Chapter - 7 Accounting Information System P 7-1A Grider 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 301 O. Grider, Capital On April 1 the accounts receivable ledger of Grider Company showed the following balances: Ogden $1,550, Chelsea $1,200, Eggleston Co. $2,900, and Baez $1,800. The April transactions involving the receipt of cash were as follows. Apr. 1 The owner, O. Grider, invested additional cash in the business $7,200. 4 Received check for payment of account from Baez less 2% cash discount 5 Received check for $920 in payment of invoice no. 307 from Eggleston Co. 8 Made cash sales of merchandise totaling S7,245.The cost of the merchandise sold was $4,347. 10 Received check for $600 in payment of invoice no. 309 from Ogden. 11 Received cash refund from a supplier for damaged merchandise $740. 23 Received check for $1,500 in payment of invoice no. 310 from Eggleston Co. 29 Received check for payment of account from Chelsea. 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 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. E1-7 Brandon Computer Timeshare Company entered into the following transactions during May 2010. 1. Purchased computer terminals for $20,000 from Digital Equipment on account. 2. Paid $4,000 cash for May rent on storage space. 3. Received $15,000 cash from customers for contracts billed in April 4. Provided computer services to Fisher Construction Company for $3,000 cash. 5. Paid Northern States Power Co. $11,000 cash for energy usage in May. 6. Brandon invested an additional $32,000 in the business. 7. Paid Digital Equipment for the terminals purchased in (1) above. 8. Incurred advertising expense for May of $1,200 on account. Chapter - 7 Accounting Information System P 7-1A Grider 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 301 O. Grider, Capital On April 1 the accounts receivable ledger of Grider Company showed the following balances: Ogden $1,550, Chelsea $1,200, Eggleston Co. $2,900, and Baez $1,800. The April transactions involving the receipt of cash were as follows. Apr. 1 The owner, O. Grider, invested additional cash in the business $7,200. 4 Received check for payment of account from Baez less 2% cash discount 5 Received check for $920 in payment of invoice no. 307 from Eggleston Co. 8 Made cash sales of merchandise totaling S7,245.The cost of the merchandise sold was $4,347. 10 Received check for $600 in payment of invoice no. 309 from Ogden. 11 Received cash refund from a supplier for damaged merchandise $740. 23 Received check for $1,500 in payment of invoice no. 310 from Eggleston Co. 29 Received check for payment of account from Chelsea. 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 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. E1-7 Brandon Computer Timeshare Company entered into the following transactions during May 2010. 1. Purchased computer terminals for $20,000 from Digital Equipment on account. 2. Paid $4,000 cash for May rent on storage space. 3. Received $15,000 cash from customers for contracts billed in April 4. Provided computer services to Fisher Construction Company for $3,000 cash. 5. Paid Northern States Power Co. $11,000 cash for energy usage in May. 6. Brandon invested an additional $32,000 in the business. 7. Paid Digital Equipment for the terminals purchased in (1) above. 8. Incurred advertising expense for May of $1,200 on account