Exam 17: Specimen Financial Statements: Amazoncom, Inc

Sasser Company uses a sales journal, a cash receipts journal, and a general journal to record transactions with its customers. Record the following transactions in the appropriate journals. The cost of all merchandise sold was 70% of the sales price. July 2 Sold merchandise for $21,000 to B. Stine on account. Credit terms 2/10, n/30. Sales invoice No. 100. July 5 Received a check for $800 from R. Hyatt in payment of his account. July 8 Sold merchandise to F. Wendel for $900 cash. July 10 Received a check in payment of Sales invoice No. 100 from B. Stine minus the 2% discount. July 15 Sold merchandise for $9,000 to J. Nott on account. Credit terms 2/10, n/30. Sales invoice No. 101. July 18 Borrowed $25,000 cash from United Bank signing a 6-month, 10% note. July 20 Sold merchandise for $18,000 to C. Karn on account. Credit terms 2/10, n/30. Sales invoice No. 102. July 25 Issued a credit memorandum for $600 to C. Karn as an allowance for damaged merchandise previously sold on account. July 31 Received a check from J. Nott for $5,000 as payment on account. SASSER COMPANY Sales Journal S1 ------------------------------------------ Invoice Acct. Rec. Dr. COGS Dr. Date Account Debited No. Ref. Sales Rev. Cr. Inventory Cr. ------------------------------------------ ------------------------------------------ ------------------------------------------ ------------------------------------------ ------------------------------------------ SASSER COMPANY General Journal G1 ------------------------------------------ Date Explanations Ref. Debit Credit ------------------------------------------ ------------------------------------------ ------------------------------------------ ------------------------------------------ ------------------------------------------ SASSER COMPANY Cash Receipts Journal CR1 ------------------------------------------- Sales Accounts Sales Other COGS Dr. Accounts Cash Discounts Rec. Rev. Accounts Inven. Cr. Date Credited Ref. Dr. Dr. Cr. Cr. Cr. ------------------------------------------- ------------------------------------------- ------------------------------------------- ------------------------------------------- ------------------------------------------- ------------------------------------------- -------------------------------------------

If a transaction cannot be recorded in a special journal

Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

The reference column of a multiple-column cash payments journal after posting

Horton Company uses four special journals, (cash receipts, cash payments, sales, and purchases journal) in addition to a general journal. On November 1, 2018, the control accounts in the general ledger had the following balances: Cash $12,000, Accounts Receivable $200,000 and Accounts Payable $42,000. Selected information on the final line of the special journals for the month of November is presented below: Additional Data: The Sales Journal total was $41,000. A customer returned merchandise for credit for $360 and Norton Company returned store supplies to a supplier for credit for $400. Instructions (a) Determine the missing amounts in the special journals. (b) Determine the balances in the general ledger accounts (Cash, Accounts Receivable, and Accounts Payable) at the end of November.

A subsidiary ledger is

Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the

Sandy Company uses both special journals and a general journal. The company accountant made the following errors during July. 1. Incorrectly added the credit entries in a customer's account in the accounts receivable subsidiary ledger. The total was listed as $2,690; it should have been $2,790. 2. A remittance of $400 from Tom Short was correctly recorded in the cash receipts journal, but the amount was posted incorrectly to the account of customer Will Short in the subsidiary ledger. 3. A purchase of merchandise on account from Easton Company for $1,000 was incorrectly entered in the purchases journal at $10,000. 4. In the sales journal, the entries were incorrectly added for the month. The monthly total was listed as $24,620; it should have been $24,260. Instructions Indicate how each of the above errors might be discovered.

A debit column for Sales Returns and Allowances may be found in the cash receipts journal.

Match the items below by entering the appropriate code letter in the space provided. A. Accounts payable ledger D. Subsidiary ledger B. Cybercrime E. Control account C. Special journals 1. A general ledger account that summarizes detailed information in a subsidiary ledger. 2. A subsidiary ledger that contains accounts with individual creditors. 3. Involves the Internet or computer technology. 4. Detailed information about a group of accounts with a common characteristic. 5. Used to record high volume, similar type transactions.

Entries in a sales journal are

A control account and subsidiary ledger can be established for inventory.

The accounts payable subsidiary ledger provides detailed information about amounts owed to creditors.

Adjusting entries are recorded

Journalizing in a sales journal will not

The total of the individual account balances in the accounts receivable subsidiary ledger should agree with the total of the individual account balances in the accounts payable subsidiary ledger.

The cash payments journal only has one column because all entries recorded in this journal require a credit to the Cash account.

If a transaction cannot be recorded in a special journal, it indicates that the company should adopt an electronic accounting system.

Shown below is a page from a special journal. 1. What is the name of this journal? 2. Give an explanation for each of the transactions in this journal. 3. Explain the following: (a) the numbers under the bottom lines. (b) the checks entered into the Ref. column. (c) the numbers 113 and 416 in the Ref. column. (d) the (x) below the Other Accounts column.

The "Other Accounts" column in a cash receipts journal is also referred to as the