Li Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal.
Question:
Li Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Prepare a cash receipts journal like the one in Exhibit 7.7. Journalize the following transactions that should be recorded in the cash receipts journal.
May 1. C. Li, the owner, contributed $9,000 cash to the company.
7. The company purchased $5,000 of merchandise on credit from Gomez, terms n/30.
9. The company sold merchandise costing $400 to E. James for $500 on credit, terms n/10.
15. The company borrowed $1,000 cash by signing a note payable to the bank.
18. The company received $500 cash from E. James in payment of the May 9 purchase.
24. The company sold merchandise costing $150 to B. Cox for $200 cash.
Exhibit 7.7
EXHIBIT 7.7 Cash Receipts Journal Page 2 Cash Receipts Journal with Posting Sales Accounts Other Cost of Goods Sold Dr. Inventory Cr. Discount Recelvable Accounts Date Account Credited Explanation PR Cash Dr. Dr. Cr. Sales Cr. Cr. Individual amounts in the Other Feb. 7 Sales 12 Jason Henry 14 Sales 17 Albert Co. 20 Notes Payable Note to bank 245 21 Sales 4,450 Cash sales Invoice, 2/2 Cash sales Invoice, 2/7 4,450 441 3,925 3,150 Accounts Cr. column and the 9 450 Accounts Receivable Cr. column 3,925 2,950 are posted immediately. 10 490 750 4,700 500 750 Cash sales 4,700 3,400 22 Interest revenue Bank account 409 250 250 23 Kam Moore 25 Paul Roth 28 Sales 28 Totals Invoice, 2/13 Invoice, 2/15 Cash sales 343 7 350 196 4 200 4,225 19,770 4.225 3,050 12,550 Column totals, except for Other Accounts Cr. column, are posted at the end of the period. 30 1,500 17,300 1,000 (101) (415) (106) (413) (X) (502/119) Accounts Receivable Ledger General Ledger General Ledger (continued) Customer Name Albert Co. No. 101 Interest Revenue No. 409 Cash PR Debit Credit Date PR Debit Credit Feb. 22 R2 Date Balance PR Debit Feb. 28 R2 19,770- Date Credit Balance Balance Feb. 7 S3 500 500 19,770 250 250 17 R2 500 Accounts Recelvable No. 106 Balance Sales 28 S3 No. 413 Balance 250 250 Date PR Debit Credit PR Debit Credit Date Customer Name Frank Booth Feb. 28 S3 2,150 2,150 Feb. 28 S3 28 R2 2,150 2,150 Date PR Deblt Feb. 25 S3 Credit Balance 28 R2 1,500 650 17,300 19,450 175 175 Inventory No. 119 No. 415 Balance Sales Discounts Customer Name Jason Henry Date PR Debit Credit Balance PR Debit Feb. 1 bal. Date PR Debit Credit 15,700 Date Feb. 2 S3 Credit Balance 450 450 28 IS3 1,500 14,200 Feb. 28 R2 30 30 12 R2 450 28 R2 12,550. 1,650 No, 502 Balance Cost of Goods Sold 22 S3 225 225 Notes Payable No. 245 Date PR Debit Credit Feb. 28 S3 28 R2 12,550 Customer Name Kam Moore Date PR Debit Credit Balance 1,500 1,500 Date PR Debit Credit Balance Feb. 20 R2 750 750 14,050 Feb. 13 S3 350 350 23 R2 350 Customer Name Paul Roth Date PR Debit Credit Balance Point: The $650 total of ti customer accounts equal Feb. 15 S3 200 200 25 R2 200 balance in Accounts Reci control account.
Step by Step Answer:
CASH RECEIPTS JOURNAL Date Account Credited Explanation PR Dr ...View the full answer
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