Nordeen Company’s chart of accounts includes the following selected accounts.

101 ..........Cash

112 ..........Accounts Receivable

120 ..........Inventory

311 ..........Common Stock

401 ..........Sales Revenue

414 ..........Sales Discounts

505 ..........Cost of Goods Sold

On April 1, the accounts receivable ledger of Nordeen Company showed the following balances: Siem $1,550, Milkie $1,200, Jury Co. $2,900 and Afzal $1,800. The April transactions involving the receipt of cash were as follows.

Apr. 1 Stockholders invested $7,200 additional cash in the business, in exchange for common stock.

4 Received check for payment of account from Afzal less 2% cash discount.

5 Received check for $990 in payment of invoice no. 307 from Jury Co.

8 Made cash sales of merchandise totaling $7,845. The cost of the merchandise sold was $4,347.

10 Received check for $600 in payment of invoice no. 309 from Siem.

11 Received cash refund from a supplier for damaged merchandise $680.

23 Received check for $1,500 in payment of invoice no. 310 from Jury Co.

29 Received check for payment of account from Milkie.

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 Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr. Foot and cross-foot 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.