journal. Ignore any transactions that should be journalized in a purchases journal, a cash disburse-
ments journal, or a general journal.
Open the following general ledger accounts: Cash, Accounts Receivable, Inventory, Long-Term
Notes Payable, Common Stock, Retained Earnings, Sales, Sales Discounts, and Cost of Goods Sold.
Enter the March 31 balances for Cash ($85,000), Inventory ($125,000), Long-Term Notes Payable
($110,000), Common Stock ($20,000), and Retained Earnings ($80,000). Also open accounts re-
ceivable subsidiary ledger accounts for Paul Kohr, Brooke Sledd, and Amy Nilson.
Verify that amounts that should be posted as individual amounts from the journals have been posted.
(Such items are immediately posted.) Foot and crossfoot the journals and make the month-end
Prepare a trial balance of the general ledger and prove the accuracy of the subsidiary ledger by
preparing a schedule of accounts receivable.
Assume that the total for the schedule of Accounts Receivable does not equal the balance of the
controlling account in the general ledger. Describe steps you would take to discover the error(s).
Special journals, subsidiary
ledgers, and schedule of
Assume that Wise Co. in Problem E-1A uses the periodic inventory system.
Prepare headings for a sales journal like the one in Exhibit E-A.1. Prepare headings for a cash
journal like the one in Exhibit E-A.2. Journalize the April transactions shown in Problem E-1A that
should be recorded in the sales journal and the cash receipts journal assuming the
system is used.
Open the general ledger accounts with balances as shown in Problem E-1A (do not open a Cost
of Goods Sold ledger account). Also open accounts receivable subsidiary ledger accounts for
Trial balance totals, $415,185