Moran Companys chart of accounts includes the following selected accounts. 101 Cash 401 Sales 112 Accounts Receivable
Question:
Moran Company’s chart of accounts includes the following selected accounts.
101 Cash 401 Sales
112 Accounts Receivable 414 Sales Discounts
120 Merchandise Inventory 505 Cost of Goods Sold
311 Common Stock
On April 1 the accounts receivable ledger of Moran Company showed the following balances: Collins $1,550, Harris $1,200, Fleetwood Co. $2,900, and Smith $1,700. The April transactions involving the receipt of cash were as follows.
Apr. 1 Stockholders invested additional cash in the business, $6,000, for common stock.
4 Received check for payment of account from Smith less 2% cash discount.
5 Received check for $620 in payment of invoice no. 307 from Fleetwood Co.
8 Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was $4,347.
10 Received check for $800 in payment of invoice no. 309 from Collins.
11 Received cash refund from a supplier for damaged merchandise $550.
23 Received check for $1,500 in payment of invoice no. 310 from Fleetwood Co.
29 Received check for payment of account from Harris.
Instructions
(a) Journalize the transactions above in a six-column cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Merchandise Inventory Cr. Foot and crossfoot the journal.
(b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts.
(c) Prove the agreement of the control account and subsidiary account balances
Step by Step Answer:
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso