountspayable$25,330©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-4BA(100minutes)Parts1and3PURCHASESJOURNALPage3DateAccountDateofInvoiceTermsPRAccountsPayableCr.PurchasesDr.OfficeSuppliesDr.OtherAccountsDr.July1TryonCompany6/302/10,n/60ü15,20015,2007StoreSupp./PattonInc.7/7n/10,EOM125/ü1,5801,5809StoreEquip./CheeverSupply7/8n/10,EOM165/ü11,15511,15517DartCompany7/172/10,n/30ü12,65012,65020OfficeSupp./CheeverSupply7/19n/10,EOMü1,0501,05026TryonCompany7/262/10,n/60ü11,63511,635_________31Totals53,27039,4851,05012,735(201)(505)(124)(ü)CASHDISBURSEMENTSJOURNALPage3DateCk.No.PayeeAccountDebitedPRCashCr.PurchasesDiscountsCr.OtherAccountsDr.AccountsPayableDr.July3300TheWeeklyAdvertisingExpense65589089010301TryonCompanyTryonCompanyü14,89630415,20015302Payroll.SalesSalariesExpense62139,25039,25027303DartCompanyDartCompanyü11,36823211,60031304PayrollSalesSalariesExpense62139,250___39,250_____31Totals105,65453679,39026,800(101)(507)(ü)(201)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-4BA(Continued)Parts1and3—continuedGENERALJOURNALPage3July8AccountsPayable—Patton201/ü90StoreSupplies12590Receivedacreditmemorandum.24AccountsPayable—Dart201/ü1,050PurchasesReturnsandAllowances5061,050Receivedacreditmemorandum.Parts2and3GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceJune30116,000July31D3105,65410,346InventoryAcct.No.119DateExplanationPRDebitCreditBalanceJune30150,000OfficeSuppliesAcct.No.124DateExplanationPRDebitCreditBalanceJuly31P31,0501,050StoreSuppliesAcct.No.125DateExplanationPRDebitCreditBalanceJuly7P31,5801,5808G3901,490StoreEquipmentAcct.No.165DateExplanationPRDebitCreditBalanceJuly9P311,15511,155©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-4BA(Continued)GeneralLedger—continuedAccountsPayableAcct.No.201DateExplanationPRDebitCreditBalanceJuly8G390(90)24G31,050(1,140)31P353,27052,13031D326,80025,330Long-TermNotesPayableAcct.No.251DateExplanationPRDebitCreditBalanceJune30166,000R.Burns,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceJune30100,000PurchasesAcct.No.505DateExplanationPRDebitCreditBalanceJuly31P339,48539,485PurchasesReturnsandAllowancesAcct.No.506DateExplanationPRDebitCreditBalanceJuly24G31,0501,050PurchasesDiscountsAcct.No.507DateExplanationPRDebitCreditBalanceJuly31D3536536SalesSalariesExpenseAcct.No.621DateExplanationPRDebitCreditBalanceJuly15D339,25039,25031D339,25078,500AdvertisingExpenseAcct.No.655DateExplanationPRDebitCreditBalanceJuly3D3890890©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-4BA(Continued)Parts2and3—continuedACCOUNTSPAYABLELEDGERCheeverSupplyDateExplanationPRDebitCreditBalanceJuly9P311,15511,15520P31,05012,205DartCompanyDateExplanationPRDebitCreditBalanceJuly17P312,65012,65024G31,05011,60027D311,6000Patton,Inc.DateExplanationPRDebitCreditBalanceJuly7P31,5801,5808G3901,490TryonCompanyDateExplanationPRDebitCreditBalanceJuly1P315,20015,20010D315,200026P311,63511,635©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-4BA(Concluded)Part4BURNSINDUSTRIESTrialBalanceJuly31DebitCreditCash$10,346Inventory150,000Officesupplies1,050Storesupplies1,490Storeequipment11,155Accountspayable$25,330Long-termnotespayable166,000R.Burns,Capital100,000Purchases39,485Purchasesreturnsandallowances1,050Purchasesdiscounts536Salessalariesexpense78,500Advertisingexpense890_______Totals$292,916$292,916BURNSINDUSTRIESScheduleofAccountsPayableJuly31CheeverSupply.$12,205Patton,Inc.1,490TryonCompany11,635Totalaccountspayable$25,330©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-5B(100minutes)Parts1and2SALESJOURNALPage2DateAccountDebitedInvoiceNumberPRAccountsReceivableDr.SalesCr.CostofGoodsSoldDr.InventoryCr.Nov.8CydRyan439ü16,5008,34010CarlosMantel440ü9,9004,96015TonyaWill441ü4,9002,48022CarlosMantel442ü14,8006,54024TonyaWill443ü5,6002,42030Totals51,70024,740(106/413)(502/119)PURCHASESJOURNALPage2DateAccountDateofInvoiceTermsPRAccountsPayableCr.InventoryDr.OfficeSuppliesDr.OtherAccountsDr.Nov.1OfficeEquip./BaxterSupply11/1n/10,EOM163/ü1,3531,3534BLRIndustries11/32/15,n/30ü45,10045,1005StoreSupplies/GortonCompany11/5n/10,EOM125/ü21,87421,87411LingCompany11/102/10,n/30ü33,50933,50916GortonCompany11/16n/10,EOMü1,873_____1,873_____30Totals103,70978,6091,87323,227(201)(119)(124)(ü)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-5B(Continued)CASHRECEIPTSJOURNALPage2DateAccountCreditedExplanationPRCashDr.SalesDiscountDr.AccountsReceivableCr.SalesCr.OtherAccts.Cr.CostofGoodsSoldDr.InventoryCr.Nov.2L.T.NotesPay.Notetobank251/ü72,00072,00015SalesCashsalesü174,537174,537144,86618CydRyanInvoice,11/8ü16,17033016,50019CarlosMantelInvoice,11/10ü9,7021989,90025TonyaWillInvoice,11/15ü4,802984,90030SalesCashsalesü185,009________185,009_____111,39830Totals462,22062631,300359,54672,000256,264(101)(415)(106)(413)(ü)(502/119)CASHDISBURSEMENTSJOURNALPage2DateCk.No.PayeeAccountDebitedPRCashCr.InventoryCr.OtherAccountsDr.AccountsPayableDr.Nov.12633BLRIndustriesBLRIndustriesü44,19890245,10015634PayrollSalesSalariesExpense62113,90013,90019635LingCo.LingCompanyü30,23361730,85030636PayrollSalesSalariesExpense62113,900____13,900______30Totals102,2311,51927,80075,950(101)(119)(ü)(201)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-5B(Continued)GENERALJOURNALPage2Nov.17AccountsPayable—LingCo.201/ü2,659Inventory1192,659Receivedacreditmemoforreturns.26AccountsPayable—BaxterSupply201/ü256OfficeEquipment163256Receivedacreditmemoforreturns.GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceNov.30R2462,220462,22030D2102,231359,989AccountsReceivableAcct.No.106DateExplanationPRDebitCreditBalanceNov.30S251,70051,70030R231,30020,400InventoryAcct.No.119DateExplanationPRDebitCreditBalanceNov.1300,00017G22,659297,34130P278,609375,95030D21,519374,43130S224,740349,69130R2256,26493,427OfficeSuppliesAcct.No.124DateExplanationPRDebitCreditBalanceNov.30P21,8731,873StoreSuppliesAcct.No.125DateExplanationPRDebitCreditBalanceNov.5P221,87421,874©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-5B(Continued)OfficeEquipmentAcct.No.163DateExplanationPRDebitCreditBalanceNov.1P21,3531,35326G22561,097AccountsPayableAcct.No.201DateExplanationPRDebitCreditBalanceNov.17G22,659(2,659)26G2256(2,915)30P2103,709100,79430D275,95024,844Long-TermNotesPayableAcct.No.251DateExplanationPRDebitCreditBalanceNov.2R272,00072,000O.Madison,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceNov.1300,000SalesAcct.No.413DateExplanationPRDebitCreditBalanceNov.30S251,70051,70030R2359,546411,246SalesDiscountsAcct.No.415DateExplanationPRDebitCreditBalanceNov.30R2626626CostsofGoodsSoldAcct.No.502DateExplanationPRDebitCreditBalanceNov.30S224,74024,74030R2256,264281,004SalesSalariesExpenseAcct.No.621DateExplanationPRDebitCreditBalanceNov.15D213,90013,90030D213,90027,800©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-5B(Continued)ACCOUNTSRECEIVABLELEDGERCarlosMantelDateExplanationPRDebitCreditBalanceNov.10S29,9009,90019R29,900022S214,80014,800CydRyanDateExplanationPRDebitCreditBalanceNov.8S216,50016,50018R216,5000TonyaWillDateExplanationPRDebitCreditBalanceNov.15S24,9004,90024S25,60010,50025R24,9005,600ACCOUNTSPAYABLELEDGERBLRIndustriesDateExplanationPRDebitCreditBalanceNov.4P245,10045,10012D245,1000BaxterSupplyDateExplanationPRDebitCreditBalanceNov.1P21,3531,35326G22561,097GortonCompanyDateExplanationPRDebitCreditBalanceNov.5P221,87421,87416P21,87323,747LingCompanyDateExplanationPRDebitCreditBalanceNov.11P233,50933,50917G22,65930,85019D230,8500©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-5B(Concluded)Part3MADISONCOMPANYTrialBalanceNovember30DebitCreditCash$359,989Accountsreceivable20,400Inventory93,427Officesupplies1,873Storesupplies21,874Officeequipment1,097Accountspayable$24,844Long-termnotespayable72,000O.Madison,Capital300,000Sales411,246Salesdiscounts626Costsofgoodssold281,004Salessalariesexpense27,800_______Totals$808,090$808,090MADISONCOMPANYScheduleofAccountsReceivableNovember30CarlosMantel$14,800TonyaWill5,600Totalaccountsreceivable$20,400MADISONCOMPANYScheduleofAccountsPayableNovember30BaxterSupply$1,097GortonCompany23,747Totalaccountspayable$24,844©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-6BA(100minutes)Parts1and2SALESJOURNALPage2DateAccountDebitedInvoiceNumberPRAccountsReceivableDr.SalesCr.Nov.8CydRyan439ü16,50010CarlosMantel440ü9,90015TonyaWill441ü4,90022CarlosMantel442ü14,80024TonyaWill443ü5,60030Totals51,700(106/413)PURCHASESJOURNALPage2DateAccountDateofInvoiceTermsPRAccountsPayableCr.PurchasesDr.OfficeSuppliesDr.OtherAccountsDr.Nov.1OfficeEquip./BaxterSupply11/1n/10,EOM163/ü1,3531,3534BLRIndustries11/32/15,n/30ü45,10045,1005StoreSupplies/GortonCompany11/5n/10,EOM125/ü21,87421,87411LingCompany11/102/10,n/30ü33,50933,50916GortonCompany11/16n/10,EOMü1,873_____1,873_____30Totals103,70978,6091,87323,227(201)(505)(124)(ü)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-6BA(Continued)CASHRECEIPTSJOURNALPage2DateAccountCreditedExplanationPRCashDr.SalesDiscountDr.AccountsReceivableCr.SalesCr.OtherAccts.Cr.Nov.2L.T.NotesPay.Notetobank251/ü72,00072,00015SalesCashsalesü174,537174,53718CydRyanInvoice,11/8ü16,17033016,50019CarlosMantelInvoice,11/10ü9,7021989,90025TonyaWillInvoice,11/15ü4,802984,90030SalesCashsalesü185,009_________185,009_____30Totals462,22062631,300359,54672,000(101)(415)(106)(413)(ü)CASHDISBURSEMENTSJOURNALPage2DateCk.No.PayeeAccountDebitedPRCashCr.PurchasesDiscountsCr.OtherAccountsDr.AccountsPayableDr.Nov.12633BLRIndustriesBLRIndustriesü44,19890245,10015634PayrollSalesSalariesExpense62113,90013,90019635LingCo.LingCompanyü30,23361730,85030636PayrollSalesSalariesExpense62113,900_____13,900_____30Totals102,2311,51927,80075,950(101)(507)(ü)(201)©McGraw-HillCompanies,2009457SolutionsManual,Chapter7 Problem7-6BA(Continued)GENERALJOURNALPage2Nov.17AccountsPayable—LingCo.201/ü2,659PurchasesReturnsandAllowances5062,659Receivedacreditmemoforreturns.26AccountsPayable—BaxterSupply201/ü256OfficeEquipment163256Receivedacreditmemoforreturns.GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceNov.30R2462,220462,22030D2102,231359,989AccountsReceivableAcct.No.106DateExplanationPRDebitCreditBalanceNov.30S251,70051,70030R231,30020,400InventoryAcct.No.119DateExplanationPRDebitCreditBalanceNov.1300,000OfficeSuppliesAcct.No.124DateExplanationPRDebitCreditBalanceNov.30P21,8731,873StoreSuppliesAcct.No.125DateExplanationPRDebitCreditBalanceNov.5P221,87421,874OfficeEquipmentAcct.No.163DateExplanationPRDebitCreditBalanceNov.1P21,3531,35326G22561,097©McGraw-HillCompanies,2009461SolutionsManual,Chapter7 Problem7-6BA(Continued)AccountsPayableAcct.No.201DateExplanationPRDebitCreditBalanceNov.17G22,659(2,659)26G2256(2,915)30P2103,709100,79430D275,95024,844Long-TermNotesPayableAcct.No.251DateExplanationPRDebitCreditBalanceNov.2R272,00072,000O.Madison,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceNov.1300,000SalesAcct.No.413DateExplanationPRDebitCreditBalanceNov.30S251,70051,70030R2359,546411,246SalesDiscountsAcct.No.415DateExplanationPRDebitCreditBalanceNov.30R2626626PurchasesAcct.No.505DateExplanationPRDebitCreditBalanceNov.30P278,60978,609PurchasesReturnsandAllowancesAcct.No.506DateExplanationPRDebitCreditBalanceNov.17G22,6592,659PurchasesDiscountsAcct.No.507DateExplanationPRDebitCreditBalanceNov.30D21,5191,519©McGraw-HillCompanies,2009461SolutionsManual,Chapter7 Problem7-6BA(Continued)SalesSalariesExpenseAcct.No.621DateExplanationPRDebitCreditBalanceNov.15D213,90013,90030D213,90027,800ACCOUNTSRECEIVABLELEDGERCarlosMantelDateExplanationPRDebitCreditBalanceNov.10S29,9009,90019R29,900022S214,80014,800CydRyanDateExplanationPRDebitCreditBalanceNov.8S216,50016,50018R216,5000TonyaWillDateExplanationPRDebitCreditBalanceNov.15S24,9004,90024S25,60010,50025R24,9005,600ACCOUNTSPAYABLELEDGERBLRIndustriesDateExplanationPRDebitCreditBalanceNov.4P245,10045,10012D245,1000BaxterSupplyDateExplanationPRDebitCreditBalanceNov.1P213531,35326G22561,097©McGraw-HillCompanies,2009461SolutionsManual,Chapter7 Problem7-6BA(Continued)AccountsPayableLedger—continuedGortonCompanyDateExplanationPRDebitCreditBalanceNov.5P221,87421,87416P21,87323,747LingCompanyDateExplanationPRDebitCreditBalanceNov.11P233,50933,50917G22,65930,85019D230,8500Part3MADISONCOMPANYTrialBalanceNovember30DebitCreditCash$359,989Accountsreceivable20,400Inventory300,000Officesupplies1,873Storesupplies21,874Officeequipment1,097Accountspayable$24,844Long-termnotespayable72,000O.Madison,Capital300,000Sales411,246Salesdiscounts626Purchases78,609Purchasesreturnsandallowances2,659Purchasesdiscounts1,519Salessalariesexpense27,800________Totals$812,268$812,268©McGraw-HillCompanies,2009461SolutionsManual,Chapter7 Problem7-6BA(Concluded)Part3—continuedMADISONCOMPANYScheduleofAccountsReceivableNovember30CarlosMantel.$14,800TonyaWill5,600Totalaccountsreceivable$20,400MADISONCOMPANYScheduleofAccountsPayableNovember30BaxterSupply.$1,097GortonCompany23,747Totalaccountspayable$24,844©McGraw-HillCompanies,2009461SolutionsManual,Chapter7©McGraw-HillCompanies,2007465SolutionsManual,Chapter7 SERIALPROBLEM–SP7SerialProblem,SuccessSystems(100minutes)Parts1and2SALESJOURNALPage2DateAccountDebitedInvoiceNumberPRAccountsReceivableDr.SalesCr.CostofGoodsSoldDr.InventoryCr.Jan.13LiuCorp.n/aü5,2003,56026KC,Inc.n/aü5,8004,640Feb.23DeltaCo.n/aü3,2202,660Mar.25WildcatServicesn/aü2,8002,00230IFMCompanyn/aü2,2201,10031Totals19,24013,962(106/413)(502/119)CASHRECEIPTSJOURNALPage2DateAccountCreditedExplanationPRCashDr.SalesDiscountDr.AccountsReceivableCr.ServicesRevenueCr.OtherAccts.Cr.CostofGoodsSoldDr.InventoryCr.Jan.9GomezCoInvoice,n/aü2,6682,66816ServicesRevenueCashSalesü4,0004,00022LiuCorpInvoice,1/13ü4,653474,700Feb.11Alex’sEng.CoInvoice,1/11ü5,5005,500Mar.9DeltaCoInvoice,2/23ü3,2203,22016ServicesRevenueCashSalesü5,260_______5,260__31Totals25,3014716,0889,26000(101)(415)(106)(403)(ü)(502/119)©McGraw-HillCompanies,2007465SolutionsManual,Chapter7 SerialProblem,SuccessSystems(Continued)PURCHASESJOURNALPage2DateAccountDateofInvoiceTermsPRAccountsPayableCr.InventoryDr.ComputerSuppliesDr.OtherAccountsDr.Jan.7KansasCorp1/71/10,n/30ü5,8005,80026KansasCorp1/261/10,n/30ü9,0009,000Mar.8HarrisOfficeProducts3/8ü2,730_____2,73031Totals17,53014,8002,7300(201)(119)(126)(ü)CASHDISBURSEMENTSJOURNALPage2DateCk.No.PayeeAccountDebitedPRCashCr.InventoryCr.OtherAccountsDr.AccountsPayableDr.Jan.4n/aLynAddieWagesExpenseWagesPayable623/21062512550015n/aNotspecifiedMerchandiseInventory11960060017n/aKansasCorpKansasCorpü5,742585,80031n/aLynAddieWagesExpense6231,2501,250Feb.1n/aHillsideMallPrepaidRent1312,4752,4753n/aKansasCorpKansasCorpü8,414908,5045n/aNotspecifiedAdvertisingExpense65560060015n/aA.LopezA.Lopez,Withdrawals3024,8004,80026n/aLynAddieWagesExpense6231,0001,00027n/aA.LopezMileageExpense676192192Mar.11n/aNotSpecifiedRepairsExpense68496096019n/aHarrisOff.ProdHarrisOfficeProductsü3,8303,83031n/aA.LopezMileageExpense676128___128_____31Totals30,61614816,46014,304(101)(119)(ü)(201)©McGraw-HillCompanies,2007465SolutionsManual,Chapter7 ©McGraw-HillCompanies,2007465SolutionsManual,Chapter7SerialProblem,SuccessSystems(Concluded)Part3GENERALJOURNALPage22010Jan.5Cash10125,000A.Lopez,Capital30125,000Additionalinvestmentbyowner.11AccountsReceivable—Alex’sEng.Co106.15,500UnearnedComputerServicesRevenue2361,500ComputerServicesRevenue4037,000Completedworkonproject.20*SalesReturnsandAllowances414500AccountsReceivable—ChangCorp106.5500Customerreturneddefectivegoods.*AnoptionaladditionalentryforJan.20istodebit“LossfromDefectiveMerchandise”andcredit“CostofGoodsSold”for$320.24AccountsPayable—KansasCorp201496MerchandiseInventory119496Returnedmerchandiseforcredit.29Noentryrecordedinthejournal(butmemorandumnoted).Mar.24AccountsReceivable—EasyLeasing106.38,900ComputerServicesRevenue4038,900Billedcustomerforservices.©McGraw-HillCompanies,Inc.,2005469SolutionsManual,Chapter7 ComprehensiveProblemComprehensiveProblem,EurekaCompany(150minutes)Part1SALESJOURNALPage2DateAccountDebitedInvoiceNumberPRAccountsReceivableDr.SalesCr.CostofGoodsSoldDr.InventoryCr.May2BowmanCompany8785ü6,1004,10016BowmanCompany8786ü3,9901,89022KarimServices8787ü6,8504,99026DexterCorp.8788ü14,2108,23031Totals31,15019,210(106/413)(502/119)©McGraw-HillCompanies,Inc.,2005469SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Part1—Continued)PURCHASESJOURNALPage2DateAccountDateofInvoiceTermsPRAccountsPayableCr.InventoryDr.OfficeSuppliesDr.OtherAccountsDr.May4StoreSupp./GatesSupp5/04n/10,EOM125/ü37,72937,0728357410OfficeEquip./GatesSupp5/10n/10,EOM163/ü4,0744,07411Gatsby,Inc5/102/10,n/30ü8,8008,80017JoeyCorp5/142/10,n/60ü13,65013,65024StoreSupp./GatesSupp5/24n/10,EOM125/ü9,0308,12028063025ParkerProducts5/232/10,n/30ü3,0803,080_______31Totals76,36370,7223635,278(201)(119)(124)(ü)CASHRECEIPTSJOURNALPage2DateAccountCreditedExplanationPRCashDr.SalesDiscountDr.AccountsReceivableCr.SalesCr.OtherAccts.Cr.CostofGoodsSoldDr.InventoryCr.May5KnottCoSaleofApr.28ü4,459914,5509StoreSuppliesSoldstoresupplies12535035011BowmanCoSaleofMay2ü5,9781226,10015SalesCashsalesMay1-15ü55,22055,22033,20030KarimServicesSaleofMay22ü6,7131376,85031SalesCashsales,May16-31ü70,052________70,052___45,50031Totals142,77235017,500125,27235078,700(101)(415)(106)(413)(ü)(502/119)©McGraw-HillCompanies,Inc.,2005469SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Part1—Continued)CASHDISBURSEMENTSJOURNALPage2DateCk.No.PayeeAccountDebitedPRCashCr.InventoryCr.OtherAccountsDr.AccountsPayableDr.May13410J&KMgmt.Co.RentExp.–SellingSpace6422,968RentExp.–OfficeSpace6413,71074283411ParkerProducts.ParkerProductsü6,1741266,300153412PayrollSalesSalariesExpense6215,470OfficeSalariesExpense6208,4703,000193413Gatsby,Inc.Gatsby,Inc.ü8,6241768,800233414JoeyCorp.JoeyCorp.ü13,37727313,650263415TrinityPowerUtilitiesExpense6901,2831,283293416EmlynEurekaE.Eureka,Withdrawals3022,0002,000303417PayrollSalesSalariesExpense6215,320OfficeSalariesExpense6208,470___3,150_____31Totals52,10857523,93328,750(101)(119)(ü)(201)GENERALJOURNALPage2May2SalesReturnsandAllow.414175AccountsReceivable—KnottCo106/ü175Issuedacreditmemoforreturns.3AccountsPayable—ParkerProducts201/ü798Inventory119798Receivedacreditmemoforreturns.12Accts.Payable—GatesSupplyCo.201/ü854OfficeEquipment163854Receivedacreditmemoforreturns.©McGraw-HillCompanies,Inc.,2005469SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Continued)Part2EUREKACOMPANYWorkSheetforMonthEndedMay31,2010UnadjustedTrialBalanceAdjustmentsIncomeStatementBalanceSheetorState-mentofOwner’sEquityAccountDebitCreditDebitCreditDebitCreditDebitCreditCash140,911140,911Accountsreceivable18,20018,200Merchandiseinventory191,519191,519Officesupplies793(c)289504Storesupplies3,301(b)1,0692,232Prepaidinsurance3,318(a)4032,915Officeequipment25,69025,690Accum.depr.–Officeequip9,898(e)32910,227Storeequipment38,92038,920Accum.depr.–Storeequip17,556(d)56718,123Accountspayable53,05953,059EmlynEureka,Capital308,085308,085EmlynEureka,Withdrawals2,0002,000Sales156,422156,422Salesreturnsandallowances175175Salesdiscounts350350Costofgoodssold97,91097,910Depr.Expense–Officeequip(e)329329Depr.Expense–Storeequip(d)567567Officesalariesexpense6,1506,150Salessalariesexpense10,79010,790Insuranceexpense(a)403403Rentexpense,officespace742742Rentexpense,sellingspace2,9682,968Officesuppliesexpense(c)289289Storesuppliesexpense(b)1,0691,069Utilitiesexpense1,283________________1,283__________________Totals545,020545,0202,6572,657123,025156,422422,891389,494Netincome33,397____________33,397Totals156,422156,422422,891422,891©McGraw-HillCompanies,Inc.,2005469SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Continued)Adjustingentries(Part2)May31InsuranceExpense637403PrepaidInsurance128403Toadjustforexpiredinsurance.31StoreSuppliesExpense6511,069StoreSupplies1251,069Toadjustforstoresuppliesused.31OfficeSuppliesExpense650289OfficeSupplies124289Toadjustforofficesuppliesused.31DepreciationExpense–StoreEquip.613567AccumulatedDepr.–StoreEquip.166567Torecorddepreciationofstoreeq.31DepreciationExpense–OfficeEquip.612329AccumulatedDepr.–OfficeEquip.164329Torecorddepreciationofofficeeq.©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Continued)Closingentries(Part2)May31Sales413156,422IncomeSummary901156,422Toclosetemporaryaccountswithcreditbalances.May31IncomeSummary901123,025SalesReturnsandAllowances414175SalesDiscounts415350Costofgoodssold50297,910Depr.Expense,OfficeEquipment612329Depr.Expense,StoreEquipment613567OfficeSalariesExpense6206,150SalesSalariesExpense62110,790InsuranceExpense637403RentExpense,OfficeSpace641742RentExpense,SellingSpace6422,968OfficeSuppliesExpense650289StoreSuppliesExpense6511,069UtilitiesExpense6901,283Toclosetemporaryaccountswithdebitbalances.May31IncomeSummary90133,397EmlynEureka,Capital30133,397Tocloseincomesummarytoowner’scapital.May31EmlynEureka,Capital3012,000EmlynEureka,Withdrawals3022,000Toclosewithdrawalstoowner’scapital.©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Continued)Parts1and2GENERALLEDGERCashAcct.No.101DateExplanationPRDebitCreditBalanceApr.30Balance50,247May31R2142,772193,01931D252,108140,911AccountsReceivableAcct.No.106DateExplanationPRDebitCreditBalanceApr.30Balance4,725May2G21754,55031S231,15035,70031R217,50018,200MerchandiseInventoryAcct.No.119DateExplanationPRDebitCreditBalanceApr.30Balance220,080May3G2798219,28231D2575218,70731P270,722289,42931R278,700210,72931S219,210191,519OfficeSuppliesAcct.No.124DateExplanationPRDebitCreditBalanceApr.30Balance430May31P236379331G2289504StoreSuppliesAcct.No.125DateExplanationPRDebitCreditBalanceApr.30Balance2,447May4P25743,0219R23502,67124P26303,30131G21,0692,232©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Continued)PrepaidInsuranceAcct.No.128DateExplanationPRDebitCreditBalanceApr.30Balance3,318May31G24032,915OfficeEquipmentAcct.No.163DateExplanationPRDebitCreditBalanceApr.30Balance22,470May10P24,07426,54412G285425,690AccumulatedDepreciation–OfficeEquipmentAcct.No.164DateExplanationPRDebitCreditBalanceApr.30Balance9,898May31G232910,227StoreEquipmentAcct.No.165DateExplanationPRDebitCreditBalanceApr.30Balance38,920AccumulatedDepreciation–StoreEquipmentAcct.No.166DateExplanationPRDebitCreditBalanceApr.30Balance17,556May31G256718,123AccountsPayableAcct.No.201DateExplanationPRDebitCreditBalanceApr.30Balance7,098May3G27986,30012G28545,44631P276,36381,80931D228,75053,059EmlynEureka,CapitalAcct.No.301DateExplanationPRDebitCreditBalanceApr.30Balance308,085May31G233,397341,48231G22,000339,482©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Continued)EmlynEureka,WithdrawalsAcct.No.302DateExplanationPRDebitCreditBalanceMay29D22,0002,00031G22,0000SalesAcct.No.413DateExplanationPRDebitCreditBalanceMay31S231,15031,15031R2125,272156,42231G2156,4220SalesReturnsandAllowancesAcct.No.414DateExplanationPRDebitCreditBalanceMay2G217517531G21750SalesDiscountsAcct.No.415DateExplanationPRDebitCreditBalanceMay31R235035031G23500CostofGoodsSoldAcct.No.502DateExplanationPRDebitCreditBalanceMay31S219,21019,21031R278,70097,91031G297,9100DepreciationExpense—OfficeEquipmentAcct.No.612DateExplanationPRDebitCreditBalanceMay31G232932931G23290DepreciationExpense—StoreEquipmentAcct.No.613DateExplanationPRDebitCreditBalanceMay31G256756731G25670©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Continued)OfficeSalariesExpenseAcct.No.620DateExplanationPRDebitCreditBalanceMay15D23,0003,00030D23,1506,15031G26,1500SalesSalariesExpenseAcct.No.621DateExplanationPRDebitCreditBalanceMay15D25,4705,47030D25,32010,79031G210,7900InsuranceExpenseAcct.No.637DateExplanationPRDebitCreditBalanceMay31G240340331G24030RentExpense,OfficeSpaceAcct.No.641DateExplanationPRDebitCreditBalanceMay1D274274231G27420RentExpense,SellingSpaceAcct.No.642DateExplanationPRDebitCreditBalanceMay1D22,9682,96831G22,9680OfficeSuppliesExpenseAcct.No.650DateExplanationPRDebitCreditBalanceMay31G228928931G22890StoreSuppliesExpenseAcct.No.651DateExplanationPRDebitCreditBalanceMay31G21,0691,06931G21,0690©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Continued)UtilitiesExpenseAcct.No.690DateExplanationPRDebitCreditBalanceMay26D21,2831,28331G21,2830IncomeSummaryAcct.No.901DateExplanationPRDebitCreditBalanceMay31G2123,025123,02531G2156,42233,39731G233,3970ACCOUNTSRECEIVABLELEDGERBowmanCompanyDateExplanationPRDebitCreditBalanceMay2S26,1006,10011R26,100016S23,9903,990DexterCorp.DateExplanationPRDebitCreditBalanceMay26S214,21014,210KarimServicesDateExplanationPRDebitCreditBalanceMay22S26,8506,85030R26,8500KnottCoDateExplanationPRDebitCreditBalanceApr.28S24,7254,725May2G21754,5505R24,5500©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Continued)ACCOUNTSPAYABLELEDGERGatesSupplyCo.DateExplanationPRDebitCreditBalanceMay4P237,72937,72910P24,07441,80312G285440,94924P29,03049,979Gatsby,Inc.DateExplanationPRDebitCreditBalanceMay11P28,8008,80019D28,8000JoeyCorp.DateExplanationPRDebitCreditBalanceMay17P213,65013,65023D213,6500ParkerProductsDateExplanationPRDebitCreditBalanceApr.29P27,0987,098May3G27986,3008D26,300025P23,0803,080©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Continued)Part3EUREKACOMPANYIncomeStatementForMonthEndedMay31,2010RevenueSales$156,422Less:Salesreturnsandallowances$175Salesdiscounts350525Netsales155,897Less:Costofgoodssold97,910Grossprofit57,987OperatingexpensesSellingexpensesDepreciationexpense—Storeequipment567Salessalariesexpense10,790Rentexpense—Sellingspace2,968Storesuppliesexpense1,069Totalsellingexpenses15,394GeneralandadministrativeexpensesDepreciationexpense—Officeequipment329Officesalariesexpense6,150Insuranceexpense403Rentexpense—Officespace742Officesuppliesexpense289Utilitiesexpense1,283Totalgeneralandadministrativeexpenses9,196Totaloperatingexpenses24,590Netincome$33,397©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Continued)Part3—continuedEUREKACOMPANYStatementofOwner’sEquityForMonthEndedMay31,2010EmlynEureka,Capital,April30,2010$308,085Plus:Netincome33,397341,482Less:Withdrawalsbyowner(2,000)EmlynEureka,Capital,May31,2010$339,482EUREKACOMPANYBalanceSheetMay31,2010AssetsCurrentassetsCash$140,911Accountsreceivable18,200Merchandiseinventory191,519Officesupplies504Storesupplies2,232Prepaidinsurance2,915Totalcurrentassets$356,281PlantassetsOfficeequipment25,690Lessaccumulateddepreciation10,22715,463Storeequipment38,920Lessaccumulateddepreciation18,12320,797Totalplantassets36,260Totalassets$392,541LiabilitiesCurrentliabilitiesAccountspayable$53,059EquityEmlynEureka,Capital339,482Totalliabilitiesandequity$392,541©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 ComprehensiveProblem,EurekaCompany(Concluded)Part4EUREKACOMPANYPost-ClosingTrialBalanceMay31,2010Cash$140,911Accountsreceivable18,200Merchandiseinventory191,519Officesupplies504Storesupplies2,232Prepaidinsurance2,915Officeequipment25,690Accumulateddepreciation—Officeequip.$10,227Storeequipment38,920Accumulateddepreciation—Storeequip.18,123Accountspayable53,059EmlynEureka,Capital_______339,482Totals$420,891$420,891EUREKACOMPANYScheduleofAccountsReceivableMay31,2010BowmanCompany$3,990DexterCorp.14,210Totalaccountsreceivable$18,200EUREKACOMPANYScheduleofAccountsPayableMay31,2010GatesSupplyCo.$49,979ParkerProducts3,080Totalaccountspayable$53,059©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 ReportinginAction—BTN7-11.BestBuy’sNote11identifiesitstworeportedbusinesssegments.2.BestBuyidentifiesanddescribesitstworeportedsegmentsas:·Domesticsegment,comprisedofU.S.storeandonlineoperations,includingBestBuy,GeekSquad,MagnoliaAudioVideoandPacificSalesoperations·Internationalsegment,comprisedofallCanadastoreandonlineoperations,BestBuy,FutureShopandGeekSquad,aswellasFiveStarandBestBuyretailandonlineoperationsinChina.3.Solutiondependsonthemostrecentinformationobtained.ComparativeAnalysis—BTN7-21.BestBuy-CurrentYearReturnonSegmentAssetsDomesticsegment:$1,889/[($10,614+$9,722)/2]=18.6%Internationalsegment:$110/[($2,956+$2,142)/2]=4.3%BestBuy–OneYearPriorReturnonSegmentAssetsDomesticSegment:$1,588/[($9,722+$8,372)/2]=17.6%InternationalSegment:$56/[($2,142+$1,922)]=2.8%CircuitCity–CurrentYearReturnonSegmentAssetsDomesticSegment:$97/[($3,658+$3,594)/2]=2.7%InternationalSegment:$(107)/[($350+$475)/2]=(25.9)%CircuitCity–OneYearPriorReturnonSegmentAssetsDomesticSegment:$155/[($3,594+$3,405)/2]=4.4%InternationalSegment:$(7)/[($475+$435)/2]=(1.5)%2.BestBuy’sreturnondomesticsegmentassetsismuchhigherinbothyearsthanCircuitCity’s.Forbothyears,BestBuy’sreturnoninternationalsegmentassetsishigherthanCircuitCity’s(CircuitCity’sinternationalsegmenthadalossforbothyears).BestBuy’sDomesticSegment’sreturnonsegmentassetsismuchhigherthanitsInternationalSegment.CircuitCity’sDomesticSegment,hasahigherreturnonsegmentassetsthanitsInternationalSegment,becausetheInternationalSegmenthadalossforbothyears.©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 EthicsChallenge—BTN7-31.Independenceinfactmeansthattheauditormaintainsanobjectivepointofviewoftheclient.Independenceinappearancemeansthatathirdpartyviewingtherelationshipbetweentheauditorandclientwouldhavenoreasontobelievethattheauditorisnotindependentoftheclient.2.Whileauditorsarehiredbytheirclientstoperformaudits,auditorshavearesponsibilitytothecompany’s“stakeholders”andthepublic.Inoursociety,auditorsprovidecredibilitytofinancialreportingbyofferingprofessionalauditopinionsaboutcompanies’financialstatements.Whileitissometimesdifficulttoberesponsibletoclients,aswellastothestakeholdersandthepublic,auditorsmustmaintaintheirindependencetokeepthepublic’strust.2.SinceEricaGrayisasolepractitioneritisquestionablewhethershecanconsultontheclient’saccountingsystemandthenremainobjectiveinsubsequentyearswhensheperformstheauditofthecompany.Largefirmsoftenseparateconsultingandauditingengagementsforthesameclientbyhavingstaffstationedintwodifferentgeographicbranchesofthefirmdothework.Oralargelocalfirmmightbeabletoperformconsultingandauditingforthesameclientbyassigningdifferentpersonneltothetwojobs.Inthisscenario,EricaGraywouldneedtodobothjobsherself,makingitdifficulttomaintainindependenceinfactandappearance.(Notetoinstructors:TheSarbanes-OxleyActspecificallyprohibitsauditorsfromprovidingfinancialinformationandsystemdesignsfortheirSECauditclients.ThiswascodifiedbytheSEC[FinalRuling68].)CommunicatinginPractice—BTN7-4Thememoshouldrecommendtheuseofspecialjournalsandsubsidiaryledgers.Itshouldexplainthetime-savingaspectofjournalizinginlabeledcolumnsandalsothepostingofcolumntotalsrepresentingtheimpactofgroupsofliketransactions.Thememoshoulddiscussthetimelyinformationprovidedbysubsidiaryledgersregardingcustomerandcreditorbalances.Adiscussionoftheusesofascheduleforverifyingtheaccuracyofsubsidiaryledgersshouldalsobeincluded.©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 TakingIttotheNet—BTN7-5(SeeDell’sNote10–SegmentInformation)1.(i)Americas,(ii)Europe,MiddleEastandAfrica[EMEA],and(iii)AsiaPacific-Japan[APJ].2.TheAmericasreports$2,523millionofoperatingincomeand$4,981millioninassets.Thesetotalsaresubstantiallylargerthanitsnextlargestsegment,whichisEuropewith$583millioninoperatingincomeand$2,401millioninidentifiableassets.3.Dell’sOperatingIncomeandTotalAssetsbySegment($millions)OperatingIncome2007TotalAssets2007:TotalAssets2006SegmentReturnonAssetsAmericas$2,523$4,981:$4,41053.7%EMEA583$2,401:$1,97126.7%APJ332$1,559:$1,43822.2%TheAmericashadthehighestsegmentreturnonassetsforthefiscalyearended2007witha53.7%return.Theothertwogeographicareasshowedreturnsonassetsintheareaof25%.4.ThesixproductgroupsreportedbyDellincludeDesktopPCs,Mobility,Softwareandperipherals,Serversandnetworking,Enhancedservices,andStorage.($millions)2007FiscalYearDesktopPCs$19,81534.5%Mobility15,48027.0Softwareandperipherals9,00115.7Serversandnetworking5,80510.1Enhancedservices5,0638.8Storage2,2563.9Totals$57,420100.0%Dellearnedmore—inbothdollarsandreturns—fromitsDesktopPCsgroup;itsMobilitygroupswassecondinbothcategories.©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 TeamworkinAction—BTN7-6ForcheckfiguresintheimplementationofthisactivityseethesolutiontoProblem7-5Aor7-5B.EntrepreneurialDecision—BTN7-71.Thefollowingspecialjournalsarelikelytobeused:·Salesjournaltorecordcreditsales·Cashreceiptsjournaltorecordallcashreceipts·Purchasesjournaltorecordcreditpurchases·Cashdisbursementsjournaltorecordallcashpayments·GeneraljournaltorecordalltransactionsnotinspecialjournalsThecompanyalsoislikelytousethefollowingsubsidiaryledgers:·Accountsreceivablesubsidiaryledgertotrackamountsowedbyindividualcustomer·Accountspayableledgertotrackamountsowedtoindividualvendors·Inventoryledgertokeeptrackofalldifferentinventoryitems(includinginventoryreadytosell,inventoryintheprocessofbeingcompleted,andmaterialstobeusedintheproductionofinventory)2.YearOneYearHenceTwoYearsHenceThreeYearsHenceFourYearsHenceFiveYearsHenceSales$3,000,0003,600,000$4,140,000$5,175,000$6,210,000ComputationsYear2:$3,000,000x120%=$3,600,000Year3:$3,600,000x115%=$4,140,000Year4:$4,140,000x125%=$5,175,000Year5:$5,175,000x120%=$6,210,000Ifsalesfollowthegrowthprojected,thecompanywillhavemorethandoubledthecurrent$3,000,000inannualsalesto$6,210,000annually.©McGraw-HillCompanies,2009485SolutionsManual,Chapter7 GlobalDecision—BTN7-81.DSGhasthefollowingreportedgeographicsegments:·UKandIreland·Nordic·SouthernEurope·CentralEurope·Corporatecentreandsharedservices2.DSGdisclosesdollaramountsbythefollowingsegments:·Revenue·Segmentassets·Expendituresforintangibleassets·Expendituresforproperty,plant,andequipment3.Yes.Onallfinancialmeasuresreported,theUKandIrelandsegmentdominatesDSG’sothersegments.©McGraw-HillCompanies,2009485SolutionsManual,Chapter7