Grider Company's chart of accounts includes the following selected accounts.
101 Cash 401 Sales
112 Accounts Receivable 414 Sales Discounts
120 Merchandise Inventory 505 Cost of Goods Sold
301 O. Grider, Capital
On April 1 the accounts receivable ledger of Grider Company showed the
following balances: Ogden $1,550, Chelsea $1,200, Eggleston Co. $2,900,
and Baez $1,800.The April transactions involving the receipt of cash
were as follows.
Apr. 1 The owner, O. Grider, invested additional cash in the business $7,200.
4 Received check for payment of account from Baez less 2% cash discount.
5 Received check for $920 in payment of invoice no. 307 from Eggleston Co.
8 Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was $4,347.
10 Received check for $600 in payment of invoice no. 309 from Ogden.
11 Received cash refund from a supplier for damaged merchandise $740.
23 Received check for $1,500 in payment of invoice no. 310 from Eggleston Co.
29 Received check for payment of account from Chelsea.
Instructions
(a) Journalize the transactions above in a six-column cash receipts
journal with columns for Cash Dr., Sales Discounts Dr., Accounts
Receivable Cr., Sales Cr., Other Accounts Cr., and Cost of Goods Sold
Dr./Merchandise Inventory Cr. Foot and crossfoot the journal.
(b) Insert the beginning balances in the Accounts Receivable control
and subsidiary accounts, and post the June transactions to these
accounts.
(c) Prove the agreement of the control account and subsidiary account balances.
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