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Question Ex. 136 CASH PAYMENTS JOURNAL Page 45 ——————————————————————————

Question Ex. 136 CASH PAYMENTS JOURNAL Page 45 ——————————————————————————

Question

Ex. 136

CASH PAYMENTS JOURNAL Page 45

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Other Accounts

Ck. Account Post. Accounts Payable Inventory Cash

Date No. Debited Ref. Dr. Dr. Cr. Cr.

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20—

Jan. 4 659 N. Barger (a) 4,000 40 3,960

11 660 Prepaid Rent (b) 1,000 1,000

13 661 Inventory (c) 565 565

14 662 Owner’s Drawings (d) 2,000 2,000

18 663 Yount (e) 1,300 1,300

20 664 Inventory (f) 450 450

29 665 Equipment (g) 3,400 3,400

7,415 5,300 40 12,675

(h) (i) (j) (k)

Using the cash payments journal above, identify each of the posting references indicated by a letter, as representing:

(1) a posting to a general ledger account.

(2) a posting to a subsidiary ledger account.

(3) that no posting is required.

Ans: N/A, LO: 3, Bloom: C, Difficulty: Medium, Min: 10, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA

Ex. 137

Shown below is a page from a special journal.

1. What is the name of this journal?

2. Give an explanation for each of the transactions in this journal.

3. Explain the following:

(a) the numbers under the bottom lines.

(b) the checks entered into the Post. Ref. column.

(c) the numbers 113 and 416 in the Post. Ref. column.

(d) the (x) below the Other Accounts column.

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Sales Accounts Sales Other C. of G. S.

Accounts Post Cash Discounts Receivable Revenue Accounts Dr.

Date Credited Ref. Dr. Dr. Cr. Cr. Cr. Inventory Cr.

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May 27 Tony Karr Ö 1,960 40 2,000

28 Notes Receivable 113 5,480 5,000

Interest Revenue 416 480

29 425 425 250

31 Jim Borke Ö 500 500

8,365 40 2,500 425 5,480 250

(101) (414) (112) (401) (x) (505)(120)

Ans: N/A, LO:3, Bloom: C, Difficulty: Medium, Min: 10, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA

.

Ex. 138

On September 30, after all monthly postings had been completed, the Accounts Receivable control account in the general ledger had a debit balance of $250,000; the Accounts Payable control account had a credit balance of $105,000.

The October transactions recorded in the special journals are presented below.

Special Journals October Transactions

Sales journal Total sales $180,000

Purchases journal Total purchases 72,000

Cash receipts journal Accounts receivable column total 120,000

Cash payments journal Accounts payable column total 41,000

Instructions

Compute the balances of the (1) Accounts Receivable and (2) Accounts Payable control accounts after the monthly postings on October 31.

Ans: N/A, LO: 3, Bloom: AN, Difficulty: Medium, Min: 8, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA

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