Confirm that the additions and subtractions are

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confirm that the additions and subtractions are correct. Next, trace the postings from each subsidiary account and from the controlling account back to the appropriate journals. Since the sales and cash receipts journals were footed and crossfooted before posting, the previous steps should disclose the error. 7-21
Chapter 07 - Accounting Information Systems Problem 7-3A (120 minutes) Parts 1 and 3 PURCHASES JOURNAL Page 3 Date Account Date of Invoice Terms PR Accounts Payable Cr. Inventory Dr. Office Supplies Dr. Other Accounts Dr. Apr. 2 Negi Company ......................... 4/2 2/10, n/60 13,300 13,300 3 Office Supplies/Madison Inc. ..... 4/2 n/10, EOM 1,380 1,380 9 Store Equip./Ned’s Supply ....... 4/9 n/10, EOM 165/ 11,125 11,125 17 Price Company ........................ 4/17 2/10, n/30 12,750 12,750 20 Store Supplies/Ned’s Supply... 4/19 n/10, EOM 125/ 730 730 25 Negi Company ......................... 4/24 2/10, n/60 10,375 10,375 ____ _____ 30 Totals ...................................... 49,660 36,425 1,380 11,855 (201) (119) (124) ( ) CASH DISBURSEMENTS JOURNAL Page 3 Date Ck. No. Payee Account Debited PR Cash Cr. Inventory Cr. Other Accounts Dr. Accounts Payable Dr. Apr. 4 587 U.S. View .............. Advertising Expense ......... 655 999 999 12 588 Negi Company ........ Negi Company ................... 13,034 266 13,300 16 589 Payroll .................. Sales Salaries Expense ..... 621 9,750 9,750 26 590 Price Company ..... Price Company .................. 12,103 247 12,350 30 591 Payroll .................. Sales Salaries Expense ..... 621 9,750 ___ 9,750 _____ 30 Totals .................... 45, 636 513 20,499 25,650 (101) (119) ( ) (201) 7-22
Chapter 07 - Accounting Information Systems Problem 7-3A (Continued) Parts 1 and 3—continued GENERAL JOURNAL Page 3 Apr. 6 Accounts Payable--Madison Inc ............ 201/ 85 Office Supplies ................................ 124 85 Received a credit memorandum. 23 Accounts Payable--Price Co ............... 201/ 400 Inventory .......................................... 119 400 Parts 2 and 3 GENERAL LEDGER Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Mar. 31 Balance 85,000 Apr. 30 D3 45,636 39,364 Inventory Acct. No. 119 Date Explanation PR Debit Credit Balance Mar. 31 125,000 Apr. 23 G3 400 124,600 30 P3 36,425 161,025 30 D3 513 160,512 Office Supplies Acct. No. 124 Date Explanation PR Debit Credit Balance Apr. 3 P3 1,380 1,380 6 G3 85 1,295 Store Supplies Acct. No. 125 Date Explanation PR Debit Credit Balance Apr. 20 P3 730 730 Store Equipment Acct. No. 165 Date Explanation PR Debit Credit Balance Apr. 9 P3 11,125 11,125 7-23
Chapter 07 - Accounting Information Systems Problem 7-3A (Continued) Parts 2 and 3—continued General Ledger—continued Accounts Payable Acct. No. 201 Date Explanation PR Debit Credit Balance Apr. 6 G3 85 (85) 23 G3 400 (485) 30 P3 49,660 49,175 30 D3 25,650 23,525 Long-Term Notes Payable Acct. No. 251 Date Explanation PR Debit Credit Balance Mar. 31 Balance 110,000 B. Wise, Capital Acct. No. 301 Date Explanation PR Debit Credit Balance Mar. 31 100,000 Sales Salaries Expense Acct. No. 621 Date Explanation PR Debit Credit Balance Apr. 16 D3 9,750 9,750 30 D3 9,750 19,500 Advertising Expense Acct. No. 655 Date Explanation PR Debit Credit Balance Apr. 4 D3 999 999 ACCOUNTS PAYABLE LEDGER Ned’s Supply Date Explanation PR Debit Credit Balance Apr. 9 P3 11,125 11,125 20 P3 730 11,855 Negi Company Date Explanation PR Debit Credit Balance Apr. 2 P3 13,300 13,300 12 D3 13,300 0 25 P3 10,375 10,375 7-24
Chapter 07 - Accounting Information Systems Problem 7-3A (Concluded) Parts 2 and 3—continued Accounts Payable Ledger—continued Price Company Date Explanation PR Debit Credit Balance Apr. 17 P3 12,750 12,750 23 G3 400 12,350 26 D3 12,350 0 Madison, Inc.

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