Feig Company’s chart of accounts includes the following selected accounts.
|
101 |
Cash |
|
112 |
Accounts Receivable |
|
120 |
Inventory |
|
301 |
Owner’s Capital |
|
401 |
Sales Revenue |
|
414 |
Sales Discounts |
|
505 |
Cost of Goods Sold |
On June 1, the accounts receivable ledger of Feig Company showed the following balances: Kwapis & Son $3,500, Einhorn Co. $2,800, Randall Bros. $2,400, and Daniels Co. $2,000. The June transactions involving the receipt of cash were as follows.
|
June |
1 |
The owner, Paul Feig, invested additional cash in the business $12,000. |
|
3 |
Received check in full from Daniels Co. less 2% cash discount. |
|
|
6 |
Received check in full from Einhorn Co. less 2% cash discount. |
|
|
7 |
Made cash sales of merchandise totaling $8,700. The cost of the merchandise sold was |
|
|
$5,000. |
||
|
9 |
Received check in full from Kwapis & Son less 2% cash discount. |
|
|
11 |
Received cash refund from a supplier for damaged merchandise $450. |
|
|
15 |
Made cash sales of merchandise totaling $6,500. The cost of the merchandise sold was |
|
|
$4,000. |
||
|
20 |
Received check in full from Randall Bros. $2,400. |
Instructions
(a) Journalize the transactions above in a six column cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr. Foot and cross foot the journal.
(b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts,
and post the June transactions to these accounts.
(c) Prove the agreement of the control account and subsidiary account balances.