ANSWERS TO SAMPLE TEST #3
PART A:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
F
T
T
F
F
T
F
T
F
T
A
D
C
B
A
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
B
A
D
B
A
C
D
A
B
D
B
D
A
C
A
PART B:
PROBLEMS (various points - see below - total of 55 pts):
1.
Use a checkmark to indicate the journal in which each of the following
transactions should be recorded (10 pts):
Transaction
a. Issued Ck. No. 1054 for $875 for the month's rent.
b. Purchased merchandise, invoice no. 1025, $1,326, agreeing
to pay in 30 days.
c. Bought office supplies on account, $88.
d. Sold services amounting to $1,865 for cash.
e. Sold merchandise on account, $1,580.
f. Received $381 from charge customers to apply on account.
g. The owner withdrew $5,000 for personal use.
h. Journalized end-of-the-year closing entries.
i. Purchased merchandise for $1,750 in cash.
k. Received a credit memo for merchandise returned.
2.
SJ
PJ
CRJ
CPJ
GJ
X
X
X
X
X
X
X
X
X
Bradley's Appliance Store had the following transactions during the month of
May 2005. Record the transactions on page 5 of a sales journal and page 8 of a
general journal (use the forms on the next page). Total, prove and rule the sales
journal as of May 31, 2005 (15 pts).
May 5
6
8
15
20
25
Sold a refrigerator to Mary Wilson. Issued Sales Slip 452 for $650
plus sales tax of $32.50.
Sold a freezer to Samantha Lee. Issued Sales Slip 453 for $900 plus
sales tax of $45.
Gave Mary Wilson an allowance for scratches on her refrigerator sold
on May 5, Sales Slip 452. Issued Credit Memorandum 118 for $57.75,
which includes $2.75 of sales tax.
Sold a portable television to Jill Hanna. Issued Sales Slip 454 for $345
plus sales tax of $17.25.
Sold a microwave over to Salema Miryam. Issued Sales Slip 455 for
$175 plus sales tax of $8.75.
Accepted a return of a defective microwave oven from Salema
Miryam. The oven was originally sold on May 20, Sales Slip 455.
Issued Credit Memorandum 199 for $183.75, which includes sales tax
of $8.75
X
SALES JOURNAL
SALES
SLIP
NO.
DATE
CUSTOMER'S ACCOUNT
DEBITED
POST.
REF.
PAGE _5_
ACCOUNTS
RECEIVABLE
DEBIT
SALES TAX
PAYABLE
CREDIT
SALES CREDIT
2005
May
5 452 Mary Wilson
682.50
32.50
650.00
6 453 Samantha Lee
945.00
45.00
900.00
15 454 Jill Hanna
362.25
17.25
345.00
20 455 Salema Miryam
183.75
8.75
175.00
2173.50
103.50
2070.00
31
Totals
GENERAL JOURNAL
Page __8__
DATE
1
2
3
4
5
05
May 8
DESCRIPTION
POST.
REF.
DEBIT
CREDIT
1
Sales Returns & Allowances
Sales Tax Payable
AR / M. Wilson
Issued CM 118
5 5 00
2 75
2
3
5 7 75
5
6
7
8
9
10
4
6
25 Sales Returns & Allowances
Sales Tax Payable
AR / S. Miryam
Issued CM 119
1 7 5 00
8 75
7
1 8 3 75
8
9
10
11
11
12
12
13
13
14
14
3.
Record the following transactions for the month of April 2005 on page 4 of a
cash receipts journal (use the form below). Total, prove and rule the cash
receipts journal as of April 30 (15 pts).
Apr 3
Collected $350 from Margo Daub, a credit customer on account.
8
Kevin Sharp, the owner, invested additional $5,000 cash in business.
9
Received a cash refund of $30 for damaged supplies.
15
Had cash sales of $5,500 plus sales tax of $385. There was a cash
overage of $5.
18
Received $800 from Brian Cobb, a credit customer, in payment of his
account.
20
30
Received a check from Phil Stout to pay his $700 promissory note plus
interest of $42.
Had cash sales of $3,800 plus sales tax of $266. There was a cash
shortage of $5.
CASH RECEIPTS JOURNAL
DATE
DESCRIPTION
POST.
REF.
ACCTS RECEIVABLE
CREDIT
SALES TAX
PAYABLE
CREDIT
Page_4_
SALES
CREDIT
OTHER ACCOUNTS CREDIT
POS
ACCOUNT NAME T.
AMOUNT
REF.
CASH DEBIT
04
Apr
3 M. Daub
8 Investment
9 Cash Refund
1
5 Cash Sales
1
8 B. Cobb
2 Collect note
0 from P. Stout
3
0 Cash Sales
3
0 Totals
4.
350.00
385.00
Sharp, Capital
Supplies
Cash Short or
5500.00 Over
5000.00
30.00
350.00
5000.00
30.00
5.00
5890.00
800.00
800.00
Notes
Receivable
Int Income
266.00
1150.00
Cash Short or
3800.00 Over
651.00 9300.00
700.00
42.00
5
5772.00
On October 5, 2005, the balance of Creative Solutions, Inc's checkbook and
Cash account was $16,622. The balance shown on the bank statement on the
same date was $14,922.50 (15 pts).
Notes
5.
The following checks were issued but have not been yet paid by the
bank: Check 128 for $150.00, Check 132 for $70.00.
6.
The firm's records indicate that a deposit of $1,800.00 made on
September 28 does not appear on the bank statement.
7.
A service charge of $7.50 and a debit memorandum of $112.00
covering an NSF check from a credit customer, Julia Anderson, have
not yet been entered in the firm's records.
Instructions
1.
Prepare a bank reconciliation statement for the firm as of September
30, 2005 (use the form on page 4).
2.
Record journal entries for any items on the bank reconciliation
statement that must be journalized (use the general journal form on
page 4). Date the entries October 5, 2005.
742.00
4061.00
16873.00
Creative Solutions, Inc.
Bank Reconciliation Statement
September 30, 2005
Balance on Bank Statement
Additions:
Deposit on 09/28 in transit
14922.50
1800.00
16722.50
Deductions for outstanding checks:
Check 128
Check 132
150.00
70.00
Total outstanding checks
220.00
ADJUSTED BANK BALANCE
16502.50
Balance in Books
Deductions:
NSF Check
Bank service Charge
16622.00
112.00
7.50
ADJUSTED BOOK BALANCE
119.50
16502.50
GENERAL JOURNAL
DATE
1
2
3
4
5
DESCRIPTION
05
Oct 5 AR / Julia Anderson
Bank Fees Expense
Cash
To record ….
POST.
REF.
DEBIT
CREDIT
1
1 1 2 00
7 50
2
3
1 1 9 50
4
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14