Note:If the Working Papers That Accompany This Text Are Not Used in Solving This Problem

COMPREHENSIVE PROBLEM:CHAPTERS 3 TO 7

Note:If the working papers that accompany this text are not used in solving this problem, account numbers may differ from those presented in this solution.

(a)

Sales Journal S1

Date / Account Debited / Invoice No. / Ref. / Accounts Receivable Dr.
Sales Revenue Cr.
Jan. 3
3
11
11
22
22
25
25 / B. Remy
J. Fine
R. Draves
S. Ingles
B. Remy
R. Draves
B. Hachinski
J. Fine / 510
511
512
513
514
515
516
517 / P
P
P
P
P
P
P
P / 3100
1800
1900
900
3700
800
3500
6100
21800

Purchases Journal P1

Date / Account Credited / Terms / Ref. / Purchases Dr.
Accounts Payable Cr.
Jan. 5
5
16
16
16
27
27
27 / S. Yost
D. Laux
D. Moreno
S. Kosko
S. Yost
D. Moreno
D. Laux
S. Yost / P
P
P
P
P
P
P
P / 3000
2700
15000
13900
1500
12500
1200
2800
52600

COMPREHENSIVE PROBLEM (Continued)

Cash Receipts Journal CR1

Date / Account
Credited / Ref. / Cash
Dr. / Accounts
Receivable
Cr. / Sales
Revenue
Cr. / Other
Accounts
Cr.
Jan. 7
7
10
13
13
20
21
31 / S. Ingles
B. Hachinski
Cash Sales
B. Remy
J. Fine
Cash Sales
S. Ingles / P
P
P
P
P / 4000
2000
15500
3100
1800
17500
900
44800 / 4000
2000
3100
1800
900
11800 / 15500
17500
33000

Cash Payments Journal CP1

Date / Account Debited / Ref. / Other
Accounts
Dr. / Accounts
Payable
Dr. / Supplies
Dr. / Cash
Cr.
Jan. 8
9
9
12
15
17
23
23
28
31 / Freight In
S. Kosko
D. Moreno
Rent Expense
Owner’s Drawings
Supplies
D. Moreno
S. Kosko
Office supplies
Salaries and Wages
Expense / 516
P
P
729
306
P
P
627 / 180
1000
800
7900
9880 / 9000
11000
15000
13700
48700 / 400
200
600 / 180
9000
11000
1000
800
400
15000
13700
200
7900
59180

COMPREHENSIVE PROBLEM (Continued)

(a) & (e)

General Journal G1

Date / Account Titles and Explanations / Ref. / Debit / Credit
Jan. 9 / Sales Returns and
Allowances
Accounts Receivable—
J. Fine
(Issued credit for
merchandise returned) / 412
112/P / 300 / 300
18 / Accounts Payable—S. Kosko
Purchase Returns and
Allowances
(Received credit for
returned goods) / 201/P
512 / 200 / 200
21 / Accounts Payable—
R. Mikush
Notes Payable
(Issued note for
balance due) / 201/P
200 / 15000 / 15000
Adjusting Entries
31 / Supplies Expense
Supplies / 728
125 / 900 / 900
31 / Insurance Expense
(1/10 X 2,000)
Prepaid Insurance / 722/
130/ / 200 / 200
31 / Depreciation Expense
(1/12 X 1,500)
Accumulated Depreciation—
Equipment / 711
158 / 125 / 125
31 / Interest Expense
Interest Payable / 718
230 / 30 / 30

COMPREHENSIVE PROBLEM (Continued)

General Journal G1

Date / Account Titles and Explanations / Ref. / Debit / Credit
Jan. 31 / Inventory (Jan. 31)
Sales Revenue
Purchase Returns and
Allowances
Income Summary / 120
401
512
350 / 15000
200
? / 54800
?
31 / Income Summary
Inventory (Jan. 1)
Sales Returns and
Allowances
Purchases
Freight In
Rent Expense
Salaries and Wages
Expense
Supplies Expense
Insurance Expense
Depreciation Expense
Interest Expense / 350
120
412
510
516
729
627
728
722
711
718 / 20000
300
52600
180
1000
7900
1000
200
125
30
31 / Income Summary
Owner’s Capital / 350
301 / ? / ?
31 / Owner’s Capital
Owner’s Drawings / 301
306 / 78700 / 800

(b) & (e) General Ledger

Cash No. 101

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
31
31 / Balance
????????????????
???????????????? / P
CR1
CP1 / 44500 / 59180 / 33750
78250
19070

COMPREHENSIVE PROBLEM (Continued)

Accounts Receivable No. 112

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
31
31
9 / Balance
Sales Journal
Cash Receipts Jour.
Issued Credit J. Fine / P
S1
CR1
G1 / 21800 / 11500
300 / 13000
34800
23300
23000
23000

Notes Receivable No. 115

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1 / Balance / P / 39000

Inventory No. 120

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
31
31 / Balance
Adj. entry (Jan.1)
Adj. entry (Jan.31) / P
G1
G1 / 5000 / 20000
20000
15000

Supplies No. 125

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
31
31 / Balance
17th & 28th purchase
Adj. entry / P
CP1
G1 / 600 / 700 / 1000
1600
900

Prepaid Insurance No. 130

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
31 / Balance
Adj. entry / P
G1 / 200 / 2000
1800

Equipment No. 157

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1 / Balance / P / 6450

COMPREHENSIVE PROBLEM (Continued)

Accumulated Depreciation—Equipment No. 158

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
31 / Balance
Adj. entry / P
G1 / 125 / 1500
1625

Notes Payable No. 200

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 21 / G1 / 15000 / 15000

Accounts Payable No. 201

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
31
31
18
21 / Balance
Purchases Journal
Cash Payment Jour.
Returned Merch.
Issued Note Mikush / P
P1
CP1
G1
G1 / 52600
15000 / 48900
200 / 35000
56100
7200
7000
22000

Interest Payable No. 230

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 31 / Adj. entry / G1 / 30 / 30

Owner’s Capital No. 301

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
31
31 / Balance
Owners Drawing
?????????????? / P
G1
G1 / 800 / 78700
78100
77100

Owner’s Drawings No. 306

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 15
31 / Owner’s Draw
Close. entry / CP1
G1 / 800 / 800 / 800
0

COMPREHENSIVE PROBLEM (Continued)

Income Summary No. 350

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 31
31
31 / Close. entry / G1
G1
G1 / ?
?
?

Sales Revenue No. 401

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 31
31
31 / Sales Journal
Cash Receipts Jour.
Close. Entry / S1
CR1
G1 / 21800
33000 / 54800 / 21800
54800
54800

Sales Returns and Allowances No. 412

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 9
31 / Close. entry / G1
G1 / 300 / 300 / 300
0

Purchases No. 510

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 31
31 / Purchases Journal
Close. entry / P1
G1 / 52600 / 52600 / 52600
0

Purchase Returns and Allowances No. 512

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 18
31 / Close. entry / G1
G1 / 200 / 200 / 200
0

Freight-In No. 516

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 8
31 / Pay freight
Close. entry / CP1
G1 / 180 / 180 / 180
0

COMPREHENSIVE PROBLEM (Continued)

Salaries and Wages Expense No. 627

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 31
31 / Salaries & Wages
Close. entry / CP1
G1 / 7900 / 7900
7900

Depreciation Expense No. 711

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 31
31 / Adj. entry
Close. entry / G1
G1 / 125 / 125 / 125
0

Interest Expense No. 718

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 31
31 / Adj. entry
Close. entry / G1
G1 / 30 / 30 / 30
0

Insurance Expense No. 722

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 31
31 / Adj. entry
Close. entry / G1
G1 / 200 / 200 / 200
0

Supplies Expense No. 728

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 31
31 / Adj. entry
Close. entry / G1
G1 / 1000 / 1000 / 1000
0

Rent Expense No. 729

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 12
31 / Rent
Close. entry / CP1
G1 / 1000 / 1000 / 1000
0

COMPREHENSIVE PROBLEM (Continued)

Accounts Receivable Subsidiary Ledger

R. Draves

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
11
22 / Balance / P
S1
S1 / 1900
800 / 1500
3400
4200

J. Fine

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 3
9
13
25 / S1
G1
CR1
S1 / 1800
6100 / 300
1500 / 1800
1500
0
6100

B. Hachinski

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
7
25 / Balance / P
CR1
S1 / 3500 / 2000 / 7500
5500
9000

S. Ingles

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
7
11
21 / Balance / P
CR1
S1
CR1 / 900 / 4000
900 / 4000
0
900
0

B. Remy

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 3
13
22 / S1
CR1
S1 / 3100
3700 / 3100 / 3100
0
3700

COMPREHENSIVE PROBLEM (Continued)

Accounts Payable Subsidiary Ledger

D. Laux

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 5
27 / P1
P1 / 2700
1200 / 2700
3900

S. Kosko

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
9
16
18
23 / Balance / P
CP1
P1
G1
CP1 / 9000
13900 / 9000
200
13700 / 9000
0
13900
13700
0

R. Mikush

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
21 / Balance / P
G1 / 15000 / 15000 / 15000
0

D. Moreno

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 1
9
16
23
27 / Balance / P
CP1
P1
CP1
P1 / 11000
15000
12500 / 11000
15000 / 11000
0
15000
0
12500

S. Yost

Date / Explanation / Ref. / Debit / Credit / Balance
Jan. 5
16
27 / P1
P1
P1 / 3000
1500
2800 / 3000
4500
7300

COMPREHENSIVE PROBLEM (Continued)

(d) PACKARD CO.

Income Statement

For the Month Ended January 31, 2012

Sales revenues

Sales revenue $

Less: Sales returns and

allowances

Net sales revenue

Cost of goods sold

Inventory, 1/1/12 $

Purchases $

Less: Purchase returns and

allowances

Net purchases

Freight in

Cost of goods available for sale

Less: Inventory, 1/31/12

Cost of goods sold

Gross profit

Operating expenses

Salaries and wages

expense

Rent expense

Supplies expense

Insurance expense

Depreciation expense

Total oper. expenses

Income from operations

Other expenses and losses

Interest expense

Net income

COMPREHENSIVE PROBLEM (Continued)

PACKARD CO.

Owner’s Equity Statement

For the Month Ended January 31, 2012

Owner’s Capital, January 1, 2012 Add: Net income

Less: Drawings

Owner’s Capital, January 31, 2012

PACKARD CO.

Balance Sheet

January 31, 2012

Assets

Current assets

Cash

Notes receivable

Accounts receivable

Inventory

Supplies

Prepaid insurance

Total current assets

Property and equipment

Equipment

Less: Accumulated depreciation

Total assets

Liabilities and Owner’s Equity

Current liabilities

Notes payable

Accounts payable

Interest payable

Total liabilities

Owner’s equity

Owner’s capital

Total liabilities and owner’s equity

COMPREHENSIVE PROBLEM (Continued)

(f) PACKARD CO.

Post-Closing Trial Balance

January 31, 2012

Debit / Credit
Cash
Notes Receivable
Accounts Receivable
Inventory
Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation—Equipment
Notes Payable
Accounts Payable
Interest Payable
Owner’s Capital

Accounts Receivable balance

Subsidiary account balances

R. Draves

J. Fine

B. Hachinski

B. Remy

Accounts Payable balance

Subsidiary account balances

D. Laux

D. Moreno

S. Yost