b-te_03-study-33-36.qxd 10/24/07 3:12 PM Page 33
Study Guide 3
SECOND REVISED
Perfect Score
Name Identifying Accounting Terms Identifying Accounting Concepts and Practices Recording Transactions in a Five-Column Journal Total
13 17 20 50
Your Score
Pts. Pts. Pts. Pts.
Part One—Identifying Accounting Terms Directions: Select the one term in Column I that best fits each definition in Column II. Print the letter identifying your choice in the Answers column.
Column I
Column II
Answers
A. check
1. A form for recording transactions in chronological order. (p. 56)
1.
F
B. double-entry accounting
2. Recording transactions in a journal. (p. 56)
2.
G
C. entry
3. A journal amount column headed with an account title. (p. 57)
3.
M
D. general amount column
4. A journal amount column that is not headed with an account title. (p. 57)
4.
D
E. invoice
5. Information for each transaction recorded in a journal. (p. 57)
5.
C
F. journal
6. The recording of debit and credit parts of a transaction. (p. 57)
6.
B
G. journalizing
7. A business paper from which information is obtained for a journal entry. (p. 57)
7.
L
H. memorandum
8. A business form ordering a bank to pay cash from a bank account. (p. 58)
8.
A
9. A form describing the goods or services sold, the quantity, and the price. (p. 58)
9.
E
10. An invoice used as a source document for recording a sale on account. (p. 58)
10.
K
K. sales invoice
11. A business form giving written acknowledgment for cash received. (p. 59)
11.
J
L. source document
12. A form on which a brief message is written describing a transaction. (p. 59)
12.
H
M. special amount column
13. Determining that the amount of cash agrees with the accounting records. (p. 76)
13.
I
I.
proving cash
J.
receipt
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
Chapter 3 • 33
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SECOND REVISED
Part Two—Identifying Accounting Concepts and Practices Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false.
Answers 1. Information in a journal includes the debit and credit parts of each transaction recorded in one place. (p. 56)
1.
T
2. The Objective Evidence accounting concept requires that there be proof that a transaction did occur. (p. 57)
2.
T
3. Examples of source documents include checks, sales invoices, memorandums, and letters. (p. 57)
3.
F
4. A check is the source document used when items are paid in cash. (p. 58)
4.
T
5. The source document for all cash payments is a sales invoice. (p. 58)
5.
F
6. A receipt is the source document for cash received from transactions other than sales. (p. 59)
6.
T
7. A calculator tape is the source document for daily sales. (p. 59)
7.
T
8. The source document used when supplies are bought on account is a memorandum. (p. 64)
8.
T
9. The source document used when supplies bought on account are paid for is a check. (p. 65)
9.
T
10. The journal columns used to record receiving cash from sales are cash debit and sales credit. (p. 67)
10.
T
11. The source document sales invoice is abbreviated as SI in a journal entry. (p. 68)
11.
F
12. The journal columns used to record paying cash for rent are general debit and cash credit. (p. 69)
12.
T
13. The journal columns used to record paying cash to the owner for personal use are general debit and cash credit. (p. 71)
13.
T
14. To prove a journal page, the total debit amounts are compared with the total credit amounts to be sure they are equal. (p. 73)
14.
T
15. Double lines across column totals mean that the totals have been verified as correct. (p. 74)
15.
T
16. To correct an error in a journal, simply erase the incorrect item and write the correct item in the same place. (p. 77)
16.
F
17. Dollars and cents signs and decimal points should be used when writing amounts on ruled accounting pages. (p. 77)
17.
F
34 • Working Papers TE
CENTURY 21 ACCOUNTING, 9TH EDITION
b-te_03-study-33-36.qxd 10/24/07 3:12 PM Page 35
SECOND REVISED
Name
Date
Class
Part Three—Recording Transactions in a FiveColumn Journal Directions: The columns of the journal below are identified with capital letters. For each of the following transactions, decide which debit and credit amount columns will be used. Print the letters identifying your choice in the proper Answers columns. JOURNAL
PAGE 1
DATE
1
A
ACCOUNT TITLE
B
DOC. POST. NO. REF.
C
D
2
3
CREDIT
SALES CREDIT
GENERAL DEBIT
E
F
5
4 CASH DEBIT
G
CREDIT
H
I
1
2
2
3
3
Answers Debit Credit 1–2. Received cash from owner as an investment. (p. 60)
1.
H
2.
F
3–4. Paid cash for supplies. (p. 61)
3.
E
4.
I
5–6. Paid cash for insurance. (p. 63)
5.
E
6.
I
7–8. Bought supplies on account. (p. 64)
7.
E
8.
F
9.
E
10.
I
11–12. Received cash from sales. (p. 67)
11.
H
12.
G
13–14. Sold services on account. (p. 68)
13.
E
14.
G
15–16. Paid cash for an expense. (p. 69)
15.
E
16.
I
17–18. Received cash on account. (p. 70)
17.
H
18.
F
19–20. Paid cash to owner for personal use. (p. 71)
19.
E
20.
I
9–10. Paid cash on account. (p. 65)
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
Chapter 3 • 35
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SECOND REVISED
Study Skills A Place to Study Every student needs a good place to study. When you come home from school in the afternoon, you need a place where you can concentrate on your schoolwork for an extended period of time. Your study area should be a pleasant place to work with a comfortable place to sit. This is extremely important for your accounting work where you will be completing many problems. It is a good idea to sit in an upright chair at a desk. Lying in bed or on a sofa tends to put you in a position more conducive to sleep than to study. Keep It Private Although you may not have a private room, you can make the most of whatever space you have available. If you share a room with one or more other family members or friends, you should establish study hours and study rules. For example, you can set aside a period from six to nine each evening for study. During that time, the room should not be used for any other purpose. You will probably wish to keep the door closed, and you might even wish to place a small note on the door alerting others to the fact that you are studying. Be Neat It is very important that you keep your study area clean and neat. When you sit down to study, if you are faced with clutter and disorganized papers, you will have difficulty concentrating. If you have a neat and orderly work area, you will feel more comfortable, and you will enjoy your study more. You will be able to find the things you need quickly, and you can use your time to the greatest benefit. When you finish studying, you should put all your materials away. This will help others who may use the area, and you will be delighted to find a clean desk when you return to work. Quiet Please It is necessary to keep your study area quiet. You should not try to study with a radio or TV on. You might think that you can study better listening to music. Actually, you will very likely use more energy trying to concentrate if you are distracted by a radio or TV. In addition, the quality of your work will suffer. A Good Lamp You should have proper lighting in your study area. It is difficult to study if there is insufficient lighting or if the lighting is of poor quality. Try to place a lamp close to your work in such a way that there is no glare on your papers. If light is reflected into your eyes, you will be distracted and possibly end the study period with a headache. Your Desk It may be necessary for you to share your desk with others. Just as with a shared room, you can reserve certain hours for private use. If you share a desk with others, try to reserve a drawer or two for your things. Each person who uses the desk should take responsibility for keeping his or her supplies in good order. Storage Facilities You will need to keep your supplies handy, but they may be stored in a dresser drawer or in a cardboard box if there is not sufficient room in the desk. You will likely have personal papers as well as school papers which you will need to keep. You can use a file drawer for this purpose. If a file drawer is not available, you can purchase an expandable cardboard file that you can store in a nearby dresser or closet. A bookcase is an ideal place to keep your textbooks and notebooks. However, a shelf in a closet will work quite well. You should keep the materials together for each course that you take. For example, you should place your textbook and notebook for your English class together, along with any other items that you use in this particular class. In this way you can find the materials you need easily and quickly. It’s What You Make It Your study environment is exactly what you make it. With just a little effort, you can have a quiet place to study where you can get your work done quickly with minimum effort. A proper study area can help you make the kind of grades you want. 36 • Working Papers TE
CENTURY 21 ACCOUNTING, 9TH EDITION
✔ 1 4 8 00
C5 R2
14 Accts. Receivable—L. Rohe
19 Utilities Expense
20 Accts. Receivable—L. Rohe
9
10
11
Chapter 3
4 9 5 8 00
5 0 0 00
C7
27 Norm Derner, Drawing
14
27 Carried Forward
3 7 5 00
S2
23 Accts. Receivable—L. Rohe
13
15
1 0 0 0 00
C6
21 Norm Derner, Drawing
2 2 5 5 00
2 5 5 00
3 3 8 5 00
3 7 5 00
5 1 0 00
4 2 5 5 00
2 5 5 00
3 5 7 3 00
5 0 0 00
1 0 0 0 00
1 4 8 00
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
Prob. 3-4
Prob. 3-3
Prob. 3-2
Prob. 3-1
Name
12
✔
5 1 0 00
S1
13
8
T13
1 0 0 0 00
1 0 0 0 00
C4
12 Rent Expense
✔
2 5 0 00
2 5 0 00
C3
9 Accts. Payable—Palm Supply
6
7
3 0 0 00
3 7 5 00
3 0 0 00
2 5 0 0 00
5
CREDIT
1
C2
2 5 0 0 00
PAGE CASH
1 5 0 0 00
DEBIT
4
7 Prepaid Insurance
5 0 0 00
SALES CREDIT
3
5
Accts. Payable—Palm Supply
5 0 0 00
M1
5 Supplies
3
1 5 0 0 00
CREDIT
2
3-1, 3-2, 3-3, and 3-4
4
3 7 5 00
C1
R1
2 Supplies
Norm Derner, Capital
DEBIT
GENERAL
2
Apr. 1
ACCOUNT TITLE
DOC. POST. NO. REF.
1
JOURNAL
entries in a five-column journal entries in a five-column journal transactions that affect owner’s equity in a five-column journal ruling a journal
3:14 PM
1
DATE
Journalizing Journalizing Journalizing Proving and
10/24/07
20 – –
3-1 3-2 3-3 3-4
BTE_Ch03-37-52.qxd Page 37
SECOND REVISED
Date Class
WORK TOGETHER, pp. 62, 66, 72, 78
Journalizing Transactions • 37
ACCOUNT TITLE
38 • Working Papers TE . . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
Column ....... ....... ....... ....... . . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
2,255.00 3,385.00 3,573.00 9,213.00
4,958.00
2,555.00 3,929.00 3,573.00 10,057.00
4,958.00 5,099.00 10,057.00
Credit Column Totals
Debit Column Totals
4,255.00 9,213.00
Credit Column Totals
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
0.00 5,099.00 5,099.00 3,573.00 1,526.00 1,526.00
Page 38
General Sales . . Cash . . Totals .
Prove page 2 of the journal:
General Sales . . Cash . . Totals .
Column ....... ....... ....... .......
Debit Column Totals
15
15
Prove page 1 of the journal:
14
3:14 PM
14
Prove cash: Cash on hand at the beginning of the month . . . . Plus total cash received during the month . . . . . . Equals Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less total cash paid during the month . . . . . . . . . . Equals cash balance at the end of the month . . . . . Checkbook balance on the next unused check stub
13
13
. . . .
12
12
. . . .
11
11
. . . .
10
10
. . . .
9
9
4
8
3 5 7 3 00
3
2
1
8
5 0 9 9 00
3 5 7 3 00
7
3 9 2 9 00
5 4 4 00
3 0 0 00
4 2 5 5 00
5
CREDIT
2
7
2 5 5 5 00
5 4 4 00
3 3 8 5 00
CASH
PAGE
6
4 9 5 8 00
3 0 0 00
2 2 5 5 00
DEBIT
4
6
✔
4 9 5 8 00
CREDIT
SALES CREDIT
3
5
30 Totals
4
T30
R3
✔
DEBIT
GENERAL
2
10/24/07
5
30
✔
29 Accts. Receivable—L. Rohe
Apr. 27 Brought Forward
3
2
1
DATE 20 – –
DOC. POST. NO. REF.
1
JOURNAL
BTE_Ch03-37-52.qxd
SECOND REVISED
WORK TOGETHER (concluded)
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
✔
2 3 0 0 00
Chapter 3
✔
4 4 8 5 00
2 3 00
C7
26 Miscellaneous Expense
14
26 Carried Forward
4 0 0 00
S2
23 Accts. Receivable—C. Lord
13
15
8 5 0 00
C6
19 Accts. Receivable—C. Lord
11
3 7 00
20 Lou James, Drawing
R2
17 Miscellaneous Expense
10
3 6 5 0 00
3 5 0 00
3 4 0 0 00
4 0 0 00 5 6 5 0 00
3 5 0 00
3 0 8 5 00
2 3 00
8 5 0 00
3 7 00
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
Prob. 3-4
Prob. 3-3
Prob. 3-2
Prob. 3-1
Name
12
C5
16
9
2 3 0 0 00
7 0 0 00
S1
12 Accts. Receivable—C. Lord
8
T16
5 2 5 00
5 2 5 00
C4
11 Rent Expense
7
✔
3 0 0 00
3 0 0 00
C3
10 Accts. Pay.—OK Supplies
6
3 0 0 00
M1
9 Supplies
4
Accts. Pay.—OK Supplies
4 0 0 00
4 0 0 00
C2
5 Prepaid Insurance
3
5
9 5 0 00
7 0 0 00
5
CREDIT
1
9 5 0 00
3 0 0 00
PAGE CASH
3 0 0 0 00
DEBIT
4
C1
3 0 0 0 00
CREDIT
SALES CREDIT
3
3 Supplies
R1
DEBIT
GENERAL
2
2
June 2 Lou James, Capital
ACCOUNT TITLE
DOC. POST. NO. REF.
1
JOURNAL
entries in a five-column journal entries in a five-column journal transactions that affect owner’s equity in a five-column journal ruling a journal
3:14 PM
1
DATE
Journalizing Journalizing Journalizing Proving and
10/24/07
20 – –
3-1 3-2 3-3 3-4
BTE_Ch03-37-52.qxd Page 39
SECOND REVISED
Date Class
3-1, 3-2, 3-3, and 3-4 ON YOUR OWN, pp. 62, 66, 72, 78
Journalizing Transactions • 39
ACCOUNT TITLE
40 • Working Papers TE . . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
Column ....... ....... ....... ....... . . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
3,650.00 3,400.00 3,085.00 10,135.00
4,485.00
3,850.00 3,822.00 3,085.00 10,757.00
4,485.00 6,272.00 10,757.00
Credit Column Totals
Debit Column Totals
5,650.00 10,135.00
Credit Column Totals
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
0.00 6,272.00 6,272.00 3,085.00 3,187.00 3,187.00
Page 40
General Sales . . Cash . . Totals .
Prove page 2 of the journal:
General Sales . . Cash . . Totals .
Column ....... ....... ....... .......
Debit Column Totals
15
15
Prove page 1 of the journal:
14
3:14 PM
14
Prove cash: Cash on hand at the beginning of the month . . . . Plus total cash received during the month . . . . . . Equals Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less total cash paid during the month . . . . . . . . . . Equals cash balance at the end of the month . . . . . Checkbook balance on the next unused check stub
13
13
. . . .
12
12
. . . .
11
11
. . . .
10
10
. . . .
9
9
4
8
3 0 8 5 00
3
2
1
8
6 2 7 2 00
3 0 8 5 00
7
3 8 2 2 00
4 2 2 00
2 0 0 00
5 6 5 0 00
5
CREDIT
2
7
3 8 5 0 00
4 2 2 00
3 4 0 0 00
CASH
PAGE
6
4 4 8 5 00
2 0 0 00
3 6 5 0 00
DEBIT
4
6
✔
4 4 8 5 00
CREDIT
SALES CREDIT
3
5
30 Totals
4
T30
R3
✔
DEBIT
GENERAL
2
10/24/07
5
30
✔
27 Accts. Receivable—C. Lord
June 26 Brought Forward
3
2
1
DATE 20 – –
DOC. POST. NO. REF.
1
JOURNAL
BTE_Ch03-37-52.qxd
SECOND REVISED
ON YOUR OWN (concluded)
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
✔
8 0 0 00
C6
12 Rent Expense
9
21 Accts. Rec.—Covey Company
16
Chapter 3
4 4 00
S2 C12
26 Accts. Rec.—Covey Company
26 Supplies
26 Carried Forward
23
24
25
2 0 0 00
3 4 0 00
13 8 8 2 00 12 7 9 0 00
8 0 0 00
C11
25 Miscellaneous Expense
22
✔
2 5 00
R3
3 4 0 00
3 2 9 00
2 0 0 00
7 0 0 00
8 9
1 0 0 0 00 8 0 0 00
4 4 00
2 5 00
3 2 9 00
6 4 00
13
2 8 0 0 00
25
24
23
22
21
20
19
18
17
16
15
14
12
3 8 0 00
11
10
7
6
1 0 0 0 00
2 7 2 8 00 11 9 2 8 00 10 2 9 2 00
8 0 0 00
7 0 0 00
2 5 0 00
4
6 0 0 00
Prob. 3-4
Prob. 3-3
Prob. 3-2
Prob. 3-1
Date
25 Accts. Rec.—Covey Company
Accts. Pay.—Scott Supplies
M2
C10
✔
2 5 0 00
2 7 8 00
5 0 0 00
3
2 5 0 00
5
2
3 0 0 0 00
1
Page 41
21
20
25 Supplies
22 Utilities Expense
18
19
22
17
T22
R2
19 Miscellaneous Expense
15
2 7 8 00
4 5 0 00
5 0 0 00
5
CREDIT
1
Name
✔
C9
18
14
6 4 00
15 Dennis Gilbert, Drawing
13
✔
2 8 0 0 00
C8
15 Utilities Expense
12
T18
3 8 0 00
C7
14 Accts. Rec.—Covey Company
11
✔
4 5 0 00
S1
13
10
T13
1 0 0 0 00
C5
12 Accts. Payable—Scott Supplies
8
2 0 0 0 00
10 0 0 0 00
DEBIT
CASH
PAGE
3-1, 3-2, 3-3, and 3-4
✔
1 0 0 0 00
C4
8 Accts. Payable—Scott Supplies
2 0 0 0 00
M1
7 Supplies
5
7
6 0 0 00
C3
6 Prepaid Insurance
4
Accts. Payable—Scott Supplies
2 5 0 00
C2
5 Supplies
3
10 0 0 0 00
CREDIT
SALES CREDIT
4
3:14 PM
6
3 0 0 0 00
C1
R1
DEBIT
GENERAL
4 Supplies
Feb. 1 Dennis Gilbert, Capital
DOC. POST. NO. REF.
3
10/24/07
2
1
20 – –
ACCOUNT TITLE
2
3-1 3-2 3-3 3-4
DATE
1
JOURNAL
BTE_Ch03-37-52.qxd
SECOND REVISED
Class
APPLICATION PROBLEMS, pp. 80, 81
Journalizing transactions in a five-column journal Journalizing buying insurance and buying and paying on account in a five-column journal Journalizing transactions that affect owner’s equity and receiving cash on account Proving and ruling a journal
Journalizing Transactions • 41
DATE
5
CREDIT
2
42 • Working Papers TE . . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
Column ....... ....... ....... ....... . . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
13,293.00 28,212.00
14,919.00
Debit Column Totals
Prove cash: Cash on hand at the beginning of the month . . . . Credit Plus total cash received during the month . . . . . . Column Totals Equals Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,790.00 Less total cash paid during the month . . . . . . . . . . 4,093.00 Equals cash balance at the end of the month . . . . . 11,329.00 Checkbook balance on the next unused check stub 28,212.00
12,790.00 2,728.00 10,292.00 25,810.00
13,882.00 11,928.00 25,810.00
Credit Column Totals
. . . . . .
0.00 . . 13,293.00 . 13,293.00 . 11,329.00 . 1,964.00 . 1,964.00
Page 42
General Sales . . Cash . . Totals .
Prove page 2 of the journal:
General Sales . . Cash . . Totals .
Column ....... ....... ....... .......
Debit Column Totals
15
15
Prove page 1 of the journal:
14
14
. . . . . .
13
13
. . . . . .
12
12
. . . . . .
11
11
. . . . . .
10
10
. . . . . .
9
9
6
5
4
8
. . . .
8 0 0 00 4 0 9 3 00 13 2 9 3 00 11 3 2 9 00
1 3 6 5 00
8
1 4 9 1 9 00 12 7 9 0 00
8 0 0 00
1 3 6 5 00
7
C15
✔
3:14 PM
7
. . . .
28 Totals
6
. . . .
28 Dennis Gilbert, Drawing
5
. . . .
28
3
2
1
10/24/07
4
T28
3 7 00
3 7 00
C14
27 Miscellaneous Expense
3
✔
2 0 0 00
2 0 0 00
C13
27 Rent Expense
2 7 2 8 00 11 9 2 8 00 10 2 9 2 00
DEBIT
CASH
PAGE
2
13 8 8 2 00 12 7 9 0 00
CREDIT
4
Feb. 26 Brought Forward
✔
DEBIT
SALES CREDIT
3
1
ACCOUNT TITLE
GENERAL
2
3-4
20 – –
DOC. POST. NO. REF.
1
JOURNAL
BTE_Ch03-37-52.qxd
SECOND REVISED
APPLICATION PROBLEM (concluded)
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
✔
3 5 8 00 1 2 8 7 00
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
13
Chapter 3
General Sales . . Cash . . Totals .
. . . .
. . . .
Column ....... ....... ....... .......
4,145.00 5,853.00
1,708.00
Date
0.00 4,145.00 4,145.00 1,275.00 2,870.00 2,870.00
18
18
Page 43
2. Prove the journal:
17
17
16
. . . . . .
1 2 7 5 00
16
. . . . . .
4 1 4 5 00
15
. . . .
1 6 4 5 00
12
15
. . . .
2 9 3 3 00
3 5 8 00
11
14
. . . .
1 7 0 8 00
3 5 8 00
9 0 00
14
Debit Column Totals
25 Accts. Receivable—Frank Morris
12
3. Prove cash: Cash on hand at the beginning of the month . . . . Credit Plus total cash received during the month . . . . . . Column Totals Equals Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,933.00 Less total cash paid during the month . . . . . . . . . . 1,645.00 Equals cash balance at the end of the month . . . . . 1,275.00 Checkbook balance on the next unused check stub 5,853.00
R2
18 Advertising Expense
11
10
9
8
7
6
5
4
Name
13
C6
17
10
9 0 00
3 5 8 00
S1
16 Accts. Receivable—Frank Morris
9
1 2 8 7 00
7 0 0 00
7 0 0 00
C5
15 Hans Schultz, Drawing
8
T17
6 5 00
6 5 00
C4
12 Utilities Expense
7
✔
7 5 00
7 5 00
C3
11 Accts. Payable—Midwest Supplies
6
7 5 00
Accts. Payable—Midwest Supplies
7 5 00
M1
5 Supplies
4
3
2
1
3:14 PM
5
2 4 0 00
2 4 0 00
C2
4 Prepaid Insurance
3
CREDIT
1 0 5 00
2 5 0 0 00
DEBIT
5
1 0 5 00
2 5 0 0 00
CREDIT
1
C1
R1
DEBIT
CASH
PAGE
3 Supplies
Apr. 1 Hans Schultz, Capital
ACCOUNT TITLE
4
2
1
DATE
SALES CREDIT
3
10/24/07
20 – –
GENERAL
2
3-5
DOC. POST. NO. REF.
1
JOURNAL
Journalizing transactions and proving and ruling a five-column journal
BTE_Ch03-37-52.qxd
SECOND REVISED
Class
APPLICATION PROBLEM, p. 82
Journalizing Transactions • 43
44 • Working Papers TE
✔ 9 8 0 00
11 Miscellaneous Expense
13
M2
17 Supplies
20
18 19 19 Carried Forward
23
24
25
✔ ✔ ✔
17
22
T19
✔ ✔ ✔ ✔
✔
✔ ✔
✔
6 0 0 00
8 1 9 9 00 18 5 2 5 00
6 0 0 00
1 1 0 0 00
4 0 0 00
1 5 00
25
24
6 5 0 00 6 5 0 00
6 2 3 6 00 22 0 1 1 00
23
8 0 0 00 8 0 0 00
21
20
19
18
22
5 4 4 9 00
1 1 0 0 00
17
5 0 0 00
2 2 5 00
8 5 0 00
5 0 0 00
8 5 0 00
16
15
9 0 0 00 9 0 0 00
13 14
4 0 0 00
1 5 00
12
6 3 0 00
4 7 6 00 6 3 0 00
4 7 6 00
11
10
9
8
7
Page 44
T18
T17
R2
17 Accts. Receivable—Tony’s Limos
19
Accounts Payable—Pine Supplies
C9
16 Supplies
18
21
T15
C8
✔
15 Jane Fernandez, Drawing
16
T12
15
12
15
T11
C7
T10
17
11
14
✔ ✔
10
12
✔
3 8 8 00
3 8 8 00
C6
10 Repair Expense
11
1 2 0 0 00
1 2 0 0 00
C5
9 Prepaid Insurance
10
4 5 0 00
4 5 0 00
S1
8 Accts. Receivable—Tony’s Limos
9
2 2 5 00
9 8 0 00
8
8
T8
1 0 0 0 00
1 0 0 0 00
8 Accounts Payable—Atkin Supplies C4
7
6
5
4
3:14 PM
✔
1 4 6 00
1 4 6 00
C3
5 Utilities Expense
6
Accounts Payable—Atkin Supplies
1 7 0 0 00
M1
4 Supplies
4
3
2
1
10/24/07
5
9 0 0 00
9 0 0 00
C2
3 Rent Expense
CREDIT
3
16 0 0 0 00
DEBIT
5
3 0 0 00
1 7 0 0 00
SALES CREDIT
1
3 0 0 00
16 0 0 0 00
CREDIT
CASH
PAGE
C1
R1
DEBIT
4
2 Supplies
June 1 Jane Fernandez, Capital
DOC. POST. NO. REF.
3
2
1
ACCOUNT TITLE
GENERAL
2
3-6
20 – –
DATE
1
JOURNAL
BTE_Ch03-37-52.qxd
SECOND REVISED
MASTERY PROBLEM, p. 82
Journalizing transactions and proving and ruling a five-column journal
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
30 Totals
15
Chapter 3 . . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
Column ....... ....... ....... ....... . . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
18,935.00 9,298.00 6,199.00 34,432.00
9,591.00 24,841.00 34,432.00
Credit Column Totals
Debit Column Totals
22,011.00 30,210.00
18,525.00 6,236.00 5,449.00 30,210.00
8,199.00
5 0 0 00
Prove cash: Cash on hand at the beginning of the month . . . . Plus total cash received during the month . . . . . . Equals Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less total cash paid during the month . . . . . . . . . . Equals cash balance at the end of the month . . . . . Checkbook balance on the next unused check stub
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
15
0.00 24,841.00 24,841.00 6,199.00 18,642.00 18,642.00
6 1 9 9 00
14
13
12
3 5 0 00 4 5 0 00
11
3 0 0 00
9 2 9 8 00 24 8 4 1 00
5 0 0 00
3 0 0 00
10
9
7 7 0 00 7 7 0 00
9 0 00
8
7
6
5
Date
General Sales . . Cash . . Totals .
. . . .
Credit Column Totals
Debit Column Totals
3 5 0 00
9 5 9 1 00 18 9 3 5 00
4 5 0 00
9 0 00
1 2 5 00
8 5 00
4
3
2
1
3 0 0 00
6 1 0 00
5 4 4 9 00
3 0 0 00
5 8 2 00
6 1 0 00
5
CREDIT
2
Page 45
Prove page 2 of the journal:
General Sales . . Cash . . Totals .
Column ....... ....... ....... .......
✔
✔
✔ ✔
6 0 00
6 2 3 6 00 22 0 1 1 00
DEBIT
CASH
PAGE
Name
Prove page 1 of the journal:
30
14
T30
C13
30 Jane Fernandez, Drawing
13
✔
R3
29 Accts. Receivable—Tony’s Limos
12
T26
✔
26
C12
26 Supplies
10
11
T25
25
9
T24
✔ ✔
1 2 5 00
C11
24 Advertising Expense
7
24
5 8 2 00
S2
23 Accts. Receivable—Tony’s Limos
6
8
8 5 00
C10
23 Utilities Expense
✔
5
T22
6 0 00
22
✔
Accounts Payable—Pine Supplies
M3
8 1 9 9 00 18 5 2 5 00
CREDIT
4
3:14 PM
4
3
22 Supplies
✔
DEBIT
SALES CREDIT
3
10/24/07
2
June 19 Brought Forward
ACCOUNT TITLE
GENERAL
2
3-6
1
20 – –
DATE
DOC. POST. NO. REF.
1
JOURNAL
BTE_Ch03-37-52.qxd
SECOND REVISED
Class
MASTERY PROBLEM (concluded)
Journalizing Transactions • 45
46 • Working Papers TE . . . .
. . . .
. . . .
. . . .
. . . .
✔
. . . .
. . . .
Column ....... ....... ....... ....... . . . .
. . . .
. . . .
. . . .
17,850.00 28,120.00
10,270.00
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
0.00 17,850.00 17,850.00 7,470.00 10,380.00 10,380.00
Page 46
General Sales . . Cash . . Totals .
Debit Column Totals
3. Prove cash: Cash on hand at the beginning of the month . . . . Credit Plus total cash received during the month . . . . . . Column Totals Equals Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,800.00 Less total cash paid during the month . . . . . . . . . . 850.00 Equals cash balance at the end of the month . . . . . 7,470.00 Checkbook balance on the next unused check stub 28,120.00
18
18
2. Prove the journal:
17
17
13
16
8 5 0 00
12
11
16
10 2 7 0 00 19 8 0 0 00
9 0 0 00
9
3 0 0 00
10
8
5 5 0 00
7
6
5
4
3
2
1
15
30 Totals
C6
25 Tony Wirth, Drawing
3 0 0 00
5 SALES CREDIT
1
15
7 4 7 0 00
9 0 0 00
R2
22 Accounts Receivable—Amy’s Uniforms
7 0 00
C5
16 Utilities Expense
PAGE
14
17 8 5 0 00
3 0 0 00
7 0 00
3 0 0 00
S1
15 Accounts Receivable—Amy’s Uniforms
T12
2 5 0 0 00
17 0 0 0 00
CREDIT
4
14
13
12
11
10
9
✔
8 0 0 00
C4
9 Rent Expense
8 0 0 00
7
12
1 3 0 0 00
C3
8 Accounts Payable—Marker Supplies
1 3 0 0 00
6
8
1 4 0 0 00
C2
4 Supplies
5 5 0 00
2 5 0 0 00
M1
3 Supplies Accounts Payable—Marker Supplies
3 0 0 0 00
C1
2 Prepaid Insurance
R1
DEBIT
GENERAL
1 4 0 0 00
3 0 0 0 00
ACCOUNT TITLE
June 1 Tony Wirth, Capital
DATE 20 – –
DOC. POST. NO. REF.
3
3:14 PM
5
4
17 0 0 0 00
CREDIT
JOURNAL
10/24/07
3
2
1
CASH
2
3-7
DEBIT
1
Journalizing transactions using a variation of the five-column journal
BTE_Ch03-37-52.qxd
SECOND REVISED
CHALLENGE PROBLEM, p. 83
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
BTE_Ch03-37-52.qxd
10/24/07
3:14 PM
Page 47
SECOND REVISED
Name
Date
Class
USING SOURCE DOCUMENTS, p. 85 Journalizing transactions and proving and ruling a journal Receipt No. Date From For
1
Receipt No.
May 1 , 20-Cy Sawyer Investment
1
May 1 20-Rec’d from Cy Sawyer Investment For Five Thousand & no/100
1
Date
Amount
5,000 00
$
Form
Dollars
5,000 00
$ CS
Received by
NO.
1
Form
To:
5/3 20 - - $ 200.00 National Supply Co.
For:
Supplies
Date:
AMT. DEPOSITED
5–1
SUBTOTAL AMT. THIS CHECK BAL. CAR’D. FOR’D
NO.
00 00 00 00 00
Form
To:
5/5 20 - - $ 500.00 SW Management Co.
For:
May Rent
BAL. BRO’T. FOR’D
3
4800 00
AMT. DEPOSITED SUBTOTAL AMT. THIS CHECK BAL. CAR’D. FOR’D
1
No.
2
Date:
0 5000 5000 200 4800
BAL. BRO’T. FOR’D
2
Form
4800 00 500 00 4300 00
4
MEMORANDUM
Bought supplies on account from Atlas Supplies, $550.00 Signed:
CS
Date:
5/8/--
Chapter 3
Journalizing Transactions • 47
BTE_Ch03-37-52.qxd
10/24/07
3:14 PM
Page 48
SECOND REVISED
USING SOURCE DOCUMENTS (continued)
NO.
3
To:
5/9 20 - - $ 75.00 City Electric
For:
Electric bill
Date:
BAL. BRO’T. FOR’D
Form
5
NO.
To:
For:
4300 00
AMT. THIS CHECK BAL. CAR’D. FOR’D
5/11 20 - - $ 350.00 Atlas Supplies
6
4225 00
AMT. DEPOSITED
4300 00 75 00 4225 00
2, May 1 T12
4225 00 350 00 3875 00
SUBTOTAL AMT. THIS CHECK BAL. CAR’D. FOR’D
Form
20- -
Sold to:
7
0.00 *
200.00 450.00 650.00*
Form
J. Hutton
No.
Cy’s Repair Service 199 Park Drive Date 4814 Central Avenue Great Falls, MT 59405-6184 Great Falls, MT 59401-9043 Terms Description
8
1 5/15/- 2/10, n/30 Amount
Repair condenser unit Repair motor Repair generator Total
48 • Working Papers TE
Form
Payment on account
BAL. BRO’T. FOR’D
AMT. DEPOSITED SUBTOTAL
4
Date:
500.00 300.00 400.00 1,200.00
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
BTE_Ch03-37-52.qxd
10/24/07
3:14 PM
Page 49
SECOND REVISED
Name
Date
Class
USING SOURCE DOCUMENTS (continued)
NO.
5
Date: To:
For:
Form
5/16 20 - - $ 175.00 Pineridge Insurance Co. Insurance
AMT. DEPOSITED
5–12
SUBTOTAL AMT. THIS CHECK BAL. CAR’D. FOR’D
NO.
6
Date: To:
For:
Form
9, May 1 T19 3875 650 4525 175 4350
BAL. BRO’T. FOR’D
9
Form
5/23 20 - - $ 45.00 Sunset Delivery Co.
11
Form
--
6, 20 2 y a M T26
AMT. DEPOSITED SUBTOTAL AMT. THIS CHECK BAL. CAR’D. FOR’D
5–19
4350 658 5008 45 4963
150.00 214.00 294.00 658.00*
00 00 00 00 00
Miscellaneous Expense
BAL. BRO’T. FOR’D
20- -
10
0.00 *
12
0.00 *
307.00 323.00 630.00 *
00 00 00 00 00
NO.
7
Date: To:
For:
Form
5/29 20 - - $ 20.00 Foothills Cleaning Co.
13
Miscellaneous Expense
BAL. BRO’T. FOR’D AMT. DEPOSITED SUBTOTAL AMT. THIS CHECK BAL. CAR’D. FOR’D
5–26
4963 630 5593 20 5573
00 00 00 00 00
Chapter 3
Journalizing Transactions • 49
BTE_Ch03-37-52.qxd
10/24/07
3:14 PM
Page 50
SECOND REVISED
USING SOURCE DOCUMENTS (continued)
2 Date May 29 20-Rec’d from J. Hutton On Account For One thousand & no/100
2 May 29 , 20-J. Hutton On Account
Receipt No. Date From For
$
Receipt No.
14
Dollars
1,000 00
$
Amount
1,000 00
Form
CS Received by
NO.
8
Date: To:
For:
Form
5/29 20 - - $ 50.00 Great Falls Telephone Company Telephone bill
BAL. BRO’T. FOR’D AMT. DEPOSITED SUBTOTAL AMT. THIS CHECK BAL. CAR’D. FOR’D
5573 5–29 1000 6573 50 6523
Form
1, May 3 T31
20- -
17
0.00 *
15
NO.
9
Date: To:
For:
00 00 00 00 00
Form
5/30 20 - - $ 1500.00 Cy Sawyer
16
Owner withdrawal 6523 00
BAL. BRO’T. FOR’D AMT. DEPOSITED
6523 00 1500 00 5023 00
SUBTOTAL AMT. THIS CHECK BAL. CAR’D. FOR’D
NO.
10
Date:
Form
18
20 - - $
To:
200.00 200.00*
For:
BAL. BRO’T. FOR’D AMT. DEPOSITED SUBTOTAL
5–31
5023 00 200 00 5223 00
AMT. THIS CHECK BAL. CAR’D. FOR’D
50 • Working Papers TE
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
✔
6 5 0 00
23 Miscellaneous Expense (11)
12
Chapter 3
General Sales . . Cash . . Totals .
. . . .
. . . .
Column ....... ....... ....... ....... . . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
8,138.00 12,803.00
4,665.00
Debit Column Totals
6 5 5 0 00
3 3 3 8 00
. . . . . .
. . . . . .
. . . . . .
8 1 3 8 00
2 0 0 00
3. Prove cash: Cash on hand at the beginning of the month . . . . Credit Plus total cash received during the month . . . . . . Column Totals Equals Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,550.00 Less total cash paid during the month . . . . . . . . . . 3,338.00 Equals cash balance at the end of the month . . . . . 2,915.00 Checkbook balance on the next unused check stub 12,803.00
4 6 6 5 00
2 0 0 00
. . . . . .
. . . . . .
. . . . . .
. . . . . .
19
0.00 8,138.00 8,138.00 2,915.00 5,223.00 5,223.00
2 9 1 5 00
18
Date
. . . .
31 Totals
19
✔
17
16
Page 51
2. Prove the journal:
31
18
T31
1 5 0 0 00
1 5 0 0 00
C9
30 Cy Sawyer, Drawing (16)
17
✔ (17)
5 0 00
5 0 00
C8
29 Utilities Expense (15)
16
15
14
13
12
11
10
9
8
7
6
5
4
Name
1 0 0 0 00
R2
29 Accounts Receivable—J. Hutton (14)
2 0 00
15
2 0 00
C7
6 3 0 00
4 5 00
29 Miscellaneous Expense (13)
6 3 0 00
6 5 8 00
14
✔
4 5 00
6 5 8 00
1 7 5 00
26
T26
C6
✔
1 2 0 0 00
13
✔ (12)
19
11
T19
1 7 5 00
C5
16 Prepaid Insurance (9)
10
✔ (10)
1 2 0 0 00
S1
15 Accounts Receivable—J. Hutton (8)
9
✔ (7)
12
1 0 0 0 00
6 5 0 00
3 5 0 00
3 5 0 00
11 Accounts Payable—Atlas Supplies (6) C4 T12
7 5 00
7 5 00
C3
9 Utilities Expense (5)
8
7
6
Accounts Payable—Atlas Supplies
5 5 0 00
M1
8 Supplies (4)
4
3
2
1
3:14 PM
5
5 0 0 00
5 0 0 00
C2
5 Rent Expense (3)
3
5 5 0 00
5
CREDIT
1
2 0 0 00
5 0 0 0 00
DEBIT
CASH
PAGE
2 0 0 00
5 0 0 0 00
CREDIT
SALES CREDIT
4
C1
R1
DEBIT
GENERAL
3
3 Supplies (2)
May 1 Cy Sawyer, Capital (1)
ACCOUNT TITLE
POST. REF.
2
10/24/07
2
1
DATE
20 – –
DOC. NO.
1
JOURNAL
BTE_Ch03-37-52.qxd
SECOND REVISED
Class
USING SOURCE DOCUMENTS (concluded)
Journalizing Transactions • 51
BTE_Ch03-37-52.qxd
10/24/07
3:14 PM
Page 52
SECOND REVISED
