ch07 - Exercise Set B - EXERCISES: SET B E7-1B Gill Company...

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EXERCISES: SET B E7-1B Gill Company uses both special journals and a general journal as described in this chapter. On June 30, after all monthly postings had been completed, the Accounts Receivable control account in the general ledger had a debit balance of $200,000; the Accounts Payable control account had a credit balance of $120,000. The July transactions recorded in the special journals are summarized below. No entries affecting accounts receivable and accounts payable were recorded in the general journal for July. Sales journal Total sales $252,000 Purchases journal Total purchases $151,000 Cash receipts journal Accounts receivable column total $231,000 Cash payments journal Accounts payable column total $142,000 Instructions (a) What is the balance of the Accounts Receivable control account after the monthly postings on July 31? (b) What is the balance of the Accounts Payable control account after the monthly postings on July 31? (c) To what account(s) is the column total of $252,000 in the sales journal posted? (d) To what account(s) is the accounts receivable column total of $231,000 in the cash receipts journal posted? E7-2B Presented below is the subsidiary accounts receivable account of Maxwell Shafer. Date Ref. Debit Credit Balance 2010 Sept. 4 S29 16,000 16,000 7 G4 2,000 14,000 23 CR9 14,000 Instructions Write a memo to Tyler Johnston, chief financial officer, that explains each transaction. E7-3B On September 1 the balance of the Accounts Receivable control account in the general ledger of Harland Company was $12,960. The customers’ subsidiary ledger contained account balances as follows: Garcia $1,940, Verduzco $3,140, Bautista $2,560, Campione $5,320. At the end of September the various journals contained the following information. Sales journal: Sales to Bautista $900; to Garcia $1,400; to Miranda $1,500; to Campione $1,200. Cash receipts journal: Cash received from Bautista $1,610; from Campione $2,600; from Miranda $580; from Verduzco $2,100; from Garcia $1,540. General journal: An allowance is granted to Campione $325. Instructions (a) Set up control and subsidiary accounts and enter the beginning balances. Do not construct the journals. (b) Post the various journals. Post the items as individual items or as totals, whichever would be the appropriate procedure. (No sales discounts given.) (c) Prepare a list of customers and prove the agreement of the controlling account with the subsidiary ledger at September 30, 2008. E7-4B Yaspo Company has a balance in its Accounts Receivable control account of $17,000 on January 1, 2010. The subsidiary ledger contains three accounts: James Company, balance $6,000; Black Company, balance $3,700; and Change Company. During January, the following receivable-related transactions occurred. Credit Sales
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