{"id":764,"date":"2015-05-13T16:56:12","date_gmt":"2015-05-13T16:56:12","guid":{"rendered":"https:\/\/courses.candelalearning.com\/finacct2x10xmaster\/?post_type=chapter&p=764"},"modified":"2016-08-01T18:24:43","modified_gmt":"2016-08-01T18:24:43","slug":"exercises-unit-8-need-content","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/chapter\/exercises-unit-8-need-content\/","title":{"raw":"Exercises: Unit 8","rendered":"Exercises: Unit 8"},"content":{"raw":"Questions<\/strong>\r\n\r\n> Why use special journals?\r\n\r\n>What are the advantages to using subsidiary ledgers?\r\n\r\n> What are the disadvantages to using subsidiary ledgers?\r\n\r\n> Does the term \"accounting system\" always mean a computerized system?\u00a0 Why or why not?\r\n\r\nExercises<\/strong>\r\n\r\nExercise 1<\/strong>:\u00a0 Match the special journal with its definition:\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Journals<\/td>\r\nDefinition<\/td>\r\n<\/tr>\r\n
a. Cash Receipts Journal<\/td>\r\n____ 1. Purchases on account<\/td>\r\n<\/tr>\r\n
b. Cash Disbursement Journal<\/td>\r\n____ 2. Sales on account<\/td>\r\n<\/tr>\r\n
c. \u00a0 Sales Journal<\/td>\r\n____ 3. Cash paid by the company.<\/td>\r\n<\/tr>\r\n
d. \u00a0 Purchases Journal<\/td>\r\n____ 4. Cash Received by the company.<\/td>\r\n<\/tr>\r\n
e. \u00a0 General Journal<\/td>\r\n____ 5. Adusting, closing and returns.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nExercise 2<\/strong>:\u00a0 Enter P for Purchases journal, S for Sales journal, CR for Cash Receipts journal, CD for Cash Disbursements, and G for General journal to identify which special journal these transactions would appear:\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
a. Purchased supplies for cash<\/td>\r\n_________<\/td>\r\n<\/tr>\r\n
b. \u00a0 Customer paid on account<\/td>\r\n_________<\/td>\r\n<\/tr>\r\n
c. \u00a0 Borrowed cash from the bank.<\/td>\r\n_________<\/td>\r\n<\/tr>\r\n
d. \u00a0 Purchased inventory on account.<\/td>\r\n_________<\/td>\r\n<\/tr>\r\n
e. \u00a0 Sold merchandise for cash.<\/td>\r\n_________<\/td>\r\n<\/tr>\r\n
f. Returned inventory purchased.<\/td>\r\n_________<\/td>\r\n<\/tr>\r\n
g. \u00a0 Paid utility bill.<\/td>\r\n_________<\/td>\r\n<\/tr>\r\n
h. \u00a0 Sold merchandise on credit.<\/td>\r\n_________<\/td>\r\n<\/tr>\r\n
i. \u00a0 Customer returned merchandise.<\/td>\r\n_________<\/td>\r\n<\/tr>\r\n
j. \u00a0 Paid vendor for purchase.<\/td>\r\n_________<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nExercise 3:<\/strong>\u00a0 The following transactions appeared for Some Company, Inc.\u00a0 Identify which special journal each transaction should be recorded (use S for Sales journal, P for Purchases journal, CR for Cash Receipts journal, CD for Cash Disbursements, and G for General journal).\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Jan 1 Some Company issued $50,000 in stock to investors.<\/td>\r\n<\/tr>\r\n
Jan 5 Purchase a equipment by paying $15,000 cash.<\/td>\r\n<\/tr>\r\n
Jan 8 Purchased $2,000 in inventory from Bottle Inc. terms 1\/10, N30<\/td>\r\n<\/tr>\r\n
Jan 10 Sold $2,000 of inventory to ABC Company for $4,000 terms 2\/10,N30.<\/td>\r\n<\/tr>\r\n
Jan 15\u00a0 Made a partial payment to Bottle Inc. for $1,500.<\/td>\r\n<\/tr>\r\n
Jan 16 Purchased $1,000 of inventory for cash.<\/td>\r\n<\/tr>\r\n
Jan 20 Sold $1,000 of inventory to JKL Company for $2,000 terms 2\/10, N30.<\/td>\r\n<\/tr>\r\n
Jan 20 Received full payment for Jan 10 sale to ABC less the discount.<\/td>\r\n<\/tr>\r\n
Jan 21 JKL Company returned $200 of merchandise for a credit of $400.<\/td>\r\n<\/tr>\r\n
Jan 25 Purchased $500 of supplies on credit.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nExercise 4<\/strong>:\u00a0 Using the transactions from Exercise 3, complete the following:\r\n
    \r\n\t
  1. Create\u00a0an accounts receivable\u00a0ledger account and customer ledger for\u00a0 ABC Company and JKL Company.<\/li>\r\n\t
  2. Post the appropriate entries to the accounts receivable\u00a0control ledger (use the individual transactions) and the customer ledgers.<\/li>\r\n\t
  3. Prepare a Schedule of Accounts Receivable to prove the balance in accounts receivable.<\/li>\r\n<\/ol>\r\nExercise 5<\/strong>:\u00a0 Using the transactions from Exercise 3, complete the following:\r\n
      \r\n\t
    1. Create\u00a0an accounts\u00a0payable\u00a0ledger account and vendor ledger for Bottle Inc..<\/li>\r\n\t
    2. Post the appropriate entries to the accounts\u00a0payable\u00a0control ledger (use the individual transactions) and the vendor ledger.<\/li>\r\n\t
    3. Prepare a Schedule of Accounts\u00a0Payable to prove the balance in accounts payable.<\/li>\r\n<\/ol>","rendered":"

      Questions<\/strong><\/p>\n

      > Why use special journals?<\/p>\n

      >What are the advantages to using subsidiary ledgers?<\/p>\n

      > What are the disadvantages to using subsidiary ledgers?<\/p>\n

      > Does the term “accounting system” always mean a computerized system?\u00a0 Why or why not?<\/p>\n

      Exercises<\/strong><\/p>\n

      Exercise 1<\/strong>:\u00a0 Match the special journal with its definition:<\/p>\n\n\n\n\n\n\n\n\n
      Journals<\/td>\nDefinition<\/td>\n<\/tr>\n
      a. Cash Receipts Journal<\/td>\n____ 1. Purchases on account<\/td>\n<\/tr>\n
      b. Cash Disbursement Journal<\/td>\n____ 2. Sales on account<\/td>\n<\/tr>\n
      c. \u00a0 Sales Journal<\/td>\n____ 3. Cash paid by the company.<\/td>\n<\/tr>\n
      d. \u00a0 Purchases Journal<\/td>\n____ 4. Cash Received by the company.<\/td>\n<\/tr>\n
      e. \u00a0 General Journal<\/td>\n____ 5. Adusting, closing and returns.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      Exercise 2<\/strong>:\u00a0 Enter P for Purchases journal, S for Sales journal, CR for Cash Receipts journal, CD for Cash Disbursements, and G for General journal to identify which special journal these transactions would appear:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
      a. Purchased supplies for cash<\/td>\n_________<\/td>\n<\/tr>\n
      b. \u00a0 Customer paid on account<\/td>\n_________<\/td>\n<\/tr>\n
      c. \u00a0 Borrowed cash from the bank.<\/td>\n_________<\/td>\n<\/tr>\n
      d. \u00a0 Purchased inventory on account.<\/td>\n_________<\/td>\n<\/tr>\n
      e. \u00a0 Sold merchandise for cash.<\/td>\n_________<\/td>\n<\/tr>\n
      f. Returned inventory purchased.<\/td>\n_________<\/td>\n<\/tr>\n
      g. \u00a0 Paid utility bill.<\/td>\n_________<\/td>\n<\/tr>\n
      h. \u00a0 Sold merchandise on credit.<\/td>\n_________<\/td>\n<\/tr>\n
      i. \u00a0 Customer returned merchandise.<\/td>\n_________<\/td>\n<\/tr>\n
      j. \u00a0 Paid vendor for purchase.<\/td>\n_________<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      Exercise 3:<\/strong>\u00a0 The following transactions appeared for Some Company, Inc.\u00a0 Identify which special journal each transaction should be recorded (use S for Sales journal, P for Purchases journal, CR for Cash Receipts journal, CD for Cash Disbursements, and G for General journal).<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
      Jan 1 Some Company issued $50,000 in stock to investors.<\/td>\n<\/tr>\n
      Jan 5 Purchase a equipment by paying $15,000 cash.<\/td>\n<\/tr>\n
      Jan 8 Purchased $2,000 in inventory from Bottle Inc. terms 1\/10, N30<\/td>\n<\/tr>\n
      Jan 10 Sold $2,000 of inventory to ABC Company for $4,000 terms 2\/10,N30.<\/td>\n<\/tr>\n
      Jan 15\u00a0 Made a partial payment to Bottle Inc. for $1,500.<\/td>\n<\/tr>\n
      Jan 16 Purchased $1,000 of inventory for cash.<\/td>\n<\/tr>\n
      Jan 20 Sold $1,000 of inventory to JKL Company for $2,000 terms 2\/10, N30.<\/td>\n<\/tr>\n
      Jan 20 Received full payment for Jan 10 sale to ABC less the discount.<\/td>\n<\/tr>\n
      Jan 21 JKL Company returned $200 of merchandise for a credit of $400.<\/td>\n<\/tr>\n
      Jan 25 Purchased $500 of supplies on credit.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      Exercise 4<\/strong>:\u00a0 Using the transactions from Exercise 3, complete the following:<\/p>\n

        \n
      1. Create\u00a0an accounts receivable\u00a0ledger account and customer ledger for\u00a0 ABC Company and JKL Company.<\/li>\n
      2. Post the appropriate entries to the accounts receivable\u00a0control ledger (use the individual transactions) and the customer ledgers.<\/li>\n
      3. Prepare a Schedule of Accounts Receivable to prove the balance in accounts receivable.<\/li>\n<\/ol>\n

        Exercise 5<\/strong>:\u00a0 Using the transactions from Exercise 3, complete the following:<\/p>\n

          \n
        1. Create\u00a0an accounts\u00a0payable\u00a0ledger account and vendor ledger for Bottle Inc..<\/li>\n
        2. Post the appropriate entries to the accounts\u00a0payable\u00a0control ledger (use the individual transactions) and the vendor ledger.<\/li>\n
        3. Prepare a Schedule of Accounts\u00a0Payable to prove the balance in accounts payable.<\/li>\n<\/ol>\n","protected":false},"author":276,"menu_order":6,"template":"","meta":{"_candela_citation":"[]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-764","chapter","type-chapter","status-publish","hentry"],"part":113,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/wp-json\/pressbooks\/v2\/chapters\/764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/wp-json\/wp\/v2\/users\/276"}],"version-history":[{"count":3,"href":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/wp-json\/pressbooks\/v2\/chapters\/764\/revisions"}],"predecessor-version":[{"id":1923,"href":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/wp-json\/pressbooks\/v2\/chapters\/764\/revisions\/1923"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/wp-json\/pressbooks\/v2\/parts\/113"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/wp-json\/pressbooks\/v2\/chapters\/764\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/wp-json\/wp\/v2\/media?parent=764"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=764"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/wp-json\/wp\/v2\/contributor?post=764"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/wp-json\/wp\/v2\/license?post=764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}