SMCH 10

Special Journals: Purchases and Cash Payments
ANSWERS TO DISCUSSION QUESTIONS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
10
Net purchases is calculated as follows: Purchases Purchases Returns and Allowances Purchases Discount. Credit. A reduction in cost ex. Purchases Discount. F.O.B. shipping point means the buyer pays the cost of shipping: F.O.B. destination means the seller is responsible for the cost of shipping. Disagree; buyer takes title when goods are received, not when shipped. Credit. The total of the accounts payable column in the special journal is not posted until the end of the month. The purchase requisition is a document that initiates the request to prepare a purchase order. The recording of the purchase might take place when the invoice is approved for recording and payment. Merchandise is for resale; equipment is an asset used to help create sales and is not for resale. To show that the buyer does not owe as much because the item is being returned. The purchases journal records buying merchandise or other items on account, while the cash payments journal records transactions involving the paying out of cash. A cash discount is for early payment; trade discounts are reductions off the purchase price.
331
SOLUTIONS TO CHAPTER 10 MINI EXERCISES 1. A. B. C. D. E. F. G. H. Purchases Purchases Returns and Allowances Purchases Discount Purchases Journal Cash Payments Journal Debit Memorandum Schedule of Accounts Payable Accounts Payable Subsidiary Ledger Cost Contra Cost Contra Cost Dr. Cr. Cr. Cr. Dr. Dr. Temp. Temp. Temp.
2.
Purchases Purchases Returns and Allow. Purchases Discount
3. 4.
Net Purchases = Purchases Purch. Ret. + Allow. Purch. Disc. $8 A. 1, 2 B. 1, 5 C. 4, 5 A. B. C. D. E. F. 5 3 3 2 4 5 $3 $1 = $4
5.
6.
WEB.COM SCHEDULE OF ACCOUNTS PAYABLE MAY 31, 200X Bloss Co. Rowe Co. Total Accts. Payable $ 40 60 $100
332
SOLUTIONS TO EXERCISES
10-1. Rey.com 800 PJ1 June 3 Equipment June 8 PJ1 800 120
Lane.com 900 PJ1 June 4
Accounts Payable
210
2,100 PJ1 June 30
Sail.com 400 PJ1 June 8
Purchases June 30 PJ1 1,700
510
10-2. Jul. 10 Accounts Payable, Reel Co. Purchases Returns & Allowances Issued Debit Memo #1
211/ 513
4 0 0 00 4 0 0 00
Reel Co. 7/10 GJ1 400
Accounts Payable 7/10 GJ1 400
211
Purchases Returns and Allowances
513
400 7/10 GJ1
333
EXERCISES (CONTINUED) 10-3.

PAGE 2
Date Apr.
Check No. Accounts Debited PR. A. James Advertising Expense 610 B. Foss
Sundry Account Dr. 1 0 0 00
Accounts Payable Dr. 1 0 0 0 00
Purchases Discount Cr. 2 0 00
Cash Cr. 00 00 00 00
1 20 8 21 15 22 30
4 0 0 00 1 0 0 00 1 4 0 0 00 (X) (210)
9 8 0 1 0 0 4 0 0 2 0 00 1 4 8 0 (511) (110)
ACCOUNTS PAYABLE SUBSIDIARY LEDGER A. James 4/01 CPJ2 1,000 1,000
PARTIAL GENERAL LEDGER Cash 3,000 110 1,480 4/30 CPJ2
B. Foss 4/15 CPJ2 400 400
Accounts Payable 4/30 CPJ2 1,400
210 2,400
J. Ranch 900
Purchases Discount
511
20 4/30 CPJ2
B. Swanson 100
Advertising Expense 4/8 CPJ2 100
610
334
EXERCISES (CONTINUED) 10-4.

MORGANS CLOTHING SCHEDULE OF ACCOUNTS PAYABLE APRIL 30, 200X Ranch Swanson Total Accounts Payable $ 900 100 $1,000
Accounts Payable 1,400
210 2,400 1,000
10-5. Purchases Accounts Payable 10-6.

$ 4,000 .30 $ 1,200 Tr. disc $ 4,000 1,200 $ 2,800 $ 2,800 .03 $ 84 Cash disc. $ 2,800 84 $ 2,716 Cost of Merchandise
Cost Liab.
c c
Dr. $9,000 Cr. $9,000
335
PROBLEM 10A-1
SOLUTIONS TO A PROBLEMS
SKATES.COM PURCHASES JOURNAL PAGE 3
Amount 0 0 0 00 9 0 0 00 9 0 0 00 (X)
336
Date 200X Jun. 4 5 8 14 30 Inv. PR No. Terms 442 2/10, n/30 502 401 419 2/10, n/30
Account Date of Credited Invoice Mail.com 6/5 Norton Co. 6/6 Rolo Co. 6/9 Mail.com 6/14
Accounts Sundry Dr. Payable Purchases Cr. Account PR Dr. 7 0 0 00 7 0 0 00 4 0 0 0 00 Store Equipment 121 4 1 4 0 0 00 1 4 0 0 00 9 0 0 00 Store Supplies 115 7 0 0 0 00 2 1 0 0 00 4 (510) (210)
PROBLEM 10A-1 (CONTINUED)

ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME ADDRESS MAIL.COM 12 SMITH ST., DEARBORN, MI 09113
Date 200X Jun. 4 14
Explanation
Post Ref. PJ3 PJ3
Debit
Credit Cr. Balance 7 0 0 00 7 0 0 00 9 0 0 00 1 6 0 0 00
NAME ADDRESS
NORTON CO. 1 RANTOUL RD., CHARLOTTE, NC 01114
Date 200X Jun. 5
Explanation
Post Ref. PJ3
Debit
Credit Cr. Balance 4 0 0 0 00 4 0 0 0 00
NAME ADDRESS
ROLO CO. 2 WEST RD., LYNN, MA 01471
Date 200X Jun. 8
Explanation
Post Ref. PJ3
Debit
337
PROBLEM 10A-1 (CONCLUDED)

PARTIAL GENERAL LEDGER STORE SUPPLIES ACCOUNT NO. 115
Balance Date 200X Jun. 14 Explanation Post Ref. PJ3 Debit 9 0 0 00 Credit Debit 9 0 0 00 Credit
STORE EQUIPMENT
ACCOUNT NO. 121
Balance Date 200X Jun. 5 Explanation Post Ref. PJ3 Debit 4 0 0 0 00 Credit Debit 4 0 0 0 00 Credit
ACCOUNTS PAYABLE
ACCOUNT NO. 210
Balance Date 200X Jun. 30 Explanation Post Ref. PJ3 Debit Credit 7 0 0 0 00 Debit Credit 7 0 0 0 00
PURCHASES
ACCOUNT NO. 510
338
PROBLEM 10A-2 (1, 2)
MABELS NATURAL FOOD STORE PURCHASES JOURNAL PAGE 10
339
Date 200X May 8 10 12 17 24 31
Account Date of Credited Invoice Aton Co. 5/9 Broward Co. 5/11 Midden Co. 5/13 Relar Co. 5/18 Midden Co. 5/25
Store Accounts Sundry Dr. Purchases Supplies Payable Inv. Dr. Dr. Amount Account Cr. PR No. Terms PR 400 2/10, n/60 6 0 0 00 6 0 0 00 420 2/10, n/60 1 2 0 0 00 1 2 0 0 00 510 5 0 0 00 5 0 0 00 810 5 6 0 00 Office Equip. 120 5 6 0 00 516 2/10, n/30 6 5 0 00 6 5 0 00 3 5 1 0 00 1 8 0 0 00 1 1 5 0 00 5 6 0 00
(210)
(510)
(110)
(X)

ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME ADDRESS ATON CO. 11 LYNNWAY AVE., NEWPORT, RI 03112
Date 200X Explanation May 1 Balance 8 14
Post Ref. PJ10 GJ2
Debit
Credit
4 0 0 00
Cr. Balance 4 0 0 00 6 0 0 00 1 0 0 0 00 6 0 0 00
NAME ADDRESS
BROWARD CO. 21 RIVER ST., ANAHEIM, CA 43110
Date 200X Explanation May 1 Balance 10
Post Ref. PJ10
Debit
Cr. Balance 6 0 0 00 1 2 0 0 00 1 8 0 0 00
Credit
NAME ADDRESS
MIDDEN CO. 10 ASTER RD., DUBUQUE, IA 80021
Post Ref. PJ10 PJ10
Debit
Credit
Cr. Balance 1 2 0 0 00 5 0 0 00 1 7 0 0 00 6 5 0 00 2 3 5 0 00
NAME ADDRESS
RELAR CO. 22 GERALD RD., SMITH, CO 43138
Post Ref. PJ10
Debit
Credit
Cr. Balance 5 0 0 00 5 6 0 00 1 0 6 0 00
340

Balance Date 200X May 31 Explanation Post Ref. PJ10 Debit 1 1 5 0 00 Credit Debit 1 1 5 0 00 Credit
OFFICE EQUIPMENT
ACCOUNT NO. 120
Balance Date 200X May 17 Explanation Post Ref. PJ10 Debit 5 6 0 00 Credit Debit 5 6 0 00 Credit
ACCOUNTS PAYABLE
ACCOUNT NO. 210
Balance Date 200X Explanation May 1 Balance 14 31

PURCHASES
Post Ref. GJ2 PJ10
Debit 4 0 0 00
Credit
Debit
3 5 1 0 00
Credit 2 7 0 0 00 2 3 0 0 00 5 8 1 0 00
ACCOUNT NO. 510
Balance Date 200X Explanation May 1 Balance 31 Post Ref. PJ10 Debit 1 8 0 0 00 Credit Debit 16 0 0 0 00 17 8 0 0 00 Credit
341

PURCHASES RETURNS AND ALLOWANCES ACCOUNT NO. 512
Balance Date 200X May 14 Explanation Post Ref. GJ2 Debit Credit 4 0 0 00 Debit Credit 4 0 0 00
GENERAL JOURNAL PAGE 2
Date 200X May 14
Account Titles and Description Accounts Payable, Aton Co. Purchases Returns and Allowances Issued Debit Memo #8
PR 210/ 512
Dr. 4 0 0 00
Cr. 4 0 0 00
MABELS NATURAL FOOD STORE SCHEDULE OF ACCOUNTS PAYABLE MAY 31, 200X
Aton Co. Broward Co. Midden Co. Relar Co. Total Accounts Payable
$ 1 2 1 $5
6 8 3 0 8
0 0 5 6 1
0 0 0 0 0
00 00 00 00 00
342
PROBLEM 10A-3
(1, 2)
JONES COMPUTER CENTER CASH PAYMENTS JOURNAL PAGE 5
Sundry Dr. 8 0 0 0 00
Accounts Payable Dr. 3 0 0 00
Computer Purchases Dr.
Computer Purchases Discount Cr. 6 00 8 2
343
2 9 0 0 00 8 0 0 00 1 2 0 0 0 00 3 0 0 00 10 3 0 0 00 (X) 2 4 0 0 00 1 0 0 00 (210) 3 7 0 0 00 (510) 4 0 0 00 2 8 00
Date Check 200X No. May 1 21 3 22 6 23 18 24 24 25 28 26 29 27 30 28 31 PR. 150 X X 610 620
Account Debited Henry Co. Delivery Truck Cash Purchase Cash Purchase Xon Co. Rent Expense Utilities Expense Soy Co.
1 2
3 4 00 16 (511)
Cash Cr. 2 9 4 0 0 0 9 0 0 8 0 0 3 7 2 0 0 0 3 0 0 4 0 0 0 6 6 (110)
00 00 00 00 00 00 00 00 00

ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME ADDRESS ALVIN CO. 1 REACH RD., IPSWICH, MA 01932
Date 200X May 1
Explanation Balance
Post Ref.
Debit
Credit
Cr. Balance 1 2 0 0 00
NAME ADDRESS
HENRY CO. 1 RALPH RD., REVERE, MA 01321
Date 200X May 1 1
Explanation Balance
Post Ref. CPJ5
Debit 3 0 0 00
Credit
Cr. Balance 6 0 0 00 3 0 0 00
NAME ADDRESS
SOY CO. 7 PLYMOUTH AVE., GLENN, NH 01218
Post Ref. CPJ5
Debit 4 0 0 00
Credit
Cr. Balance 8 0 0 00 4 0 0 00
NAME ADDRESS
XON CO. 22 REY RD., BOCA RATON, FL 99132
Post Ref. CPJ5
Debit 1 4 0 0 00
Credit
344

PARTIAL GENERAL LEDGER CASH ACCOUNT NO. 110
Balance Date 200X Explanation May 1 Balance 31 Post Ref. CPJ5 Debit Debit 17 0 0 0 00 16 0 6 6 00 9 3 4 00 Credit Credit
DELIVERY TRUCK
ACCOUNT NO. 150
Balance Date 200X May 3 Explanation Post Ref. Debit CPJ5 8 0 0 0 00 Credit Debit 8 0 0 0 00 Credit
ACCOUNTS PAYABLE
ACCOUNT NO. 210
Balance Date 200X Explanation May 1 Balance 31 Post Ref. Debit CPJ5 2 1 0 0 00 Credit Debit Credit 4 0 0 0 00 1 9 0 0 00
COMPUTER PURCHASES
ACCOUNT NO. 510
345

COMPUTER PURCHASES DISCOUNT ACCOUNT NO. 511
Balance Date 200X May 31 Explanation Post Ref. CPJ5 Debit Credit 3 4 00 Debit Credit 3 4 00
RENT EXPENSE
ACCOUNT NO. 610
UTILITIES EXPENSE
ACCOUNT NO. 620
Balance Date 200X May 29 Explanation Post Ref. CPJ5 Debit 3 0 0 00 Credit Debit 3 0 0 00 Credit
JONES COMPUTER CENTER SCHEDULE OF ACCOUNTS PAYABLE MAY 31, 200X
Alvin Co. Henry Co. Soy Co. Total Accounts Payable
$1 2 3 4 $1 9
0 0 0 0
0 0 0 0
00 00 00 00
346
PROBLEM 10A-4 (1, 2, 3)
ABBYS TOY HOUSE PURCHASES JOURNAL PAGE 1
Date 200X Date of Inv. Invoice No. Terms

2/10, n/30 2/10, n/30 1/15, n/60 2/10, n/30 2/10, n/30
Account Credited PR
0 0 0 00 2 0 0 00 0 0 0 00
Accounts Payable Cr. Toy Purchases Dr.
Sundry Dr. Account PR Amount
Mar.
347
1 8 10 20 26 28 31
Earl Miller Co. Earl Miller Co. Minnie Katz Sam Katz Garage Woody Smith Earl Miller Co.
3/2 3/9 3/11 3/21 3/27 3/29
410 415 311 111 211 436
4 1 4 3 4 1 18 0 2 0 0 8 4 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 4 00 1 00 4 00 00 4 00 1 00 15
Delivery Truck 121 3 0 0 0 00 8 0 0 00 4 0 0 00 4 0 0 00
3 0 0 0 00
(210)
(510)
(X)
ABBYS TOY HOUSE CASH RECEIPTS JOURNAL PAGE 1
Sales Discounts Dr. Accounts Receivable Cr. Toy Sales Cr.
Sundry
8 1 4 8 00 1 8 00 2 2 00 4 8 00 (414) 1 1 5 21
348
Date 200X Mar. 1 13 15 16 16 28 28 28 31 00 00 00 00 00 00 00 00 00
Cash Dr. 00 0 30 0 00 0 39 2 00 0 88 2 07 8 00 0 65 2 (110)
Account Names A. Ellen, Capital 1 3 0 0 00 Cash Sales 4 0 0 0 00 Cash Sales 4 0 0 00 Jim Rex 1 0 0 0 00 Bill Burton 9 0 0 00 Bill Burton 1 1 0 0 00 Amy Rose A.Ellen, Capital 3 4 0 0 00 5 3 0 0 00 (112) (410)
Pr. Ammount Cr. 310 8 0 0 0 00 X X 310 5 0 0 0 00 13 0 0 0 00 (X)
ABBYS TOY HOUSE CASH PAYMENTS JOURNAL PAGE 1
Accounts Payable Dr.
Purchases Discount Cr. 3
4 0 0 0 00 3 0 0 0 00 1 4 0 0 00 8 4 0 0 00 (210)
8 0 00 3 0 00
3 2 2 8 00 1 1 3 8 00 12 (514)
349
Date Check 200X No. Account Debited Mar. 1 1 Prepaid Rent 9 2 Cleaning Expense 12 3 Earl Miller Co. 13 4 Salaries Expense 23 5 Minnie Katz 25 6 Toy Purchase 30 7 Earl Miller Co. 31
Sundry PR. Dr. 114 3 0 0 0 00 612 3 0 0 00 610 6 0 0 00 510 6 0 0 00 4 5 0 0 00 (X)
Cash Cr. 0 0 0 3 0 0 9 2 0 6 0 0 9 7 0 6 0 0 3 7 2 7 6 2 (110)
00 00 00 00 00 00 00 00

ABBYS TOY HOUSE SALES JOURNAL PAGE 1
Date 200X Mar. 3 6 9 16 22 24 30 31
Invoice No. 1 2 3 4 5 6 7
Terms 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30
Account Debited Bill Burton Jim Rex Bill Burton Amy Rose Bill Burton Amy Rose Bonnie Flow Co.
PR
Accounts Rec. - Dr. Toy Sales - Cr. 1 0 0 0 7 0 0 6 0 0 4 0 0 0 9 0 0 1 1 0 0 3 0 0 0 11 3 0 0 (112) (410) 00 00 00 00 00 00 00 00
ABBYS TOY HOUSE GENERAL JOURNAL PAGE 1
Date 200X Mar. 10
Account Titles and Description Sales Returns and Allowances Accounts Receivable, Jim Rex Issued Credit Memo #1 Accounts Payable, Minnie Katz Purchases Returns and Allowances Issued Debit Memo #1
PR 412 112
Dr. 3 0 0 00
Cr. 3 0 0 00
14
210 512
1 0 0 0 00 1 0 0 0 00
350

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER NAME ADDRESS BILL BURTON 24 RYAN RD., BUIKE, OH 02183
Date 200X Mar. 3 9 16 22 28
Explanation
Post Ref. SJ1 SJ1 CRJ1 SJ1 CRJ1
Debit 1 0 0 0 00 6 0 0 00
Dr. Balance 1 0 0 0 00 1 6 0 0 00 1 0 0 0 00 6 0 0 00 9 0 0 00 1 5 0 0 00 9 0 0 00 6 0 0 00
Credit
NAME ADDRESS
BONNIE FLOW CO. 2 SMITH RD., DALLAS, TX 22210
Date 200X Mar. 30
Explanation
Post Ref. SJ1
Debit 3 0 0 0 00
Credit
Dr. Balance 3 0 0 0 00
NAME ADDRESS
JIM REX 1 SCHOOL ST., CLEVELAND, OH 22441
Date 200X Mar. 6 10 16
Explanation
Post Ref. SJ1 GJ1 CRJ1
Debit 7 0 0 00
Credit
Dr. Balance 7 0 0 00 3 0 0 00 4 0 0 00 4 0 0 00
351

NAME ADDRESS AMY ROSE 18 VEEK RD., CHESTER, CT 80111
Date 200X Mar. 16 24 28
Explanation
Post Ref. SJ1 SJ1 CRJ1
Debit 4 0 0 0 00 1 1 0 0 00
Dr. Balance 4 0 0 0 00 5 1 0 0 00 1 1 0 0 00 4 0 0 0 00
Credit
ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME ADDRESS MINNIE KATZ 87 GARFIELD AVE., REVERE, MA 01245
Date 200X Mar. 10 14 23
Explanation
Post Ref. PJ1 GJ1 CPJ1
Credit Cr. Balance 4 0 0 0 00 4 0 0 0 00 1 0 0 0 00 3 0 0 0 00 3 0 0 0 00
Debit
NAME ADDRESS
SAM KATZ GARAGE 22 REGIS RD., BOSTON, MA 01950
Date 200X Mar. 20
Explanation
Post Ref. PJ1
Debit
NAME ADDRESS
EARL MILLER CO. 22 RETTER ST., SAN DIEGO, CA 01211
Date 200X Mar. 1 8 12 28 30
Explanation
Post Ref. PJ1 PJ1 CPJ1 PJ1 CPJ1
Credit Cr. Balance 4 0 0 0 00 4 0 0 0 00 1 2 0 0 00 5 2 0 0 00 4 0 0 0 00 1 2 0 0 00 1 4 0 0 00 2 6 0 0 00 1 4 0 0 00 1 2 0 0 00
Debit
352

NAME ADDRESS WOODY SMITH 2 SPRING ST., WEERS, ND 02118
Date 200X Mar. 26
Explanation
Post Ref. PJ1
Debit
ABBYS TOY HOUSE SCHEDULE OF ACCOUNTS RECEIVABLE MARCH 31, 200X
Bill Burton Bonnie Flow Co. Amy Rose Total Accounts Receivable
$ 3 4 $7
6 0 0 6
0 0 0 0
0 0 0 0
00 00 00 00
ABBYS TOY HOUSE SCHEDULE OF ACCOUNTS PAYABLE MARCH 31, 200X
Sam Katz Garage Earl Miller Co. Woody Smith Total Accounts Payable
$3 1 4 $9
0 2 8 0
0 0 0 0
0 0 0 0
00 00 00 00
353

GENERAL LEDGER CASH ACCOUNT NO. 110
Date 200X Mar. 31 31
Explanation
Balance Post Ref. Debit Credit Debit Credit CRJ1 21 6 5 2 00 21 6 5 2 00 CPJ1 12 7 6 2 00 8 8 9 0 00
ACCOUNTS RECEIVABLE
ACCOUNT NO. 112
Balance Date 200X Mar. 10 31 31 Explanation Post Ref. Debit Credit Debit GJ1 3 0 0 00 SJ1 11 3 0 0 00 11 0 0 0 00 CRJ1 3 4 0 0 00 7 6 0 0 00 Credit 3 0 0 00
PREPAID RENT
ACCOUNT NO. 114
Balance Date 200X Mar. 1 Explanation Post Ref. Debit CPJ1 3 0 0 0 00 Credit Debit 3 0 0 0 00 Credit
DELIVERY TRUCK
ACCOUNT NO. 121
Balance Date 200X Mar. 20 Explanation Post Ref. PJ1 Debit 3 0 0 0 00 Credit Debit 3 0 0 0 00 Credit
354

ACCOUNTS PAYABLE ACCOUNT NO. 210
Date 200X Mar. 14 31 31
Explanation
Balance Post Ref. Debit Credit Debit Credit GJ1 1 0 0 0 00 1 0 0 0 00 PJ1 18 4 0 0 00 17 4 0 0 00 CPJ1 8 4 0 0 00 9 0 0 0 00
A. ELLEN, CAPITAL ACCOUNT NO. 310
Balance Date 200X Mar. 1 28 Explanation Post Ref. CRJ1 CRJ1 Debit Credit 8 0 0 0 00 5 0 0 0 00 Debit Credit 8 0 0 0 00 13 0 0 0 00
TOY SALES
ACCOUNT NO. 410
Balance Date 200X Mar. 31 31 Explanation Post Ref. SJ1 CRJ1 Debit Credit 11 3 0 0 00 5 3 0 0 00 Debit Credit 11 3 0 0 00 16 6 0 0 00
SALES RETURNS AND ALLOWANCES
ACCOUNT NO. 412
Balance Date 200X Mar. 10 Explanation Post Ref. GJ1 Debit 3 0 0 00 Credit Debit 3 0 0 00 Credit
SALES DISCOUNTS
ACCOUNT NO. 414
Balance Date 200X Mar. 31 Explanation Post Ref. CRJ1 Debit 4 8 00 Credit Debit 4 8 00 Credit
355

TOY PURCHASES ACCOUNT NO. 510
Balance Date 200X Mar. 25 31 Explanation Post Ref. Debit CPJ1 6 0 0 00 PJ1 15 4 0 0 00 Credit Debit 6 0 0 00 16 0 0 0 00 Credit
PURCHASES RETURNS AND ALLOWANCES
ACCOUNT NO. 512
Balance Date 200X Mar. 14 Explanation Post Ref. GJ1 Debit Credit 1 0 0 0 00 Debit Credit 1 0 0 0 00
PURCHASES DISCOUNT
ACCOUNT NO. 514
Balance Date 200X Mar. 31 Explanation Post Ref. CPJ1 Debit Credit 1 3 8 00 Debit Credit 1 3 8 00
SALARIES EXPENSE
ACCOUNT NO. 610
Balance Date 200X Mar. 13 Explanation Post Ref. CPJ1 Debit 6 0 0 00 Credit Debit 6 0 0 00 Credit
CLEANING EXPENSE
ACCOUNT NO. 612
356
PROBLEM 10B-1
SKATES.COM PURCHASES JOURNAL PAGE 3
Amount 0 0 0 00 2 0 0 00 2 0 0 00 (X)
SOLUTIONS TO B PROBLEMS
357
Date 200X Jun. 4 5 8 14 30 Inv. PR No. Terms 400 2/10, n/30 518 411 415 2/10, n/30
Account Date of Credited Invoice Rolo Co. 6/5 Norton Co. 6/6 Mail.com 6/5 Mail.com 6/13
Accounts Sundry Dr. Payable Purchases Cr. Account PR Dr. 1 8 0 0 00 1 8 0 0 00 6 0 0 0 00 Store Equipment 121 6 4 0 0 00 4 0 0 00 1 2 0 0 00 Store Supplies 115 1 9 4 0 0 00 2 2 0 0 00 7 (510) (210)
PROBLEM 10B-1 (CONTINUED)

ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME ADDRESS MAIL.COM 12 SMITH ST., DEARBORN, MI 09113
Date 200X Jun. 8 14
Explanation
Post Ref. PJ3 PJ3
Debit
Credit Cr. Balance 4 0 0 00 4 0 0 00 1 2 0 0 00 1 6 0 0 00
NAME ADDRESS
NORTON CO. 1 RANTOUL RD., CHARLOTTE, NC 01114
Date 200X Jun. 5
Explanation
Post Ref. PJ3
Debit
NAME ADDRESS
ROLO CO. 2 WEST RD., LYNN, MA 01471
Balance Date 200X Jun. 4 Explanation Post Ref. PJ3 Debit Credit Debit Credit 1 8 0 0 00 1 8 0 0 00
358
PROBLEM 10B-1 (CONCLUDED)

STORE EQUIPMENT ACCOUNT NO. 121
ACCOUNTS PAYABLE
ACCOUNT NO. 210
Balance Date 200X Jun. 30 Explanation Post Ref. PJ3 Debit Credit 9 4 0 0 00 Debit Credit 9 4 0 0 00
PURCHASES
ACCOUNT NO. 510
359
PROBLEM 10B-2 (1,2)
MABELS NATURAL FOOD STORE PURCHASES JOURNAL PAGE 10
360
Date 200X May 8 10 12 17 24 31 Inv. No. Terms PR 420 2/10, n/60 400 2/10, n/60 510 810 516
Account Date of Credited Invoice Broward Co. 5/9 Aton Co. 5/11 Midden Co. 5/13 Relar Co. 5/18 Midden Co. 5/25
Store Accounts Sundry Dr. Purchases Supplies Payable Dr. Dr. Amount Account Cr. PR 5 0 0 00 5 0 0 00 9 0 0 00 9 0 0 00 7 0 0 00 7 0 0 00 7 5 0 00 Office Equip. 120 7 5 0 00 8 5 0 00 8 5 0 00 3 7 0 0 00 1 4 0 0 00 1 5 5 0 00 7 5 0 00
(210)
(510)
(110)
(X)

ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME ADDRESS ATON CO. 11 LYNNWAY AVE., NEWPORT, RI 03112
Post Ref. PJ10 GJ2
Debit
Credit
4 0 0 00
Cr. Balance 4 0 0 00 9 0 0 00 1 3 0 0 00 9 0 0 00
NAME ADDRESS
BROWARD CO. 21 RIVER ST., ANAHEIM, CA 43110
Date 200X May 1 8
Explanation Balance
Post Ref. PJ10
Debit
Credit
Cr. Balance 6 0 0 00 5 0 0 00 1 1 0 0 00
NAME ADDRESS
MIDDEN CO. 10 ASTER RD., DUBUQUE, IA 80021
Post Ref. PJ10 PJ10
Debit
Credit
Cr. Balance 1 2 0 0 00 7 0 0 00 1 9 0 0 00 8 5 0 00 2 7 5 0 00
NAME ADDRESS
RELAR CO. 22 GERALD RD., SMITH, CO 43138
Post Ref. PJ10
Debit
Credit
Cr. Balance 5 0 0 00 7 5 0 00 1 2 5 0 00
361

Balance Date 200X May 31 Explanation Post Ref. PJ10 Debit 1 5 5 0 00 Credit Debit 1 5 5 0 00 Credit
OFFICE EQUIPMENT
ACCOUNT NO. 120
Balance Date 200X May 17 Explanation Post Ref. PJ10 Debit 7 5 0 00 Credit Debit 7 5 0 00 Credit
ACCOUNTS PAYABLE
ACCOUNT NO. 210
Balance Date 200X Explanation May 1 Balance 14 31 Post Ref. GJ2 PJ10 Debit 4 0 0 00 3 7 0 0 00
PURCHASES
Credit
Debit
Credit 2 7 0 0 00 2 3 0 0 00 6 0 0 0 00
ACCOUNT NO. 510
Balance Date 200X Explanation May 1 Balance 31 Post Ref. PJ10 Debit 1 4 0 0 00 Credit Debit 16 0 0 0 00 17 4 0 0 00 Credit
ACCOUNT NO. 512
Balance Date 200X May 14 Explanation Post Ref. GJ2 Debit Credit 4 0 0 00 Debit Credit 4 0 0 00
362

GENERAL JOURNAL PAGE 2
Date 200X May 14
Account Titles and Description Accounts Payable, Aton Co. Purchases Returns and Allowances Issued Debit Memo #7
PR 210/ 512
Dr. 4 0 0 00
Cr. 4 0 0 00
MABELS NATURAL FOOD STORE SCHEDULE OF ACCOUNTS PAYABLE MAY 31, 200X
Aton Co. Broward Co. Midden Co. Relar Co. Total Accounts Payable
$ 1 2 1 $6
9 1 7 2 0
0 0 5 5 0
0 0 0 0 0
00 00 00 00 00
363
PROBLEM 10B-3
(1, 2)
JONES COMPUTER CENTER CASH PAYMENTS JOURNAL PAGE 5
Sundry Dr. 8 0 0 0 00 3 0 0 00 9 0 0 00 1 0 0 0 00 1 3 0 0 0 00 4 0 0 00 4 2 5 00 11 4 2 5 00 (X) 2 1 0 0 00 (210) 1 9 0 0 00 (510) 4 0 0 00
Accounts Payable Dr. Computer Purchases Dr.
Computer Purchases Discount Cr. 8 1 5 00
364
Date Check 200X No. May 1 21 3 22 6 23 18 24 24 25 28 26 29 27 30 28 31 Account Debited Delivery Truck Henry Co. Cash Purchase Cash Purchase Xon Co. Rent Expense Soy Co. Utilities Expense PR. 150 X X 610 620
7 0 00
1 1 3
8 5 00 15 (511)
Cash Cr. 0 0 0 2 8 5 9 0 0 0 0 0 3 3 0 0 0 0 4 0 0 4 2 5 3 4 0 (110)
00 00 00 00 00 00 00 00 00
PROBLEM 10B-3
ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME ADDRESS ALVIN CO. 1 REACH RD., IPSWICH, MA 01932
Date 200X May 1
Explanation Balance
Post Ref.
Debit
Credit
NAME ADDRESS
HENRY CO. 1 RALPH RD., REVERE, MA 01321
Date 200X May 1 3
Explanation Balance
Post Ref. CPJ5
Debit 3 0 0 00
Credit
Cr. Balance 6 0 0 00 3 0 0 00
NAME ADDRESS
SOY CO. 7 PLYMOUTH AVE., GLENN, NH 01218
Post Ref. CPJ5
Debit 4 0 0 00
Credit
Cr. Balance 8 0 0 00 4 0 0 00
NAME ADDRESS
XON CO. 22 REY RD., BOCA RATON, FL 99132
Post Ref. CPJ5
Debit 1 4 0 0 00
Credit
365

Balance Date 200X Explanation May 1 Balance 31 Post Ref. CPJ5 Debit Debit 17 0 0 0 00 15 3 4 0 00 1 6 6 0 00 Credit Credit
DELIVERY TRUCK
ACCOUNT NO. 150
ACCOUNTS PAYABLE
ACCOUNT NO. 210
Balance Date 200X Explanation May 1 Balance 31 Post Ref. Debit CPJ5 2 1 0 0 00 Credit Debit Credit 4 0 0 0 00 1 9 0 0 00
COMPUTER PURCHASES
ACCOUNT NO. 510
366

COMPUTER PURCHASES DISCOUNT ACCOUNT NO. 511
Balance Date 200X May 31 Explanation Post Ref. CPJ5 Debit Credit 8 5 00 Debit Credit 8 5 00
RENT EXPENSE
ACCOUNT NO. 610
UTILITIES EXPENSE
ACCOUNT NO. 620
Balance Date 200X May 30 Explanation Post Ref. CPJ5 Debit 4 2 5 00 Credit Debit 4 2 5 00 Credit
JONES COMPUTER CENTER SCHEDULE OF ACCOUNTS PAYABLE MAY 31, 200X
Alvin Co. Henry Co. Soy Co. Total Accounts Payable
$1 2 3 4 $1 9
0 0 0 0
0 0 0 0
00 00 00 00
367
PROBLEM 10B-4 (1, 2, 3)
ABBYS TOY HOUSE PURCHASES JOURNAL PAGE 1
Date 200X Date of Inv. Invoice No. Terms

2/10, n/30 2/10, n/30 1/15, n/60 2/10, n/30 2/10, n/30 0 0 0 00 8 0 0 00 0 0 0 00
Account Credited PR
Accounts Payable Cr. Toy Purchases Dr.
Sundry Dr. Account PR Amount
368
Mar.
1 8 10 20 26 28 31
Earl Miller Co. Earl Miller Co. Minnie Katz Sam Katz Garage Woody Smith Earl Miller Co.
3/2 3/9 3/11 3/21 3/27 3/29
410 415 311 111 211 436
6 0 8 7 0 2 5 5 9 4 2 26 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 6 00 00 7 00 00 5 00 4 00 23
Delivery Truck 121 2 5 0 0 00 9 0 0 00 2 0 0 00 9 0 0 00
2 5 0 0 00
(210)
(510)
(X)
ABBYS TOY HOUSE CASH PAYMENTS JOURNAL PAGE 1
Purchases Discount Cr. 1 1 2 0 00 6 5 00 5 6 8 4 00 4 2 6 9 00 19 (514)
369
Date Check 200X No. Account Debited Mar. 1 1 Prepaid Rent 9 2 Cleaning Expense 12 3 Earl Miller Co. 13 4 Salaries Expense 23 5 Minnie Katz 25 6 Toy Purchase 30 7 Earl Miller Co. 31
Accounts Sundry Payable PR. Dr. Dr. 114 1 0 0 0 00 612 4 0 0 00 6 0 0 0 00 610 7 0 0 00 6 5 0 0 00 510 8 0 0 00 4 2 0 0 00 2 9 0 0 00 16 7 0 0 00 (X) (210)
Cash Cr. 0 0 0 4 0 0 8 8 0 7 0 0 4 3 5 8 0 0 1 1 6 3 3 1 (110)
00 00 00 00 00 00 00 00

ABBYS TOY HOUSE SALES JOURNAL PAGE 1
Date 200X Mar. 3 6 9 16 22 24 30 31
Invoice No. 1 2 3 4 5 6 7
Terms 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30
Account Debited Bill Burton Jim Rex Bill Burton Amy Rose Bill Burton Amy Rose Bonnie Flow Co.
PR
Accounts Rec. - Dr. Toy Sales - Cr. 1 6 0 0 8 0 0 7 0 0 6 0 0 0 2 0 0 0 2 0 0 0 3 2 0 0 16 3 0 0 (112) (410) 00 00 00 00 00 00 00 00
ABBYS TOY HOUSE GENERAL JOURNAL PAGE 1
Date 200X Account Titles and Description Mar. 10 Sales Returns and Allowances Accounts Receivable, Jim Rex Issued Credit Memo #1 14 Accounts Payable, Minnie Katz Purchases Returns and Allowances Issued Debit Memo #1
PR 412 112/
Dr. 2 0 0 00
Cr. 2 0 0 00
210/ 512
5 0 0 00 5 0 0 00
370
ABBYS TOY HOUSE CASH RECEIPTS JOURNAL PAGE 1
Sales Discounts Dr. Accounts Receivable Cr. Sales Cr.
Sundry Cr.
4 1 4 1 2 00 4 0 00 4 0 00 9 2 00 (414) 1 1 1 3 19
Date 200X Mar. 1 13 15 16 16 28 28 28 31 00 00 00 00 00 00 00 00 00
Cash Dr. 00 0 50 0 80 0 58 8 60 0 96 0 96 0 00 0 40 8 (110)
Account Names A. Ellen, Capital 1 5 0 0 00 Cash Sales 4 8 0 0 00 Cash Sales 6 0 0 00 Jim Rex 1 6 0 0 00 Bill Burton 2 0 0 0 00 Bill Burton 2 0 0 0 00 Amy Rose A. Ellen, Capital 6 2 0 0 00 6 3 0 0 00 (112) (410)
PR Ammount Cr. 310 4 0 0 0 00 X X
371
310 3 0 0 0 00 7 0 0 0 00 (X)

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER NAME ADDRESS BILL BURTON 24 RYAN RD., BUIKE, OH 02183
Date 200X Mar. 3 9 16 22 28
Explanation
Post Ref. SJ1 SJ CRJ1 SJ1 CRJ1
Debit 1 6 0 0 00 7 0 0 00
Dr. Balance 1 6 0 0 00 2 3 0 0 00 1 6 0 0 00 7 0 0 00 2 0 0 0 00 2 7 0 0 00 2 0 0 0 00 7 0 0 00
Credit
NAME ADDRESS
BONNIE FLOW CO. 2 SMITH RD., DALLAS, TX 22210
Date 200X Mar. 30
Explanation
Post Ref. SJ1
Debit 3 2 0 0 00
Credit
NAME ADDRESS
JIM REX 1 SCHOOL ST., CLEVELAND, OH 22441
Date 200X Mar. 6 10 16
Explanation
Post Ref. SJ1 GJ1 CRJ1
Debit 8 0 0 00
Credit
Dr. Balance 8 0 0 00 2 0 0 00 6 0 0 00 6 0 0 00
372

NAME ADDRESS AMY ROSE 18 VEEK RD., CHESTER, CT 80111
Date 200X Mar. 16 24 28
Explanation
Post Ref. SJ1 SJ1 CRJ1
Debit 6 0 0 0 00 2 0 0 0 00
Dr. Balance 6 0 0 0 00 8 0 0 0 00 2 0 0 0 00 6 0 0 0 00
Credit
ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME ADDRESS MINNIE KATZ 87 GARFIELD AVE., REVERE, MA 01245
Date 200X Mar. 10 14 23
Explanation
Post Ref. PJ1 GJ1 CPJ1
Credit Cr. Balance 7 0 0 0 00 7 0 0 0 00 5 0 0 00 6 5 0 0 00 6 5 0 0 00
Debit
NAME ADDRESS
SAM KATZ GARAGE 22 REGIS RD., BOSTON, MA 01950
Date 200X Mar. 20
Explanation
Post Ref. PJ1
Debit
NAME ADDRESS
EARL MILLER CO. 22 BETTER ST., SAN DIEGO, CA 01211
Date 200X Mar. 1 8 12 28 30
Explanation
Post Ref. PJ1 PJ1 CPJ1 PJ1 CPJ1
Credit Cr. Balance 6 0 0 0 00 6 0 0 0 00 8 0 0 00 6 8 0 0 00 6 0 0 0 00 8 0 0 00 4 2 0 0 00 5 0 0 0 00 4 2 0 0 00 8 0 0 00
Debit
373

NAME ADDRESS WOODY SMITH 2 SPRING ST., WEERS, ND 02118
Date 200X Mar. 26
Explanation
Post Ref. PJ1
Debit
ABBYS TOY HOUSE SCHEDULE OF ACCOUNTS RECEIVABLE MARCH 31, 200X
Bill Burton Bonnie Flow Co. Amy Rose Total Accounts Receivable
$ 3 6 $9
7 2 0 9
0 0 0 0
0 0 0 0
00 00 00 00
ABBYS TOY HOUSE SCHEDULE OF ACCOUNTS PAYABLE MARCH 31, 200X
Sam Katz Garage Earl Miller Co. Woody Smith Total Accounts Payable
$2 5 8 5 9 $9 2
0 0 0 0
0 0 0 0
00 00 00 00
374

GENERAL LEDGER CASH ACCOUNT NO. 110
Balance Date 200X Mar. 31 31 Explanation Post Ref. Debit Credit Debit CRJ1 19 4 0 8 00 19 4 0 8 00 CPJ1 19 3 3 1 00 7 7 00 Credit
ACCOUNTS RECEIVABLE
ACCOUNT NO. 112
Balance Date 200X Mar. 10 31 31 Explanation Post Ref. Debit Credit Debit GJ1 2 0 0 00 SJ1 16 3 0 0 00 16 1 0 0 00 CRJ1 6 2 0 0 00 9 9 0 0 00 Credit 2 0 0 00
PREPAID RENT
ACCOUNT NO. 114
Balance Date 200X Mar. 1 Explanation Post Ref. Debit CPJ1 1 0 0 0 00 Credit Debit 1 0 0 0 00 Credit
DELIVERY TRUCK
ACCOUNT NO. 121
Balance Date 200X Mar. 20 Explanation Post Ref. PJ1 Debit 2 5 0 0 00 Credit Debit 2 5 0 0 00 Credit
375

ACCOUNTS PAYABLE ACCOUNT NO. 210
Balance Date 200X Mar. 14 31 31 Explanation Post Ref. Debit Credit GJ1 5 0 0 00 PJ1 26 4 0 0 00 CPJ1 16 7 0 0 00
A. ELLEN, CAPITAL
Debit 5 0 0 00
Credit 25 9 0 0 00 9 2 0 0 00
ACCOUNT NO. 310
Balance Date 200X Mar. 1 28 Explanation Post Ref. CRJ1 CRJ1 Debit Credit 4 0 0 0 00 3 0 0 0 00 Debit Credit 4 0 0 0 00 7 0 0 0 00
TOY SALES
ACCOUNT NO. 410
Balance Date 200X Mar. 31 31 Explanation Post Ref. SJ1 CRJ1 Debit Credit 16 3 0 0 00 6 3 0 0 00 Debit Credit 16 3 0 0 00 22 6 0 0 00
SALES RETURNS AND ALLOWANCES
ACCOUNT NO. 412
Balance Date 200X Mar. 10 Explanation Post Ref. GJ1 Debit 2 0 0 00 Credit Debit 2 0 0 00 Credit
SALES DISCOUNTS
ACCOUNT NO. 414
Balance Date 200X Mar. 31 Explanation Post Ref. CRJ1 Debit 9 2 00 Credit Debit 9 2 00 Credit
376

TOY PURCHASES ACCOUNT NO. 510
Balance Date 200X Mar. 25 31 Explanation Post Ref. Debit CPJ1 8 0 0 00 PJ1 23 9 0 0 00 Credit Debit 8 0 0 00 24 7 0 0 00 Credit
ACCOUNT NO. 512
Balance Date 200X Mar. 14 Explanation Post Ref. GJ1 Debit Credit 5 0 0 00 Debit Credit 5 0 0 00
PURCHASES DISCOUNT
ACCOUNT NO. 514
Balance Date 200X Mar. 31 Explanation Post Ref. CPJ1 Debit Credit 2 6 9 00 Debit Credit 2 6 9 00
SALARIES EXPENSE
ACCOUNT NO. 610
CLEANING EXPENSE
ACCOUNT NO. 612
377
SOLUTIONS TO REAL WORLD APPLICATION #1

I = PRT I R= PT $20 $980 20 360 = Approx. 36.74%
I = Dollars of Interest R = Rate of Interest T = Period of load (years) P = Principal
SOLUTIONS TO REAL WORLD APPLICATION #2

PARTIAL GENERAL LEDGER Cash CRJ 39,400 12,060 CPJ Accounts Payable GJ 800 CPJ 7,000 Sales 16,800 SJ 9,600 CRJ Sales Discount CRJ 200 18,000 PJ GJ 1,600 SRA
Accounts Receivable SJ 16,800 1,600 GJ 10,000 CRJ
Purchases PJ 18,000
Notes Payable 20,000 CRJ
PRA 800 GJ Purchase Discounts 140 CPJ
Salaries Expense CPJ 2,600 CPJ 2,600 ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER Blue Co. Jon Co. SJ 5,600 SJ 4,800 4,800 CRJ 1,600 GJ 2,000 CRJ Roff Co.
SJ 6,400
3,200 CRJ
ACCOUNTS PAYABLE SUBSIDIARY LEDGER Ralph Co. 4,000 PJ Sos Co. CPJ 3,000 6,000 PJ Jingle Co. GJ 800 CPJ 4,000 8,000 PJ
378
SOLUTIONS TO REAL WORLD APPLICATION #3 The question in this case is whether Mel and Joanne should backdate the check in order to make the discount period. Although a business should try to pay bills during the discount period, they should never backdate a check. It is extremely unethical to backdate a check, knowing full well that they missed the discount date. Instead of backdating their check, Joanne and Mel should make certain that future bills are paid within the discount period.
379
SOLUTION FOR CONTINUING PROBLEM CHAPTER 10

PURCHASES JOURNAL PAGE 1
Date 2 4 2 8 2 9
Account Credited Multi Systems Office Depot Comp. Conn
PR 6A3 6A4 6A7
Accounts Purchase Payable Cr. Dr. 4 5 0 00 4 5 0 00 2 5 0 00 5 0 0 00 5 0 0 00 1 2 0 0 00 (2000) 9 5 0 00 (6000)
Sundry Dr. Account Supplies PR Amount 2 5 0 00
2 5 0 00 (1030)
CASH PAYMENTS JOURNAL PAGE 1
Check Date No. Accounts Debited 2 1 2585 Prepaid Rent 2 15 2586 Multi Systems 2 27 2587 Office Supplies
Sundry Account PR. Dr. 1025 1 2 0 0 00 6A3 1030 5 0 00
Account Payable Dr. 4 5 0 00
Purchases Discounts Cr.
Cash Cr. 1 2 0 0 00 4 5 0 00 5 0 00
1 2 5 0 00 (X)
GENERAL JOURNAL
4 5 0 00 (2000)
1 7 0 0 00 (1000)
PAGE 11
Date Account Titles and Description PR 2 21 Accounts Payable (Computer Connection) 2000/6A7 Purchase Ret. & Allowances 6010
Dr. 1 0 0 00
Cr. 1 0 0 00
380
Balance Date 200X Explanation 2 1 Balance forward 2 29 Post Ref. CP1 Debit Debit 15 1 1 6 65 1 7 0 0 00 13 4 1 6 65 Credit Credit
SUPPLIES
ACCOUNT NO. 1030
Balance Date 200X Explanation 2 1 Balance forward 2 29 2 27 Post Ref. PJ1 CP1 Debit 2 5 0 00 5 0 00 Credit Debit 1 3 2 00 3 8 2 00 4 3 2 00 Credit
MERCHANDISE INVENTORY
ACCOUNT NO. 1040
Balance Date 200X Explanation Post Ref. Debit Credit Debit Credit
PREPAID RENT
ACCOUNT NO. 1025
Balance Date 200X 2 1 2 1 Explanation Balance forward Post Ref. P1 Debit 1 2 0 0 00 Credit Debit 1 6 0 0 00 2 8 0 0 00 Credit
381
ACCOUNTS PAYABLE
Balance Date 200X Explanation 2 1 Balance forward 2 28 2 21 2 29 Post Ref. PJ1 GJ1 CPJ Debit Credit 1 2 0 0 00 1 0 0 00 4 5 0 00 Debit 2 3 3 2 Credit 0 5 0 00 2 5 0 00 1 5 0 00 7 0 0 00
ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME ADDRESS MULTI SYSTEMS 1919 MORAN ST., ANAHEIM, CA 92606 # 6A3
Date 200X 2 1 2 4 2 15
Explanation Balance forward 4010 3/10, n/3 0
Post Ref. PJ1 CP1
Debit
Credit
4 5 0 00
Cr. Balance 4 5 0 00 4 5 0 00 9 0 0 00 4 5 0 00
NAME ADDRESS
OFFICE DEPOT 460 ESCONDIDO BLVD., ESCONDIDO, CA 92025
# 6A4
Date 200X 2 1 8*
Explanation Balance forward 4011 n/30
Post Ref. PJ1
Debit
Credit
Cr. Balance 5 0 00 2 5 0 00 3 0 0 00
NAME ADDRESS
SAN DIEGO ELECTRIC 606 INDUSTRIAL ST., SAN DIEGO, CA 92121
# 6A5
Balance Date Explanation Post Ref. Debit Credit Debit Credit
382
NAME ADDRESS
COMPUTER CONNECTION 1020 WIL LANE, LOS ANGELES, CA 92405
# 6A7
Date 200X 2 9 21
Explanation 4012 1/30, n/60
Post Ref. GJ1
Debit 1 0 0 00
Credit Cr. Balance 5 0 0 00 5 0 0 00 4 0 0 00
NAME ADDRESS
PACIFIC BELL 101 BELL AVE., SAN DIEGO, CA 92101
# 6A6
Date 200X 2 1
Explanation Balance forward
Post Ref.
Debit
Credit Cr. Balance 1 5 0 00 1 5 0 00
NAME ADDRESS
SYSTEMS DESIGN FURNITURE 2070 FIRST ST., SAN DIEGO, CA 92101
# 6A8
Date 200X 2 1
Explanation Balance forward
Post Ref.
Debit
Credit
383
PURCHASES
ACCOUNT NO. 6000
Balance Date 200X 2 29 Explanation Post Ref. PJ1 Debit 9 5 0 00 Credit Debit 9 5 0 00 Credit
PURCHASE RETURNS AND ALLOWANCES
ACCOUNT NO. 6010
Balance Date 200X 2 2 Explanation Post Ref. J11 Debit Credit 1 0 0 00 Debit Credit 1 0 0 00
PURCHASE DISCOUNTS
ACCOUNT NO. 6020
Balance Date 200X Explanation Post Ref. Debit Credit Debit Credit
ELDORADO COMPUTER CENTER SCHEDULE OF ACCOUNTS PAYABLE 2/28/0X
System Design Furniture Pacific Bell Computer Connection Multi Systems Office Depot San Diego Electric TOTAL
1 4 1 4 4 3 -
0 5 0 5 0 0
0 0 0 0 0 -
00 00 00 00 00
2 7 0 0 00
384

SMCH 10

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Special Journals: Purchases and Cash Payments

ANSWERS TO DISCUSSION QUESTIONS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Purchases Purchases Returns and Allow. Purchases Discount

Net Purchases = Purchases Purch. Ret. + Allow. Purch. Disc. $8 A. 1, 2 B. 1, 5 C. 4, 5 A. B. C. D. E. F. 5 3 3 2 4 5 $3 $1 = $4

Lane.com 900 PJ1 June 4

2,100 PJ1 June 30

Sail.com 400 PJ1 June 8

Purchases June 30 PJ1 1,700

Reel Co. 7/10 GJ1 400

Accounts Payable 7/10 GJ1 400

Purchases Returns and Allowances

400 7/10 GJ1

EXERCISES (CONTINUED) 10-3.

Sundry Account Dr. 1 0 0 00

Accounts Payable Dr. 1 0 0 0 00

Purchases Discount Cr. 2 0 00

ACCOUNTS PAYABLE SUBSIDIARY LEDGER A. James 4/01 CPJ2 1,000 1,000

PARTIAL GENERAL LEDGER Cash 3,000 110 1,480 4/30 CPJ2

B. Foss 4/15 CPJ2 400 400

Accounts Payable 4/30 CPJ2 1,400

Advertising Expense 4/8 CPJ2 100

EXERCISES (CONTINUED) 10-4.

Accounts Payable 1,400

210 2,400 1,000

10-5. Purchases Accounts Payable 10-6.

Dr. $9,000 Cr. $9,000

SKATES.COM PURCHASES JOURNAL PAGE 3

PROBLEM 10A-1 (CONTINUED)

Date 200X Jun. 4 14

Post Ref. PJ3 PJ3

Credit Cr. Balance 7 0 0 00 7 0 0 00 9 0 0 00 1 6 0 0 00

NORTON CO. 1 RANTOUL RD., CHARLOTTE, NC 01114

Date 200X Jun. 5

Post Ref. PJ3

Credit Cr. Balance 4 0 0 0 00 4 0 0 0 00

ROLO CO. 2 WEST RD., LYNN, MA 01471

Date 200X Jun. 8

Post Ref. PJ3

Credit Cr. Balance 1 4 0 0 00 1 4 0 0 00

PROBLEM 10A-1 (CONCLUDED)

ACCOUNT NO. 121

ACCOUNT NO. 210

ACCOUNT NO. 510

PROBLEM 10A-2 (1, 2)

MABELS NATURAL FOOD STORE PURCHASES JOURNAL PAGE 10

Date 200X May 8 10 12 17 24 31

PROBLEM 10A-2 (CONTINUED)

Date 200X Explanation May 1 Balance 8 14

Post Ref. PJ10 GJ2

BROWARD CO. 21 RIVER ST., ANAHEIM, CA 43110

Date 200X Explanation May 1 Balance 10

Post Ref. PJ10

MIDDEN CO. 10 ASTER RD., DUBUQUE, IA 80021

Date 200X Explanation May 1 Balance 12 24

Post Ref. PJ10 PJ10

RELAR CO. 22 GERALD RD., SMITH, CO 43138

Date 200X Explanation May 1 Balance 17

Post Ref. PJ10

PROBLEM 10A-2 (CONTINUED)

ACCOUNT NO. 120

ACCOUNT NO. 210

Balance Date 200X Explanation May 1 Balance 14 31