Kimball Company is a small retail business that uses a manual data processing system similar to the one described in the chapter. Among its special-purpose journals are multicolumn cash receipts and cash payments journals. The cash transactions for Kimball Company during the month of November follow.
Nov. 1 Paid November rent to R. Carello, $1,000, with check no. 782.
3 Paid Stavos Wholesale on account, $2,300 less a 2 percent discount, check no. 783.
4 Received payment on account of $1,000, within the 2 percent discount period, from J. Walker.
5 Cash sales, $2,632.
8 Paid Moving Freight on account, $598, with check no. 784.
9 The owner, Fred Kimball, invested an additional $10,000 in cash and a truck valued at $14,000 in the business.
11 Paid Escobedo Supply on account, $284, with check no. 785.
14 Cash sales, $2,834.
15 Paid Moving Freight $310 for the freight on a shipment of merchandise received today, with check no. 786.
16 Paid Ludman Company on account, $1,600 less a 2 percent discount, with check no. 787.
17 Received payment on account from P. Sivula, $120.
18 Cash sales, $1,974.
19 Received payment on a note receivable, $1,800 plus $36 interest.
20 Purchased office supplies from Escobedo Supply, $108, with check no. 788.
Nov.21 Paid a note payable in full to Kenington Bank, $4,100 including $100 interest, with check no. 789.
24 Cash sales, $2,964.
25 Paid $500 less a 2 percent discount to Stavos Wholesale, with check no. 790.
26 Paid sales clerk Tracy Dye $1,100 for her monthly salary, with check no. 791.
27 Purchased equipment from Standard Corporation for $16,000, paying $4,000 with check no. 792 and signing a note payable for the difference.
30 Fred Kimball withdrew $1,200 from the business, using check no. 793.

1. Enter these transactions in the cash receipts and cash payments journals.
2. Foot and crossfoot the journals.
3. If a manager wanted to know the total sales for the accounting period, where else would the manager need to refer to obtain the data needed?

  • CreatedMarch 26, 2014
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