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SELF-REVIEW QUIZ 1-1
GRACIE RYAN REAL ESTATE
SG-1
Introductionto accountingconcepts andprocedures
1
OWNER’SASSETS = LIABILITIES + EQUITY
Computer Accounts Gracie Ryan,Cash + Equipment = Payable + Capital
TRANSACTION 1
NEW BALANCE =
TRANSACTION 2
NEW BALANCE =
TRANSACTION 3
ENDING BALANCE + = +
=
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-1
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Name __________________________________ Class ____________________ Date ____________________
SELF-REVIEW QUIZ 1-2
ASSETS LIABILITIES AND OWNER’S EQUITY
SG-2
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Name __________________________________ Class ____________________ Date ____________________
SELF-REVIEW QUIZ 1-3
SG-3
B. B
ING
CO
.
ASS
ETS
=LI
AB
ILIT
IES
+O
WN
ER’S
EQ
UIT
Y
Acc
ount
sC
lean
ing
Acc
ount
sB.
Bin
g,B.
Bin
gC
ash
+R
ecei
vabl
e+
Equi
pmen
t=
Paya
ble
+C
apita
l–
With
d.+
Rev
enue
–Ex
pens
es
Beg
. Bal
ance
$10,
000
+$2
,500
+$6
,500
=$1
,000
+$1
1,80
0–
$800
+$9
,000
–$2
,000
1. Bal
ance
=
2. Bal
ance
=
3. Bal
ance
=
4. Bal
ance
=
5. Endi
ngB
alan
ce+
+=
+–
+–
=
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-3
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Name __________________________________ Class ____________________ Date ____________________
SELF-REVIEW QUIZ 1-4
(1)
(2)
SG-4
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-4
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Name __________________________________ Class ____________________ Date ____________________
(3)
ASSETS LIABILITIES AND OWNER’S EQUITY
SG-5
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-5
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Name __________________________________ Class ____________________ Date ____________________
FORMS FOR DEMONSTRATION PROBLEM
(A)
SG-6
MIC
HA
EL B
RO
WN
, ATT
OR
NEY
AT
LAW
ASS
ETS
=LI
AB
ILIT
IES
+O
WN
ER’S
EQ
UIT
Y
Acc
ount
sO
ffice
Acc
ount
sM
. Bro
wn,
M. B
row
nC
ash
+R
ecei
vabl
e+
Equi
pmen
t=
Paya
ble
+C
apita
l–
With
d.+
Lega
l fee
s–
Expe
nses
1. Bal
ance
2. Bal
ance
3. Bal
ance
4. Bal
ance
5. Bal
ance
6. Bal
ance
7. Bal
ance
8. Bal
ance
9. Endi
ngB
alan
ce+
+=
+–
+–
=
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-6
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Name __________________________________ Class ____________________ Date ____________________
DEMONSTRATION PROBLEM (CONTINUED)
B-1
MICHAEL BROWN, ATTORNEY AT LAWINCOME STATEMENT
FOR MONTH ENDED JUNE 30, 200X
B-2MICHAEL BROWN, ATTORNEY AT LAW
STATEMENT OF OWNER’S EQUITYFOR MONTH ENDED JUNE 30, 200X
B-3MICHAEL BROWN, ATTORNEY AT LAW
BALANCE SHEETJUNE 30, 200X
ASSETS LIABILITIES AND OWNER’S EQUITY
SG-7
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-7
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CHAPTER 1FORMS FOR CLASSROOM DEMONSTRATION EXERCISES SET A OR SET B
1. A. 2. A.B. B.C. C.D.E.F.
3. A. 4.B.
5. 6.
7. A. 8. A.B. B.C. C.D. D.
E.F.
9. A. G.B. H.C.D.
Name __________________________________ Class ____________________ Date ____________________
SG-8
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Name __________________________________ Class ____________________ Date ____________________
SG-9
FORMS FOR EXERCISES
1-1.
A.
B.
C.
1-2.
ASSETS = LIABILITIES + OWNER’S EQUITY
A.
B.
C.
1-3.
RANGE CO.BALANCE SHEET
NOVEMBER 30, 200X
ASSETS LIABILITIES AND OWNER’S EQUITY
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-9
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EXERCISES (CONTINUED)
1-4.
Name __________________________________ Class ____________________ Date ____________________
SG-10
ASS
ETS
=LI
AB
ILIT
IES
+O
WN
ER’S
EQ
UIT
Y
Acc
ount
sC
ompu
ter
Acc
ount
sB.
Bel
lB.
Bel
lC
ash
+R
ecei
vabl
e+
Equi
pmen
t=
Paya
ble
+C
apita
l–
With
d.+
Rev
enue
–Ex
pens
es
A.
B C.
D E. F G.
Endi
ngB
alan
ce
=
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-10
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Name __________________________________ Class ____________________ Date ____________________
SG-11
EXERCISES (CONCLUDED)
1-5.(A)
FRENCH REALTYINCOME STATEMENT
FOR MONTH ENDED JUNE 30, 200X
(B)FRENCH REALTY
STATEMENT OF OWNER’S EQUITYFOR MONTH ENDED JUNE 30, 200X
(C)FRENCH REALTYBALANCE SHEETJUNE 30, 200X
ASSETS LIABILITIES AND OWNER’S EQUITY
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-11
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END OF CHAPTER PROBLEMS
PROBLEM 1A-1 OR PROBLEM 1B-1
MIA’S NAIL SPA
OWNER’SASSETS = LIABILITIES + EQUITY
Store Accounts Mia Annabelle,Cash + Equipment = Payable + Capital
TRANSACTION A
NEW BALANCE
TRANSACTION B
NEW BALANCE
TRANSACTION C
NEW BALANCE
TRANSACTION D
ENDING BALANCE
PROBLEM 1A-2 OR PROBLEM 1B-2
SEE’S INTERNET SERVICEBALANCE SHEET
SEPTEMBER 30, 200X
ASSETS LIABILITIES AND OWNER’S EQUITY
Name __________________________________ Class ____________________ Date ____________________
SG-12
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Name __________________________________ Class ____________________ Date ____________________
SG-13
PROBLEM 1A-3 OR PROBLEM 1B-3
RIC
K F
OX
TYPI
NG
SER
VIC
E
ASS
ETS
=LI
AB
ILIT
IES
+O
WN
ER’S
EQ
UIT
Y
Acc
ount
sO
ffice
Acc
ount
sR
. Fox
,R
. Fox
,Ty
ping
Cas
h+
Rec
eiva
ble
+Eq
uipm
ent
=Pa
yabl
e+
Cap
ital
–W
ithd.
+R
even
ue–
Expe
nses
A.
BALA
NC
E
B. BALA
NC
E
C.
BALA
NC
E
D.
BALA
NC
E
E. BALA
NC
E
F. BALA
NC
E
G.
BALA
NC
E
H.
END
ING
BALA
NC
E
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-13
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PROBLEM 1A-4 OR PROBLEM 1B-4
(A)
WEST STENCILING SERVICEINCOME STATEMENT
FOR MONTH ENDED JUNE 30, 200X
(B)WEST STENCILING SERVICE
STATEMENT OF OWNER’S EQUITYFOR MONTH ENDED JUNE 30, 200X
Name __________________________________ Class ____________________ Date ____________________
SG-14
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Name __________________________________ Class ____________________ Date ____________________
SG-15
PROBLEM 1A-4 OR PROBLEM 1B-4 (CONCLUDED)
(C)
WEST STENCILING SERVICEBALANCE SHEETJUNE 30, 200X
ASSETS LIABILITIES AND OWNER’S EQUITY
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-15
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PROBLEM 1A-5 OR PROBLEM 1B-5
Name __________________________________ Class ____________________ Date ____________________
SG-16
TOB
EY’S
CA
TER
ING
SER
VIC
E
(A)
ASS
ETS
=LI
AB
ILIT
IES
+O
WN
ER’S
EQ
UIT
Y
Acc
ount
sA
ccou
nts
J. To
bey,
J. To
bey,
Cat
erin
gC
ash
+R
ecei
vabl
e+
Equi
pmen
t=
Paya
ble
+C
apita
l–
With
d.+
Rev
enue
–Ex
pens
es
10/2
5
BALA
NC
E
10/2
7
BALA
NC
E
10/2
8
BALA
NC
E
10/2
9
BALA
NC
E
11/1
BALA
NC
E
11/5
BALA
NC
E
11/8
BALA
NC
E
11/1
0
BALA
NC
E
11/1
5
BALA
NC
E
11/1
7
BALA
NC
E
11/2
0
BALA
NC
E
11/2
5
BALA
NC
E
11/2
8
BALA
NC
E
11/3
0
END
. BA
L.
=
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-16
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Name __________________________________ Class ____________________ Date ____________________
SG-17
PROBLEM 1A-5 OR PROBLEM 1B-5 (CONTINUED)
(B)TOBEY’S CATERING SERVICE
BALANCE SHEETOCTOBER 31, 200X
ASSETS LIABILITIES AND OWNER’S EQUITY
(C)TOBEY’S CATERING SERVICE
INCOME STATEMENTFOR MONTH ENDED NOVEMBER 30, 200X
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-17
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PROBLEM 1A-5 OR PROBLEM 1B-5 (CONCLUDED)
(D)
TOBEY’S CATERING SERVICESTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED NOVEMBER 30, 200X
(E)TOBEY’S CATERING SERVICE
BALANCE SHEETNOVEMBER 30, 200X
ASSETS LIABILITIES AND OWNER’S EQUITY
Name __________________________________ Class ____________________ Date ____________________
SG-18
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Name __________________________________ Class ____________________ Date ____________________
SG-19
CHAPTER 1SUMMARY PRACTICE TEST:
INTRODUCTION TO ACCOUNTING CONCEPTS AND PROCEDURES
Part I Instructions
Fill in the blank(s) to complete the statement.
1. was passed to prevent corporate fraud.
2. – Liabilities = Owner’s Equity
3. The owner’s current investment or equity in the assets of a business is called .
4. A list of assets, liabilities, and owner’s equity as of a particular date is reported on a(n)
.
5. create an outward or potential outward flow of assets.
6. Revenue earned not on account creates an asset entitled .
7. record personal expenses that are not related to the business. They are a subdivision
of owner’s equity.
8. The reports how well a business performs for a period of time.
9. The is a report that
shows changes in capital.
10. The ending figure for capital from the statement of owner’s equity is placed on the
.
Part II Instructions
Answer true or false to the following statements.
1. Accounts Receivable is a liability.2. Liabilities produce revenue.3. Revenue is an asset.4. Capital means cash.5. Bookkeeping is 50% of accounting.6. The balance sheet lists assets, revenue, and owner’s equity.7. The balance sheet shows where we are now for a specific period of time.8. Revenue creates an outward flow of assets.9. Expenses are a subdivision of owner’s equity.
10. Withdrawals are the only subdivision of owner’s equity.11. Withdrawals are listed on the income statement.12. Revenue is a subdivision of owner’s equity.13. Revenues and withdrawals are listed on the income statement.14. The income statement helps update the statement of owner’s equity, and the statement of owner’s
equity helps update the balance sheet.15. Withdrawals are listed on the statement of owner’s equity.
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-19
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Part III Instructions
In column B, record the appropriate code(s) that result from recording the transaction in column A.
1. Increase in assets 5. Increase in capital2. Decrease in assets 6. Increase in revenues3. Increase in liabilities 7. Increase in expenses4. Decrease in liabilities 8. Increase in withdrawals
COLUMN A COLUMN B
1. EXAMPLE: Pete Smith invested $5,000 in his business. 1,52. Bought computer equipment on account for $600.3. Paid salaries of $70.4. Bought additional computer equipment for $750 cash.5. Paid rent expense of $90.6. Received $5,000 in cash from revenue earned.7. Paid heat expense of $15.8. Earned revenue of $500 that will not be received until next month.9. Paid amount owed on equipment previously purchased on account.
10. Paid for cleaning supplies expense, $15.11. Customers paid $10 of amount previously owed.12. Bought additional equipment of $1,000, half paid in cash and half charged.13. Charged customer $100 for services performed.14. Pete paid home phone bill from the company’s cash.15. Advertising expense incurred but not to be paid until next month.
CHAPTER 1 SOLUTIONS TO SUMMARY PRACTICE TEST
Part I
1. The Sarbanes-Oxley Act 5. Expenses 9. statement of owner’s 2. Assets 6. Cash equity3. capital 7. Withdrawals 10. balance sheet4. balance sheet 8. income statement
Name __________________________________ Class ____________________ Date ____________________
SG-20
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Name __________________________________ Class ____________________ Date ____________________
SG-21
Part II
1. false 6. false 11. false2. false 7. false 12. true3. false 8. false 13. false4. false 9. true 14. true5. false 10. false 15. true
Part III
1. 1,5 6. 1,6 11. 1,22. 1,3 7. 7,2 12. 1,2,33. 7,2 8. 1,6 13. 1,64. 1,2 9. 4,2 14. 8,25. 7,2 10. 7,2 15. 7,3
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CONTINUING PROBLEM FOR CHAPTER 1
Name __________________________________ Class ____________________ Date ____________________
SG-22
SAN
CH
EZ C
OM
PUTE
R C
ENTE
R
ASS
ETS
=LI
AB
ILIT
IES
+O
WN
ER’S
EQ
UIT
Y
Com
pute
r Sh
opO
ffice
Acc
ount
sFr
eedm
anFr
eedm
an,
Cas
h+
Supp
lies
+Eq
uipm
ent
+Eq
uipm
ent
=Pa
yabl
e+
Cap
ital
–W
ithdr
awal
s+
Reve
nue
–Ex
pens
es
a BALA
NC
E
b BALA
NC
E
c BALA
NC
E
d BALA
NC
E
e BALA
NC
E
f BALA
NC
E
g BALA
NC
E
h BALA
NC
E
i BALA
NC
E
j END
BA
L.+
++
=+
–+
–
=
65724_01_ch01_p001-023 4/15/09 11:49 AM Page SG-22
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Name __________________________________ Class ____________________ Date ____________________
SG-23
SANCHEZ COMPUTER CENTERINCOME STATEMENT
FOR THE MONTH ENDED JULY 31, 200X
SANCHEZ COMPUTER CENTERSTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED JULY 31, 200X
SANCHEZ COMPUTER CENTERBALANCE SHEETJULY 31, 200X
ASSETS LIABILITIES AND OWNER’S EQUITY
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SG-24
SELF-REVIEW QUIZ 2-1
SELF-REVIEW QUIZ 2-2
A. 1. 2. 3. 4. 5.
Accounts Affected Category ↑↓ Rules T Account Update
B. 1. 2. 3. 4. 5.
Accounts Affected Category ↑↓ Rules T Account Update
Debits andcredits:analyzing andrecordingbusinesstransactions
2
1. 4.
2. 5.
3.
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Name __________________________________ Class ____________________ Date ____________________
C. 1. 2. 3. 4. 5.
Accounts Affected Category ↑↓ Rules T Account Update
D. 1. 2. 3. 4. 5.
Accounts Affected Category ↑↓ Rules T Account Update
E. 1. 2. 3. 4. 5.
Accounts Affected Category ↑↓ Rules T Account Update
SG-25
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Name __________________________________ Class ____________________ Date ____________________
SG-26
SELF-REVIEW QUIZ 2-3
Cash 111 Accounts Payable 211 Salon Fees 411
4,500 300 300 700 3,500
2,000 100 1,000
1,000 1,200
300 1,300
2,600
Accounts Receivable 121 Pam Jay, Capital 311 Rent Expense 511
1,000 300 4,000 1,200
Salon Equipment 131 Pam Jay, Withdrawals 321 Salon Supplies Exp. 521
700 100 1,300
Salaries Expense 531
2,600
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(1)
(2)
Name __________________________________ Class ____________________ Date ____________________
SG-27
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Name __________________________________ Class ____________________ Date ____________________
SG-28
(3)
(4)
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FORMS FOR DEMONSTRATION PROBLEM
(1,2,3)
SG-29
Cas
h11
1A
ccou
nts
Paya
ble
211
Adv
ertis
ing
Expe
nse
511
Acc
ount
s R
ecei
vabl
e11
2M
el F
ree,
Cap
ital
311
Gas
Exp
ense
512
Offi
ce E
quip
men
t12
1M
el F
ree,
With
draw
als
312
Sala
ries
Exp
ense
513
Del
iver
y Tr
ucks
122
Del
iver
y Fe
es E
arne
d41
1Te
leph
one
Expe
nse
514
65724_02_ch02_p024-049 4/15/09 11:50 AM Page SG-29
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Name __________________________________ Class ____________________ Date ____________________
SG-30
FORMS FOR DEMONSTRATION PROBLEM (CONTINUED)
(4)
MEL’S DELIVERY SERVICETRIAL BALANCEJULY 31, 200X
Dr. Cr.
(5A)
MEL’S DELIVERY SERVICEINCOME STATEMENT
FOR MONTH ENDED JULY 31, 200X
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Name __________________________________ Class ____________________ Date ____________________
FORMS FOR DEMONSTRATION PROBLEM (CONCLUDED)
(5B)
MEL’S DELIVERY SERVICESTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED JULY 31, 200X
(5C)
MEL’S DELIVERY SERVICEBALANCE SHEET
JULY 31, 200X
ASSETS LIABILITIES AND OWNER’S EQUITY
SG-31
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CHAPTER 2FORMS FOR CLASSROOM DEMONSTRATION EXERCISES SET A OR SET B
1.
2. A.
B.
C.
D.
E.
F.
G.
3.
4. 5. A.B.C.D.E.F.G.H.I.J.K.
Name __________________________________ Class ____________________ Date ____________________
SG-32
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FORMS FOR EXERCISES
2-1.
2-2.
1. 2. 3. 4. 5.Accounts Affected Category Rules T Account Update
2-3.
Account Category Financial Statement
SG-33
↑ ↓
↑ ↓
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Name __________________________________ Class ____________________ Date ____________________
EXERCISES (CONTINUED)
2-4.
Dr. Cr.
A. 8 1
B.
C.
D.
E.
F.
G.
H.
I.
2-5.
(1)
HALL’S CLEANERSINCOME STATEMENT
FOR MONTH ENDED JULY 31, 200X
(2)
HALL’S CLEANERSSTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED JULY 31, 200X
SG-34
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Name __________________________________ Class ____________________ Date ____________________
EXERCISES (CONCLUDED)
(3)
HALL’S CLEANERSBALANCE SHEETJULY 31, 200X
ASSETS LIABILITIES AND OWNER’S EQUITY
SG-35
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END OF CHAPTER PROBLEMS
PROBLEM 2A-1 OR PROBLEM 2B-1
SG-36
Inc.
Dec
.
Acc
ount
s A
ffect
edC
ateg
ory
Rul
esT
Acc
ount
Upd
ate
A.
B. C.
D.
E. F.
↑↓
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Name __________________________________ Class ____________________ Date ____________________
PROBLEM 2A-2 OR PROBLEM 2B-2
Cash 111 Bernie Pillows, Withdrawals 312
Office Equipment 121 Consulting Fees Earned 411
Accounts Payable 211 Advertising Expense 511
Bernie Pillows, Capital 311 Rent Expense 512
SG-37
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Name __________________________________ Class ____________________ Date ____________________
PROBLEM 2A-3 OR PROBLEM 2B-3
(A)
Cash 111 Accounts Payable 211 Fees Earned 411
Accounts Receivable 112 Barry Joy, Capital 311 Rent Expense 511
Office Equipment 121 Barry Joy, Withdrawals 312 Utilities Expense 512
(B)
BARRY’S CLEANING SERVICETRIAL BALANCEMAY 31, 200X
Dr. Cr.
SG-38
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Name __________________________________ Class ____________________ Date ____________________
PROBLEM 2A-4 OR PROBLEM 2B-4
(A)
GRACIE LANTZ, ATTORNEY AT LAWINCOME STATEMENT
FOR MONTH ENDED MAY 31, 200X
(B)
GRACIE LANTZ, ATTORNEY AT LAWSTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED MAY 31, 200X
SG-39
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Name __________________________________ Class ____________________ Date ____________________
PROBLEM 2A-4 OR PROBLEM 2B-4 (CONCLUDED)
(C)
SG-40
GR
AC
IE L
AN
TZ, A
TTO
RN
EY A
T LA
WBA
LAN
CE
SHEE
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PROBLEM 2A-5 OR PROBLEM 2B-5
(1,2,3)
SG-41
Cas
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211
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PROBLEM 2A-5 OR PROBLEM 2-B5 (CONTINUED)
(4)
ANGEL’S DELIVERY SERVICETRIAL BALANCEMARCH 31, 200X
Dr. Cr.
(5A)
ANGEL’S DELIVERY SERVICEINCOME STATEMENT
FOR MONTH ENDED MARCH 31, 200X
SG-42
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PROBLEM 2A-5 OR PROBLEM 2B-5 (CONCLUDED)
(5B)
ANGEL’S DELIVERY SERVICESTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED MARCH 31, 200X
(5C)
ANGEL’S DELIVERY SERVICEBALANCE SHEETMARCH 31, 200X
ASSETS LIABILITIES AND OWNER’S EQUITY
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CHAPTER 2SUMMARY PRACTICE TEST:
DEBITS AND CREDITS: ANALYZING AND RECORDINGBUSINESS TRANSACTIONS
Part I Instructions
Fill in the blank(s) to complete the statement.
1. Financial reports do not contain or .2. The right side of any T account is called the .3. Assets are increased by .4. The process of balancing an account involves .5. Transaction analysis charts are an aid in recording .6. The indicates the names and numbering
system of accounts.7. A(n) is a group of accounts.8. A(n) is an informal report that lists accounts and their
balances.9. Withdrawals are increased by .
10. The income statement, statement of owner’s equity, and balance sheet may be prepared from a(n) .
11. Cash, Accounts Receivable, and Equipment are examples of .12. Increasing expenses ultimately cause owner’s equity to .13. An increase in rent expense is a(n) by the rules of debits and credits.14. A debit to one asset and a credit to another asset for the same transaction reflect
a(n) in assets.15. The category of accounts receivable is a(n) .
Part II Instructions
Bea Paul opened a shuttle service company. From the following chart of accounts, indicate in column B (byaccount number) which account (s) will be debited or credited as related to the transaction in column A.
SG-44
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Chart of Accounts
ASSETS LIABILITIES EXPENSES10 Cash 50 Accounts Payable 80 Advertising20 Accounts Receivable 90 Gas30 Equipment OWNER’S EQUITY 100 Salaries40 Shuttle Bus 60 B. Paul, Capital 110 Telephone
62 B. Paul, Withdrawals
REVENUE70 Taxi Fees Earned
COLUMN A COLUMN B
DEBIT(S) CREDIT(S)1. EXAMPLE: Bea Paul invested $40,000 in the shuttle service. 10 60
2. Purchased a shuttle bus on account for $25,000.
3. Bought equipment on account for $3,000.
4. Advertising bill received, but not paid until next month, $60.
5. Bea paid home telephone bill from company checkbook, $20.
6. Collected $100 in cash from daily shuttle fees earned.
7. Customer charged a shuttle ride of $20.
8. Received partial payment for Transaction #7 of $10.
9. Paid business telephone bill, $32.
10. Purchased additional equipment for cash, $550.
11. Paid shuttle driver salaries of $150.
12. Drove customer on account to local train station for $6.
13. Received $5 from customer who hired a shuttle for ride across town.
14. Collected from past charged revenue, $15.
15. Bought office equipment on account for $110.
Part III Instructions
Answer true or false to the following statements.
1. There are no debit and credit columns found on the three financial statements.
2. A trial balance could balance but be wrong.
3. Withdrawals are listed on the credit column of the trial balance.
4. Double entry bookkeeping results in a system where the sum of all the debits is equal to the sum of allthe credits.
5. The ledger is numbered like a textbook.
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6. Withdrawals are always increased by credits.
7. An expense could create a liability.
8. A shift in assets means the total of assets must change.
9. The rules of debit and credit are constantly changing.
10. The transaction analysis chart is a teaching device.
11. The chart of accounts makes locating and identifying accounts easier.
12. The left side of any account is a credit.
13. A debit means all accounts are decreasing.
14. Financial statements are prepared from a trial balance.
15. The statement of owner’s equity is prepared before the income statement.
16. Liabilities increase by credits.
17. Footings aid in balancing accounts.
18. Withdrawals are listed on the income statement.
19. The balance sheet contains the old figure for capital.
20. Think of a credit as always meaning something good.
CHAPTER 2SOLUTIONS TO SUMMARY PRACTICE TEST
Part I
1. debits/credits 6. chart of accounts 11. assets2. credit side 7. ledger (general) 12. decrease3. debits 8. trial balance 13. debit4. footings 9. debits 14. shift5. business transactions 10. trial balance 15. asset
Part II
Debit Credit Debit Credit Debit Credit
1. 10 60 6. 10 70 11. 100 102. 40 50 7. 20 70 12. 20 703. 30 50 8. 10 20 13. 10 704. 80 50 9. 110 10 14. 10 205. 62 10 10. 30 10 15. 30 50
Part III
1. true 6. false 11. true 16. true
2. true 7. true 12. false 17. true
3. false 8. false 13. false 18. false
4. true 9. false 14. true 19. false
5. false 10. true 15. false 20. false
SG-46
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CONTINUING PROBLEM FOR CHAPTER 2
SG-47
Cas
h10
00A
ccou
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Rec
eiva
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1020
Supp
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1030
Com
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Bal
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850
Bal
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3000
Bal
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Adv
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Ren
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Bal
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400
Util
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1,65
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SANCHEZ COMPUTER CENTERTRIAL BALANCE
AUGUST 31, 200X
Dr. Cr.
SANCHEZ COMPUTER CENTERINCOME STATEMENT
FOR THE TWO MONTHS ENDED AUGUST 31, 200X
SG-48
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SANCHEZ COMPUTER CENTERSTATEMENT OF OWNER’S EQUITY
FOR THE TWO MONTHS ENDED AUGUST 31, 200X
SANCHEZ COMPUTER CENTERBALANCE SHEET
AUGUST 31, 200X
ASSETS LIABILITIES AND OWNER’S EQUITY
SG-49
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SELF-REVIEW QUIZ 3-1
LOWE’S REPAIR SERVICEGENERAL JOURNAL
PAGE 1
Date Account Titles and Description PR Dr. Cr.
Beginning theAccounting Cycle:Journalizing,Posting, and theTrial Balance
3
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LOWE’S REPAIR SERVICEGENERAL JOURNAL
PAGE 1 (Cont.)
Date Account Titles and Description PR Dr. Cr.
SG-51
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SELF-REVIEW QUIZ 3-2
CLARK’S WORD PROCESSING SERVICESGENERAL JOURNAL
PAGE 1
Date200X Account Titles and Description PR Dr. Cr.
May 1 Cash 10 0 0 0 00
Brenda Clark, Capital 10 0 0 0 00
Initial investment of cash by owner
1 Word Processing Equipment 6 0 0 0 00
Cash 1 0 0 0 00
Accounts Payable 5 0 0 0 00
Purchase of equip. from Ben Co.
1 Prepaid Rent 1 2 0 0 00
Cash 1 2 0 0 00
Rent paid in advance (3 months)
3 Office Supplies 6 0 0 00
Accounts Payable 6 0 0 00
Purchase of supplies on acct. from Norris
7 Cash 3 0 0 0 00
Word Processing Fees 3 0 0 0 00
Cash received for services rendered
13 Office Salaries Expense 6 5 0 00
Cash 6 5 0 00
Payment of office salaries
18 Advertising Expense 2 5 0 00
Accounts Payable 2 5 0 00
Bill received but not paid from AI’s News
20 Brenda Clark, Withdrawals 6 2 5 00
Cash 6 2 5 00
Personal withdrawal of cash
22 Accounts Receivable 5 0 0 0 00
Word Processing Fees 5 0 0 0 00
Billed Morris Co. for fees earned
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CLARK’S WORD PROCESSING SERVICESGENERAL JOURNAL
PAGE 2
Date200X Account Titles and Description PR Dr. Cr.
May 27 Office Salaries Expense 6 5 0 00Cash 6 5 0 00
Payment of office salaries
28 Accounts Payable 2 5 0 0 00Cash 2 5 0 0 00
Paid half the amount owed Ben Co.
29 Telephone Expense 2 2 0 00Cash 2 2 0 00
Paid telephone bill
SG-53
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PARTIAL LEDGER OF CLARK’S WORD PROCESSING SERVICE
CASH ACCOUNT NO. 111
SG-54
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCOUNTS RECEIVABLE ACCOUNT NO. 112
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OFFICE SUPPLIES ACCOUNT NO. 114
SG-55
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PREPAID RENT ACCOUNT NO. 115
WORD PROCESSING EQUIPMENT ACCOUNT NO. 121
ACCOUNTS PAYABLE ACCOUNT NO. 211
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BRENDA CLARK, CAPITAL ACCOUNT NO. 311
SG-56
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BRENDA CLARK, WITHDRAWALS ACCOUNT NO. 312
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
WORD PROCESSING FEES ACCOUNT NO. 411
OFFICE SALARIES EXPENSE ACCOUNT NO. 511
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ADVERTISING EXPENSE ACCOUNT NO. 512
SG-57
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
TELEPHONE EXPENSE ACCOUNT NO. 513
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SELF-REVIEW QUIZ 3-3
1.
SG-58
Date Account Titles and Description PR Dr. Cr.
GENERAL JOURNAL
2. PAGE 4
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FORMS FOR DEMONSTRATION PROBLEM(A, B)
ABBY’S EMPLOYMENT AGENCYGENERAL JOURNAL
PAGE 1
Date Account Titles and Description PR Dr. Cr.
SG-59
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FORMS FOR DEMONSTRATION PROBLEM (CONTINUED)
GENERAL LEDGER OF ABBY’S EMPLOYMENT AGENCY
CASH ACCOUNT NO. 111
SG-60
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCOUNTS RECEIVABLE ACCOUNT NO. 112
SUPPLIES ACCOUNT NO. 131
EQUIPMENT ACCOUNT NO. 141
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FORMS FOR DEMONSTRATION PROBLEM (CONTINUED)
ACCOUNTS PAYABLE ACCOUNT NO. 211
SG-61
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
A. TODD, CAPITAL ACCOUNT NO. 311
A. TODD, WITHDRAWALS ACCOUNT NO. 321
EMPLOYMENT FEES EARNED ACCOUNT NO. 411
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FORMS FOR DEMONSTRATION PROBLEM (CONTINUED)
WAGE EXPENSE ACCOUNT NO. 511
SG-62
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
TELEPHONE EXPENSE ACCOUNT NO. 521
ADVERTISING EXPENSE ACCOUNT NO. 531
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FORMS FOR DEMONSTRATION PROBLEM (CONCLUDED)
ABBY’S EMPLOYMENT AGENCYTRIAL BALANCEMARCH 31, 200X
Dr. Cr.
SG-63
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CHAPTER 3FORMS FOR CLASSROOM DEMONSTRATION EXERCISES SET A OR SET B
1. A. E.
B. F.
C. G.
D. H.I.
2. A.
B.
C.
3.
4.LEE CO.
TRIAL BALANCEOCTOBER 31, 200X
Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-64
CASH ACCOUNT NO. 111
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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SG-65
5.
FORMS FOR EXERCISES
3-1.
Date Account Titles and Description PR Dr. Cr.
Date Account Titles and Description PR Dr. Cr.
FORMS FOR CLASSROOM DEMONSTRATION EXERCISES SET A OR SET B (CONCLUDED)
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EXERCISES (CONTINUED)
3-2.
Name __________________________________ Class ____________________ Date ____________________
SG-66
Date Account Titles and Description PR Dr. Cr.
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SG-67
EXERCISES (CONTINUED)
3-3.
Date Account Titles and Description PR Dr. Cr.
200X
April 6 Cash 15 0 0 0 —
A. King, Capital 15 0 0 0 —
Cash investment
14 Equipment 9 0 0 0 —
Cash 4 0 0 0 —
Accounts Payable 5 0 0 0 —
Purchase of Equipment
CASH ACCOUNT NO. 111
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
EQUIPMENT ACCOUNT NO. 121
ACCOUNTS PAYABLE ACCOUNT NO. 211
A. KING, CAPITAL ACCOUNT NO. 311
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SG-68
EXERCISES (CONTINUED)
3-4.(A) PAGE 1
Date Account Titles and Description PR Dr. Cr.
CASH ACCOUNT NO. 111
ACCOUNTS RECEIVABLE ACCOUNT NO. 112
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
(B)
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SG-69
EXERCISES (CONTINUED)
EQUIPMENT ACCOUNT NO. 121
ACCOUNTS PAYABLE ACCOUNT NO. 211
J. LOWE, CAPITAL ACCOUNT NO. 311
J. LOWE, WITHDRAWALS ACCOUNT NO. 312
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
FEES EARNED ACCOUNT NO. 411
SALARIES EXPENSE ACCOUNT NO. 511
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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EXERCISES (CONCLUDED)
(C)LOWE COMPANYTRIAL BALANCEJULY 31, 200X
Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-70
3-5.SUNG CO.
TRIAL BALANCEMARCH 31, 200X
Dr. Cr.
3-6.Dr. Cr.
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SG-71
END OF CHAPTER PROBLEMS
PROBLEM 3A-1 OR PROBLEM 3B-1
JACK’S CLEANING SERVICEGENERAL JOURNAL
PAGE 1
Date Account Titles and Description PR Dr. Cr.
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Name __________________________________ Class ____________________ Date ____________________
SG-72
PROBLEM 3A-1 OR PROBLEM 3B-1 (CONCLUDED)
JACK’S CLEANING SERVICEGENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
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PROBLEM 3A-2 OR PROBLEM 3B-2(A, B)
BETTY’S ART STUDIOGENERAL JOURNAL
PAGE 1
Date Account Titles and Description PR Dr. Cr.
SG-73
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PROBLEM 3A-2 OR PROBLEM 3B-2 (CONTINUED)
GENERAL LEDGER OF BETTY’S ART STUDIO
CASH ACCOUNT NO. 111
Name __________________________________ Class ____________________ Date ____________________
ACCOUNTS RECEIVABLE ACCOUNT NO. 112
PREPAID RENT ACCOUNT NO. 114
ART SUPPLIES ACCOUNT NO. 121
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SG-74
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Name __________________________________ Class ____________________ Date ____________________
SG-75
PROBLEM 3A-2 OR PROBLEM 3B-2 (CONTINUED)
EQUIPMENT ACCOUNT NO. 131
ACCOUNTS PAYABLE ACCOUNT NO. 211
BETTY RICE, CAPITAL ACCOUNT NO. 311
BETTY RICE, WITHDRAWALS ACCOUNT NO. 312
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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PROBLEM 3A-2 OR PROBLEM 3B-2 (CONTINUED)
ART FEES EARNED ACCOUNT NO. 411
Name __________________________________ Class ____________________ Date ____________________
SG-76
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ELECTRICAL EXPENSE ACCOUNT NO. 511
SALARIES EXPENSE ACCOUNT NO. 521
TELEPHONE EXPENSE ACCOUNT NO. 531
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SG-77
PROBLEM 3A-2 OR PROBLEM 3B-2 (CONCLUDED)
(C)
BETTY’S ART STUDIOTRIAL BALANCEJUNE 30, 200X
Dr. Cr.
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PROBLEM 3A-3 OR PROBLEM 3B-3(A, B)
A. FRENCH’S PLACEMENT AGENCYGENERAL JOURNAL
PAGE 1
Name __________________________________ Class ____________________ Date ____________________
SG-78
Date Account Titles and Description PR Dr. Cr.
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Name __________________________________ Class ____________________ Date ____________________
PROBLEM 3A-3 OR PROBLEM 3B-3 (CONTINUED)
GENERAL LEDGER OF A. FRENCH’S PLACEMENT AGENCY
CASH ACCOUNT NO. 111
ACCOUNTS RECEIVABLE ACCOUNT NO. 112
SUPPLIES ACCOUNT NO. 131
EQUIPMENT ACCOUNT NO. 141
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SG-79
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PROBLEM 3A-3 OR PROBLEM 3B-3 (CONTINUED)
ACCOUNTS PAYABLE ACCOUNT NO. 211
Name __________________________________ Class ____________________ Date ____________________
SG-80
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
A. FRENCH, CAPITAL ACCOUNT NO. 311
A. FRENCH,WITHDRAWALS ACCOUNT NO. 312
PLACEMENT FEES EARNED ACCOUNT NO. 411
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Name __________________________________ Class ____________________ Date ____________________
SG-81
PROBLEM 3A-3 OR PROBLEM 3B-3 (CONTINUED)
WAGE EXPENSE ACCOUNT NO. 511
TELEPHONE EXPENSE ACCOUNT NO. 521
ADVERTISING EXPENSE ACCOUNT NO. 531
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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PROBLEM 3A-3 OR PROBLEM 3B-3 (CONCLUDED)
(C)
A. FRENCH’S PLACEMENT AGENCYTRIAL BALANCEJUNE 30, 200X
Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-82
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SG-83
CHAPTER 3SUMMARY PRACTICE TEST:
BEGINNING THE ACCOUNTING CYCLE: JOURNALIZING,POSTING, AND THE TRIAL BALANCE
Part I Instructions
Fill in the blank(s) to complete the statement.
1. A fiscal year runs for __________________ months.
2. __________________ __________________ are prepared for parts of a fiscal year (monthly, quarterly, etc.).
3. The __________________ __________________ __________________ eliminates the need for footings.
4. The positive balance of each account is referred to as its __________________ __________________.
5. The process of recording transactions in a journal is called __________________.
6. Entries are journalized in __________________ __________________.
7. A ledger is often called a(n) __________________ __________________ __________________
__________________ .
8. The __________________ portion of a journal entry is indented and placed below the__________________ portion.
9. A journal entry requiring three or more accounts is called a(n) __________________ ____________________________________.
10. Accounts receivable is a(n) __________________ on the balance sheet.
11. When supplies are used up or consumed they become a(n) __________________.
12. The book of original entry usually refers to a(n) __________________.
13. The process of transferring information from a journal to a ledger is called __________________.
14. __________________ __________________ deals with the process of updating the PR of the journal fromthe account number of the ledger to indicate to which account in the ledger information has beenposted.
15. Recording $995.00 as $99.50 is an example of a(n) __________________.
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Part II Instructions
Match the term in column A to the definition, example, or phrase in column B. Be sure to use a letter only once.
Name __________________________________ Class ____________________ Date ____________________
SG-84
COLUMN A
1. EXAMPLE: Book of original entry
2. Non-Business Expense
3. Slide
4. Transposition
5. Posting
6. General Journal
7. Cross-reference
8. Journalizing
9. Balance Sheet prepared monthly
10. A fiscal year
COLUMN Ba. 243 — 2430
b. Transferring information from a generaljournal to a ledger
c. Chronological order
d. Increased by a credit
e. Withdrawal
f. Compound journal entry
g. General journal
h. Rearrangement of digits of a number by accident
i. Updating PR column of journal from ledger account
j. Trial balance
k. Place to record transactions
l. Accounting cycle
m. Accounting period
n. Interim statements
Part III Instructions
Answer true or false to the following statements.
1. A slide cannot affect position of numbers.
2. The totals of a trial balance may possibly not balance due to transpositions.
3. Withdrawals has a normal balance of a credit.
4. The running balance of an account can be kept in a four-column account.
5. The journal links debits and credits in alphabetical order.
6. The ledger accumulates information from the journal.
7. The post reference column of a ledger records the account number of that account.
8. An accounting cycle must be from January 1 to December 31.
9. The ledger is the book of original entry.
10. The income statement is prepared for a specific accounting period.
11. Interim statements are prepared for an entire fiscal year.
12. A calendar year could be a fiscal year.
13. 390 written by mistake as 3,900 is an example of a slide.
g
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SG-85
14. If the totals of a trial balance balance, the individual balance of items must be correct.
15. The equality of debits and credits on a trial balance does not guarantee that transactions have beenproperly recorded.
16. The trial balance is prepared from the journal.
17. Cross-referencing means never updating the post reference column of the journal.
18. Journals and ledgers are always in the same book.
19. The normal balance of each account is located on the same side that increases the acccount.
20. Ruling of four-column accounts is eliminated.
CHAPTER 3SOLUTIONS TO SUMMARY PRACTICE TEST
Part I
1. 12 6. chronological order 11. expense2. Interim statements 7. book of final entry 12. journal3. four-column ledger 8. credit, debit 13. posting4. normal balance 9. compound journal entry 14. Cross-reference5. journalizing 10. asset 15. slide
Part II
1. g 6. k2. e 7. i3. a 8. c4. h 9. n5. b 10. m
Part III
1. false 6. true 11. false 16. false2. true 7. false 12. true 17. false3. false 8. false 13. true 18. false4. true 9. false 14. false 19. true5. false 10. true 15. true 20. true
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CONTINUING PROBLEM FOR CHAPTER 3
SANCHEZ COMPUTER CENTERGENERAL JOURNAL
PAGE 1
Name __________________________________ Class ____________________ Date ____________________
SG-86
Date Account Titles and Description PR Dr. Cr.
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SG-87
SANCHEZ COMPUTER CENTERGENERAL JOURNAL
PAGE 1 (Cont.)
Date Account Titles and Description PR Dr. Cr.
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CASH ACCOUNT NO. 1000
Name __________________________________ Class ____________________ Date ____________________
SG-88
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 2 8 6 5 00
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BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X � 1 2 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
Name __________________________________ Class ____________________ Date ____________________
SG-89
ACCOUNTS RECEIVABLE ACCOUNT NO. 1020
PREPAID RENT ACCOUNT NO. 1025
SUPPLIES ACCOUNT NO. 1030
COMPUTER SHOP EQUIPMENT ACCOUNT NO. 1080
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 8 5 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 4 5 0 00
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BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 1 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 4 5 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 4 0 5 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 6 0 0 00
OFFICE EQUIPMENT ACCOUNT NO. 1090
Name __________________________________ Class ____________________ Date ____________________
SG-90
ACCOUNTS PAYABLE ACCOUNT NO. 2000
FREEDMAN, CAPITAL ACCOUNT NO. 3000
FREEDMAN, WITHDRAWALS ACCOUNT NO. 3010
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BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 3 4 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 4 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 1 4 0 0 00
Name __________________________________ Class ____________________ Date ____________________
SG-91
SERVICE REVENUE ACCOUNT NO. 4000
ADVERTISING EXPENSE ACCOUNT NO. 5010
RENT EXPENSE ACCOUNT NO. 5020
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BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 1 5 5 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 8 5 00
UTILITIES EXPENSE ACCOUNT NO. 5030
Name __________________________________ Class ____________________ Date ____________________
SG-92
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PHONE EXPENSE ACCOUNT NO. 5040
SUPPLIES EXPENSE ACCOUNT NO. 5050
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BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 5 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/1 0X Balance forward � 1 5 0 00
Name __________________________________ Class ____________________ Date ____________________
SG-93
INSURANCE EXPENSE ACCOUNT NO. 5060
POSTAGE EXPENSE ACCOUNT NO. 5070
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SANCHEZ COMPUTER CENTERTRIAL BALANCE
SEPTEMBER 30, 200X
Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-94
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Name __________________________________ Class ____________________ Date ____________________
SG-95
SANCHEZ COMPUTER CENTERINCOME STATEMENT
FOR THE QUARTER ENDED 9/30/0X
SANCHEZ COMPUTER CENTERSTATEMENT OF OWNER’S EQUITY
FOR THE QUARTER ENDED 9/30/0X
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SAN
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RBA
LAN
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SHEE
T9/
30/0
X
Name __________________________________ Class ____________________ Date ____________________
SG-96
ASS
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SG-97
SELF-REVIEW QUIZ 4-1
Use one of the blank fold-out worksheets that accompanied your textbook.
The AccountingCycle Continued:PreparingWorksheets and FinancialStatements
4
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SG-98
SELF-REVIEW QUIZ 4-2
(1)
(2)
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(3)
ASS
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LIA
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’S E
QU
ITY
SG-99
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Name __________________________________ Class ____________________ Date ____________________
SG-100
FORMS FOR DEMONSTRATION PROBLEM
(1)Use one of the blank fold-out worksheets that accompanied your textbook.(2)
FROST COMPANYINCOME STATEMENT
FOR MONTH ENDED DECEMBER 31, 200X
(2)
FROST COMPANYSTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED DECEMBER 31, 200X
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DEMONSTRATION PROBLEM (CONCLUDED)
(2)
SG-101
FRO
ST C
OM
PAN
YBA
LAN
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SHEE
TD
ECEM
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31,
200
X
ASS
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LIA
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’S E
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ITY
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CHAPTER 4FORMS FOR CLASSROOM DEMONSTRATION EXERCISES SET A OR SET B
1. A.
B.
1. 2. 3. 4. 5.Accounts Affected Category Rules T Account
C.
2. A.
B.
1. 2. 3. 4. 5.Accounts Affected Category Rules T Account
C.
3. A. ____________________B. ____________________C.
1. 2. 3. 4. 5.Accounts Affected Category Rules T Account
D.
Name __________________________________ Class ____________________ Date ____________________
SG-102
↑ ↓
↑ ↓
↑ ↓
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4. A.
1. 2. 3. 4. 5.Accounts Affected Category Rules T Account
B.
5.A. ________________ H. ________________B. ________________ I. ________________C. ________________ J. ________________D. ________________ K. ________________E. ________________ L. ________________F. ________________ M. ________________G. ________________ N. ________________
6.A.
B.
SG-103
↑ ↓
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FORMS FOR EXERCISES
4-1.
Account Category Normal FinancialBalance Statement(s)
Found on
4-2.
Accounts Affected Category Rules Amount
A.
B.
4-3.A.
B.
4-4.Use one of the blank fold-out worksheets that accompanied your textbook.
SG-104
↑ ↓
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EXERCISES (CONTINUED)
4-5.(A)
J. TRENTINCOME STATEMENT
FOR MONTH ENDED DECEMBER 31, 200X
(B)
J. TRENTSTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED DECEMBER 31, 200X
SG-105
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EXERCISES (CONCLUDED)(C)
SG-106
J. T
REN
TBA
LAN
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SHEE
TD
ECEM
BER
31,
200
X
ASS
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’S E
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END OF CHAPTER PROBLEMS
PROBLEM 4A-1 OR PROBLEM 4B-1
Use one of the blank fold-out worksheets that accompanied your textbook.
PROBLEM 4A-2 OR PROBLEM 4B-2
Use one of the blank fold-out worksheets that accompanied your textbook.
PROBLEM 4A-3 OR PROBLEM 4B-3
Use one of the blank fold-out worksheets that accompanied your textbook.
(2)
KEVIN’S MOVING CO.INCOME STATEMENT
FOR MONTH ENDED OCTOBER 31, 200X
KEVIN’S MOVING CO.STATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED OCTOBER 31, 200X
(2)
SG-107
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PROBLEM 4A-3 OR PROBLEM 4B-3 (CONCLUDED)
(2)
SG-108
KEV
IN’S
MO
VIN
G C
O.
BALA
NC
E SH
EET
OC
TOB
ER 3
1, 2
00X
ASS
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’S E
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ITY
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PROBLEM 4A-4 OR PROBLEM 4B-4
Use one of the blank fold-out worksheets that accompanied your textbook.
(2)
DICK’S REPAIR SERVICEINCOME STATEMENT
FOR MONTH ENDED NOVEMBER 30, 200X
(2)
DICK’S REPAIR SERVICESTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED NOVEMBER 30, 200X
SG-109
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PROBLEM 4A-4 OR PROBLEM 4B-4 (CONCLUDED)
(2)
SG-110
DIC
K’S
REP
AIR
SER
VIC
EBA
LAN
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SHEE
TN
OV
EMB
ER 3
0, 2
00X
ASS
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LIA
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’S E
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CHAPTER 4SUMMARY PRACTICE TEST:
THE ACCOUNTING CYCLE CONTINUED:PREPARING WORKSHEETS AND FINANCIAL STATEMENTS
Part I Instructions
Fill in the blank(s) to complete the statement.
1. _______________ is an estimate.2. A(n) _______________ will decrease accumulated depreciation.3. _______________ affect both the income statement and balance sheet.4. The adjustment for supplies reflects the amount of supplies _______________ _______________.5. Supplies Expense is found on the income statement. Supplies are found on the _______________
_______________.6. _______________ _______________ reflects the cost of equipment at time of purchase.7. Depreciation Expense is found on the _______________ _______________.8. _______________ _______________ is a contra asset that has a credit balance.9. Accumulated Depreciation, a contra asset, is found on the _______________ _______________.
10. Historical or original cost of an auto less _______________ _______________ reflects the unusedamount of the auto on the accounting books.
11. Withdrawals are found in the _______________ column of the balance sheet section of theworksheet.
12. Salaries Payable is a liability that will appear in the _______________ ______________________________ _______________ of the worksheet.
13. The figure for net income on the worksheet is carried over to the _______________ column of thebalance sheet.
14. A worksheet is a(n) _______________ report.15. _______________ _______________ are prepared after the completion of the worksheet.
Part II Instructions
Complete the following statements by circling the letter of the appropriate answer.
SG-111
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1. The adjustment for depreciation results in Accumulated Depreciation
a. decreasing.b. staying the same.c. increasing.
2. The historical or original cost of an asset on the worksheet
a. never changes.b. sometimes changes.c. continually changes.
3. Net income on the worksheet is carried over to the
a. trial balance.b. adjusted trial balance.c. balance sheet column.
4. Accumulated Depreciation is found on
a. a worksheet.b. an income statement.c. both a worksheet and an income statement.
5. Accumulated Depreciation, a contra asset, is increased by a
a. debit.b. credit.c. both a and b.
6. A worksheet is usually completed
a. one column at a time.b. two columns at a time.c. three columns at a time.
7. Withdrawals on the worksheet are found in the
a. debit column of the income statement.b. debit column of the balance sheet.c. both a and b.
8. The worksheet specifically shows the
a. beginning figure for owner capital.b. ending figure for owner capital.c. average figure for owner capital.
9. The total of the assets on a formal balance sheet will ___________ equal the total of the debitcolumn of the balance sheet on the worksheet.
a. alwaysb. sometimesc. never
10. The adjustment for depreciation affects
a. the income statement.b. the balance sheet.c. both a and b.
11. The adjustment for supplies requires one to know
a. beginning supplies plus supplies purchased.b. supplies on hand.c. both a and b.
SG-112
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12. The purpose of adjustments is to
a. bring general journals up to date.b. bring ledger accounts up to proper balances in the journal.c. bring ledger accounts to proper balance.
13. Book values equals cost less
a. expenses.b. accumulated depreciation.c. neither a nor b.
14. The ___________ is an informal report.
a. income statementb. balance sheetc. worksheet
Part III Instructions
Answer true or false to the following statements.
1. The normal balance of accumulated depreciation is a credit.2. Liabilities are only income statement accounts.3. The total of the adjustments column may balance but be incorrect.4. Prepaid rent is found on the income statement.5. Rent expense is found on the income statement.6. Debits and credits are found on financial statements.7. Historical cost relates only to automobiles.8. Accumulated Depreciation is found on the income statement.9. As Accumulated Depreciation increases, the historical cost changes.
10. The adjustment for depreciation directly affects cash.11. An expense is only recorded when it is paid.12. The ending figure for owner capital does not have to be calculated from the worksheet.13. Withdrawals have the same balance as Accumulated Depreciation.14. Salaries Payable is an asset on the income statement.15. Net loss would never be shown on a worksheet.16. The net income on the worksheet is the same amount on the income statement.17. Worksheets must use dollar signs.18. The worksheet eliminates the need to prepare financial statements.19. Cost less accumulated depreciation equals book value.20. Accrued Salaries are expenses that have already been paid for.
SG-113
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CHAPTER 4SOLUTIONS TO SUMMARY PRACTICE TEST
Part I
1. Depreciation 9. balance sheet2. debit 10. accumulated depreciation3. Adjustments 11. debit4. used up 12. balance sheet credit column5. balance sheet 13. credit6. Historical (original) cost 14. informal7. income statement 15. Financial statements8. Accumulated Depreciation
Part II
1. c 6. b 11. c2. a 7. b 12. c3. c 8. a 13. b4. a 9. c 14. c5. b 10. c
Part III
1. true 6. false 11. false 16. true2. false 7. false 12. true 17. false3. true 8. false 13. false 18. false4. false 9. false 14. false 19. true5. true 10. false 15. false 20. false
SG-114
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CONTINUING PROBLEM FOR CHAPTER 4*
SANCHEZ COMPUTER CENTERINCOME STATEMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 200X
SANCHEZ COMPUTER CENTERSTATEMENT OF OWNER’S EQUITY
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 200X
*Use one of the blank fold-out worksheets that accompanied your textbook.
SG-115
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SAN
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PTEM
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30,
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SG-116
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SELF-REVIEW QUIZ 5-1
(1) PAGE 2
Date Account Titles and Description PR Dr. Cr.
SG-117
The AccountingCycle Completed:Adjusting,Closing, and thePost-ClosingTrial Balance
5
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(2) Partial Ledger
Depreciation Expense, Accumulated Depreciation,Store Equipment 511 Store Equipment 122
4
Prepaid Insurance 116 Insurance Expense 516
3
Store Supplies 114 Supplies Expense 514
5
Salaries Expense 512 Salaries Payable 212
8
SG-118
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SELF-REVIEW QUIZ 5-2(1)
P. Logan, Capital 310 Revenue from Clients 410 Supplies Expense 514
14 25 4
Depreciation Expense,P. Logan, Withdrawals 311 Store Equipment 510 Insurance Expense 516
3 1 2
Income Summary 312 Salaries Expense 512 Rent Expense 518
11 2
SG-119
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(2)
SELF-REVIEW QUIZ 5-3
SG-120
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FORMS FOR DEMONSTRATION PROBLEMUse one of the blank fold-out worksheets that accompanied your textbook.
ROLO COMPANYGENERAL JOURNAL
PAGE 1
Date Account Titles and Description PR Dr. Cr.
SG-121
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FORMS FOR DEMONSTRATION PROBLEM (CONTINUED)
ROLO COMPANYGENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
SG-122
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FORMS FOR DEMONSTRATION PROBLEM (CONTINUED)
CASH ACCOUNT NO. 111
SG-123
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCOUNTS RECEIVABLE ACCOUNT NO. 112
PREPAID RENT ACCOUNT NO. 114
OFFICE SUPPLIES ACCOUNT NO. 115
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Name __________________________________ Class ____________________ Date ____________________
FORMS FOR DEMONSTRATION PROBLEM (CONTINUED)
OFFICE EQUIPMENT ACCOUNT NO. 121
SG-124
ACCUMULATED DEPRECIATION, OFFICE EQUIPMENT ACCOUNT NO. 122
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCOUNTS PAYABLE ACCOUNT NO. 211
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FORMS FOR DEMONSTRATION PROBLEM (CONTINUED)
SALARIES PAYABLE ACCOUNT NO. 212
SG-125
ROLO KERN, CAPITAL ACCOUNT NO. 311
ROLO KERN, WITHDRAWALS ACCOUNT NO. 312
INCOME SUMMARY ACCOUNT NO. 313
FEES EARNED ACCOUNT NO. 411
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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Name __________________________________ Class ____________________ Date ____________________
FORMS FOR DEMONSTRATION PROBLEM (CONTINUED)
SALARIES EXPENSE ACCOUNT NO. 511
SG-126
ADVERTISING EXPENSE ACCOUNT NO. 512
RENT EXPENSE ACCOUNT NO. 513
OFFICE SUPPLIES EXPENSE ACCOUNT NO. 514
DEPRECIATION EXPENSE, OFFICE EQUIPMENT ACCOUNT NO. 515
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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FORMS FOR DEMONSTRATION PROBLEM (CONTINUED)
ROLO COMPANYINCOME STATEMENT
FOR MONTH ENDED JANUARY 31, 200X
ROLO COMPANYSTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED JANUARY 31, 200X
SG-127
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SG-128
FOR
MS
FOR
DEM
ON
STR
ATI
ON
PR
OB
LEM
(C
ON
TIN
UED
)
RO
LO C
OM
PAN
YBA
LAN
CE
SHEE
TJA
NU
ARY
31,
200
X
ASS
ETS
LIA
BIL
ITIE
S A
ND
OW
NER
’S E
QU
ITY
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Name __________________________________ Class ____________________ Date ____________________
FORMS FOR DEMONSTRATION PROBLEM (CONCLUDED)
ROLO COMPANYPOST-CLOSING TRIAL BALANCE
JANUARY 31, 200X
Dr. Cr.
SG-129
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CHAPTER 5FORMS FOR CLASSROOM DEMONSTRATION EXERCISES SET A OR SET B
GENERAL JOURNAL
1.
PAGE 3
Date Account Titles and Description PR Dr. Cr.
Prepaid Insurance 115 Insurance Expense 510
Depreciation Expense,Store Supplies 116 Store Equipment 512
Accumulated DepreciationStore Equipment 119 Supplies Expense 514
Salaries Payable 210 Salaries Expense 516
2.
Name __________________________________ Class ____________________ Date ____________________
SG-130
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Name __________________________________ Class ____________________ Date ____________________
SG-131
GENERAL JOURNAL
3.
PAGE 4
Date Account Titles and Description PR Dr. Cr.
4.
Income Summary 314
5.
Mel Blanc, Capital 310
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FORMS FOR EXERCISES
5-1.
Date Account Titles and Description PR Dr. Cr.
5-2.
TEMPORARY PERMANENT WILL BE CLOSED
1. Income Summary2. Jen Rich, Capital3. Salary Expense4. Jen Rich, Withdrawals5. Fees Earned6. Accounts Payable7. Cash
Name __________________________________ Class ____________________ Date ____________________
SG-132
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Name __________________________________ Class ____________________ Date ____________________
SG-133
EXERCISES (CONTINUED)
5-3.
Date Account Titles and Description PR Dr. Cr.
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EXERCISES (CONCLUDED)
5-4.
Date Account Titles and Description PR Dr. Cr.
5-5.
WEY CO.POST-CLOSING TRIAL BALANCE
DECEMBER 31, 200X
Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-134
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SG-135
END OF CHAPTER PROBLEMS
PROBLEM 5A-1 OR PROBLEM 5B-1
Use one of the blank fold-out worksheets that accompanied your textbook.
(2)DEBBIE’S DANCE STUDIO
GENERAL JOURNAL
PAGE 3
Date Account Titles and Description PR Dr. Cr.
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PROBLEM 5A-2 OR PROBLEM 5B-2
(1)
POTTER CLEANING SERVICEGENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-136
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Name __________________________________ Class ____________________ Date ____________________
SG-137
PROBLEM 5A-2 OR PROBLEM 5B-2 (CONTINUED)
CASH ACCOUNT NO. 112
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PREPAID INSURANCE ACCOUNT NO. 114
CLEANING SUPPLIES ACCOUNT NO. 115
AUTO ACCOUNT NO. 121
ACCUMULATED DEPRECIATION, AUTO ACCOUNT NO. 122
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SG-138
PROBLEM 5A-2 OR PROBLEM 5B-2 (CONTINUED)
ACCOUNTS PAYABLE ACCOUNT NO. 212
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALARIES PAYABLE ACCOUNT NO. 213
B. POTTER, CAPITAL ACCOUNT NO. 312
B. POTTER, WITHDRAWALS ACCOUNT NO. 313
INCOME SUMMARY ACCOUNT NO. 314
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SG-139
PROBLEM 5A-2 OR PROBLEM 5B-2 (CONTINUED)
CLEANING FEES ACCOUNT NO. 412
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALARIES EXPENSE ACCOUNT NO. 513
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
TELEPHONE EXPENSE ACCOUNT NO. 514
ADVERTISING EXPENSE ACCOUNT NO. 515
GAS EXPENSE ACCOUNT NO. 516
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PROBLEM 5A-2 OR PROBLEM 5B-2 (CONTINUED)
INSURANCE EXPENSE ACCOUNT NO. 517
Name __________________________________ Class ____________________ Date ____________________
SG-140
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
CLEANING SUPPLIES EXPENSE ACCOUNT NO. 518
DEPRECIATION EXPENSE, AUTO ACCOUNT NO. 519
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Name __________________________________ Class ____________________ Date ____________________
SG-141
PROBLEM 5A-2 OR PROBLEM 5B-2 (CONCLUDED)
(2)
POTTER CLEANING SERVICEPOST-CLOSING TRIAL BALANCE
MARCH 31, 200X
Dr. Cr.
PROBLEM 5A-3 OR PROBLEM 5B-3
Use one of the blank fold-out worksheets that accompanied your textbook.
65724_05_ch05_p117-185 4/15/09 11:50 AM Page SG-141
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PROBLEM 5A-3 OR PROBLEM 5B-3 (CONTINUED)
PETE’S PLOWINGGENERAL JOURNAL
PAGE 1
Date Account Titles and Description PR Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-142
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Name __________________________________ Class ____________________ Date ____________________
SG-143
PROBLEM 5A-3 OR PROBLEM 5B-3 (CONTINUED)
PETE’S PLOWINGGENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
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PROBLEM 5A-3 OR PROBLEM 5B-3 (CONTINUED)
PETE’S PLOWINGGENERAL JOURNAL
PAGE 3
Date Account Titles and Description PR Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-144
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Name __________________________________ Class ____________________ Date ____________________
SG-145
PROBLEM 5A-3 OR PROBLEM 5B-3 (CONTINUED)
CASH ACCOUNT NO. 111
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCOUNTS RECEIVABLE ACCOUNT NO. 112
PREPAID RENT ACCOUNT NO. 114
SNOW SUPPLIES ACCOUNT NO. 115
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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PROBLEM 5A-3 OR PROBLEM 5B-3 (CONTINUED)
OFFICE EQUIPMENT ACCOUNT NO. 121
Name __________________________________ Class ____________________ Date ____________________
SG-146
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCUMULATED DEPRECIATION, OFFICE EQUIPMENT ACCOUNT NO. 122
SNOW EQUIPMENT ACCOUNT NO. 123
ACCUMULATED DEPRECIATION, SNOW EQUIPMENT ACCOUNT NO. 124
ACCOUNTS PAYABLE ACCOUNT NO. 211
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Name __________________________________ Class ____________________ Date ____________________
SG-147
PROBLEM 5A-3 OR PROBLEM 5B-3 (CONTINUED)
SALARIES PAYABLE ACCOUNT NO. 212
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PETE MACK, CAPITAL ACCOUNT NO. 311
PETE MACK, WITHDRAWALS ACCOUNT NO. 312
INCOME SUMMARY ACCOUNT NO. 313
PLOWING FEES ACCOUNT NO. 411
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PROBLEM 5A-3 OR PROBLEM 5B-3 (CONTINUED)
SALARIES EXPENSE ACCOUNT NO. 511
Name __________________________________ Class ____________________ Date ____________________
SG-148
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ADVERTISING EXPENSE ACCOUNT NO. 512
TELEPHONE EXPENSE ACCOUNT NO. 513
RENT EXPENSE ACCOUNT NO. 514
SNOW SUPPLIES EXPENSE ACCOUNT NO. 515
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Name __________________________________ Class ____________________ Date ____________________
SG-149
PROBLEM 5A-3 OR PROBLEM 5B-3 (CONTINUED)
DEPRECIATION EXPENSE, OFFICE EQUIPMENT ACCOUNT NO. 516
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
DEPRECIATION EXPENSE, SNOW EQUIPMENT ACCOUNT NO. 517
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PROBLEM 5A-3 OR PROBLEM 5B-3 (CONTINUED)
PETE’S PLOWINGINCOME STATEMENT
FOR MONTH ENDED JANUARY 31, 200X
PETE’S PLOWINGSTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED JANUARY 31, 200X
Name __________________________________ Class ____________________ Date ____________________
SG-150
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Name __________________________________ Class ____________________ Date ____________________
SG-151
PROBLEM 5A-3 OR PROBLEM 5B-3 (CONTINUED)
PETE
’S P
LOW
ING
BALA
NC
E SH
EET
JAN
UA
RY 3
1, 2
00X
ASS
ETS
LIA
BIL
ITIE
S A
ND
OW
NER
’S E
QU
ITY
65724_05_ch05_p117-185 4/15/09 11:50 AM Page SG-151
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PROBLEM 5A-3 OR PROBLEM 5B-3 (CONCLUDED)
PETE’S PLOWINGPOST-CLOSING TRIAL BALANCE
JANUARY 31, 200X
Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-152
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SG-153
CHAPTER 5SUMMARY PRACTICE TEST:
THE ACCOUNTING CYCLE COMPLETED:ADJUSTING, CLOSING, AND
THE POST-CLOSING TRIAL BALANCE
Part I Instructions
Fill in the blank(s) to complete the statement.
1. After the closing process only accounts remain with balances.2. Revenue, Expenses, and Withdrawals are examples of .3. in temporary accounts will not be carried over to the next accounting period.4. After closing entries are posted, owner’s Capital in the ledger will contain the
.5. Revenue is closed to Income Summary by a(n) to each revenue account and a(n)
to Income Summary.6. Expenses are closed to Income Summary by the individual expenses and
Income Summary.7. If the balance of Income Summary is a credit, it will be closed by Income
Summary and owner’s Capital.8. The balance of Withdrawals is closed by a(n) and the amount transferred to
owner’s Capital by a(n) .9. At the end of the closing process, all temporary accounts in the ledger will have a(n)
balance.10. The contains a list
of permanent accounts after the adjusting and closing entries have been posted to the ledger from ajournal.
11. Closing entries can be prepared from a(n) .12. After closing entries are posted, Income Summary will have a(n) balance.13. Journalizing adjustments can be done from the .14. Cash, Equipment, and Supplies are not part of the process.15. Income Summary is a(n) account.
Part II Instructions
The following is a chart of accounts for Al’s Auto Shop. From the chart, indicate in Column B (by accountnumber) which accounts will be debited or credited as related to the transactions in Column A.
65724_05_ch05_p117-185 4/15/09 11:50 AM Page SG-153
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CHART OF ACCOUNTS
ASSETS OWNER’S EQUITY
112 Cash 340 A. Jones, Capital
114 Accounts Receivable 341 A. Jones, Withdrawals
116 Prepaid Rent 342 Income Summary
118 Auto Supplies
120 Delivery Truck REVENUE
121 Accumulated Depreciation, Delivery Truck 450 Fees Earned
LIABILITIES EXPENSES
230 Accounts Payable 560 Salaries
232 Salaries Payable 562 Advertising
564 Rent
566 Auto Supplies
568 Depreciation Expense, Delivery Truck
COLUMN A COLUMN BDebit(s) Credit(s)
1. Closed balance in revenue account to Income Summary.
2. Closed balance in individual expenses to Income Summary.
3. Closed balance in Income Summary to owner’s Capital. (Assume that it is a net income.)
4. Closed Withdrawals to owner’s Capital.
5. Recorded auto supplies used up.
6. Recorded depreciation on delivery truck.
7. Brought Salaries Expense up to date (an adjustment).
Part III Instructions
Answer true or false to the following statements.
1. Closing entries are done every other month.2. Adjustments are journalized before preparing the worksheet.3. Closing entries can only clear permanent accounts.4. Income summary is a temporary account.5. Interim statements can be prepared from worksheets.6. To clear expenses in the closing process, a compound entry is appropriate.7. Withdrawals is a temporary account on the income statement.8. Income Summary helps update withdrawals.
Name __________________________________ Class ____________________ Date ____________________
SG-154
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SG-155
9. Accumulated Depreciation is a permanent account on the income statement.
10. Cash, Rent Expense, and Accounts Receivable need to be closed at the end of the period.
11. Closing entries do not relate to the worksheet.
12. Revenue is closed by a credit.
13. Expenses are placed on the debit side of the Income Summary account.
14. A post-closing trial balance closely resembles the ending balance sheet.
15. Accumulated Depreciation never has to be adjusted.
16. Interim statements are always prepared monthly.
17. A post-closing trial balance is prepared before adjustments are journalized.
18. Income Summary is shown on the balance sheet.
19. The process of closing entries will help update owner’s Capital.
20. The normal balance of the Income Summary is a debit.
21. The normal balance of the Income Summary is a credit.
22. The income statement is listed in terms of debits and credits.
23. Closing updates only permanent accounts.
24. The completion of financial statements means that the Capital account in the ledger has beenupdated.
25. Withdrawals is closed to Income Summary.
SOLUTIONS TO SUMMARY PRACTICE TEST
Part I
1. permanent 9. zero2. temporary accounts 10. post-closing trial balance3. Balances 11. worksheet4. ending figure (balance) 12. zero5. debit, credit 13. worksheet6. crediting, debiting 14. closing7. debiting, crediting 15. temporary8. credit, debit
Part II
Debit Credit
1. 450 3422. 342 560, 562, 564, 566, 5683. 342 3404. 340 3415. 566 1186. 568 1217. 560 232
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Part III
1. false 7. false 13. true 19. true 25. false2. false 8. false 14. true 20. false3. false 9. false 15. false 21. false4. true 10. false 16. false 22. false5. true 11. false 17. false 23. false6. true 12. false 18. false 24. false
Name __________________________________ Class ____________________ Date ____________________
SG-156
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Name __________________________________ Class ____________________ Date ____________________
SG-157
CONTINUING PROBLEM FOR CHAPTER 5
SANCHEZ COMPUTER CENTERGENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
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CASH ACCOUNT NO. 1000
Name __________________________________ Class ____________________ Date ____________________
SG-158
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 1 6 4 5 00
ACCOUNTS RECEIVABLE ACCOUNT NO. 1020
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 2 6 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 1 2 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 4 5 0 00
PREPAID RENT ACCOUNT NO. 1025
SUPPLIES ACCOUNT NO. 1030
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Name __________________________________ Class ____________________ Date ____________________
SG-159
COMPUTER SHOP EQUIPMENT ACCOUNT NO. 1080
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 2 4 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCUMULATED DEPRECIATION, COMPUTER SHOP EQUIPMENT ACCOUNT NO. 1081
OFFICE EQUIPMENT ACCOUNT NO. 1090
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 6 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCUMULATED DEPRECIATION, OFFICE EQUIPMENT ACCOUNT NO. 1091
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ACCOUNTS PAYABLE ACCOUNT NO. 2000
Name __________________________________ Class ____________________ Date ____________________
SG-160
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 2 1 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 4 5 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 1 0 0 00
T. FREEDMAN, CAPITAL ACCOUNT NO. 3000
T. FREEDMAN, WITHDRAWALS ACCOUNT NO. 3010
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Name __________________________________ Class ____________________ Date ____________________
SG-161
INCOME SUMMARY ACCOUNT NO. 3020
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SERVICE REVENUE ACCOUNT NO. 4000
ADVERTISING EXPENSE ACCOUNT NO. 5010
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 6 6 8 5 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 1 4 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 4 0 0 00
RENT EXPENSE ACCOUNT NO. 5020
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UTILITIES EXPENSE ACCOUNT NO. 5030
Name __________________________________ Class ____________________ Date ____________________
SG-162
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 1 8 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 2 2 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 1 5 0 00
PHONE EXPENSE ACCOUNT NO. 5040
SUPPLIES EXPENSE ACCOUNT NO. 5050
INSURANCE EXPENSE ACCOUNT NO. 5060
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Name __________________________________ Class ____________________ Date ____________________
SG-163
POSTAGE EXPENSE ACCOUNT NO. 5070
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 5 0 00
DEPRECIATION EXPENSE C.S. EQUIPMENT ACCOUNT NO. 5080
DEPRECIATION EXPENSE OFFICE EQUIPMENT ACCOUNT NO. 5090
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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SANCHEZ COMPUTER CENTERPOST-CLOSING TRIAL BALANCE
SEPTEMBER 30, 200X
Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-164
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SG-165
MINI PRACTICE SETSULLIVAN REALTY
SULLIVAN REALTYGENERAL JOURNAL
PAGE 1
Date Account Titles and Description PR Dr. Cr.
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MINI PRACTICE SETSULLIVAN REALTY
SULLIVAN REALTYGENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-166
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SG-167
MINI PRACTICE SETSULLIVAN REALTY
SULLIVAN REALTYGENERAL JOURNAL
PAGE 3
Date Account Titles and Description PR Dr. Cr.
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MINI PRACTICE SETSULLIVAN REALTY
SULLIVAN REALTYGENERAL JOURNAL
PAGE 4
Date Account Titles and Description PR Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-168
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SG-169
MINI PRACTICE SETSULLIVAN REALTY
SULLIVAN REALTYGENERAL JOURNAL
PAGE 5
Date Account Titles and Description PR Dr. Cr.
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MINI PRACTICE SETSULLIVAN REALTY
SULLIVAN REALTYGENERAL JOURNAL
PAGE 6
Date Account Titles and Description PR Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-170
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SG-171
MINI PRACTICE SETSULLIVAN REALTY
CASH ACCOUNT NO. 111
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
MINI PRACTICE SETSULLIVAN REALTY
ACCOUNTS RECEIVABLE ACCOUNT NO. 112
Name __________________________________ Class ____________________ Date ____________________
SG-172
PREPAID RENT ACCOUNT NO. 114
OFFICE SUPPLIES ACCOUNT NO. 115
OFFICE EQUIPMENT ACCOUNT NO. 121
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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MINI PRACTICE SET: SULLIVAN REALTY
ACCUMULATED DEPRECIATION, OFFICE EQUIPMENT ACCOUNT NO. 122
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
AUTOMOBILE ACCOUNT NO. 123
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCUMULATED DEPRECIATION, AUTOMOBILE ACCOUNT NO. 124
ACCOUNTS PAYABLE ACCOUNT NO. 211
SALARIES PAYABLE ACCOUNT NO. 212
SG-173
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MINI PRACTICE SETSULLIVAN REALTY
JOHN SULLIVAN, CAPITAL ACCOUNT NO. 311
Name __________________________________ Class ____________________ Date ____________________
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
JOHN SULLIVAN, WITHDRAWALS ACCOUNT NO. 312
INCOME SUMMARY ACCOUNT NO. 313
SG-174
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SG-175
MINI PRACTICE SETSULLIVAN REALTY
COMMISSIONS EARNED ACCOUNT NO. 411
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
RENT EXPENSE ACCOUNT NO. 511
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALARIES EXPENSE ACCOUNT NO. 512
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MINI PRACTICE SETSULLIVAN REALTY
GAS EXPENSE ACCOUNT NO. 513
Name __________________________________ Class ____________________ Date ____________________
SG-176
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
REPAIRS EXPENSE ACCOUNT NO. 514
TELEPHONE EXPENSE ACCOUNT NO. 515
ADVERTISING EXPENSE ACCOUNT NO. 516
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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SG-177
MINI PRACTICE SETSULLIVAN REALTY
OFFICE SUPPLIES EXPENSE ACCOUNT NO. 517
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
DEPRECIATION EXPENSE, OFFICE EQUIPMENT ACCOUNT NO. 518
DEPRECIATION EXPENSE, AUTOMOBILE ACCOUNT NO. 519
MISCELLANEOUS EXPENSE ACCOUNT NO. 524
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MINI PRACTICE SETSULLIVAN REALTY
Use the blank fold-out worksheets that accompanied your textbook.
SULLIVAN REALTYINCOME STATEMENT
FOR MONTH ENDED JUNE 30, 200X
Name __________________________________ Class ____________________ Date ____________________
SG-178
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Name __________________________________ Class ____________________ Date ____________________
SG-179
MINI PRACTICE SETSULLIVAN REALTY
SULLIVAN REALTYSTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED JUNE 30, 200X
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MINI PRACTICE SETSULLIVAN REALTY
Name __________________________________ Class ____________________ Date ____________________
SG-180
SULL
IVA
NR
EALT
YBA
LAN
CE
SHEE
TJU
NE
30, 2
00X
ASS
ETS
LIA
BIL
ITIE
S A
ND
OW
NER
’S E
QU
ITY
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SG-181
MINI PRACTICE SETSULLIVAN REALTY
SULLIVAN REALTYPOST-CLOSING TRIAL BALANCE
JUNE 30, 200X
Dr. Cr.
You can find the worksheet for July with the blank fold-out worksheets that accompanied your textbook.
65724_05_ch05_p117-185 4/15/09 11:50 AM Page SG-181
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MINI PRACTICE SETSULLIVAN REALTY
SULLIVAN REALTYINCOME STATEMENT
FOR MONTH ENDED JULY 31, 200X
Name __________________________________ Class ____________________ Date ____________________
SG-182
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Name __________________________________ Class ____________________ Date ____________________
SG-183
MINI PRACTICE SETSULLIVAN REALTY
SULLIVAN REALTYSTATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED JULY 31, 200X
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MINI PRACTICE SETSULLIVAN REALTY
Name __________________________________ Class ____________________ Date ____________________
SG-184
SULL
IVA
NR
EALT
YBA
LAN
CE
SHEE
TJU
LY 3
1, 2
00X
ASS
ETS
LIA
BIL
ITIE
S A
ND
OW
NER
’S E
QU
ITY
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SG-185
MINI PRACTICE SETSULLIVAN REALTY
SULLIVAN REALTYPOST-CLOSING TRIAL BALANCE
JULY 31, 200X
Dr. Cr.
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SG-186
SELF-REVIEW QUIZ 6-1
Add to Deduct from Add to Deduct fromSituation Bank Balance Bank Balance Checkbook Balance Checkbook Balance
12345678
SELF-REVIEW QUIZ 6-2
PAGE 6
Date Account Titles and Description PR Dr. Cr.
BankingProceduresand Control of Cash
6
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AU
XIL
IARY
PET
TY C
ASH
REC
OR
D
SG-187
Cat
egor
y of
Pay
men
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Vou
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Del
iver
yG
ener
alSu
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Dat
eN
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escr
iptio
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Paym
ent
Expe
nse
Expe
nse
Acc
ount
Am
ount
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CHAPTER 6SET A FORMS FOR CLASSROOM DEMONSTRATION EXERCISES
1.A. ___________________ E. ___________________B. ___________________ F. ___________________C. ___________________D. ___________________
2. ________ _______ _______ ______
3.
ACE CO.BANK RECONCILIATION
JUNE 30, 200X
Checkbook Bank
4.A. ______ _______ ______ E. ______ _______ ______B. ______ _______ ______ F. ______ _______ ______C. ______ _______ ______D. ______ _______ ______
5.
6.
SG-188
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SG-189
CHAPTER 6SET B FORMS FOR CLASSROOM DEMONSTRATION EXERCISES
1.A. ___________________ E. ___________________B. ___________________ F. ___________________C. ___________________D. ___________________
2. ________ _______ _______ ______
3.
ACE CO.BANK RECONCILIATION
JUNE 30, 200X
Checkbook Bank
4.A. ______ _______ ______ E. ______ _______ ______B. ______ _______ ______ F. ______ _______ ______C. ______ _______ ______D. ______ _______ ______
5.
6.
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SG-190
FORMS FOR EXERCISES
6-1.
BING CO.BANK RECONCILIATION AS OF JULY 31, 200X
CHECKBOOK BALANCE BALANCE PER BANKEnding Checkbook Balance _________________ Ending Bank Statement Balance ________________
Deduct: _________________ Add: ________________Bank Service Charge _________________ Deposit in Transit ________________
_________________ _________________________________ Deduct: _________________________________ Outstanding Checks _________________________________ ________________
Reconciled Balance _________________ Reconciled Balance ________________
6-2.
6-3.
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EXERCISES (CONCLUDED)
6-4.
6-5.Beg. Change Fund
+Cash Register Total=Cash should have on hand– Counted Cash= Cash Shortage
SG-191
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SG-192
END OF CHAPTER PROBLEMS
PROBLEM 6A-1 OR PROBLEM 6B-1
LEE.COMBANK RECONCILIATION AS OF JULY 31, 200X
BALANCE PER BANK CHECKBOOK BALANCE
Bank Statement Balance Checkbook Balance
Add: _________________ Add:
Deduct: _________ _________________
_________________ Deduct:
_________________
Reconciled Balance _________________ Reconciled Balance _________________
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Date Account Titles and Description PR Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
PROBLEM 6A-1 OR PROBLEM 6B-1 (CONCLUDED)
SG-193
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SG-194
PROBLEM 6A-2 OR PROBLEM 6B-2
LOWELL NATIONAL BANKRIO MEAN BRANDBUGNA, TEXAS TELEPHONE 555-8311
This form is provided to help you balance your bank statement. If no errors are reported to auditors inten days, the account will be considered correct.
Please notify us of any change in address.
Checks outstanding(not charged to account)
Check No. Amount
Total
Sort the checks numerically orby date issued.Check off on the stubs of yourcheckbook each check paid by bank.List the numbers and amounts ofchecks still outstanding in thespace provided at the left.Verify the deposits in your checkbook withdeposits credited on this statement. Bankbalance show on this statement $_____________Plus: Deposits not
credited on this statement $_____________Subtotal $_____________
Less: Checks outstanding $_____________Balance $_____________
If your checkbook does not agree, enter anynecessary adjustments:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Correct checkbook balance $_____________
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PROBLEM 6A-2 OR PROBLEM 6B-2 (CONCLUDED)
GENERAL JOURNAL
SG-195
Date Account Titles and Description PR Dr. Cr.
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SG-196
PROBLEM 6A-3 OR PROBLEM 6B-3
MERRY CO.GENERAL JOURNAL
Date Account Titles and Description PR Dr. Cr.
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PROBLEM 6A-3 OR PROBLEM 6B-3 (CONCLUDED)
SG-197
MER
RY C
O.
AU
XIL
IARY
PET
TY C
ASH
REC
OR
D
Cat
egor
y of
Pay
men
t
Vou
cher
Post
age
Offi
ce S
uppl
ies
Sund
ryD
ate
No.
Des
crip
tion
Rec
eipt
sPa
ymen
tEx
pens
eEx
pens
eA
ccou
ntA
mou
nt
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Name __________________________________ Class ____________________ Date ____________________
SG-198
PROBLEM 6A-4 OR PROBLEM 6B-4
LOGAN CO.GENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
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PROBLEM 6A-4 OR PROBLEM 6B-4 (CONCLUDED)
SG-199
LOG
AN
CO
.A
UX
ILIA
RY P
ETTY
CA
SH R
ECO
RD
Cat
egor
y of
Pay
men
t
Vou
cher
Post
age
Del
iver
ySu
ndry
Dat
eN
o.D
escr
iptio
nR
ecei
pts
Paym
ent
Expe
nse
Expe
nse
Acc
ount
Am
ount
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SG-200
CHAPTER 6SUMMARY PRACTICE TEST
BANKING PROCEDURES AND CONTROL OF CASH
Part I Instructions
Fill in the blank(s) to complete the statement.
1. Online banking is _______________ due to the internet.2. Today, use of the _______________ _______________ has greatly increased.3. All adjustments to the checkbook balance in the reconciliation process will
require _______________ _______________.4. Petty cash is a(n) _______________ found on the balance sheet.5. The auxiliary petty cash record is not a(n) _______________.6. A(n) _______________ _______________ is an asset used to make change for customer.7. A cash overage will be _______________ _______________ on the income statement.8. _______________ _______________ represents checks not processed by the bank at the time the
bank statement was prepared.9. When a bank credits your account, your balance will _______________.
10. _______________ is a procedure whereby the bank does not return the processed checks.
Part II Instructions
Indicate which of the following procedures are involved in each of the transactions below.
a. Recorded in General Journalb. Recorded in both general journal and auxiliary petty cash recordc. Recorded only in auxiliary petty cash recordd. New check is writtene. Account petty cash is increased
1. EXAMPLE: Check issued to establish petty cash b,d,e
2. Paid donation from petty cash __________
3. Paid postage from petty cash __________
4. Paid past purchases previously charged __________
5. Paid for business luncheon with petty cash __________
6. Issued check to pay for office supplies __________
7. Replenished petty cash __________
8. Paid local donation from petty cash __________
9. Paid for past purchases bought on account __________
10. Replenished petty cash __________
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Part III Instructions
Answer true or false to the following statements.
1. Online banking is decreasing today.
2. Petty cash is a liability found on the balance sheet.
3. Checks returned from the bank are placed in alphabetical order.
4. ATMs are being used less today than in the past.
5. Bank service charges represent an expense to the business.
6. The bank statement is the same as the bank reconciliation.
7. The balance in the company cash account will always equal the bank balance before the bankstatement is received.
8. Deposit slips are needed in writing checks.
9. The signature must be presented when cashing a check.
10. The auxiliary petty cash record is posted monthly.
11. The petty cash account has a debit balance.
12. Replenishment of petty cash requires a new check.
13. The expenses paid from petty cash are journalized at time of replenishment.
14. Internal control only affects large companies.
15. A petty cash voucher records the expense into the ledger.
16. The petty cash fund must be replenished monthly.
17. The petty cash voucher identifies the account that will be charged.
18. The establishment of petty cash may require some judgment as to the amount of petty cash needed.
19. EFT is the same as safekeeping.
20. The drawer is the person who receives the check.
21. A debit memo will increase the depositor’s balance.
22. A change fund uses only one denomination.
23. The payer is the person or company the check is payable to.
Part IV Instructions
Based on the following situation, prepare a bank reconciliation.
The checkbook balance of Logan Company is $5,263.08. The bank statement shows a bank balance of$7,980. The bank statement shows interest earned of $42 and a service charge of $29.76. There is a depositin transit of $2,558.22. Outstanding checks total $3,762.90. The bank collected a note for Moore for$4,200. Moore Company forgot to deduct a check for $2,700 during the month.
SG-201
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SOLUTIONS TO SUMMARY PRACTICE TEST
Part I
1. increasing 6. change fund2. debit card 7. miscellaneous income3. journal entries 8. Checks outstanding4. asset 9. increase5. journal 10. Safekeeping
Part II
1. b, d, e 6. a, d2. c 7. b, d3. c 8. c4. a, d 9. a, d5. c 10. b, d
Part III
1. false 6. false 11. true 16. false 21. false2. false 7. false 12. true 17. true 22. false3. false 8. false 13. true 18. true 23. false4. false 9. true 14. false 19. false5. true 10. false 15. false 20. false
Part IV
LOGAN CO. BANK BALANCE
Checkbook Balance $5,263.08 Bank Balance $7,980.00
ADD: ADD:
Deposit
Interest $ 42 in Transit 2,558.22
Collection of note 4,200 4,242.00 $9,038.22
8,005.08
DEDUCT: DEDUCT:
Service Chg. $ 29.76 Check outstanding $3,762.90
Error 2,700.00 2,729.76
Reconciled Balance $6,775.32 Reconciled Balance $6,775.32
Name __________________________________ Class ____________________ Date ____________________
SG-202
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SG-203
CONTINUING PROBLEM FOR CHAPTER 6
SANCHEZ COMPUTER CENTERGENERAL JOURNAL
PAGE 3
Date Account Titles and Description PR Dr. Cr.
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Name __________________________________ Class ____________________ Date ____________________
SG-204
CASH ACCOUNT NO. 1000
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 1 6 4 5 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PETTY CASH ACCOUNT NO. 1010
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Name __________________________________ Class ____________________ Date ____________________
PREPAID RENT ACCOUNT NO. 1025
SG-205
ACCOUNTS RECEIVABLE ACCOUNT NO. 1020
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 2 6 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 4 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 9 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 2 4 0 0 00
SUPPLIES ACCOUNT NO. 1030
COMPUTER SHOP EQUIPMENT ACCOUNT NO. 1080
65724_06_ch06_p186-213 4/15/09 11:50 AM Page SG-205
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Name __________________________________ Class ____________________ Date ____________________
SG-206
ACCUMULATED DEPRECIATION, COMPUTER SHOP EQUIPMENT ACCOUNT NO. 1081
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 9 9 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 6 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 2 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 2 1 0 00
OFFICE EQUIPMENT ACCOUNT NO. 1090
ACCUMULATED DEPRECIATION, OFFICE EQUIPMENT ACCOUNT NO. 1091
ACCOUNTS PAYABLE ACCOUNT NO. 2000
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Name __________________________________ Class ____________________ Date ____________________
T. FREEDMAN, CAPITAL ACCOUNT NO. 3000
SG-207
T. FREEDMAN, WITHDRAWALS ACCOUNT NO. 3010
INCOME SUMMARY ACCOUNT NO. 3020
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
9/30 0X Balance forward � 7 4 0 6 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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Name __________________________________ Class ____________________ Date ____________________
SG-208
ADVERTISING EXPENSE ACCOUNT NO. 5010
SERVICE REVENUE ACCOUNT NO. 4000
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
RENT EXPENSE ACCOUNT NO. 5020
65724_06_ch06_p186-213 4/15/09 11:50 AM Page SG-208
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Name __________________________________ Class ____________________ Date ____________________
UTILITIES EXPENSE ACCOUNT NO. 5030
SG-209
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PHONE EXPENSE ACCOUNT NO. 5040
SUPPLIES EXPENSE ACCOUNT NO. 5050
INSURANCE EXPENSE ACCOUNT NO. 5060
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SG-210
POSTAGE EXPENSE ACCOUNT NO. 5070
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
DEPRECIATION EXPENSE, COMPUTER SHOP EQUIPMENT ACCOUNT NO. 5080
DEPRECIATION EXPENSE, OFFICE EQUIPMENT ACCOUNT NO. 5090
MISCELLANEOUS EXPENSE ACCOUNT NO. 5100
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SANCHEZ COMPUTER CENTERTRIAL BALANCE
OCTOBER 31, 200X
Name __________________________________ Class ____________________ Date ____________________
SG-211
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SG-212
AU
XIL
IARY
PET
TY C
ASH
REC
OR
D
Cat
egor
y of
Pay
men
t
Vou
cher
Post
age
Supp
lies
Sund
ryD
ate
No.
Des
crip
tion
Rec
eipt
sPa
ymen
tEx
pens
eEx
pens
eA
ccou
ntA
mou
nt
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Name __________________________________ Class ____________________ Date ____________________
SANCHEZ COMPUTER CENTERBANK RECONCILIATION AS OF SEPTEMBER 30, 200X
BALANCE PER BANK CHECKBOOK BALANCE
Bank Statement Balance Checkbook Balance
Add: _________________ Add:
Deduct: _________ _________________
_________________ Deduct:
_________________
Reconciled Balance _________________ Reconciled Balance _________________
SG-213
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SG-214
SELF-REVIEW QUIZ 7-1
REGULAR EARNINGSOVERTIMEGROSS EARNINGS
SELF-REVIEW QUIZ 7-2
FITSITFICA - OASDIFICA - MedicareNET PAY
PayrollConcepts andProcedures—Employee Taxes
7
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SELF-REVIEW QUIZ 7-3
FICA - OASDIFICA - MedicareFUTASUTA
SG-215
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SG-216
CHAPTER 7SET A FORMS FOR CLASSROOM DEMONSTRATION EXERCISES
1. A.
B.
2.
3.
4. A. D.
B. E.
C. F.
5.A. B.C.D.
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CHAPTER 7SET B FORMS FOR CLASSROOM DEMONSTRATION EXERCISES
1. A.
B.
2.
3.
4. A. D.
B. E.
C. F.
5.A.B.C.D.
Name __________________________________ Class ____________________ Date ____________________
SG-217
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SG-218
FORMS FOR EXERCISES
7-1.Carmen
Jill
Fred
7-2.Alvin Angelina
7-3.
7-4.
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7-5.
7-6.
7-7.
7-8.
Employee Weekly Pay Weeks Total Taxable Tax Rate Tax
Name __________________________________ Class ____________________ Date ____________________
SG-219
EXERCISES (CONCLUDED)
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END OF CHAPTER PROBLEMS
PROBLEM 7A-1 OR PROBLEM 7B-1
Hourly # of Hours Gross
Employee Rate Worked Earnings
A.
B.
C.
D.
A. B.
C. D.
PROBLEM 7A-2 OR PROBLEM 7B-2
Use the fold-out payroll register that accompanied your textbook.
PROBLEM 7A-3 OR PROBLEM 7B-3
Use the fold-out payroll register that accompanied your textbook.
PROBLEM 7A-4 OR PROBLEM 7B-4
Use the fold-out payroll register that accompanied your textbook.
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CHAPTER 7SUMMARY PRACTICE TEST:
PAYROLL CONCEPTS AND PROCEDURES—EMPLOYEE TAXES
PART I INSTRUCTIONS
Fill in the blank(s) to complete the statement.
1. _______________ _______________ is gross pay less deductions.
2. Form _______________ aids the employer in knowing how much to deduct for federal income tax.
3. The base for OASDI-Medicare will _______________ _______________ from year to year.
4. _______________ _______________ of the employer’s tax guide has tables available for deductionsfor FIT and FICA (OASDI and Medicare).
5. _______________ _______________ _______________ protects employees against losses due toinjury or death incurred while on the job.
6. The two primary records used to keep track of payroll information are the ______________________________ and _______________ _______________ _______________.
7. The employer is responsible for paying for_______________.
8. _______________ _______________ is paid every two weeks.
9. A(n) _______________ employee will only be paid for the hours actually worked.
10. An employer must pay FUTA on wages earned by each employee up to a maximum of$_______________.
Part II Instructions
Answer true or false to the following.
1. OASDI is the tax form for SUTA.
2. Employers only pay FUTA and SUTA.
3. Employers pay a higher FICA-OASDI tax rate than employees do.
4. Gross pay plus deductions equals net pay.
5. Form W-4 aids in calculating FICA-OASDI.
6. The employer will match the employee’s contribution for FICA (OASDI and Medicare).
7. The maximum tax credit for state unemployment tax is .8%.
8. A company may have different types of employees.
9. The Wage-Bracket Table makes it more difficult to calculate the amount of deductions for FIT.
10. A calendar year has no effect on taxes for FICA-Social Security.
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Part III Instructions
Complete the chart below (use table in text as needed). Use the following information: Before this payrollPete Bloom had earned $101,000. This week Pete earned $2,000 for the past two weeks. Assume anOASDI rate of Social Security of 6.2% up to $102,000. Medicare, 1.45%. FIT is $238.50. The state incometax is 7 percent.
DEDUCTIONS
GROSS PAY TAXABLE FICA FIT SIT NET
FICA OASDI Med. PAY
CHAPTER 7SOLUTIONS TO SUMMARY PRACTICE TEST
Part I
1. Net Pay 6. payroll register, employee earnings record2. W-4 7. FUTA (SUTA)3. not change 8. Biweekly payroll4. Circular E 9. hourly5. Workers’ Compensation Insurance 10. 7,000
Part II
1. false 6. true2. false 7. false3. false 8. true4. false 9. false5. false 10. false
Part III
OASDI $1,000 x.062 = $ 62.00Medicare 2,000 x.0145 = 29.00FIT 238.50 $2,000.00SIT 2,000 x.07 140.00 – 469.50Total deductions $469.50 $1,530.50
Name __________________________________ Class ____________________ Date ____________________
SG-222
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SG-223
CONTINUING PROBLEM FOR CHAPTER 7
(1)
SANCHEZ COMPUTER CENTERGENERAL JOURNAL
PAGE 4
Date Account Titles and Description PR Dr. Cr.
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SG-224
SANCHEZ COMPUTER CENTERGENERAL JOURNAL
PAGE 5
Date Account Titles and Description PR Dr. Cr.
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SG-225
CASH ACCOUNT NO. 1000
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 4 2 9 3 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 4 2 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 1 0 0 00
PETTY CASH ACCOUNT NO. 1010
ACCOUNTS RECEIVABLE ACCOUNT NO. 1020
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PREPAID RENT ACCOUNT NO. 1025
Name __________________________________ Class ____________________ Date ____________________
SG-226
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 1 6 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 2 4 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 9 9 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 9 0 00
SUPPLIES ACCOUNT NO. 1030
COMPUTER SHOP EQUIPMENT ACCOUNT NO. 1080
ACCUMULATED DEPRECIATION, COMPUTER SHOP EQUIPMENT ACCOUNT NO. 1081
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SG-227
OFFICE EQUIPMENT ACCOUNT NO. 1090
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 6 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 2 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 5 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCUMULATED DEPRECIATION, OFFICE EQUIPMENT ACCOUNT NO. 1091
ACCOUNTS PAYABLE ACCOUNT NO. 2000
WAGES PAYABLE ACCOUNT NO. 2010
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FICA—OASDI PAYABLE ACCOUNT NO. 2020
Name __________________________________ Class ____________________ Date ____________________
SG-228
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
FICA—MEDICARE PAYABLE ACCOUNT NO. 2030
FIT PAYABLE ACCOUNT NO. 2040
SIT PAYABLE ACCOUNT NO. 2050
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SG-229
T. FREEDMAN CAPITAL ACCOUNT NO. 3000
T. FREEDMAN WITHDRAWALS ACCOUNT NO. 3010
SERVICE REVENUE ACCOUNT NO. 4000
ADVERTISING EXPENSE ACCOUNT NO. 5010
RENT EXPENSE ACCOUNT NO. 5020
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 7 8 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 7 4 0 6 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 2 0 1 5 00
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UTILITIES EXPENSE ACCOUNT NO. 5030
Name __________________________________ Class ____________________ Date ____________________
SG-230
PHONE EXPENSE ACCOUNT NO. 5040
SUPPLIES EXPENSE ACCOUNT NO. 5050
INSURANCE EXPENSE ACCOUNT NO. 5060
POSTAGE EXPENSE ACCOUNT NO. 5070
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 2 5 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X � 4 2 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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Name __________________________________ Class ____________________ Date ____________________
SG-231
DEPRECIATION EXPENSE C. S. EQUIPMENT ACCOUNT NO. 5080
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
10/31 0X Balance forward � 1 0 00
DEPRECIATION EXPENSE OFFICE EQUIPMENT ACCOUNT NO. 5090
MISCELLANEOUS EXPENSE ACCOUNT NO. 5100
WAGES EXPENSE ACCOUNT NO. 5110
(2) Use the fold-out payroll register that accompanied your textbook.
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(3)
SANCHEZ COMPUTER CENTERTRIAL BALANCE
NOVEMBER 30, 200X
Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-232
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SG-233
SELF-REVIEW QUIZ 8-1
GENERAL JOURNAL
PAGE 1
Date Account Titles and Description PR Dr. Cr.
The Employer’s TaxResponsibilities:Principles andProcedures
8
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SG-234
SELF-REVIEW QUIZ 8-2
1.
2.
SELF-REVIEW QUIZ 8-3
1. 2. 3. 4. 5. 6.
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SG-235
CHAPTER 8
SET A FORMS FOR CLASSROOM DEMONSTRATION EXERCISES
1.A.
B.
C.
D.
E.
2.A. ____________________________________________________________________________
B. ____________________________________________________________________________
C. ____________________________________________________________________________
D. ____________________________________________________________________________
3.
4.A. ____________________________________________________________________________
B. ____________________________________________________________________________
C. ____________________________________________________________________________
D. ____________________________________________________________________________
E. ____________________________________________________________________________
F. ____________________________________________________________________________
G. ____________________________________________________________________________
5.A. _____________
B. _____________
C. _____________
D. _____________
E. _____________
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SG-236
CHAPTER 8
SET B FORMS FOR CLASSROOM DEMONSTRATION EXERCISES
1.A.
B.
C.
D.
E.
2.A. ____________________________________________________________________________
B. ____________________________________________________________________________
C. ____________________________________________________________________________
D. ____________________________________________________________________________
3.
4.A. ____________________________________________________________________________
B. ____________________________________________________________________________
C. ____________________________________________________________________________
D. ____________________________________________________________________________
E. ____________________________________________________________________________
F. ____________________________________________________________________________
G. ____________________________________________________________________________
5.A. _____________
B. _____________
C. _____________
D. _____________
E. _____________
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FORMS FOR EXERCISES
8-1. ACCOUNT CATEGORY DR/CR STATEMENT FOUND ON
8-2.
8-3.
Name __________________________________ Class ____________________ Date ____________________
SG-237
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SG-238
EXERCISES (CONCLUDED)
8-4.
8-5.
8-6.
8-7.
8-8.
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SG-239
END OF CHAPTER PROBLEMS
PROBLEM 8A-1 OR PROBLEM 8B-1
Allowance FICA&
Employee Marital Status Gross OASDI Medicare Federal Income Tax
(2)
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Date Account Titles and Description PR Dr. Cr.
Name __________________________________ Class ____________________ Date ____________________
SG-240
PROBLEM 8A-2 OR PROBLEM 8B-2
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SG-241
PROBLEM 8A-2 OR PROBLEM 8B-2 (CONCLUDED)
Date Account Titles and Description PR Dr. Cr.
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SG-242
PROBLEM 8A-3 OR PROBLEM 8B-3PROBLEM 8A-3 OR PROBLEM 8B-3
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Name __________________________________ Class ____________________ Date ____________________
SG-243
PROBLEM 8A-3 OR PROBLEM 8B-3 (CONCLUDED)
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Name __________________________________ Class ____________________ Date ____________________
SG-244
PROBLEM 8A-4 OR PROBLEM 8B-4
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Name __________________________________ Class ____________________ Date ____________________
SG-245
PROBLEM 8A-4 OR PROBLEM 8B-4 (CONTINUED)
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SG-246
PROBLEM 8A-4 OR PROBLEM 8B-4 (CONCLUDED)
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SG-247
PROBLEM 8A-5 OR PROBLEM 8B-5
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SG-248
PROBLEM 8A-5 OR PROBLEM 8B-5 (CONCLUDED)
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SG-249
CHAPTER 8SUMMARY PRACTICE TEST:
THE EMPLOYER’S TAX RESPONSIBILITIES:PRINCIPLES AND PROCEDURES
Part I Instructions
Fill in the blank(s) to complete the statement.
1. Form 941 is completed _______________.
2. The payroll tax expense for the employer is made up of _______________, _______________, andFUTA.
3. Data from the _______________ _______________ will provide the needed information to recordthe payroll in the general journal.
4. SUTA is usually paid _______________.
5. FUTA Payable is a _______________ found on the _______________ _______________.
6. Form 941 summarizes the taxes owed for _______________ and _______________.
7. _______________ _______________ _______________ will tell if a deposit is to be mademonthly or semiweekly for FIT and Social Security.
8. Form _______________ is prepared quarterly to summarize tax liabilities for FICA (Social Securityand Medicare) and FIT.
9. The _______________ _______________ _______________ _______________ is required to begiven to employees by January 31 following the year employed.
10. _______________ does not have a merit rating like SUTA.
Part II Instructions
Answer true or false to the following.
1. Prepaid Workers’ Compensation Insurance is a liability.
2. Payroll taxes are recorded as assets for a business.
3. Payroll Tax Expense is made up of FICA, SUTA, and FIT.
4. Frequency of deposits relating to Form 941 is based on amount of tax liability in look-back periods.
5. The normal balance of FIT payable is a debit.
6. The individual earnings record provides the data to prepare W-2s.
7. A tax calendar provides little help to the employer involving the payment of tax liabilities.
8. Form 941 is completed twice a year.
9. A year-end adjusting entry is needed for workers’ compensation.
10. Form 8109 relates only to Form 940.
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SG-250
Part III Instructions
Complete the following table:
ACCOUNT CATEGORY FOUND ON WHICH REPORT
1. Salaries Payable
2. FUTA Payable
3. SUTA Payable
4. OASDI Tax Payable—Medicare
5. FIT Payable
6. Office Salaries Expense
Part IV Instructions
Complete the following table:
4 QUARTERSLOOK-BACK PERIOD
LIABILITY PAYROLL PAID WEEKLY TAX PAID BY:
Sit. A $40,000 October ?
Sit. B 75,000
on Wed. ?
on Thurs. ?
on Fri ?
on Sat. ?
on Sun. ?
on Mon. ?
on Tues. ?
Why is the depositor in situation A classified as a monthly depositor while in situation B the depositor isclassified as semiweekly?
SOLUTIONS TO SUMMARY PRACTICE TEST
Part I
1. quarterly 6. FICA (OASDI and 2. FICA (OASDI and Medicare), FIT
Medicare), SUTA 7. Look-back periods3. payroll register 8. 9414. quarterly 9. Wage and Tax Statement5. liability, balance sheet 10. FUTA
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SG-251
Part III
1. Liability; Balance Sheet
2. Liability; Balance Sheet
3. Liability; Balance Sheet
4. Liability; Balance Sheet
5. Liability; Balance Sheet
6. Expense; Income Statement
Part IV
Situation A Nov. 15
B on Wed.
on Thurs.on Wed. of Week 2
on Fri.
on Sat.
on Sun. Due Fri. of that week
on Mon.
on Tues.
The depositor in situation A is classified as a monthly depositor because its tax liability of $40,000 during the look-back period was less than the $50,000 limit.
On the other hand, the depositor in situation B owed $75,000 during the look-back period. Since this is greater thanthe $50,000 limit, it was classified as a semiweekly depositor.
Part II
1. false 6. true
2. false 7. false
3. false 8. false
4. true 9. true
5. false 10. false
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SG-252
CONTINUING PROBLEM FOR CHAPTER 8SANCHEZ COMPUTER CENTER
SANCHEZ COMPUTER CENTERGENERAL JOURNAL
PAGE 5
Date Account Titles and Description PR Dr. Cr.
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SG-253
CONTINUING PROBLEM FOR CHAPTER 8SANCHEZ COMPUTER CENTER
SANCHEZ COMPUTER CENTERGENERAL JOURNAL
PAGE 6
Date Account Titles and Description PR Dr. Cr.
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SG-254
CONTINUING PROBLEM FOR CHAPTER 8SANCHEZ COMPUTER CENTER
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Name __________________________________ Class ____________________ Date ____________________
SG-255
CONTINUING PROBLEM FOR CHAPTER 8SANCHEZ COMPUTER CENTER
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Pearson Learning Solutions
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Distribution
Name __________________________________ Class ____________________ Date ____________________
SG-256
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Pearson Learning Solutions
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Distribution
Name __________________________________ Class ____________________ Date ____________________
SG-257
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SG-258
1. 2. 3. 4. 5.
SELF-REVIEW QUIZ 9-1
Sales and CashReceipts
9
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SG-259
Date Account Titles and Description PR Dr. Cr.
Date Explanation Post Debit Credit Dr. BalanceRef.
Date Explanation Post Debit Credit Dr. BalanceRef.
BERNIE COMPANYGENERAL JOURNAL PAGE 1
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGERNAME LEE CORP.
ADDRESS 118 MORRIS RD., BOSTON, MA 01935
NAME RING COMPANY
ADDRESS 31 NORRIS ROAD, BOSTON, MA 01935
SELF-REVIEW QUIZ 9-2
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BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PARTIAL GENERAL LEDGER
ACCOUNT RECEIVABLE ACCOUNT NO. 141
SALES ACCOUNT NO. 310
SALES RETURNS AND ALLOWANCES ACCOUNT NO. 312
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SELF-REVIEW QUIZ 9-3
MABEL CORPORATIONGENERAL JOURNAL
PAGE 3
Date Account Titles and Description PR Dr. Cr.
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PARTIAL GENERAL LEDGER
CASH ACCOUNT NO. 110
ACCOUNTS RECEIVABLE ACCOUNT NO. 120
STORE EQUIPMENT ACCOUNT NO. 130
SALES ACCOUNT NO. 410
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 6 0 0 00
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 7 0 0 00
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 6 0 0 00
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 7 0 0 00
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SALES DISCOUNT ACCOUNT NO. 420
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME IRENE WELCH
ADDRESS 10 RONG RD., BEVERLY, MA 01215
NAME JANIS FROSS
ADDRESS 81 FOSTER RD., BEVERLY, MA 09125
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
Date Explanation Post Debit Credit Dr. Balance200X Ref.
May 1 Balance � 2 0 0 00
Date Explanation Post Debit Credit Dr. Balance200X Ref.
May 1 Balance � 5 0 0 00
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CHAPTER 9FORMS FOR CLASSROOM DEMONSTRATION EXERCISES SET A OR SET B
1.
2.
3.A. ________ ________ ________
B. ________ ________ ________
C. ________ ________ ________
4.
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5.
PAGE 6
Date Account Titles and Description PR Dr. Cr.
BLUE CO.SCHEDULE OF ACCOUNTS RECEIVABLE
MAY 31, 200X
6.
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FORMS FOR EXERCISES
9-1.
Amazon.com Accounts Receivable 112
Bill Valley Co. Sales 412
9-2.
GENERAL JOURNAL
PAGE 1
Bass Co. Sales 411
Ronald Co. Accounts Receivable 112 Sales Returns & Allowances 412
Date Account Titles and Description PR Dr. Cr.
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SG-267
9-4.
PAGE 1
Date Account Titles and Description PR Dr. Cr.
9-3.
EXERCISES (CONTINUED)
EDNA CO.GENERAL JOURNAL
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ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER PARTIAL GENERAL LEDGER
Boston Co. Cash 111
Gary Co. Accounts Receivable 113
Edna Cares, Capital 311
Sales 411
Sales Returns &Allowances 412
Sales Discount 413
EDNA CO.SCHEDULE OF ACCOUNTS RECEIVABLE
JUNE 30, 200X
9-5.
Name __________________________________ Class ____________________ Date ____________________
SG-268
EXERCISES (CONCLUDED)
GENERAL JOURNAL (CONTINUED) PAGE 1
Date Account Titles and Description PR Dr. Cr.
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Date Account Titles and Description PR Dr. Cr.
END OF CHAPTER PROBLEMS
PROBLEM 9A-1 OR PROBLEM 9B-1
PIZZA AND MOREGENERAL JOURNAL
PAGE 1
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SG-270
PROBLEM 9A-1 OR PROBLEM 9B-1 (CONTINUED)
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME CINDY CO.
ADDRESS 942 MOSE ST., REVERE, MA 01938
Date Explanation Post Debit Credit Dr. BalanceRef.
Date Explanation Post Debit Credit Dr. BalanceRef.
Date Explanation Post Debit Credit Dr. BalanceRef.
NAME FRENCH CO.
ADDRESS 8 JOSS AVE., LYNN, MA 01947
NAME GROOM CO.
ADDRESS 10 LOST RD., TOPSFIELD, MA 01998
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BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PROBLEM 9A-1 OR PROBLEM 9B-1 (CONTINUED)
PIZZA AND MOREGENERAL LEDGER
ACCOUNTS RECEIVABLE ACCOUNT NO. 112
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PIZZA SALES ACCOUNT NO. 410
GROCERY SALES ACCOUNT NO. 411
SALES RETURNS AND ALLOWANCES ACCOUNT NO. 412
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PROBLEM 9A-1 OR PROBLEM 9B-1 (CONCLUDED)
PIZZA AND MORESCHEDULE OF ACCOUNTS RECEIVABLE
JUNE 30, 200X
PROBLEM 9A-2 OR PROBLEM 9B-2
TED’S AUTO SUPPLYGENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
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PROBLEM 9A-2 OR PROBLEM 9B-2 (CONTINUED)
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME LANCE CORNER
ADDRESS 9 ROE ST., BARTLETT, NH 01382
Date Explanation Post Debit Credit Dr. Balance200X Ref.
Nov 1 Balance � 4 0 0 00
Date Explanation Post Debit Credit Dr. Balance200X Ref.
Nov 1 Balance � 2 0 0 00
Date Explanation Post Debit Credit Dr. Balance200X Ref.
Nov 1 Balance � 1 0 0 0 00
NAME J. SETH
ADDRESS 22 REESE ST., LACONIA, NH 04321
NAME R. VOLAN
ADDRESS 12 ASTER RD., MERRIMACK, NH 02134
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SG-274
PROBLEM 9A-2 OR PROBLEM 9B-2 (CONTINUED)
TED’S AUTO SUPPLYPARTIAL GENERAL LEDGER
ACCOUNTS RECEIVABLE ACCOUNT NO. 110
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
Nov 1 Balance � 1 6 0 0 00
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
Nov 1 Balance � 1 6 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALES TAX PAYABLE ACCOUNT NO. 210
AUTO PARTS SALES ACCOUNT NO. 410
SALES RETURNS AND ALLOWANCES ACCOUNT NO. 420
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PROBLEM 9A-2 OR PROBLEM 9B-2 (CONCLUDED)
(3)
TED’S AUTO SUPPLYSCHEDULE OF ACCOUNTS RECEIVABLE
NOVEMBER 30, 200X
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SG-276
PROBLEM 9A-3 OR PROBLEM 9B-3(1,2)
PEAKER’S SNEAKER SHOPGENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
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PROBLEM 9A-3 OR PROBLEM 9B-3 (CONTINUED)(1,2)
PEAKER’S SNEAKER SHOPGENERAL JOURNAL
PAGE 3
Date Account Titles and Description PR Dr. Cr.
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SG-278
PROBLEM 9A-3 OR PROBLEM 9B-3 (CONTINUED)
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME B. DALE
ADDRESS 1822 RIVER RD., MEMPHIS, TN 09111
NAME RON LESTER
ADDRESS 18 MASS. AVE., SAN DIEGO, CA 01999
Date Explanation Post Debit Credit Dr. BalanceRef.
May 1 Balance � 8 0 0 00
Date Explanation Post Debit Credit Dr. Balance200X Ref.
May 1 Balance � 4 0 0 00
Date Explanation Post Debit Credit Dr. Balance200X Ref.
May 1 Balance � 6 0 0 00
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME PAM PRY
ADDRESS 918 MOORE DR., HOMEWOOD, IL 60430
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PROBLEM 9A-3 OR PROBLEM 9B-3 (CONTINUED)
NAME JIM ZON
ADDRESS 2 CHESTNUT ST., SWAMPSCOTT, MA 01970
Date Explanation Post Debit Credit Dr. Balance200X Ref.
May 1 Balance � 4 0 0 00
PEAKER’S SNEAKER SHOPPARTIAL GENERAL LEDGER
CASH ACCOUNT NO. 10
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 15 5 0 0 00
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PROBLEM 9A-3 OR PROBLEM 9B-3 (CONTINUED)
ACCOUNTS RECEIVABLE ACCOUNT NO. 12
SNEAKER RACK EQUIPMENT ACCOUNT NO. 14
MARK PEAKER, CAPITAL ACCOUNT NO. 30
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 1 0 0 0 00
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 2 2 0 0 00
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 40 0 0 0 00
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SG-281
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 2 2 0 0 00
SALES DISCOUNT ACCOUNT NO. 42
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
SALES RETURNS & ALLOWANCES ACCOUNT NO. 44
PROBLEM 9A-3 OR PROBLEM 9B-3 (CONTINUED)
SALES ACCOUNT NO. 40
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PROBLEM 9A-3 OR PROBLEM 9B-3 (CONCLUDED)
(3)
PEAKER’S SNEAKER SHOPSCHEDULE OF ACCOUNTS RECEIVABLE
MAY 31, 200X
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SG-283
PROBLEM 9A-4 OR PROBLEM 9B-4
BILL’S COSMETIC MARKETGENERAL JOURNAL
PAGE 1
Date Account Titles and Description PR Dr. Cr.
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SG-284
PROBLEM 9A-4 OR PROBLEM 9B-4 (CONTINUED)
BILL’S COSMETIC MARKETGENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
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SG-285
PROBLEM 9A-4 OR PROBLEM 9B-4 (CONTINUED)
Date Explanation Post Debit Credit DebitRef. Balance
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME ALICE KOY CO.
ADDRESS 2 RYAN RD., BUFFALO, NY 09113
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SG-286
PROBLEM 9A-4 OR PROBLEM 9B-4 (CONTINUED)
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME RUSTY NEAL CO.
ADDRESS 4 REEL RD., LANCASTER, PA 04332
Date Explanation Post Debit Credit DebitRef. Balance
Date Explanation Post Debit Credit DebitRef. Balance
Date Explanation Post Debit Credit DebitRef. Balance
NAME MARIKA SANCHEZ CO.
ADDRESS 14 BONE DR., ENGLEWOOD CLIFFS, NJ 07632
NAME JEFF TONG CO.
ADDRESS 2 MARION RD., BOSTON, MA 01981
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SG-287
PROBLEM 9A-4 OR PROBLEM 9B-4 (CONTINUED)
BILL’S COSMETIC MARKETGENERAL LEDGER
CASH ACCOUNT NO. 10
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCOUNTS RECEIVABLE ACCOUNT NO. 12
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SG-288
LIPSTICK SALES ACCOUNT NO. 40
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALES TAX PAYABLE ACCOUNT NO. 20
BILL MURRAY, CAPITAL ACCOUNT NO. 30
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PROBLEM 9A-4 OR PROBLEM 9B-4 (CONTINUED)
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SG-289
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALES RETURNS & ALLOWANCES, LIPSTICK ACCOUNT NO. 42
EYE SHADOW SALES ACCOUNT NO. 44
(3) BILL’S COSMETIC MARKETSCHEDULE OF ACCOUNTS RECEIVABLE
APRIL 30, 200X
PROBLEM 9A-4 OR PROBLEM 9B-4 (CONCLUDED)
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SG-290
CHAPTER 9SUMMARY PRACTICE TESTSALES AND CASH RECEIPTS
Part I Instructions
Fill in the blank(s) to complete the statement.
1. The normal balance of sales returns and allowances is _______________.2. _______________ _______________ and _______________ is a contra-revenue account.3. Sales is a(n) _______________ account.4. A discount period is less time than the _______________ _______________.5. A debit to accounts receivable and a credit to sales records the sale of merchandise _______________
_______________.6. The _______________ _______________ _______________ _______________ lists in
alphabetical order an account for each customer.7. _______________ _______________ in the general ledger is called the controlling account.8. The (�) in the PR column of the general journal indicates that the accounts receivable ledger has
been updated _______________ _______________ _______________.9. Issuing _______________ _______________ results in a debit to sales returns and allowancs and a
credit to accounts receivable.10. In a wholesale company there is no _______________ tax.11. Sales Tax Payable is a(n) _______________ in the general ledger.12. Cash sales result in a(n) _______________ to cash and a _______________ to sales.13. Sales Returns and Allowances is a(n) _______________ _______________ account.14. The _______________ _______________ has to be posted to the general as well as the sales ledger.15. No _______________ _______________ are taken on sales tax.16. A(n) _______________ _______________ _______________ _______________ lists the ending
balances from the accounts receivable ledger.
Part II
Complete the following chart:
Transaction Dr. Cr.
1. Sale for cash ________________ ______________
2. Issued credit memo ________________ ______________
3. Sale on account ________________ ______________
4. Received cash payment less discount ________________ ______________
Partial Chart of Accounts
10 Cash 40 Sales20 Accounts Receivable 42 Sales Discount
44 Sales Returns and Allowances
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Part III Instructions
Answer true or false to the following statements.
1. A schedule of accounts receivable shows what customers do not owe.2. A perpetual system would keep continual track of inventory.3. Sales Discount policies can never change.4. Sales Tax Payable is an asset.5. Sales Discount is a contra asset.6. Issuing a credit memorandum results in Sales, Returns and Allowances decreasing with Accounts
Receivable increasing.7. The sum of the accounts receivable subsidiary ledger is equal to the balance in the controlling account
at the end of the month.8. The buyer issues the credit memo.9. The accounts receivable subsidiary ledger is listed in numerical order.
10. Sales Discount is a contra-revenue account.11. Net sales = gross sales − SRA-SD.12. The normal balance of an Accounts Receivable ledger is a debit.13. Discounts are taken on sales tax.14. 2/10, N/30 means a cash discount is good for 30 days.15. The accounts receivable subsidiary ledger is always located in the general ledger.16. Gross profit plus operating expenses equals net income.17. A credit period is longer than the discount period.18. In the accounts receivable subsidiary ledger each account is debited to record amounts customers owe.19. Sales Tax Payable is an asset.
CHAPTER 9SOLUTIONS TO SUMMARY PRACTICE TEST
Part I
1. debit 9. credit memorandum2. Sales Returns, Allowances 10. sales3. revenue 11. liability4. credit period 12. debit, credit5. on account 13. contra-revenue6. accounts receivable subsidiary ledger 14. journalized transaction7. Accounts Receivable 15. cash discounts8. during the month 16. schedule of accounts receivable
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Part II
Dr. Cr.
1. 10 40
2. 44 20
3. 20 40
4. 10 20
42
Part III1. false 11. true
2. true 12. true
3. false 13. false
4. false 14. false
5. false 15. false
6. false 16. false
7. true 17. true
8. false 18. true
9. false 19. false
10. true
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SG-293
CONTINUING PROBLEM FOR CHAPTER 9
SANCHEZ COMPUTER CENTERGENERAL JOURNAL
PAGE 4
Date Account Titles and Description PR Dr. Cr.
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SG-294
SANCHEZ COMPUTER CENTERSCHEDULE OF ACCOUNTS RECEIVABLE
1/31/0X
CASH ACCOUNT NO. 1000
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
1/1 0X Balance Forward � 3 3 3 6 65
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SG-295
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
1/1 0X Balance Forward � 13 6 0 0 00
SANCHEZ COMPUTER CENTERPARTIAL GENERAL LEDGER
ACCOUNTS RECEIVABLE ACCOUNT NO. 1020
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALES ACCOUNT NO. 4010
SALES RETURNS & ALLOWANCES ACCOUNT NO. 4020
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SG-296
NAME TAYLOR GOLF ACCOUNT NO. 100
ADDRESS 1010 MOCKINGBIRD LANE, CARLSBAD, CA 92008
Date Explanation Post Debit Credit Dr. BalanceRef.
1/1 0X Balance forward � 2 9 0 0 00
Date Explanation Post Debit Credit Dr. BalanceRef.
1/1 0X Balance � 6 8 0 0 00
NAME VITA NEEDLE ACCOUNT NO. 101
ADDRESS 144 CANTATA, IRVINE, CA 92606
ACCOUNTS RECEIVABLESUBSIDIARY LEDGER
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALES DISCOUNTS ACCOUNT NO. 4030
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SG-297
NAME ANTHONY J. PITALE ACCOUNT NO. 104
ADDRESS 600 NEWPORT BEACH, NEWPORT, CA 91600
Date Explanation Post Debit Credit Dr. BalanceRef.
Date Explanation Post Debit Credit Dr. BalanceRef.
1/1 0X Balance � 3 9 0 0 00
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME ACCU PAC ACCOUNT NO. 103
ADDRESS 1717 JORDAN ST., SAN CLEMENTE, CA 91607
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SG-298
SELF-REVIEW QUIZ 10-1
Purchases andCash Payments
10
1. –––––––––– 2. –––––––––– 3. –––––––––– 4. –––––––––– 5. ––––––––––
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SG-299
Date Account Titles and Description PR Dr. Cr.
SELF-REVIEW QUIZ 10-2
MUNROE CO.GENERAL JOURNAL
PAGE 1
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SG-300
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME JOHN BUTLER COMPANY
ADDRESS 18 REED RD., HOMEWOOD, IL 60430
Date Explanation Post Debit Credit Cr. BalanceRef.
Date Explanation Post Debit Credit Cr. BalanceRef.
NAME FLYNN COMPANY
ADDRESS 15 FOSS AVE., ENGLEWOOD CLIFFS, NJ 07632
PARTIAL GENERAL LEDGER
EQUIPMENT ACCOUNT NO. 121
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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SG-301
ACCOUNTS PAYABLE ACCOUNT NO. 212
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PURCHASES ACCOUNT NO. 512
PURCHASES RETURNS AND ALLOWANCES ACCOUNT NO. 513
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SG-302
PAGE 2
Date Account Titles and Description PR Dr. Cr.
SELF-REVIEW QUIZ 10-3
MELISSA COMPANYGENERAL JOURNAL
NAME BOB FINKELSTEIN
ADDRESS 112 FLYING HIGHWAY, TRENTON, NJ 00861
Date Explanation Post Debit Credit Cr. Balance200X Ref.
June 1 Balance � 3 0 0 00
Date Explanation Post Debit Credit Cr. Balance200X Ref.
June 1 Balance � 2 0 0 00
NAME AL JEEP
ADDRESS 118 WANG RD., SAUGUS, MA 01432
ACCOUNTS PAYABLE SUBSIDARY LEDGER
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SG-303
PARTIAL GENERAL LEDGER
CASH ACCOUNT NO. 110
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
June 1 Balance � 7 0 0 00
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
June 1 Balance � 5 0 0 00
ACCOUNTS PAYABLE ACCOUNT NO. 210
PURCHASES DISCOUNT ACCOUNT NO. 511
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ADVERTISING EXPENSE ACCOUNT NO. 610
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SELF-REVIEW QUIZ 10-4
PETE’S CLOCK SHOPGENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
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PETE’S CLOCK SHOPGENERAL JOURNAL
PAGE 3
Date Account Titles and Description PR Dr. Cr.
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CHAPTER 10FORMS FOR CLASSROOM DEMONSTRATION EXERCISES SET A OR SET B
1. A. ____________________
B. ____________________
C. ____________________
2.
3. ____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
4. A. ____________________
B. ____________________
C. ____________________
5.
D. ____________________
E. ____________________
F. ____________________
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6.WEB.COM
SCHEDULE OF ACCOUNTS PAYABLEMAY 31, 200X
Date Account Titles and Description PR Dr. Cr.
FORM FOR CLASSROOM DEMONSTRATION EXERCISES 8, 9, 10
7.
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FORMS FOR EXERCISES
10-1.
Lee’s.com Equipment 120
Lane.com Accounts Payable 210
Sail.com Purchases 510
10-2. PAGE 1
Purchases Returns andReel Co. Accounts Payable 211 Allowances 513
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Date Account Titles and Description PR Dr. Cr.
EXERCISES (CONTINUED)
10-3. PAGE 2
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
A. James
1,000
B. Foss
400
J. Ranch
900
B. Swanson
100
PARTIAL GENERAL LEDGER
Cash 110
3,000
Accounts Payable 210
2,400
Purchases Discount 511
Advertising Expense 610
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EXERCISES (CONTINUED)
10-4.
MORGAN’S CLOTHINGSCHEDULE OF ACCOUNTS PAYABLE
APRIL 30, 200X
Accounts Payable 210
10-5.
Accounts Affected Category Rules
10-6.
↑ ↓
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Date Account Titles and Description PR Dr. Cr.
FORM FOR EXERCISES 10-7, 10-8, 10-9, 10-10
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CALCULATIONS PAGE FOR 10-7 TO 10-10
Date Account Titles and Description PR Dr. Cr.
FORM FOR EXERCISES 10-7, 10-8, 10-9, 10-10 (CONTINUED)
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END OF CHAPTER PROBLEMS
PROBLEM 10A-1 OR PROBLEM 10B-1
RON’S SKATE SHOPGENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
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PROBLEM 10A-1 OR PROBLEM 10B-1 (CONTINUED)
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME MAIL.COM
ADDRESS 12 SMITH ST., DEARBORN, MI 09113
Date Explanation Post Debit Credit Cr. BalanceRef.
Date Explanation Post Debit Credit Cr. BalanceRef.
Date Explanation Post Debit Credit Cr. BalanceRef.
NAME NORTON CO.
ADDRESS 1 RANTOUL RD., CHARLOTTE, NC 01114
NAME ROLO CO.
ADDRESS 2 WEST RD., LYNN, MA 01471
PARTIAL GENERAL LEDGER
STORE SUPPLIES ACCOUNT NO. 115
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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PROBLEM 10A-1 OR PROBLEM 10B-1 (CONCLUDED)
STORE EQUIPMENT ACCOUNT NO. 121
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCOUNTS PAYABLE ACCOUNT NO. 210
PURCHASES ACCOUNT NO. 510
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PROBLEM 10A-2 OR PROBLEM 10B-2
MABEL’S NATURAL FOODPAGE 2
Date Account Titles and Description PR Dr. Cr.
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PROBLEM 10A-2 OR PROBLEM 10B-2 (CONTINUED)
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME ATON CO.
ADDRESS 11 LYNNWAY AVE., NEWPORT, RI 03112
Date Explanation Post Debit Credit Cr. Balance200X Ref.
May 1 Balance � 4 0 0 00
Date Explanation Post Debit Credit Cr. Balance200X Ref.
May 1 Balance � 6 0 0 00
Date Explanation Post Debit Credit Cr. Balance200X Ref.
May 1 Balance � 5 0 0 00
Date Explanation Post Debit Credit Cr. Balance200X Ref.
May 1 Balance � 1 2 0 0 00
NAME BROWARD CO.
ADDRESS 21 RIVER ST., ANAHEIM, CA 43110
NAME MIDDEN CO.
ADDRESS 10 ASTER RD., DUBUQUE, IA 80021
NAME RELAR CO.
ADDRESS 22 GERALD RD., SMITH, CO 43138
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PROBLEM 10A-2 OR PROBLEM 10B-2 (CONTINUED)
PARTIAL GENERAL LEDGER
STORE SUPPLIES ACCOUNT NO. 110
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 2 7 0 0 00
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 16 0 0 0 00
OFFICE EQUIPMENT ACCOUNT NO. 120
ACCOUNTS PAYABLE ACCOUNT NO. 210
PURCHASES ACCOUNT NO. 510
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PROBLEM 10A-2 OR PROBLEM 10B-2 (CONCLUDED)
PURCHASES RETURNS AND ALLOWANCES ACCOUNT NO. 512
MABEL’S NATURAL FOOD
SCHEDULE OF ACCOUNTS PAYABLEMAY 31, 200X
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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PROBLEM 10A-3 OR PROBLEM 10B-3
PAGE 5
Date Account Titles and Description PR Dr. Cr.
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PROBLEM 10A-3 OR PROBLEM 10B-3 (CONTINUED)
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME ALVIN CO.
ADDRESS 1 REACH RD., IPSWICH, MA 01932
Date Explanation Post Debit Credit Cr. Balance200X Ref.
May 1 Balance � 1 2 0 0 00
Date Explanation Post Debit Credit Cr. Balance200X Ref.
May 1 Balance � 6 0 0 00
Date Explanation Post Debit Credit Cr. Balance200X Ref.
May 1 Balance � 8 0 0 00
Date Explanation Post Debit Credit Cr. Balance200X Ref.
May 1 Balance � 1 4 0 0 00
NAME HENRY CO.
ADDRESS 1 RALPH RD., REVERE, MA 01321
NAME SOY CO.
ADDRESS 7 PLYMOUTH AVE., GLENN, NH 01218
NAME XON CO.
ADDRESS 22 REY RD., BOCA RATON, FL 99132
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PROBLEM 10A-3 OR PROBLEM 10B-3 (CONTINUED)
PARTIAL GENERAL LEDGER
CASH ACCOUNT NO. 110
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 17 0 0 0 00
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 4 0 0 0 00
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
DELIVERY TRUCK ACCOUNT NO. 150
ACCOUNTS PAYABLE ACCOUNT NO. 210
COMPUTER PURCHASES ACCOUNT NO. 510
SG-322
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PROBLEM 10A-3 OR PROBLEM 10B-3 (CONCLUDED)
COMPUTER PURCHASES DISCOUNT ACCOUNT NO. 511
RENT EXPENSE ACCOUNT NO. 610
UTILITIES EXPENSE ACCOUNT NO. 620
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
JONES COMPUTER CENTERSCHEDULE OF ACCOUNTS PAYABLE
MAY 31, 200X
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PROBLEM 10A-4 OR PROBLEM 10B-4
(1)
ABBY’S TOY HOUSEGENERAL JOURNAL
PAGE 1
Date Account Titles and Description PR Dr. Cr.
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SG-325
PAGE 2
Date Account Titles and Description PR Dr. Cr.
PROBLEM 10A-4 OR PROBLEM 10B-4 (CONTINUED)
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SG-326
PAGE 3
Date Account Titles and Description PR Dr. Cr.
PROBLEM 10A-4 OR PROBLEM 10B-4 (CONTINUED)
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PAGE 4
Date Account Titles and Description PR Dr. Cr.
PROBLEM 10A-4 OR PROBLEM 10B-4 (CONTINUED)
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PROBLEM 10A-4 OR PROBLEM 10B-4 (CONTINUED)
PAGE 5
Date Account Titles and Description PR Dr. Cr.
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PROBLEM 10A-4 OR PROBLEM 10B-4 (CONTINUED)
(2) ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME MINNIE KATZ
ADDRESS 87 GARFIELD AVE., REVERE, MA 01245
Date Explanation Post Debit Credit Cr. BalanceRef.
Date Explanation Post Debit Credit Cr. BalanceRef.
Date Explanation Post Debit Credit Cr. BalanceRef.
Date Explanation Post Debit Credit Cr. BalanceRef.
NAME SAM KATZ GARAGE
ADDRESS 22 REGIS RD., BOSTON, MA 01950
NAME EARL MILLER CO.
ADDRESS 22 RETTER ST., SAN DIEGO, CA 01211
NAME WOODY SMITH
ADDRESS 2 SPRING ST., WEERS, ND 02118
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PROBLEM 10A-4 OR PROBLEM 10B-4 (CONTINUED)
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME BILL BURTON
ADDRESS 24 RYAN RD., BUIKE, OH 02183
Date Explanation Post Debit Credit Dr. BalanceRef.
Date Explanation Post Debit Credit Dr. BalanceRef.
Date Explanation Post Debit Credit Dr. BalanceRef.
NAME BONNIE FLOW CO.
ADDRESS 2 SMITH RD., DALLAS, TX 22210
NAME JIM REX
ADDRESS 1 SCHOOL ST., CLEVELAND, OH 22441
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PROBLEM 10A-4 OR PROBLEM 10B-4 (CONTINUED)NAME AMY ROSE
ADDRESS 18 VEEK RD., CHESTER, CT 80111
Date Explanation Post Debit Credit Dr. BalanceRef.
GENERAL LEDGER
CASH ACCOUNT NO. 110
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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DELIVERY TRUCK ACCOUNT NO. 121
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCOUNTS RECEIVABLE ACCOUNT NO. 112
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PROBLEM 10A-4 OR PROBLEM 10B-4 (CONTINUED)
PREPAID RENT ACCOUNT NO. 114
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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SG-333
ACCOUNTS PAYABLE ACCOUNT NO. 210
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PROBLEM 10A-4 OR PROBLEM 10B-4 (CONTINUED)
TOY SALES ACCOUNT NO. 410
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
A. ELLEN, CAPITAL ACCOUNT NO. 310
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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SG-334
SALES RETURNS AND ALLOWANCES ACCOUNT NO. 412
TOY PURCHASES ACCOUNT NO. 510
PURCHASES RETURNS AND ALLOWANCES ACCOUNT NO. 512
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALES DISCOUNTS ACCOUNT NO. 414
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PROBLEM 10A-4 OR PROBLEM 10B-4 (CONTINUED)
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SG-335
PROBLEM 10A-4 OR PROBLEM 10B-4 (CONTINUED)
PURCHASES DISCOUNT ACCOUNT NO. 514
SALARIES EXPENSE ACCOUNT NO. 610
CLEANING EXPENSE ACCOUNT NO. 612
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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PROBLEM 10A-4 OR PROBLEM 10B-4 (CONCLUDED)
(3)
ABBY’S TOY HOUSESCHEDULE OF ACCOUNTS RECEIVABLE
MARCH 31, 200X
(3)
ABBY’S TOY HOUSESCHEDULE OF ACCOUNTS PAYABLE
MARCH 31, 200X
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PAGE 3
Date Account Titles and Description PR Dr. Cr.
PROBLEM 10A-5 OR PROBLEM 10B-5
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SG-338
PAGE 4
Date Account Titles and Description PR Dr. Cr.
PROBLEM 10A-5 OR PROBLEM 10B-5 (CONCLUDED)
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CHAPTER 10SUMMARY PRACTICE TEST
PURCHASES AND CASH PAYMENTS
Part I Instructions
Fill in the blank(s) to complete the statement.
1. The trend in accounting is more to inventory rather than inventory.
2. Purchase discounts are categorized as a(n) account.
3. The Purchases account has a balance.
4. Purchases are defined as merchandise for to customers.
5. The accounts payable subsidiary ledger represents a potential of cash.
6. The controlling account in the general ledger for the accounts payable subsidiary ledger is called.
7. The accounts payable subsidiary ledger would be recorded .
8. The balance in the Accounts Payable controlling account should be equal to the sum of the accountspayable subsidiary ledger accounts
.
9. In perpetual inventory, purchases are recorded as .
10. The � in the reference column indicates that the has been updated.
11. A(n) that is issued means the buyer owes less money, asmerchandise is being returned or an allowance received.
12. A debit memorandum issued or a credit memorandum received results in a(n) toAccounts Payable and a credit to Purchases, Returns and Allowances.
13. List price � net price = amount.
14. The accounts payable subsidiary ledger is listed in .
15. Purchases Returns and Allowances is increased by a(n) .
16. Cost of goods sold is classified as a(n) .
17. In a perpetual inventory system, freight is recorded in the account.
18. Purchases Discounts is increased by .
19. A(n) provides the purchasing department the information tothen prepare a purchase order.
20. A(n) is made out after a company inspects receivedshipments.
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SG-340
Part II
Complete the following table:
FinancialAccount Title CAT ↑ ↓ Statement
1. Purchases
2. Purchase Discount
3. Accounts Receivable
4. Cost of Goods Sold
5. Salary Expenses
6. Accounts Payable
7. Purchase Returns and Allowances
8. Cash
9. Supplies
10. Sale Discount
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SG-341
Part III Instructions
Answer true or false to the following statements.
1. F.O.B. shipping point means the seller is responsible to cover shipping costs.
2. The Purchases account is a contra-cost of goods sold account.
3. Purchases discounts are the result of paying for equipment within the discount period.
4. F.O.B. Destination means the seller is responsible to cover shipping costs.
5. Purchases discounts are taken on freight.
6. Merchandise inventory is an asset.
7. Cost of goods sold is a cost.
8. The balance in Accounts Payable, the controlling account, will be equal to the sum of the accountsreceivable subsidiary ledger at the end of the month.
9. A purchase order is completed after the purchase requisition.
10. On receiving a purchase order, the seller may issue a sales invoice.
11. The normal balance of Purchases Discount is a debit balance.
12. The seller will often issue a debit memorandum to the buyer.
13. Cost of goods sold is used in a periodic inventory system.
14. Returned equipment by a buyer results in a change in Purchases Returns and Allowances.
15. Trade discounts do not occur because of early payments of one’s bills.
16. A seller’s sales discount on purchases is the buyer’s purchases discount.
17. Buying of equipment on account is only recorded in the general ledger.
18. On receiving a debit memorandum, the seller will issue a credit memorandum.
19. Returns in a perpetual accounting system are recorded in the merchandise inventory account.
20. Purchases are contra costs.
CHAPTER 10SOLUTIONS TO SUMMARY PRACTICE TEST
Part I
1. perpetual, periodic
2. contra-cost
3. debit
4. resale
5. outflow
6. accounts payable
7. daily
8. at end of month
9. merchandise inventory
10. accounts payable subsidiary ledger
11. debit memorandum
12. debit
13. trade discount
14. alphabetical order
15. credit
16. cost
17. merchandise inventory
18. credits
19. purchase requisition
20. receiving report
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Part II1. cost Dr Cr Income Statement
2. contra-cost Cr Dr Income Statement
3. asset Dr Cr Balance Sheet
4. cost Dr Cr Income Statement
5. expense Dr Cr Income Statement
6. liability Cr Dr Balance Sheet
7. contra-cost Cr Dr Income Statement
8. asset Dr Cr Balance Sheet
9. asset Dr Cr Balance Sheet
10. contra-revenue Dr Cr Income Statement
1. false
2. false
3. true
4. true
5. false
6. true
7. true
8. false
9. true
10. true
11. false
12. false
13. false
14. true
15. true
16. true
17. false
18. true
19. true
20. false
Part III
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SG-343
CONTINUING PROBLEM FOR CHAPTER 10
SANCHEZ COMPUTER CENTERGENERAL JOURNAL
PAGE 5
Date Account Titles and Description PR Dr. Cr.
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SG-344
PARTIAL GENERAL LEDGER
CASH ACCOUNT NO. 1000
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
2/1 0X Balance forward � 15 1 1 6 65
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
2/1 0X Balance forward � 1 3 2 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SUPPLIES ACCOUNT NO. 1030
MERCHANDISE INVENTORY ACCOUNT NO. 1040
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PREPAID RENT ACCOUNT NO. 1025
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
2/1 0X Balance forward � 1 6 0 0 00
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
2/1 0X Balance forward � 2 0 5 0 00
ACCOUNTS PAYABLE ACCOUNT NO. 2000
PURCHASES ACCOUNT NO. 6000
PURCHASE DISCOUNTS ACCOUNT NO. 6020
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PURCHASE RETURNS AND ALLOWANCES ACCOUNT NO. 6010
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SG-346
SANCHEZ COMPUTER CENTERSCHEDULE OF ACCOUNTS PAYABLE
2/28/0X
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME MULTI SYSTEMS, INC. # 6A3
ADDRESS 1919 MORAN ST., ANAHEIM, CA 92606
Date Explanation Post Debit Credit Cr. BalanceRef.
2/1 0X Balance forward � 5 0 00
Date Explanation Post Debit Credit Cr. BalanceRef.
2/1 0X Balance forward � 4 5 0 00
NAME OFFICE DEPOT # 6A4
ADDRESS 460 ESCONDIDO BLVD., ESCONDIDO, CA 92025
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NAME SAN DIEGO ELECTRIC # 6A5
ADDRESS 606 INDUSTRIAL ST., SAN DIEGO, CA 92121
NAME PAC BELL # 6A6
ADDRESS 101 BELL AVE., SAN DIEGO, CA 92101
NAME COMPUTER CONNECTION # 6A7
ADDRESS 1020 WIL LANE, LOS ANGELES, CA 92405
Date Explanation Post Debit Credit Cr. BalanceRef.
Date Explanation Post Debit Credit Cr. BalanceRef.
2/1 0X Balance forward � 1 5 0 00
Date Explanation Post Debit Credit Cr. BalanceRef.
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SG-348
NAME SYSTEM DESIGN FURNITURE # 6A8
ADDRESS 2070 FIRST ST., SAN DIEGO, CA 92101
Date Explanation Post Debit Credit Cr. BalanceRef.
2/1 0X Balance forward � 1 4 0 0 00
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APPENDIX 10AFORMS FOR CLASSROOM DEMONSTRATION PROBLEM — SPECIAL JOURNALS
J. LING CO.SALES JOURNAL
PAGE 1
Date Account Debited Terms Invoice No. Post Dr. Acc. Receivable
Ref. Cr. Sales
Sales AccountsSundry
Date Cash Discounts Receivable Sales Account AmountDr. Dr. Cr. Cr. Name PR Cr.
CASH RECEIPTS JOURNAL PAGE 1
Accounts Sundry Dr.Date Account Terms PR Payable Purchases
Credited Cr. Dr. Account PR Amount
PURCHASES JOURNAL PAGE 1
CASH PAYMENTS JOURNAL PAGE 1
Sundry Accounts PurchasesDate Check Accounts Debited PR Account Payable Discounts Cash
No. Dr. Dr. Cr. Cr.
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ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME BALDER CO.
ADDRESS 1 ROCK RD., DENVER, CO 66083
Date Explanation Post Debit Credit Dr. BalanceRef.
Date Explanation Post Debit Credit Dr. BalanceRef.
NAME LEWIS CO.
ADDRESS 15 SMITH AVE., REVERE, MA 01545
DEMONSTRATION PROBLEM (CONTINUED)
GENERAL JOURNALPAGE 1
Date Account Titles and Description PR Dr. Cr.
SG-350
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DEMONSTRATION PROBLEM (CONCLUDED)
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME CASE CO.
ADDRESS 1 LONG RD., MARLBOROUGH, MA 01545
Date Explanation Post Debit Credit Cr. BalanceRef.
Date Explanation Post Debit Credit Cr. BalanceRef.
NAME NOONE CO.
ADDRESS 11 MILL RD., MALDEN, OK 01143
PARTIAL GENERAL LEDGER
Cash 111 Sales 410 Purchases Discounts 530
Accounts Receivable 112 Sales Returns & Allowances 420 Salaries Expense 610
Equipment 116 Sales Discount 430
Accounts Payable 210 Purchases 510
Purchases Returns &J. Ling, Capital 310 Allowances 520
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PAGE 1
Date Account Titles and Description PR Dr. Cr.
(1,2)
FOOD.COMGENERAL JOURNAL
CHAPTER 10A APPENDIX FORMS
PROBLEM A-1
(1,2)
FOOD.COMSALES JOURNAL
PAGE 1
Accounts Pizza GroceryDate Account Debited Invoice Receivable Sales Sales
No. PR Dr. Cr. Cr.
SG-352
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Date Explanation Post Debit Credit Dr. BalanceRef.
PROBLEM A-1 (CONTINUED)
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME DUNCAN CO.
ADDRESS 942 MOSE ST., REVERE, MA 01938
Date Explanation Post Debit Credit Dr. BalanceRef.
NAME LONG CO.
ADDRESS 8 JOSS AVE., LYNN, MA 01947
Date Explanation Post Debit Credit Dr. BalanceRef.
NAME SUE MOORE CO.
ADDRESS 10 LOST RD., TOPSFIELD, MA 01998
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ACCOUNTS RECEIVABLE ACCOUNT NO. 112
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PIZZA SALES ACCOUNT NO. 410
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
GROCERY SALES ACCOUNT NO. 411
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALES RETURNS AND ALLOWANCES ACCOUNT NO. 412
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PROBLEM A-1 (CONTINUED)
FOOD.COMGENERAL LEDGER
SG-354
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PROBLEM A-1 (CONCLUDED)
FOOD.COMSCHEDULE OF ACCOUNTS RECEIVABLE
JUNE 30, 200X
PROBLEM A-2
(1,2)
TED’S AUTO SUPPLYSALES JOURNAL
PAGE 4
Customer’s Accounts Sales Tax Auto PartsDate Name Invoice Receivable Payable Sales
Account Receivable No. PR Dr. Cr. Cr.
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PROBLEM A-2 (CONTINUED)
(1,2)
TED’S AUTO SUPPLYGENERAL JOURNAL
PAGE 2
Date Account Titles and Description PR Dr. Cr.
SG-356
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NAME LANCE CORNER
ADDRESS 9 ROE ST., BARTLETT, NH 01382
Date Explanation Post Debit Credit Dr. Balance200X Ref.
Nov 1 Balance � 4 0 0 00
NAME J. SETH
ADDRESS 22 REESE ST., LACONIA, NH 04321
Date Explanation Post Debit Credit Dr. Balance200X Ref.
Nov 1 Balance � 2 0 0 00
NAME R. VOLAN
ADDRESS 12 ASTER RD., MERRIMACK, NH 02134
Date Explanation Post Debit Credit Dr. Balance200X Ref.
Nov 1 Balance � 1 0 0 0 00
PROBLEM A-2 (CONTINUED)
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
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PROBLEM A-2 (CONTINUED)
TED’S AUTO SUPPLYGENERAL JOURNAL
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
Nov 1 Balance � 1 6 0 0 00
ACCOUNTS RECEIVABLE ACCOUNT NO. 110
SALES TAX PAYABLE ACCOUNT NO. 210
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
Nov 1 Balance � 1 6 0 0 00
AUTO PARTS SALES ACCOUNT NO. 410
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALES RETURNS AND ALLOWANCES ACCOUNT NO. 420
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SG-358
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PROBLEM A-2 (CONCLUDED)
(3)
TED’S AUTO SUPPLYSCHEDULE OF ACCOUNTS RECEIVABLE
NOVEMBER 30, 200X
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Name __________________________________ Class ____________________ Date ____________________
SG-360SG-360
PROBLEM A-3
SKA
TES.
CO
MPU
RC
HA
SES
JOU
RN
AL
PAG
E 3
Acc
ount
sSu
ndry
Dr.
Acc
ount
Dat
e of
Inv.
Paya
ble
Purc
hase
sD
ate
Cre
dite
dIn
voic
eN
o.Te
rms
PRC
r.D
r.A
ccou
ntPR
Am
ount
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PROBLEM A-3 (CONTINUED)
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME MAIL.COM
ADDRESS 12 SMITH ST., DEARBORN, MI 09113
Date Explanation Post Debit Credit Cr. BalanceRef.
Date Explanation Post Debit Credit Cr. BalanceRef.
Date Explanation Post Debit Credit Cr. BalanceRef.
NAME NORTON CO.
ADDRESS 1 RANTOUL RD., CHARLOTTE, NC 01114
NAME ROLO CO.
ADDRESS 2 WEST RD., LYNN, MA 01471
PARTIAL GENERAL LEDGER
STORE SUPPLIES ACCOUNT NO. 115
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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SG-362SG-362
PROBLEM A-3 (CONCLUDED)
STORE EQUIPMENT ACCOUNT NO. 121
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCOUNTS PAYABLE ACCOUNT NO. 210
PURCHASES ACCOUNT NO. 510
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PROBLEM A-4
MA
BEL
’S N
ATU
RA
L FO
OD
STO
RE
PUR
CH
ASE
S JO
UR
NA
LPA
GE
10
Acc
ount
sSt
ore
Sund
ry D
r.A
ccou
ntD
ate
ofIn
v.Pa
yabl
ePu
rcha
ses
Supp
lies
Dat
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redi
ted
Invo
ice
No.
Term
sPR
Cr.
Dr.
Dr.
Acc
ount
PRA
mou
nt
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SG-364SG-364
PROBLEM A-4 (CONTINUED)
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME ATON CO.
ADDRESS 11 LYNNWAY AVE., NEWPORT, RI 03112
Date Explanation Post Debit Credit Cr. Balance200X Ref.
May 1 Balance � 4 0 0 00
Date Explanation Post Debit Credit Cr. Balance200X Ref.
May 1 Balance � 6 0 0 00
Date Explanation Post Debit Credit Cr. Balance200X Ref.
May 1 Balance � 5 0 0 00
Date Explanation Post Debit Credit Cr. Balance200X Ref.
May 1 Balance � 1 2 0 0 00
NAME BROWARD CO.
ADDRESS 21 RIVER ST., ANAHEIM, CA 43110
NAME MIDDEN CO.
ADDRESS 10 ASTER RD., DUBUQUE, IA 80021
NAME RELAR CO.
ADDRESS 22 GERALD RD., SMITH, CO 43138
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SG-365
PROBLEM A-4 (CONTINUED)
PARTIAL GENERAL LEDGER
STORE SUPPLIES ACCOUNT NO. 110
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 2 7 0 0 00
BalanceDate Explanation Post Debit Credit200X Ref. Debit Credit
May 1 Balance � 16 7 0 0 00
OFFICE EQUIPMENT ACCOUNT NO. 120
ACCOUNTS PAYABLE ACCOUNT NO. 210
PURCHASES ACCOUNT NO. 510
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SG-366SG-366
PROBLEM A-4 (CONCLUDED)
PURCHASES RETURNS AND ALLOWANCES ACCOUNT NO. 512
MABEL’S NATURAL FOOD STORESCHEDULE OF ACCOUNTS PAYABLE
MAY 31, 200X
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
GENERAL JOURNAL PAGE 2
Date Account Titles and Description PR Dr. Cr.
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SG-367
PROBLEM A-5
(1,3)
AB
BY
’S T
OY
HO
USE
PUR
CH
ASE
S JO
UR
NA
L
PAG
E 1
Dat
eA
ccou
nts
Toy
Sund
ry D
r.A
ccou
ntof
Inv.
Term
sPR
Paya
ble
Purc
hase
sD
ate
Cre
dite
dIn
v.N
o.C
r.D
r.A
ccou
nts
PRA
mou
nt
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SG-368SG-368
PROBLEM A-5 (CONTINUED)
AB
BY
’S T
OY
HO
USE
CA
SH R
ECEI
PTS
JOU
RN
AL
PAG
E 1
Sale
sA
ccou
nts
Sund
ry
Cas
hD
isco
unts
Rec
eiva
ble
Toy
Sale
sA
mou
ntD
ate
Dr.
Dr.
Cr.
Cr.
Acc
ount
PRC
r.
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SG-369
PROBLEM A-5 (CONTINUED)
AB
BY
’S T
OY
HO
USE
CA
SH P
AYM
ENTS
JO
UR
NA
L
PAG
E 1
Acc
ount
sPu
rcha
ses
Che
ckA
ccou
nt D
ebite
dPR
Sund
ryPa
yabl
eD
isco
unt
Cas
hD
ate
No.
Dr.
Dr.
Cr.
Cr.
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SG-370SG-370
PROBLEM A-5 (CONTINUED)
ABBY’S TOY HOUSESALES JOURNAL MARCH 31, 200X
PAGE 1
Invoice Accounts Rec. – Dr.Date Account Debited No. Terms PR Toy Sales – Cr.
ABBY’S TOY HOUSEGENERAL JOURNAL
MARCH 31, 200X
PAGE 1
Date Account Titles and Description PR Dr. Cr.
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PROBLEM A-5 (CONTINUED)
(2) ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME MINNIE KATZ
ADDRESS 87 GARFIELD AVE., REVERE, MA 01245
Date Explanation Post Debit Credit Cr. BalanceRef.
Date Explanation Post Debit Credit Cr. BalanceRef.
Date Explanation Post Debit Credit Cr. BalanceRef.
NAME SAM KATZ GARAGE
ADDRESS 22 REGIS RD., BOSTON, MA 01950
NAME EARL MILLER CO.
ADDRESS 22 RETTER ST., SAN DIEGO, CA 01211
NAME WOODY SMITH
ADDRESS 2 SPRING ST., WEERS, ND 02118
Date Explanation Post Debit Credit Cr. BalanceRef.
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PROBLEM A-5 (CONTINUED)
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME BILL BURTON
ADDRESS 24 RYAN RD., BUIKE, OH 02183
Date Explanation Post Debit Credit Dr. BalanceRef.
Date Explanation Post Debit Credit Dr. BalanceRef.
Date Explanation Post Debit Credit Dr. BalanceRef.
NAME BONNIE FLOW CO.
ADDRESS 2 SMITH RD., DALLAS, TX 22210
NAME JIM REX
ADDRESS 1 SCHOOL ST., CLEVELAND, OH 22441
SG-372
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PROBLEM A-5 (CONTINUED)
NAME AMY ROSE
ADDRESS 18 VEEK RD., CHESTER, CT 80111
Date Explanation Post Debit Credit Dr. BalanceRef.
ACCOUNTS RECEIVABLE ACCOUNT NO. 112
GENERAL LEDGER
CASH ACCOUNT NO. 110
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PREPAID RENT ACCOUNT NO. 114
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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PROBLEM A-5 (CONTINUED)
DELIVERY TRUCK ACCOUNT NO. 121
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
ACCOUNTS PAYABLE ACCOUNT NO. 210
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
A. ELLEN, CAPITAL ACCOUNT NO. 310
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
TOY SALES ACCOUNT NO. 410
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SG-374
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PROBLEM A-5 (CONTINUED)
SALES RETURNS AND ALLOWANCES ACCOUNT NO. 412
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALES DISCOUNTS ACCOUNT NO. 414
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
PURCHASES RETURNS AND ALLOWANCES ACCOUNT NO. 512
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
TOY PURCHASES ACCOUNT NO. 510
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
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SG-376
PROBLEM A-5 (CONTINUED)
PURCHASES DISCOUNT ACCOUNT NO. 514
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SALARIES EXPENSE ACCOUNT NO. 610
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
CLEANING EXPENSE ACCOUNT NO. 612
BalanceDate Explanation Post Debit Credit
Ref. Debit Credit
SG-376
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SG-377
PROBLEM A-5 (CONCLUDED)
(4)
ABBY’S TOY HOUSESCHEDULE OF ACCOUNTS RECEIVABLE
MARCH 31, 200X
(4)
ABBY’S TOY HOUSESCHEDULE OF ACCOUNTS PAYABLE
MARCH 31, 200X
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398 CHAPTER 10
SPECIAL JOURNALS WITH PROBLEM MATERIAL
Classroom Demonstration Problem: Periodic MethodAll credit sales are 2/10, n/30. All merchandise purchased on account has 3/10, n/30 creditterms. Record the following transactions into special or general journals. Record and postas appropriate.
Solution Tips to Journalizing
200X
Mar. 1 J. Ling invested $2,000 into the business. CRJ
1 Sold merchandise on account to Balder Co., $500, invoice no. 1. SJ
2 Purchased merchandise on account from Case Co., $500. PJ
4 Sold $2,000 of merchandise for cash. CRJ
6 Paid Case Co. from previous purchases on account, check no. 1. CPJ
8 Sold merchandise on account to Lewis Co., $1,000, invoice no. 2. SJ
10 Received payment from Balder for invoice no. 1. CRJ
12 Issued a credit memorandum to Lewis Co. for $200 for faulty merchandise. GJ
14 Received payment from Lewis Co. CRJ
16 Purchased merchandise on account from Noone Co., $1,000. PJ
17 Purchased equipment on account from Case Co., $300. PJ
18 Issued a debit memorandum to Noone Co. for $500 for defective merchandise. GJ
20 Paid salaries, $300, check no. 2. CPJ
24 Paid Noone balance owed, check no. 3. CPJ
J. LING, CO.SALES JOURNAL
5 0 0 001 0 0 0 001 5 0 0 00
(112) (410)
FIGURE A.1 Sales Journal
APPENDIX A
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APPENDIX A • SPECIAL JOURNALS WITH PROBLEM MATERIAL 399
J. LING, CO.PURCHASES JOURNAL
5 0 0 001 0 0 0 00
5 0 0 001 0 0 0 00
1 5 0 0 00
3 0 0 00 3 0 0 003 0 0 001 8 0 0 00
(X)(210) (510)
FIGURE A.2 Purchases Journal
2 0 0 0 002 0 0 0 002 0 0 0 00
4 9 0 002 0 0 0 00
2 0 0 0 00
1 0 001 6 00
2 6 00
5 0 0 008 0 0 00
1 3 0 0 00
7 8 4 00
5 2 7 4 00 2 0 0 0 00
(X)(111) (430) (112) (410)
FIGURE A.3 Cash Receipts Journal
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400 CHAPTER 10
J. LING, CO.CASH PAYMENTS JOURNAL
5 0 0 00 4 8 5 00
3 0 0 001 5 00
1 5 003 0 00
4 8 5 001 2 7 0 001 0 0 0 00
5 0 0 003 0 0 00
3 0 0 00
(X) (210) (530) (111)
FIGURE A.4 CashPayments Journal
GENERAL JOURNAL
2 0 0 00
2 0 0 00
5 0 0 00
5 0 0 00
FIGURE A.5 GeneralJournal
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APPENDIX A • SPECIAL JOURNALS WITH PROBLEM MATERIAL 401
FIGURE A.6 Subsidiary andGeneral Ledgers
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402 CHAPTER 10
Summary of Solution Tips
Seller Buyer
Sales journal Purchases journal
Cash receipts journal Cash payments journal
Accounts receivable subsidiary ledger Accounts payable subsidiary ledger
Sales (Cr.) Purchases (Dr.)
Sales Returns and Allowances (Dr.) Purchase Returns and Allowances (Cr.)
Sales Discounts (Dr.) Purchase Discounts (Cr.)
Accounts Receivable (Dr.) Accounts Payable (Cr.)
Issue a credit memo Receive a credit memo
or or
Receive a debit memo Issue a debit memo
Schedule of accounts receivable Schedule of accounts payable
A Step-by-Step Walk-Through of This Classroom Demonstration Problem
Transaction What to Do Step-by-Step
200X
Mar. 1 Money Received: Record in cash receipts journal. Post immediately to J. Ling,Capital, because it is in sundry.
1 Sale on Account: Record in sales journal. Record immediately to Balder Co. inaccounts receivable subsidiary ledger. Place a ✓ in Post. Ref. column of salesjournal when subsidiary is updated.
2 Buy Merchandise on Account: Record in purchases journal. Record to Case Co.immediately in the accounts payable subsidiary ledger.
4 Money In: Record in cash receipts journal. No posting needed (put an × in Post.Ref. column).
6 Money Out: Record in cash payments journal. Save $15, which is a PurchasesDiscount. Record immediately to Case Co. in accounts payable subsidiaryledger (the full amount of $500).
8 Sales on Account: Record in sales journal. Update immediately to Lewis inaccounts receivable subsidiary ledger.
10 Money In: Record in cash receipts journal. Because Balder pays within 10 days,it gets a $10 discount. Record the full amount immediately to Balder in theaccounts receivable subsidiary ledger.
12 Returns: Record in general journal. Seller issues credit memo resulting inhigher sales returns and customers owing less. All postings and recordings aredone immediately.
14 Money In: Record in cash receipts journal:
$1,000 � $200 returns � $800� .02
$ 16 discount
Record immediately the $800 to Lewis in the accounts receivable subsidiary ledger.
16 Buy Now, Pay Later: Record in purchases journal. Record immediately toNoone Co. in the accounts payable subsidiary ledger.
17 Buy Now, Pay Later: Record in purchases journal in Sundry. This item is notmerchandise for resale. Record and post immediately.
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Check Figure: Schedule ofaccounts receivable $3,310
APPENDIX A • SPECIAL JOURNALS WITH PROBLEM MATERIAL 403
18 Returns: Record in general ledger. Buyer issues a debit memo reducing the AccountsPayable due to purchases return and allowances. Post and record immediately.
20 Salaries: Record in cash payments journal, sundry column. Post immediately toSalaries Expense.
24 Money Out: Record in cash payments journal. Save 3% ($15), a purchases dis-count. Record immediately to accounts payable subsidiary ledger that youreduce Noone by $500.
End of Month Post totals (except sundry) of special journal to the general ledger.Note: In this problem at the end of the month, (1) Accounts Receivable in the general
ledger, the controlling account, has a zero balance, as does each title in the accounts receiv-able subsidiary ledger; and (2) the balance in Accounts Payable (the controlling account) is$300. In the accounts payable subsidiary ledger, we owe Case $300. The sum of theaccounts payable subsidiary ledger does equal the balance in the controlling account at theend of the month.
Appendix A ProblemsA-1. Jill Blue opened Food.com, a wholesale grocery and pizza company. The fol-
lowing transactions occurred in June:
200X
June 1 Sold grocery merchandise to Duncan Co. on account, $500, invoice no. 1.
4 Sold pizza merchandise to Sue Moore Co. on account, $600, invoice no. 2.
8 Sold grocery merchandise to Long Co. on account, $700, invoice no. 3.
10 Issued credit memorandum no. 1 to Duncan Co. for $150 of grocery merchandisereturned due to spoilage.
15 Sold pizza merchandise to Sue Moore Co. on account, $160, invoice no. 4.
19 Sold grocery merchandise to Long Co. on account, $300, invoice no. 5.
25 Sold pizza merchandise to Duncan Co. on account, $1,200, invoice no. 6.
Required
1. Journalize the transactions in the appropriate journals.2. Record to the accounts receivable subsidiary ledger and post to the general
ledger as appropriate.3. Prepare a schedule of accounts receivable.
A-2. The following transactions of Ted’s Auto Supply occurred in November (yourworking papers have balances as of November 1 for certain general ledgerand accounts receivable ledger accounts):
200X
Nov. 1 Sold auto parts merchandise to R. Volan on account, $1,000, invoice no. 60, plus5% sales tax.
5 Sold auto parts merchandise to J. Seth on account, $800, invoice no. 61, plus 5%sales tax.
8 Sold auto parts merchandise to Lance Corner on account, $9,000, invoice no. 62,plus 5% sales tax.
10 Issued credit memorandum no. 12 to R. Volan for $500 for defective auto parts mer-chandise returned from Nov. 1 transaction. (Be careful to record the reduction inSales Tax Payable as well.)
12 Sold auto parts merchandise to J. Seth on account, $600, invoice no. 63, plus 5%sales tax.
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Check Figure: Schedule ofaccounts receivable $13,045
Check Figure: Total of purchases column $2,100
Check Figure: Total schedule ofaccounts payable $5,810
404 CHAPTER 10
Required
1. Journalize the transactions in the appropriate journals.2. Record to the accounts receivable subsidiary ledger and post to the general
ledger as appropriate.3. Prepare a schedule of accounts receivable.
A-3. Abby Kim recently opened Skates.com. As the bookkeeper of her company,please journalize, record, and post when appropriate the following transac-tions (account numbers are Store Supplies, 115; Store Equipment, 121;Accounts Payable, 210; Purchases, 510):
200X
June 4 Bought $700 of merchandise on account from Mail.com, invoice no. 442, datedJune 5; terms 2/10, n/30.
5 Bought $4,000 of store equipment from Norton Co., invoice no. 502, datedJune 6.
8 Bought $1,400 of merchandise on account from Rolo Co., invoice no. 401, datedJune 9; terms 2/10, n/30.
14 Bought $900 of store supplies on account from Mail.com, invoice no. 419, datedJune 14.
A-4. Mabel’s Natural Food Store uses a purchases journal and a general jour-nal to record the following transactions (continued from April):
200X
May 8 Purchased $600 of merchandise on account from Aton Co., invoice no. 400, datedMay 9; terms 2/10, n/60.
10 Purchased $1,200 of merchandise on account from Broward Co., invoice no. 420,dated May 11; terms 2/10, n/60.
12 Purchased $500 of store supplies on account from Midden Co., invoice no. 510,dated May 13.
14 Issued debit memo no. 8 to Aton Co., for merchandise returned, $400, frominvoice no. 400.
17 Purchased $560 of office equipment on account from Relar Co., invoice no. 810,dated May 18.
24 Purchased $650 of additional store supplies on account from Midden Co., invoiceno. 516, dated May 25; terms 2/10, n/30.
The food store decided to keep a separate column for the purchases of sup-plies in the purchases journal. Your tasks are to1. Journalize the transactions.2. Post and record as appropriate.3. Prepare a schedule of accounts payable.
A-5. Abby Ellen opened Abby’s Toy House. As her newly hired accountant, yourtasks are to1. Journalize the transactions for the month of March.2. Record to subsidiary ledgers and post to the general ledger as appropriate.3. Total and rule the journals.4. Prepare a schedule of accounts receivable and a schedule of accounts payable.
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Check Figures: Total of schedule of accounts receivable $7,600
Total of schedule of accountspayable $9,000
The following is the partial chart of accounts for Abby’s Toy House:
Abby’s Toy House Chart of Accounts
Assets Revenue
110 Cash 410 Toy Sales
112 Accounts Receivable 412 Sales Returns and Allowances
114 Prepaid Rent 414 Sales Discounts
121 Delivery Truck Cost of Goods
Liabilities 510 Toy Purchases
210 Accounts Payable 512 Purchases Returns and Allowances
Owner’s Equity 514 Purchases Discount
310 A. Ellen, Capital Expenses
610 Salaries Expense
612 Cleaning Expense
200X
Mar. 1 Abby Ellen invested $8,000 in the toy store.
1 Paid three months’ rent in advance, check no. 1, $3,000.
1 Purchased merchandise from Earl Miller Company on account, $4,000, invoice no. 410,dated March 2; terms 2/10, n/30.
3 Sold merchandise to Bill Burton on account, $1,000, invoice no. 1; terms 2/10, n/30.
6 Sold merchandise to Jim Rex on account, $700, invoice no. 2; terms 2/10, n/30.
8 Purchased merchandise from Earl Miller Co. on account, $1,200, invoice no. 415,dated March 9; terms 2/10, n/30.
9 Sold merchandise to Bill Burton on account, $600, invoice no. 3; terms 2/10, n/30.
9 Paid cleaning service, check no. 2, $300.
10 Jim Rex returned merchandise that cost $300 to Abby’s Toy House. Abby issuedcredit memorandum no. 1 to Jim Rex for $300.
10 Purchased merchandise from Minnie Katz on account, $4,000, invoice no. 311,dated March 11; terms 1/15, n/60.
12 Paid Earl Miller Co. invoice no. 410, dated March 2, check no. 3.
13 Sold $1,300 of toy merchandise for cash.
13 Paid salaries, $600, check no. 4.
14 Returned merchandise to Minnie Katz in the amount of $1,000. Abby’s Toy Houseissued debit memorandum no. 1 to Minnie Katz.
15 Sold merchandise for $4,000 cash.
16 Received payment from Jim Rex, invoice no. 2 (less returned merchandise) less discount.
16 Bill Burton paid invoice no. 1.
16 Sold toy merchandise to Amy Rose on account, $4,000, invoice no. 4; terms 2/10, n/30.
20 Purchased delivery truck on account from Sam Katz Garage, $3,000, invoice no. 111,dated March 21 (no discount).
22 Sold to Bill Burton merchandise on account, $900, invoice no. 5; terms 2/10, n/30.
23 Paid Minnie Katz balance owed, check no. 5.
24 Sold toy merchandise on account to Amy Rose, $1,100, invoice no. 6; terms 2/10, n/30.
APPENDIX A • SPECIAL JOURNALS WITH PROBLEM MATERIAL 405
(continued on next page)
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25 Purchased toy merchandise, $600, check no. 6.
26 Purchased toy merchandise from Woody Smith on account, $4,800, invoice no. 211,dated March 27; terms 2/10, n/30.
28 Bill Burton paid invoice no. 5, dated March 22.
28 Amy Rose paid invoice no. 6, dated March 24.
28 Abby invested an additional $5,000 in the business.
28 Purchased merchandise from Earl Miller Co., $1,400, invoice no. 436, datedMarch 29; terms 2/10, n/30.
30 Paid Earl Miller Co. invoice no. 436, check no. 7.
30 Sold merchandise to Bonnie Flow Company on account, $3,000, invoice no. 7;terms 2/10, n/30.
Sales and Cash Receipts Journal in a PerpetualAccounting System for Art’s Wholesale Clothing
406 CHAPTER 10
ART’S WHOLESALE CLOTHING COMPANYSALES JOURNAL
8 0 0 001 6 0 0 002 0 0 0 00
5 0 0 009 0 0 007 0 0 00
6 5 0 0 00
5 6 0 001 1 2 0 001 4 0 0 00
3 5 0 006 3 0 004 9 0 00
4 5 5 0 00
(113) (411) (510) (114)
FIGURE A.7 A Sales JournalUnder a Perpetual System
What’s new:In the journal: New columns for Cost of Goods Sold (Dr.) and Inventory (Cr.). Each
time a charge sale is earned, the Cost of Goods Sold increases and the amount ofInventory at cost is reduced.
In the general ledger: New ledger accounts for Inventory and Cost of Goods Sold.
Example: On April 3, Art’s Wholesale sold Hal’s Clothing $800 of merchandise onaccount. This sale cost Art’s $560 to bring this merchandise into the store.
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What’s new:In the journal: New columns for Cost of Goods Sold (Dr.) and Inventory (Cr.). Each
time a cash sale is earned, the Cost of Goods Sold increases and the amount ofInventory at cost is reduced.
APPENDIX A • SPECIAL JOURNALS WITH PROBLEM MATERIAL 407
ART’S WHOLESALE CLOTHING COMPANYCASH RECEIPTS JOURNAL
8 0 0 0 007 8 4 009 0 0 009 8 0 00
1 9 6 0 005 0 0 00
1 2 0 0 0014 3 2 4 00(111)
8 0 0 00
1 0 0 0 002 0 0 0 00
3 8 0 0 00(113)
9 0 0 00
1 2 0 0 002 1 0 0 00
(411)
8 0 0 0 00
5 0 0 00
8 5 0 0 00(X)
6 3 0 00
8 4 0 001 4 7 0 00
(510) (114)
1 6 00
2 0 004 0 00
7 6 00(413)
FIGURE A.8 A Cash Receipts Journal Under a Perpetual System
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