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Chapter 1: AB-7SE (page 33)

Review your results from Short Exercise SB-6.

Requirements

1. Total each column of the cash receipts journal.

2. Open the following four-column accounts in the accounts receivable subsidiary ledger: Accounts Receivable—Dylan, Bal. \(5,280; Accounts Receivable—Next, Bal. \)2,250. Post the transactions to the accounts receivable subsidiary ledger.

3. Open the following selected four-column accounts in the general ledger: Cash (111), Bal. \(4,550; Accounts Receivable (112), Bal. \)7,530; Merchandise Inventory (118), Bal. \(3,250; Sales Revenue (411), Bal. \)25,000; Sales Discounts Forfeited (412); Interest Revenue (419); Cost of Goods Sold (511), Bal. $14,500. Post the total of each column to the general ledger. Also, post the Other Accounts column to the general ledger.

4. Balance the total of the customer ending balances in the accounts receivable subsidiary ledger against Accounts Receivable in the general ledger.

Short Answer

Expert verified

Total balance of cash ledger: $14,800

Step by step solution

01

Cash Receipts Journal’s Total






Cash Receipt Journal



Date

Account Credited

Post. Ref.

Cash Dr

Accounts Receivables Cr

Sales Revenue Cr

Sales Discount Forfeited Cr

Other Accounts Cr

Cost of goods sold Dr

Merchandise Inventory Cr

July 5

$1,700

$1,700

$1,400

12

Interest revenue

$2,050

$2,050

18

Heidi Next

$1,200

$1,200

29

Mitch Dylan

$5,300

$5,280

$20

31Total
$10,250$6,480
$1,700
$20
$2,050
$1,400
02

Accounts Receivables Subsidiary Ledger

Mitch Dylan

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

July 1

$5,280

$5,280

29

$5,280

0

Heidi Next

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

July 1

$2,250

$2,250

18

$1,200

$1,050

03

General Ledger

Cash 111

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

July 1

$4,550

$4,550

31

10,250

14,800

Accounts Receivables 112

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

July 1

$7,530

$7,530

31

$6,480

1,050

Merchandise Inventory 118

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

July 1

$3,250

$3,250

31

$1,400

1,850

Sales Revenue 411

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

July 1

$25,000

$25,000

31

$1,700

26,700

Sales Discount Forfeited 412

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

July 31

$20

$20

Interest Revenue 419

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

July 12

$2,050

$2,050

Cost of Goods Sold 511

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

July 1

$14,500

$14,500

31

1,400

15,900

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