1. Journalize the account receivable and account payable transactions (transactions are described on the next page)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Journalize the account receivable and account payable transactions (transactions are described on the next page) in a general journal, post them to the general ledger (just the accounts receivable and accounts payable accounts), and record the transactions in the appropriate subsidiary accounts. You do not need to enter descriptions in the journal - just the date, account names, and the amounts (Debit/Credit). When recording an account receivable transaction, please note the customer's name and the invoice number. For example, if $1,000 was sold to a company named XYZ company on invoice #1001, you would record the entry in this format: Accounts Accounts Receivable (XYZ Company, Invoice # 1001) Sales Debit 1,000 Credit 1,000 Do the same for any entry that effects the accounts payable (i.e., vendor name and invoice #). Bring each balance up to date after each transaction by entering the correct Excel formula. For example, if you enter a debit into the General Ledger account for Accounts Receivable, enter a formula in the balance column to increase the account balance; bringing the account up-to-date. Do the same with the GL account for Accounts Payable, and the subsidiary accounts (Accounts Receivable and Accounts Payable.) Think of it this way - you will be maintaining real-time data in both the general ledger and the subsidiary ledger. 2. After completing the last transaction, go to the Reconciliation sheet and enter the final general ledger balance for both the accounts receivable and accounts payable and then compare those balances to the sum of the final balances from the subsidiary ledgers. PLEASE NOTE: This assignment focuses on accounts receivable and payables. To save time and effort, you won't be posting to any other general ledger accounts. The general intent (learning objective) of the assignment is to review the workings of subsidiary ledgers. TRANSACTIONS Below are transactions of a company named Naples Industries (the subject company of this assignment). Here are some important facts: • As you begin this assignment, there are account balances in the Naples Industries' general ledger and the subsidiary ledgers. The balances are carried forward from the previous business day. • The subsidiary ledgers are in balance with their associated general ledger balances when business starts up on Jan 2. Please process the following transactions by first recording them in the general journal (journalizing), posting to the general ledger, and recording them in the subsidiary ledgers. Please use the following accounts when journalizing the transactions: Cash, Accounts Receivable, Supplies, Accounts Payable, Sales, and Sales Allowances. Assume that the company uses a periodic inventory system and therefore, do not record the effect on cost of goods sold or inventory when a sale is made. Transactions: Date Description Jan Sold $5,000 (invoice # 150) of product to Smith Company on account. 2 Jan 2 Jan 3 Jan 3 Jan 4 Paid $1,000 on the account balance owed to a supplier named: Solar Circus. The original Solar Circus invoice # was 117. Purchased on account, supplies of $500 (invoice # 40) from a vendor named: A&P. Returned $1,500 of supplies to a vendor named PB&J. The supplies were originally purchased on account (invoice #301) and has not yet been paid for by Naples Industries. PB&J issues a credit memo to Naples Industries to recognize that a return has been made in lieu of payment. Received a check from a customer named: Jackson Company for $11,000 as a partial payment of its outstanding account balance. This is related to invoice 115. 4 Jan Received a return from a customer name: Scissor Corp. for $5,000 of product. Naples Industries needs to credit the customer's account as this was part of a sale (invoice # 101) made on credit. Debit the Inventory account. 5 Purchased on account, $750 of supplies from K-3 Inc. (K-3's invoice number is # 444) Jan 5 Jan 6 its outstanding account balance. This is related to invoice 115. Jan 7 Sold $500 of product to Notepad Ltd on account (Invoice #151). Reminder: ignore the effect on cost of goods sold and inventory as a result of this sale. ABC Company contacted Naples to complain about a potential defect in a product they purchased last month. Naples agreed to credit ABC Accounts Receivable for $700 (against the amount they owe) and record a Sales Allowance (debit). This is related to invoice #99. After you have journalized, posted to the general ledger accounts, and recorded entries in the subsidiary ledgers. Please perform a reconciliation (last sheet in the Excel workbook) of both the accounts receivable and accounts Payable on the sheet named: Reconciliations. Save your file and then upload it via the Assignment in myCourses. a. Post a general journal b. Post an accounts receivable subsidiary ledger c. Post accounts payable subsidiary ledger d. Post general ledger accounts e. Post reconciliation of accounts receivable and accounts payable 1. Journalize the account receivable and account payable transactions (transactions are described on the next page) in a general journal, post them to the general ledger (just the accounts receivable and accounts payable accounts), and record the transactions in the appropriate subsidiary accounts. You do not need to enter descriptions in the journal - just the date, account names, and the amounts (Debit/Credit). When recording an account receivable transaction, please note the customer's name and the invoice number. For example, if $1,000 was sold to a company named XYZ company on invoice #1001, you would record the entry in this format: Accounts Accounts Receivable (XYZ Company, Invoice # 1001) Sales Debit 1,000 Credit 1,000 Do the same for any entry that effects the accounts payable (i.e., vendor name and invoice #). Bring each balance up to date after each transaction by entering the correct Excel formula. For example, if you enter a debit into the General Ledger account for Accounts Receivable, enter a formula in the balance column to increase the account balance; bringing the account up-to-date. Do the same with the GL account for Accounts Payable, and the subsidiary accounts (Accounts Receivable and Accounts Payable.) Think of it this way - you will be maintaining real-time data in both the general ledger and the subsidiary ledger. 2. After completing the last transaction, go to the Reconciliation sheet and enter the final general ledger balance for both the accounts receivable and accounts payable and then compare those balances to the sum of the final balances from the subsidiary ledgers. PLEASE NOTE: This assignment focuses on accounts receivable and payables. To save time and effort, you won't be posting to any other general ledger accounts. The general intent (learning objective) of the assignment is to review the workings of subsidiary ledgers. TRANSACTIONS Below are transactions of a company named Naples Industries (the subject company of this assignment). Here are some important facts: • As you begin this assignment, there are account balances in the Naples Industries' general ledger and the subsidiary ledgers. The balances are carried forward from the previous business day. • The subsidiary ledgers are in balance with their associated general ledger balances when business starts up on Jan 2. Please process the following transactions by first recording them in the general journal (journalizing), posting to the general ledger, and recording them in the subsidiary ledgers. Please use the following accounts when journalizing the transactions: Cash, Accounts Receivable, Supplies, Accounts Payable, Sales, and Sales Allowances. Assume that the company uses a periodic inventory system and therefore, do not record the effect on cost of goods sold or inventory when a sale is made. Transactions: Date Description Jan Sold $5,000 (invoice # 150) of product to Smith Company on account. 2 Jan 2 Jan 3 Jan 3 Jan 4 Paid $1,000 on the account balance owed to a supplier named: Solar Circus. The original Solar Circus invoice # was 117. Purchased on account, supplies of $500 (invoice # 40) from a vendor named: A&P. Returned $1,500 of supplies to a vendor named PB&J. The supplies were originally purchased on account (invoice #301) and has not yet been paid for by Naples Industries. PB&J issues a credit memo to Naples Industries to recognize that a return has been made in lieu of payment. Received a check from a customer named: Jackson Company for $11,000 as a partial payment of its outstanding account balance. This is related to invoice 115. 4 Jan Received a return from a customer name: Scissor Corp. for $5,000 of product. Naples Industries needs to credit the customer's account as this was part of a sale (invoice # 101) made on credit. Debit the Inventory account. 5 Purchased on account, $750 of supplies from K-3 Inc. (K-3's invoice number is # 444) Jan 5 Jan 6 its outstanding account balance. This is related to invoice 115. Jan 7 Sold $500 of product to Notepad Ltd on account (Invoice #151). Reminder: ignore the effect on cost of goods sold and inventory as a result of this sale. ABC Company contacted Naples to complain about a potential defect in a product they purchased last month. Naples agreed to credit ABC Accounts Receivable for $700 (against the amount they owe) and record a Sales Allowance (debit). This is related to invoice #99. After you have journalized, posted to the general ledger accounts, and recorded entries in the subsidiary ledgers. Please perform a reconciliation (last sheet in the Excel workbook) of both the accounts receivable and accounts Payable on the sheet named: Reconciliations. Save your file and then upload it via the Assignment in myCourses. a. Post a general journal b. Post an accounts receivable subsidiary ledger c. Post accounts payable subsidiary ledger d. Post general ledger accounts e. Post reconciliation of accounts receivable and accounts payable
Expert Answer:
Answer rating: 100% (QA)
a Post a general journal Accounts Date Jan02 Accounts Receivable Smith Company Invoice 1001 Sales Ja... View the full answer
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
Students also viewed these accounting questions
-
In an applied research context you do not need to explain the relationships between the variables in your conceptual model. Discuss this statement.
-
In an applied research context you do not need to explain the relationships between the variables in your conceptual model. Discuss this statement. (2-3 paragraphs).
-
You do not need a lot of money to invest in a mutual fund. However, if you decide to put some money into an investment, you are usually advised to leave it in for (at least) several years. Why?...
-
WESTON ENTERPRISES 2019 and 2020 Partial Balance Sheets Assets 2019 2020 Current assets $1,193 $1272 Net fixed assets 5,722 6,023 WESTON ENTERPRISES 2020 Income Statement Sales Costs Depreciation...
-
Kevin Steven opened a small tax-preparation service. Steven Tax Services trial balance at the end of its second year of operation is as follows. The following information is also available: a. Office...
-
Describe how the definition of marriage has evolved over the past 200 years.
-
Which of the following provides management with some latitude in measuring the amount recognized in discretionary write-downs of impaired assets, even with the advent of an authoritative...
-
In August 2012, tropical storm Isaac formed in the Caribbean and was headed for the Gulf of Mexico. There was an initial probability of .69 that Isaac would become a hurricane by the time it reached...
-
what ways do employee perceptions of organizational justice, encompassing distributive, procedural, and interactional fairness, influence their level of commitment to the organization's goals and...
-
City Bank issued $200 million of one-year CDs in the United States at a rate of 6.50 percent. It invested part of this money, $100 million, in the purchase of a one-year bond issued by a U.S. firm at...
-
Maximum margin example i. p>=$2: 50% margin loan(brokerage can lend money which equals 50% of security) ii. $1.75
-
Acme Corporation has the following information related to its cash budget for the first three months of 2024. A schedule of cash receipts has been constructed and expected cash receipts for the first...
-
1) Using the data below and T-accounts, convert the cash basis income statement to accrual basis in appropriate professional Excel format (i.e., use cell referencing and formulas, no hard coding...
-
You are interested in purchasing a residential apartment block as a long-term investment. You have identified two identical apartment blocks in two different cities: City A and City B. The following...
-
Technical writing is a specialized form of writing through which technical and professional communication is done in varied areas such as technical, engineering, or health sciences. Goal of technical...
-
Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2020 are as follows: (Click the icon to view the data.) The selling price per vehicle...
-
For the fusion reaction shown below, find the amount of energy (Q) released. (Enter your answer in MeV.) 10 H+ Be B + y 20.156 Your response differs from the correct answer by more than 100%. MeV
-
Estimate a range for the optimal objective value for the following LPs: (a) Minimize z = 5x1 + 2x2 Subject to X1 - x2 3 2x1 + 3x2 5 X1, x2 0 (b) Maximize z = x1 + 5x2 + 3x3 Subject to X1 + 2x2 +...
-
Juan Padronas works for H&C Commercial Builders, Inc. His pay rate is $13.00 per hour and he receives overtime pay at one and one-half times his regular hourly rate for any hours worked beyond 40 in...
-
The following transactions took place at Fine Fashions Outlet during July 2016. Fine Fashions Outlet uses a perpetual inventory system. Record the transactions in a general journal. Use 8 as the page...
-
Bruno Company (buyer) and Smith, Inc. (seller), engaged in the following transactions during January 2016: Bruno Company DATETRANSACTIONS 2016 Jan. 8Issued Check 2101 for $2,940 on account to Smith,...
-
The beam is constructed from two boards fastened together at the top and bottom with three rows of nails spaced every \(8 \mathrm{in}\). If an internal shear force of \(V=800 \mathrm{lb}\) is applied...
-
The beam is fabricated from two equivalent structural tees and two plates. Each plate has a height of 6 in. and a thickness of 0.5 in. If a shear of \(V=50\) kip is applied to the cross section,...
-
The double-web girder is constructed from two plywood sheets that are secured to wood members at its top and bottom. The allowable bending stress for the wood is \(\sigma_{\text {allow }}=\) \(8...
Study smarter with the SolutionInn App