ch07 - Exercise Set C - Chapter 7 PROBLEMS: SET C P7-1C...

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PROBLEMS: SET C P7-1C Ranger 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 B. Ranger, Capital On June 1 the accounts receivable ledger of Ranger Company showed the following balances: June transactions involving the receipt of cash were as follows. June 1 The owner, B. Ranger, invested additional cash in the business $10,000. 3 Received check in full from Meyers Co. less 2% cash discount. 6 Received check in full from Darby Co. less 2% cash discount. 7 Made cash sales of merchandise totaling $6,135. The cost of the merchandise sold was $4,090. 9 11 Received cash refund from a supplier for damaged merchandise $320. 15 Made cash sales of merchandise totaling $4,500. The cost of the merchandise sold was $3,000. 20 Received check in full from Hinson Bros. $1,600. 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. P7-2C Goya Company’s chart of accounts includes the following selected accounts. 101 Cash 157 Equipment 120 Merchandise Inventory 201 Accounts Payable 130 Prepaid Insurance 306 D. Goya, Drawing On November 1 the accounts payable ledger of Goya Company showed the following balances: November transactions involving the payment of cash were as follows. Nov. 1 Purchased merchandise, check no. 11, $1,140. 3 Purchased store equipment, check no. 12, $1,700. 5 Paid Xavier Bros. balance due of $1,500, less 1% discount, check no. 13, $1,485. 11 Purchased merchandise, check no. 14, $2,000. 15 Paid H. Susscan balance due of $1,000, less 3% discount, check no. 15, $970. 16 D. Goya, the owner, withdrew $500 cash for own use, check no. 16. 19 Paid D. Linnis in full for invoice no. 1245, $1,150 less 2% discount, check no. 17, $1,127. 25 Paid premium due on one-year insurance policy, check no. 18, $3,000. 30 Instructions
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This note was uploaded on 09/19/2010 for the course ACCT 220 taught by Professor Ullmann during the Fall '10 term at University of Nebraska Kearney.

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ch07 - Exercise Set C - Chapter 7 PROBLEMS: SET C P7-1C...

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