8th Canadian Edition Weygandt Complete Test Bank - Accounting Principles Vol 1 8e Canadian Complete Test Bank by Jerry J. Weygandt. DOCX document preview.
APPENDIX C – SUBSIDIARY LEDGERS AND SPECIAL JOURNALS
Exercises
Exercise 1
RGT Services has just started their operations this month. Here is a snap shot of some of their results:
Credit Sales | ||
Date | Info | Amount |
11 | AB Viewbooks | $ 2,500 |
18 | LITT Company | 5,650 |
22 | Zeek Inc. | 3,758 |
26 | Martha’s Bakery | 1,800 |
Cash Collections | ||
Date | Info | Amount |
18 | AB Viewbooks | $ 1,500 |
25 | LITT Company | 5,500 |
22 | Zeek Inc. | 1,355 |
30 | Martha’s Bakery | 1,800 |
Instructions
Calculate the balances that appear in the accounts receivable subsidiary ledger for each customer and the accounts receivable balance in the general ledger at the end of the month.
Name | Sales | Collections | Balance | ||
AB Viewbooks | $ 2,500 | $ 1,500 | $ 1,000 | ||
LITT Company | 5,650 | 5,500 | 150 | ||
Zeek Inc. | 3,758 | 1,355 | 2,403 | ||
Martha’s Bakery | 1,800 | 1,800 | 0 | ||
Total of all subsidiary ledgers to GL | $ 3,553 | ||||
Exercise 2
Smart Looks has just opened their first store and has had the following activity:
Credit Sales | ||
Date | Name | Amount |
7 | Tall Time Inc. | $ 15,500 |
19 | Suits R Us | 26,900 |
20 | Zane Inc. | 7,700 |
28 | Chan LLC | 18,300 |
Cash Collections | ||
Date | Name | Amount |
17 | Tall Time Inc. | $ 13,750 |
26 | Suits R Us | 24,500 |
26 | Zane Inc. | 7,700 |
30 | Chan LLC | 9,150 |
Instructions
Calculate the balances that appear in the accounts receivable subsidiary ledger for each customer and the accounts receivable balance in the general ledger at the end of the month.
Subsidiary Ledger Customer Balances | ||||
Name | Sales | Collections | Balance | |
Tall Time Inc. | $ 15,500 | $ 13,750 | $ 1,750 | |
Suits R Us | 26,900 | 24,500 | 2,400 | |
Zane Inc. | 7,700 | 7,700 | 0 | |
Chan LLC | 18,300 | 9,150 | 9,150 | |
Total to the GL | $ 13,300 | |||
Exercise 3
For each of the following accounts, identify which ledger (general or subsidiary) the account is shown:
Account | |
Sales | |
Rent Expense | |
Accounts Payable—Jasper LLC. | |
Service Revenue | |
Bank Loan Payable | |
Accounts Receivable—Zane Inc. | |
Merchandise Inventory | |
Utilities Expense |
Account | Ledger | |
Sales | General | |
Rent Expense | General | |
Accounts Payable—Jasper LLC. | Subsidiary | |
Service Revenue | General | |
Bank Loan Payable | General | |
Accounts Receivable—Zane Inc. | Subsidiary | |
Merchandise Inventory | General | |
Utilities Expense | General |
Exercise 4
For each of the following Spector Specialty Inc. accounts, identify which ledger (general or subsidiary) the account is shown:
Account | |
Merchandise Inventory | |
Insurance Expense | |
Accounts Payable—Suits R Us | |
Service Revenue | |
Accounts Payable—Dunbar Inc. | |
Office Supplies Expense | |
Sales |
Account | Ledger | |
Merchandise Inventory | General | |
Insurance Expense | General | |
Accounts Payable—Suits R Us | Subsidiary | |
Service Revenue | General | |
Accounts Payable—Dunbar Inc. | Subsidiary | |
Office Supplies Expense | General | |
Sales | General |
Exercise 5
You are working part time as a bookkeeper for Agency Inc. and have collected the following information:
Subsidiary Ledger Customer Balances as at April 1 | ||
Customer | Balance | |
Don Smith | $ 2,600 | |
Raleigh Chang | 2,200 | |
Sat Singh | 5,730 | |
Alison Freed | 6,850 | |
April Sales Journal | ||
Customer | Amount | COGS |
Sat Singh | $ 1,500 | $ 780 |
Don Smith | 2,300 | 1,900 |
Raleigh Chang | 500 | 375 |
Alison Freed | 830 | 695 |
Max Smart | 430 | 295 |
April Cash Receipts Journal | ||
Account | Amount | |
Don Smith | $ 4,200 | |
Max Smart | 430 | |
Allison Freed | 7,200 | |
Sat Singh | 6,000 | |
Instructions
Determine the balance at the end of the month in both the control and subsidiary accounts.
Subsidiary Customer Account Balances | Apr. 1 | Apr. 30 | ||
Customer | Balance | Sales | Payments | Balance |
Don Smith | $ 2,600 | $ 2,300 | $ 4,200 | $ 700 |
Raleigh Chang | 2,200 | 500 | 0 | 2,700 |
Sat Singh | 5,730 | 1,500 | 6,000 | 1,230 |
Alison Freed | 6,850 | 830 | 7,200 | 480 |
Max Smart | 0 | 430 | 430 | 0 |
$ 5,110 |
Exercise 6
On March 1, the balance in the accounts receivable control account is $ 225,000. The customers’ subsidiary ledger balances are as follows:
Subsidiary Ledger Customer Balances as of March 1 | ||
Customer | Balance | |
D. Sutherland | $ 102,000 | |
R. Chew | 80,000 | |
S. Siam | 20,000 | |
A. Feud | 23,000 | |
At the end of March, special journals contained the following information:
| |||||||||||||||||||||||
Cash Receipts Journal – March | |||||||||||||||||||||||
Account | Amount | ||||||||||||||||||||||
D. Sutherland | $ 102,200 | ||||||||||||||||||||||
M. Sanchez | 8,455 | ||||||||||||||||||||||
A. Feud | 22,960 | ||||||||||||||||||||||
S. Siam | 44,600 | ||||||||||||||||||||||
Instructions
Determine the balance at the end of the month in both the control and subsidiary accounts.
Customer | Balance | Sales | Payments | Balance |
D. Sutherland | $ 102,000 | $ $ 7,300 | $ 102,200 | $ $ 7,100 |
R. Chew | 80,000 | 1,500 | 0 | 81,500 |
S. Siam | 20,000 | 26,000 | 44,600 | 1,400 |
A. Feud | 23,000 | 3,360 | 22,960 | 3,400 |
M. Sanchez | 0 | 12,000 | 8,455 | 3,545 |
$ 96,945 |
Exercise 7
RGI Services had the following transactions in October:
1. Sale of their old head office building for cash.
2. Collection on account from one of their customers.
3. Revenue for the year closed to income summary.
4. Sale of t-shirt merchandise for cash.
5. Sale of jean merchandise on account.
6. Cheque issued to pay for window cleaning.
7. Depreciation on equipment.
8. Purchase of supplies on account.
Instructions
For each transaction indicate which journal would normally be used: cash receipts, cash payments, sales, purchases, or general.
Exercise 8
Spector Service Inc. had the following transactions in April:
Account | |
Sale of merchandise for cash | |
Sale of delivery van for cash | |
Collection from customer | |
Sale of merchandise on account | |
Purchase of office supplies on account | |
Depreciation on furniture | |
Payment on supplier account | |
Expenses closed to income summary |
Instructions
For each transaction indicate which journal would normally be used: cash receipts, cash payments, sales, purchases, or general.
Account | Journal | |
Sale of merchandise for cash | cash receipts | |
Sale of delivery van for cash | cash receipts | |
Collection from customer | cash receipts | |
Sale of merchandise on account | sales | |
Purchase of office supplies on account | purchases | |
Depreciation on furniture | general | |
Payment on supplier account | cash payments | |
Expenses closed to income summary | general |
Exercise 9
Suits R Us had the following control balances on April 30 after all monthly postings were complete:
Accounts Receivable $ 240,000 Dr.
Accounts Payable $ 163,000 Cr.
At the end of May, Suites R Us had the following special journal balances:
Sales Journal – cost of goods sold = $ 45,000, total sales = $ 90,550
Purchases Journal – total purchases $ 26,000
In the May cash receipts journal, the accounts receivable section totalled $ 155,000. The accounts payable column in the cash payments journal totalled $ 105,000.
Instructions
Assuming that no entries that affected accounts receivable or payable were recorded in the general journal for May, determine the balance in the accounts receivable and payable control accounts after the monthly postings are complete.
Exercise 10
You have been asked to calculate the control account balances for RGI Services accounts receivable and accounts payable at the end of October. There have not been any postings to the control accounts in October but the special journals are up to date. So far, you have collected the following information:
Sales Journal:
Cost of Goods Sold = $ 100,000
Total Sales = $ 225,000
Purchases Journal:
Total Purchases $ 78,550
Cash Receipts Journal: accounts receivable $ 265,000
Cash Payments Journal: $ 60,000
Sept 30 Balances:
Accounts Receivable $ 330,000 Dr.
Accounts Payable $ 95,000 Cr.
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Accounting Principles Vol 1 8e Canadian Complete Test Bank
By Jerry J. Weygandt