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We can discuss course. Please use the attached excel template. Thank you.

Problem 7-5 (Parts 1 & 2 (1))

s

ed

(CR

Page 2

Inventory

Accounts

Date Account Invoice

PR (CR) (DR) (DR) (DR)

Problem 7-5 Parts 1 & 2 (1)

Name

SALES JOURNAL

Page 2

Account

Cost of Goods

Invoice

Receivable

(DR)

Sold (DR)

Date

Account

Debit

Number

PR

Sales

(CR)

Inventory

PURCHASE JOURNAL

Accounts

Office

Other

Date of

Payable

Supplies

Terms

Problem 7-5 (Parts 1 & 2 (2))

Name

Page 2

Sales Accounts Other Cost of Goods
Account

Receivable Sales Accounts Sold (DR)

Date

ed

PR (DR) (DR) (CR) (CR) (CR)

Page 2

Other Accounts

Cash Inventory Accounts Payable

Date Number

Account Debited PR (CR) (CR) (DR) (DR)

Problem 7-5 Parts 1 & 2 (2)

CASH RECEIPTS JOURNAL

Cash

Discounts

Credit

Explanation

Inventory (CR

CASH DISBURSEMENTS JOURNAL

Check

Payee

Problem 7-5 (Parts 1 & 2 (3))

Name

Page 2

Date

PR Debit Credit

Cash

Date PR Debit Credit

Date PR Debit Credit Balance

Date PR Debit Credit Balance
Date PR Debit Credit Balance
Inventory

Date PR Debit Credit Balance

Date PR Debit Credit Balance

Sales

Date PR Debit Credit Balance

Date PR Debit Credit Balance

Date PR Debit Credit Balance

Date PR Debit Credit Balance

Date PR Debit Credit Balance

Date PR Debit Credit Balance

Date PR Debit Credit Balance

Problem 7-5 Parts 1& 2 (3)

General Journal

Account Titles and Explanation

General Ledger

No.101

Accounts Payable

No.201

Balance

Accounts Receivable

No.106

Long-Term Notes Payable

No.251

No.119

No. 308

No.413

Office Supplies

No.124

Sales Discounts

No.415

Store Supplies

No.125

Costs of Goods Sold

No.502

Office Equipment

No.163

Sales Salaries Expense

No.621

Problem 7-5 (End)

Name

Date PR Debit Credit Balance Date PR Debit Credit Balance
Date PR Debit Credit Balance
Date PR Debit Credit Balance
Date PR Debit Credit Balance
Date PR Debit Credit Balance
Date PR Debit Credit Balance

Debit Credit

March 31

March 31

Problem 7-5 Part 1, 2, & 3
ACCOUNTS RECEIVABLE LEDGER	ACCOUNTS PAYABLE LEDGER
Part 3
Trial Balance
		March 31
Schedule of Accounts Receivable
Schedule of Accounts Payable

Problem

7-5

Ferrara Company completes these transactions and events during March of the current
year (terms of all credit sales are 2/10, n/30):

Received of merchandise and an invoice dated March 1, terms
1/15, n/30, from Jerry Corp .
Sold merchandise on credit to N. Newman , Invoice No. , for
(cost is ).
Purchased of office supplies on credit from Elaine Company , invoice
dated March 3, terms n/10 EOM.
Sold merchandise on credit to D. George , Invoice No. , for
(cost is ).
Purchased of office equipment on credit from Susan Supply , invoice
dated March 9, terms n/10 EOM.
Sold merchandise on credit to Kramer Co, Invoice No. , for
(cost is ).
Borrowed cash by giving Big Bank a long-term note payable.
Received payment from N. Newman for the March 2 sale less the discount.
Sent Jerry Corp Check No. in payment of the March 1 invoice less the
discount.
Received payment from D. George for the March 3 sale less the discount.
Received of merchandise and an invoice dated March 13, terms
3/10, n/30, from the AJ Jack Corp .
Cash sales for the first half of the month are (cost is ).
(Cash sales are recorded daily, but are recorded only twice here to reduce
repetitive entries.)
Issued Check No. , payable to Payroll, in payment of sales salaries for the first
half of the month, . Cashed the check and paid the employees.
Received a credit memorandum from AJ Jack Corp for unsatisfactory
merchandise received on March 14 and returned for credit.
Purchased of store supplies on credit from Elaine Company , invoice
dated March 16, terms n/10 EOM.
Received a credit memorandum from Susan Supply for office equipment
received on March 9 and returned for credit.
Received payment from Kramer Co for the sale of March 10 less the discount.
Issued Check No. to AJ Jack Corp in payment of the invoice of March 14
less the return and the discount.
Sold merchandise on credit to Kramer Co, Invoice No. , for
(cost is ).

9

1

2

3

3

80,000$

1,800$

10

11
12
13

13
14

15

15

16

19

20

16

23

27

854 49,000$
24,500$

855 23,500$

111

11,750$

48,000$

856 13,000$

11,500$

700$

113

6,500$
120,000$

37,500$

48,000$

71,000$ 35,500$

112

857 11,000$
5,500$

4,000$

Sold merchandise on credit to D. George , Invoice No. , for
(cost is ).
Cash sales for the last half of the month are (cost is ).
Issued Check No. , payable to Payroll, in payment of sales salaries for the
last half of the month, . Cashed the check and paid the employees.
Verify that amounts impacting customer and creditor accounts were posted, and
that any amounts that should have beed posted as individual amounts to the general
ledger accounts were posted. Foot and crossfoot the journals and make the
month-end postings.

Required

Open the following general ledger accounts: Cash; Accounts Receivable; Inventory
(March 1 beg. bal. is ); Office Supplies; Store Supplies; Office
Equipment; Accounts Payable; Long-Term Notes Payable; W. Ferrara , Capital
(March 1 beg. bal. is ); Sales; Sales Discounts; Cost of Goods Sold; and
Sales Salaries Expense. Open the following accounts receivable ledger accounts:
D. George , N. Newman , and Kramer Co. Open the following accounts payable ledger
accounts: Jerry Corp , Elaine Company , Susan Supply , and AJ Jack Corp .
Enter these transactions in a sales journal like Exhibit 7.5, a purchases journal
like Exhibit 7.9, a cash receipts journal like Exhibit 7.7, a cash disbursements
journal like Exhibit 7.11, or a general journal. Number journal pages as page 2.
Prepare a trial balance of the general ledger and prove the accuracy of the
subsidiary ledgers by preparing schedules of both accounts receivable and
accounts payable.

Check trial balance totals,

28

31

31

31

10,500$
47,500$ 23,750$

481,600$

21,000$

114
37,500$

1 

2
3

65,000$

65,000$

858

Problem