Ch 7 Review Answers

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Name
Date
ANSWERS TO SECTION 7.3 COMPUTER EXERCISES (cont.)
Exercise 1 (cont)
Communicate It (text p. 237)
Write down the main points of your letter before you prepare it with a word-processing program.
Students shovM point out the time-saving benefit to Mr. McKeU. Simply Accounting will save him many
hours of work per week because posting is done as soon as journal entries are made, totals are
caUndated instantly, no mathematical errors occur andfinancial statements are ready to be printed
at any time.
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (text p.238)
Exercise 1, p. 238
Using Your Knowledge
Indicate whether each of the following statements is true or false by placing a "T" or an
«F" in the space indicated. Explain the reason for each "F" response in the space provided.
A.
The chief advantage of the balance-column account is that there is room for the
account balance.
B.
C.
Both sides of an account page (front and back) are used for the same item
(for example, Bank).
Entering the journal page number in the account is the sixth step in the posting
process.
D.
The step described in question c above is performed in the journal.
E.
The process of setting up an account is known as "forwarding."
F.
The fourth step in the accounting c^cle, as we know it, is the taking off of a
trial balance.
G. • It is not possible for the ledger to be out of balance and also to be correct.
H.
If the triai baJance difference is an even amount, the error could not be a
transposition error.
I.
If the trial balance difference is zero, the ledger is correct
J.
Posting a debit item incorrectly as a credit produces a trial balance credit total that is
smaller than the debit total by twice the amount of the error.
K.
Very rarely does a transaction affect only one account.
L.
Ledger accounts are arranged alphabetically to make them easier to find.
M.
The presence of the account number in the journal indicates that the posting of an item
has been completed.
144
Accounting I TeoAsker^s Key
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont.)
Exercise 1 (cont)
Explanations for "F" Responses:
Entering Uiejournal page mimber in the account is the third step in the posting process.
D. The step described in question Cis performed in the ledger.
E. Forwarding is to continue an account on a new page.
H. It is possible; e.g., 18 ^ 9 = 2.
/. The trial balance can be in balance vnth incorrect numbers.
J. Itpmduces a credit total tlmt is twice the amount ofthe error greater than the debit total
K. There is never a transaction that affects only one account.
L. Ledgei' accounts are ar}un^ed according to the classificatioyis assets, liabUities, and equity.
Copyright ©2002 Pearson Education Canada Inc., Toronto, Ontario
Chapter 7 Posting
] 45
TVial Balance
will balance
but will
not be
•
i
WMMMMiMiUiUUimm
^
I
Name
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont)
Exercise 4, p. 240
The ci-edit baUvnce of $200 in a customer's account is possible. A simple explanation is that the customei-
sent a chequefor S900 when it should have been $700. The credit balance of $5 OOP in Furniture and
Equipment is impossible except as an envr. It is simply impossible to take more out of that asset
account than was put in.
Exercise 5, p. 240
The advantage of this method is that you do not have toflip through the entire ledger ta find an account.
Also, youcan keep the running total of the ledger account (i.e., if you are using a printing caiculator).
Exercise 6, p. 240
A disadvantage to taking off a trial balance only once a year is that there has been an entire year for
mistakes to accumviate. Finding errors after an entire year will be extremely difficult. Also, if there has
been a mistake in a custcmier's account, you will have difficulty persuading the customer of that fact a
year later.
I ^
1
i
Copyr^ht © 2002Pearson Education Canada Inc., Toronto, Ontario
Chapter? Posting
147
1
Nanie
answers TO CHAPTER 7 REVIEW EXERCISES (cont)
Exercise 7, p. 240
Comprehensive Exercise
A-, B.
PAGE I
GENERAL JOURNAL
PARTICULARS
DATE
DEBIT
CREDIT
Aus. I 3/ I B
Supplies
Equipment
AutomobHes
Bank Loan
Pat Schelling, Capital
Opening entry
Rent Expense
GST Recoverable
Rent for month
3 Supplies
GST Recoverable
AlP — Home Hardv/are
SuM)lies on account
5 j A/R —yy./. Thomson
Service Revenue
GST Payable
PST Payable
SerWce rendered on account
LPero
Service Revenue
GST Payable
PST Payable
Service rendered on account
148 Accounting I Teachers Key
Copyright ©2002 Pearson Education Canada Inc., Tbronto, Ontario
Naine
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (conL)
Exercise 7 (cont)
GENERAL JOURNAL
PARTICULARS
PAGE 2
DEBIT
CREDIT
20—
Sep.
9
Bonk
Loss on Sale of Equipment
7
0
0
Equipment
1 2
0
0
-
Sold piece of equipment at a loss
10 AIR —Spectrum Co.
Service Revenue
GST Payable
PSTPayable
9 2
0
-
_i,A
6
4
Service rendered on account
11 Pat Schelling, Drawings
Bank
For personal use
AlP — Home Hardware
Bank
Payment on account
Automobile Expense
GST Recoverable
AlP — Imperial Garage
Gasoline and oil
Supplies
GST Recoverable
Bank
Bought supplies for cash
Copyriglit © 2002 Pearson Education Canada Inc., Toronto, Ontario
302
5
0
0
-
101
•••••
•••••
213
•BBDI3
101
•••••
•••••
•••••
505
•BBBB
225 •iBBQ
211
•iilH
•lilH
•IIBH
WItM •BBBB
Ea •IBBQ
101
•BBIB
•BBIB
•BBIB
•BBIB
•iflflIB
•BBIB
•BBB
•BBB
•BIB
•BBB
•BBB
•BBB
•BBB
•BBB
•BBB
•BBB
•BBB
•BBB
•BBB
•BBB
•BBB
•BBB
•BBB
•IBBB
•BBB
•BBB
Chapter 7 Posting
149
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (conc)
Exercise 7 (cont)
GENERAL JOURNAL
PARTICULARS
PAGE 3
DEBIT
CREDIT
20—
Sep.
18
Bank
AIR —W.J.Thomson
Payment on account
General Expense
Automobile Expense
GST Recoverable
Owners out-of-pocket expenses
Bank Charges Expense
Interest and bank service charges
Wages Expense
AIR — K. Puna
Service Revenue
GST Payable
PST Payable
Service rendered on account
Bank Loan
Loan reduction
Telephone Expense
Telephone biff
ISO Accounting I Teacher'sKey
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
Name
ANSWERS TO CHAPTER 7REVIEW EXERCISES (cont.)
Exercise 7 (cont)
GENERAL JOURNAL
PARTICULARS
25
PAnp
A
DEBIT
Bank
L. Pero
Payment received on account
AIR— W. J.Thomson
Service Revenue
GST Payable
PST Payable
Service rendered on account
Pat Schelling, Drawings
For personal use
Supplies
GST Recoverable
Pat Schelling, Drawings
Out-of-pocket expenditure
Wages Expense
AlP— Imperial Garage
Payment on account
Automobile Expense
GST Recoverable
AlP— Imperial Garage
Gasoline and oil
Copyright ®2002 Pearson Education Canada Inc., Toronto, Ontario
Chapter? Posting
IS I
KN
Date
Name
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont.)
Exercise 7 (cont)
GENERAL LEDGER
No. 101
ACCOUNT Bank
PARTICULARS
DATE
DR/CR
CREDIT
DEBIT
PR.
20—
Aug.
31
Sep.
1
Opening entry
Jl
2
0
0
0
9
Jl
5
0
0
6
3
-
9
J2
10
J2
5
0
0
12
J2
2
5
/
45
16
J2
1
7 6
55
18
J3
4
0
2
5
—
19
0
2
5
0
-
5
7 5
-
0 0
0
-
6
2
J3
22
J3
24
J3
25
J4
26
J4
4
5
0
30
J4
5
7
0
30
J4
3
6
5
2
0
50
1 6
19
0
DR
2
0
0
0
DR
f
0
3
7
7
06
—
-
-
94
PARTICULARS
/
5
DR
/
0
3
7
DR
7
8
5
DR
6
0
9
6
3
4
50
4
25
J4
152
Accounting I Teacher's Key
-
4
4
4
2
2
3
50
DR
3
6
4
8
50
DR
/
6
4
8
50
DR
/
5
8
6
44
DR
2
5
8
6
44
DR
2
/
3
6
44
DR
/
5
6
6
44
DR
f
2
0
0
50
2
3
0
0
_
BALANCE
/
0
0
0
-
DR
2
3
0
0
DR
/
3
0
0
No.
PR.
DEBIT
. CREDIT
DR/CR
20—
19
-
DR
ACCOUNT A/R — K. Puna
Sep.
55
DR
DR/CR
CREDIT
DEBIT
PR.
Jl
PARTICULARS
-
No. Ill
5
DATE
-
7 3
20—
Sep.
-
DR
ACCOUNT A/R —LPero
DATE
-
3
DR
—
18
1 0
-
BALANCE
6
9
0
DR
—
-
113
BALANCE
6
9
0
•
—
Copyright ® 2002 PearsonEducation CanadaIna, Toronto,Ontario
...-j
Name
Date
I •(
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (conc)
Exercise 7 (cont)
ACCOUNT A/R — Specvum Co.
DATE
PARTICULARS
No.
PR.
20—
Sep.
10
f2
DEBIT
CREDIT
mmm mmm
DR/CR
BALANCE
DR
mmm
m n •••••
•••••
ACCOUNT A/R—W.J.Thomson
DATE
PARTICULARS
No.
P.R.
20—
Sep.
5
CREDIT
/'
BeieH•iin
14
•••••
BBBEB
•DBDB •IIIB
18
26
DEBIT
•••••
BALANCE
OR
BeeiH
DR
HnnnH
mmunm
•iIBB
•in
No.
PARTICULARS
CREDIT
117
DR/CR
ACCOUNT Supplies
DATE
115
DR/CR
120
BALANCE
20—
Aug.
3/
Sep.
3
Opening entry
16
29
ACCOUNT Equipment
DATE
No.
PARTICULARS
CREDIT
DR/CR
125
BALANCE
20—
Aug.
31
Opening entry
Sep.
IBBDI
ACCOUNT Automofa»/es
DATE
PARTICULARS
No.
PR.
20—
Aug.
31
Opening entry
n
DEBIT
CREDIT
mmm mmm
•IBIB •••••
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
11^!
130
DR/CR
BALANCE
DR
mmm
•••••
Chapter? Posting
IS3
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont)
Exercise 7 (cont)
No. 201
ACCOUNT Bonk Loan
PARTICULARS
DATE
PR.
20—
Aug.
31
Sep.
22
Opening entry
Jl
DEBIT
•mi
13
•••••
CREDIT
DR/CR
CR
•••••
•••••
CR
PARTICULARS
No. 211
PR.
20—
Sep.
IS
J2
J4
30
J4
DEBIT
CREDIT
DR/CR
BALANCE
•iifll •BBBH
mtmrn •••••
•••••
•••••
•••••
IBIIE]!
No. 2/3
ACCOUNT NP—Home Hardware
DATE
IQjQQOB
•••••
ACCOUNT AlP — Imperial Garage
DATE
BALANCE
CREDIT
PARTICULARS
DR/CR
BALANCE
20—
Sep.
CR
3
45
12
No. 220
ACCOUNT GSTPayable
PARTICULARS
DATE
PR.
20—
Sep.
154
S
Jl
5
II
10
/2
19
P
26
H
Accounting 1 Teacher's Key
DEBIT
CREDIT
•en
ms
lii™
•••••
BSIII
•••••
•IDBB
nOBB
•••••
DR/CR
BALANCE
CR
mmm
CR
CR
CR
CR
•BBBB
•BBBB
•BBBB
•BBBB
niiB
Copyright © 2002Pearson Education Canada Inc., Toronto, Ontario
ANSWERS TO CHAPTER 7REVIEW EXERCISES (conn)
Exercise 7 (cont)
ACCOUNT GST Recoverable
No. 225
DATE
PARTICULARS
PR.
DEBIT
}l
6
3
Jl
I
6
45
J2
2
3
94
J2
1
1
55
DR
1
1 4
94
J3
1 0
50
DR
1 2 5
44
4
06
CREDIT
20— I
Sep.
I
_
DR/CR
BALANCE
DR
6
DR
7 9
45
DR
1 0 3
39
3-
DR
1 2
9
50
J4
/
3
30
DR
1 4 2
80
J4
2
/
84
OR
It 6 4 64
ACCOUNT PST Payable
No. 230
date
PARTICULARS
DEBIT
CREDIT
CR
CR
CR
CR
CR
-lA®.
-_i.A
3
DR/CR
2
BALANCE
2 8 0 ~
5 0 4 5 5 2 5 8 4 -
II
III
ACCOUNT Pat Schelling, Capital
No. 30/
DEBIT
DR/CR
CREDIT
27
I
27 I
ACCOUNT Pat Schelling, Drawings
DATE
PARTICULARS
No. 302
DEBIT
CREDIT
DR/CR
20— I
Sep.
BALANCE
II
BALANCE
5^ 0 0 4 5
0
_9 5 0 2 0 3
Copyright ©2002 Pearson Education Canada Inc., Toronto, Ontario
30
DR
7 4
6
Chapter? Posting
10
155
Name
Date
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cohl)
Exercise 7 (cont)
ACCOUNT Service Revenue
DATE
PARTICULARS
No. 40/
RR.
CREDIT
DEBIT
DR/CR
BALANCE
20—
Sep.
5
Jl
3
5
0
0
5
Jl
2
0 0
0
to
J2
8
0
19
J3
6
26
J4
4
CR
3
S
0
0
—
CR
5
5
0
0
-
0
—
CR
6
3
0
0
—
0
0
-
CR
6
9
0
0
-
0
0
CR
7
3
0
0
—
ACCOUNT Automobile Expense
PARTICULARS
DATE
No. 505
RR
CREDIT
DEBIT
DR/CR
BALANCE
20—
Sep.
r
i
IS
J2
3
4
2
18
J3
/
/
8
30
J4
3
/
2
DR
3
4
2
-
OR
4
6
0
-
—
OR
7
7
2
—
_
1,
ACCOUNT Bank ChaisesExpense
DATE
PARTICULARS
No. 5/0
RR.
DEBIT
CREDIT
DR/CR
BALANCE
20—
Sep.
19
J3
2
5
OR
0
2
ACCOUNT GenemI Expense
DATE
PARTICULARS
5
0
,
,
No. 515
RR.
DEBIT
73
3
CREDIT
DR/CR
BALANCE
OR
3
20—
Sep.
18
2
ACCOUNT Rent Expense
PARTICULARS
DATE
2
No. 520
RR.
DEBIT
CREDIT
DR/CR
BALANCE
20—
Sep.
156
1
Accounting I Teacher^s Key
y/
9
0
0
OR
9
0
0
Copyright ® 2002 Pearson Education Canada Inc., Toronto, Ontario
Name
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont)
Exercise 7 (cont.)
ACCOUNT Telephone Expense
No. 525
DEBIT
PARTICULARS
CREDIT
20—
Sep.
24
ACCOUNT Wages Expense
PARTICULARS
DATE
No. 530
RR.
20—
Sep.
19
i3
30
14
DEBIT
CREDIT
mmm •nil
•BDDB •IIIH
•••••
BALANCE
DR/CR
DR
•eeiB
DR
miBBH
•••••
No. 535
ACCOUNT Loss on Sale of Equipment
PARTICULARS
DATE
RR.
20—
Sep.
19
/2
DEBIT
CREDIT
mmm•nil
•••••
Copyright © 2002 Pearson Education Canada Inc., Tbronto, Ontario
•••••
DR/CR
BALANCE
DR
mmm
•••••
Chapter? Posting
157
Name
Date
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont)
Exercise 7 (cont)
Royal City Engineering
C.
Trial Balance
September 30, 20—
CREDIT
DEBIT
ACCOUNTS
Bank
/
2
0
0
AIR — L Pero
/
3
0
0
—
AlR — K.Pana
6
9
0
—
AIR — Spectrum Co.
9
2
0
—
AIR — W.J.Thomson
4
6
0
—
0
4
0
—
Equipment
13 5
3
2
—
Automobiles
28 9
5
7
_
Supplies
2
SO
18 0
0
0
AlP — Imperial Garage
3
3
3
GST Payable
5
1
1
5
8
4
—
/
3
9
_
7 3
0
0
—
S3 8
6
7
Bank Loan
GST Recoverable
/
6
4
Pat Schelling, Capital
27
7
4
6
Automobile Expense
7
7
2
_
Bank Charges Expense
2
5
0
_
3
2
—
0
0
—
5
8
—
1 4
5
—
7
0
0
_
S3 8
6
7
Rent Expense
9
Telephone Expense
Wages Expense
1
Loss on Sale of Equipment
.
158
—
70
Service Revenue
General Expense
84
64
PST Payable
Pat Schelling, Drawings
-
.
Accounting I Teacher's Key
S4
84
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
Name
Date
ANSWERS TO CHAPTER 7 REVIEW EXERCISES {cone)
Exercise 7 (cont)
Royal City Eiigineeii/ng
IncomeStatement
Month Ended September 30^ 20—
Revenue
Service Revenue
Operating Exoenses
Automobile Expense
Bank Charges Expense
General Expense
Rent Expense
Telephone Expense
Wages Expense
Loss on Sale of Equipment
Total Expenses
Net Income
^pyright © 2002 Pearson EducationCanadaIna, Toronto, Ontario
Chapter? Posting
159
Date
Name
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont)
Exercise 7 (cont)
Royal City Engineering
E.
Balance Sheet
September 30, 20—
Assets
Bank
$ 1 2 0 0
SO
0
0
00
1 3
A/R — L Pero
AIR —K. Puna
6
9
0
00
AIR — Spectrum Co.
9
2
0
00
A/R — W.J. Thomson
4
6
0
00
0
4
0
00
13 5
3
2
00
28 9
5
2
Supplies
Equipment
7
00
$49 0 9 9
50
Automobiles
TotalAssets
Labilities
AlP — Imperial Garage
3
3
3
84
3
4
6
36
5
8
4
00
18 0
0
0
00
$19 2 6 4
20
$
GST Payable
1
1
00
1 6
4
64
5
$
Less GST Recoverable
PST Payable
Bank Loan
Total Liabilities
Owner's EquOy
Pat Schelling, Capital (September 1)
$3 4 4 3
Net Income
Drawings
7 4
Increase in Equity
00
6
30
00
70
2
Pat Schelling, Capital (September 30)
Total Liabilities and Equity
160
6
$27 1 3 9
6
9
5
30
$49 0 9 9
SO
29 8
3
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
Accounting I Teacher's Key
^1:5111
Name
Date
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont.)
Exercise 8, p. 243
GENERAL JOURNAL
PAGE 28
PARTICULARS
CREDIT
20—
Oct.
2 Miscellaneous Expense
GST Recoverable
Cheque #652
Supplies — Golf Course
GST Recoverable
Air — Main Supply
Purchase fertilizer
Bank Charges Expense
IBBDI
Interest and service charges
Wages Expense
Cheque #653
Revenue — Golf
['IIJ
Revenue — Food
GST Payable
PST Payable
Receipts for week
AlP — Main Supply
Cheque #654 on account
Automotive Expense
GST Recoverable
AlP — Blair's Automotive
Truck repairs
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
I 41
Chapter? Posting
161
Name
Date
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont.)
Exercise 8 (cont)
GENERAL JOURNAL
DATE
20—
Oct.
PARTICULARS
II
PAGE 29
PR
DEBIT
Supplies — Golf Course
lOS
/
GST Recoverable
225
AIR — Pro Equipment
7
CREDIT
6
40
1 2
35
215
1
8
8
5
0
0
7
0
0
75
Golfsupplies
13
Shirley Ng-A-IGen, Drawings
Bank
305
/
5
0
0
_
100
/
Cheque# 6SS
14
Wages Expense
Bank
535
7
0
0
100
Cheque# 656
IS
Bank
100
2
6
4
8
50
Revenue — Golf
401
1 9
2
0
Revenue — Food
405
4
7
0
GST Payable
220
1 6
7
30
PST Payable
230
9
1
20
2
5
0
50
4
2
8
Cash receipts for week
IS
PST Payable
230
Bank
100
2
5
0
50
Cheque #657
17
•
•
Maintenance Expense
515
GST Recoverable
225
AlP — Pro Equipment
215
4
0
0
2
8
—;
_
Lawnmower repairs
162
Accounting I Teacher's Key
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
mrnm
Name
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont.)
Exercise 8 (cont)
GENERAL JOURNAL
PAGE 30
PARTICULARS
CREDIT
20^
Oct.
/ 8 Automotive Expense
<jST Recoverable
Cheque #655
Mortgage /nterest Expense
Mortgage Payable
BDI
•Dl
Cheque #659
Wages Expense
nm
Cheque #660
BBI
IBDB
IBDD
Revenue — Golf
Revenue — Food
GST Payable
PST Payable
Cash receipts for week
AlP —- Pro Equipment
DDI
Cheque #661 on account
Supplies — Office
GST Recoverable
AlP — Main Supply
Office supplies
Automotive Expense
GST Recoverable
AlP — Shir's Automotive
BDDI
BDI
IBB
Auto repairs
Copyriglit © 2002 Pearson Education Canada Inc., Toronto, Ontario
Chapter 7 Posting
163
Name
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cool)
Exercise 8 (cont)
GENERAL JOURNAL
PAGE 3/
DEBIT
PAKTICULAKS
CREDIT
20^
Oct.
26
Is 5
Miscellaneous Expense
-
GST Recoverable
19 0
95
Cheque #662
28
16 2 0
Wages Expense
!6 2 0
-
Cheque U663
29
Bank
2
8
4
S
50
Rev^enue — Golf
2
0
10-
Revenue — Food
5
8
0
-
GST Payable
I
8
I
30
7
7
20
1 7
6
55
8
0
25
0
0
-
l\8 5
-
PSTPayable
Cash receipts for week
30
Utilities Expense
16 5 -
GST Recoverable
I
I
55
Cheque #664
31
Telephone Expense
715
-
GST Recoverable
Cheque #665
31
Shirley Ng-A-Kien, Drawings
/
5
0
0
/
5
Cheque #666
31
GST Payable
GST Recoverable
7
no
-
Cheque #667
164
Accounting I Teacher's Key
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
Nanie
Date
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont)
Exercise 8 (cont)
GENERAL LEDGER
ACCOUNT Bank
No. 100
PARTICULARS
DEBIT
CREDIT
DR/CR
BALANCE
20—
Sep
30
Forwarded
Oct.
•BBBI
mm
ACCOUNT Supplies — GolfCourse
No.
PARTICULARS
CREDIT
20—
Sep.
30
Forwarded
iMWIJ
Oct.
DR/CR
105
BALANCE
mm
a
Copyriglit © 2002 Peareon Education Canada Inc., Toronto, Ontario
m\
Chapter 7 Posting
165
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (conL)
Exercise 8 (cont)
ACCOUNT Supplies — Office
No.
CREDIT
PARTICULARS
DR/CR
110
BALANCE
20—
Sep.
30
Oct.
24
Forwarded
5
ACCOUNT Property
DATE
PARTICULARS
No.
PR
20—
Sep.
30
Forwarded
DEBIT
CREDIT
•iin • i n
-
•••••
DR/CR
DR
PARTICULARS
30
Forwarded
PR.
DEBIT
CREDIT
•nil •iin
-
•••••
PARTICULARS
30
Forworded
PR.
DEBIT
CREDIT
•Iin •Iin
-
HBIIH
•••••
DR/CR
DR
•••••
30
Forwarded
RR
-
DEBIT
CREDIT
•Iin •Iin
•••••
BALANCE
•Bin
•••••
DR/CR
DR
•••••
BALANCE
•iin
No. 20/
'
PARTICULARS
PR.
20—
Sep.
30
Forwarded
-
DEBIT
Accounting 1 Teacher's Key
CREDIT
•Iin •Iin
•••••
166
/30
•••••
ACCOUNT Bonk Loan
DATE
/25
No.
20—
Sep.
120
DR
ACCOUNT Maintenarjce Equipment
PARTICULARS
-
BALANCE
•••••
•••••
DATE
0
No.
20—
Sep.
0
DR/CR
ACCOUNT Automotive Equipment
DATE
95 0
No.
20—
Sep.
BALANCE
•••••
ACCOUNT Buildings
DATE
115
•••••
DR/CR
' '
1
BALANCE
CR
«•••
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
Name
ANSWERSTO CHAPTER 7 REVIEW EXERCISES (cont)
Exercise 8 (cont)
ACCOUNT A/P — fair's Automotive
No. 205
DEBIT
CREDIT
BALANCE
DR/CR
ACCOUNT A/P — Main Supply
DATE
PARTICULARS
No. 2/0
DEBIT
CREDIT
20—
Sep.
DR/CR
•
30 Forwarded
Oct.
7/
65
•
CR
PARTICULARS
ra
CR
2
CR
/
CR
ACCOUNT A/P — Pro £qu/pment
DATE
BALANCE
No. 2/5
DEBIT
CREDIT
DR/CR
BALANCE
20—
Sep.
30
Oct
n
Forwarded
IDBQI
17
23
ACCOUNT GST Payable
DATE
PARTICULARS
20—
Sep.
30
8
IS
22
29
3/
Forwarded
No. 220
DEBIT
CREDIT
Bill•BBBB
BBBH •BBBB
wmm BIBBBB
BBBB BIBBBB
BBBH •BBBB
BBBB •BIBB
BIBB •BBBB
CopyriglU © 2002Pearson Education Canada Inc., Toronto, Ontario
DR/CR
CR
BALANCE
BIBB
CR
CR
IQBDI
IBBDI
CR
Chapter? Posting
167
Name
Date
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont.)
Exercise 8 (cont)
ACCOUNT GST Recoverable
DATE
PARTICULARS
No. 225
RR.
DEBIT
CREDIT
DR/CR
BALANCE
20—
Sep.
30
Oct.
Forwarded
DR
/
8
5
DR
/
9
5
85
DR
2
6
2
36
DR
2
7
7
76
DR
2
9
0
II
DR
3
/
8
II
96
DR
3
2
1
07
65
DR
3
2
7
72
30
DR
3
4
8
02
5
95
DR
3
5
3
97
/
55
DR
3
6
5
52
5
25
DR
3
7
0
77
DR
1 8
5
77
2
J28
/
0
85
4
J28
6
6
51
10
128
1 5
40
II
129
1 2
35
17
J29
2
18
J30
2
24
J30
6
25
J30
0
26
J3f
30
J3I
31
J3I
31
J3I
2
1
8
-
/
8
5
-
ACCOUNT PST Payable
DATE
PARTICULARS
No. 230
RR.
DEBIT
CREDIT
DR/CR
BALANCE
20—
Se^.
30
CR
2
5
0
50
Oct
8
J28
7 4
40
CR
3
2
4
90
IS
J29
9
20
CR
4
/
6
/O
15
J29
CR
/
6
5
60
22
J30
7
6
CR
2
4
/
60
29
J3I
7
7
CR
3
/
8
80
Forwarded
2
5
0
/
50
20
ACCOUNT tAortgage Payable
DATE
PARTICULARS
No. 240
RR.
DEBIT
CREDIT
DR/CR
BALANCE
20^
Sep. •
30
Oct
20
Forwarded
168 Accounting I Teacher's Key
J30
;
0
0
0
—
CR
/OO 0
0
0
CR
99 0
0
0
Copyright © 2002 PearsonEducationCanadaInc.,Toronto, Ontario
•liiyiiii!
Name
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont)
Exercise 8 (cont)
ACCOUNT Shiiiey Ng^-Kien, Capital
No. 301
CREDIT
DEBIT
PARTICULARS
DR/CR
BALANCE
20—
Sep.
30
Forwarded
37 0
ACCOUNT Shirley Ng-A-Kien, Drawings
DATE
PARTICULARS
30
Oct
DEBIT
P.R.
13
CREDIT
DR/CR
i i n•iin
Fofworded
31
PARTICULARS
/29
/
J3I
/
OR
BQQB •••••
m m •••••
18
DR
19
DR
21
BBBH
BDHB
EIDDB
No. 401
30
Forwarded
_
J28
Oct.
129
J30
J3I
CREDIT
DEBIT
RR.
20—
Sep.
•nil •IIH
•••••
•••••
•••••
•••••
BODEIB
BBBQB
BBDOB
2
0/0-
DR/CR
BALANCE
CR
BieiB
CR
E3BBBB
CR
56 5
8
0
-
CR
58 7
8
0
-
mnnnm
CR
ACCOUNT Revenue — Food
DATE
PARTICULARS
No. 405
DEBIT
PR.
DR/CR
CREDIT
•IIH •nil
Forwarded
128
J29
J30
•BBBB
•BIBB
•••IB
BilllB
4
7
PARTICULARS
BALANCE
CR
•eeei
CR
BBBDI
flHHHil
0
-
CR
5
0
0
-
CR
10 7
1
0
5
S
0
-
CR
112 9
0
ACCOUNT Automotive Expense
DATE
46
BALANCE
ACCOUNT Revenue — Golf
DATE
7
No. 305
20—
Sep.
2
No. 500
DEBIT
P.R.
20—
CREDIT
•IIH •IIH
Sep.
30
Oct
10
J28
1$
130
25
130
Forwarded
•IBBBB
HBQBQ •BBBB
2 9 0 •IIBB
IHBBBB •BBBB
2
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
S
2
0
-
DR/CR
DR
DR
DR
DR
BALANCE
•Been
BBBBin
BBBBB
bbbbb
•••IB
Chapter 7 Posting
i 69
Name
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont.)
Exercise 8 (cont.)
ACCOUNT Bank Charges Expense
No. 505
PARTICULARS
DEBIT
CREDIT
DR/CR
BALANCE
20—
Sep.
30
Oct
S
ACCOUNT UtilftJes Expense
DATE
No. 5/0
PARTICULARS
CREDIT
DR/CR
BALANCE
|e|
20—
Sep.
30
Oct
30
ACCOUNT Maintenance Expense
DATE
PARTICULARS
No. 5/5
RR.
20—
Sep.
30
Oct
17
Forwarded
_
129
DEBIT
CREDIT
•nil •III!
•IDQQB
•••••
•••••
DR/CR
DR
DR
BALANCE
7 2
PARTICULARS
0
85
•••••
ACCOUNT Mfsce/Zoneous Expense
DATE
3
•innnRi
No. 520
P.R.
CREDIT
DR/CR
BALANCE
20—
Sep.
30 Forwarded
Oct.
2
26
ACCOUNT Mortgage Interest Expense
DATE
. PARTICULARS
No. 525
P.R.
20—
Sep.,
30
Oct
20
DEBIT
CREDIT
•iin •iin
Forwarded
f30
BiiiS
•••••
•••••
DR/CR
BALANCE
DR
4
DR
5
mm
BBQB
••••
Name
Date
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont.)
Exercise 8 (cont)
ACCOUNT Telephone Expense
No. 530
PARTICULARS
DEBIT
CREDIT
DR/CR
BALANCE
10—
Sep.
30
Oct.
31
ACCOUNT Wages Expense
DATE
PARTICULARS
No. 535
P.R.
20—
Sep.
30
_
J28
Get
!•
Forwarded
14
J29
21
J30
28
J3I
DEBIT
CREDIT
•nil •nil
•••••
•••••
6 8 0
•••••
6 2 0
•••••
IHIIIH •••••
6
5
0
-
DR/CR
BALANCE
e
DR
I6\3\6\5\30
DR
30
DR
DR
DR
I.
Copyright © 2002 Pearson Education CanadaInc.,Ibronto, Ontario
Mmm
Chapter 7 Posting
171
Name
Date
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont.)
Exercise 8 (cont)
g
Harbour GolfLinks
Trial Balance
October' 31, 20-
ACCOUNTS
CREDIT
DEBIT
Bank
8
I
29
3
6
2
60
3
6
0
25
Property
95 0
0
0
-
Buildings
as 3
6
0
-
Automotive Equipment
40 9
5
6
-
Maintenance Equipment
Bonk Loan
22 6 5
0
60
Supplies — Golf Course
Supplies — Office
I
0
II
3
120 0
0
0
-
AlP — Main Supply
5 4 5 70
I I I 8 36
AlP — Pro Equipment
2
A/P — Blair's Automotive
GST Payable
I
9
8
85
7
I
2
25
I 8\S 77
GST Recoverable
3 I 8 80
PST Payable
Mortgage Payable
Shirley Ng-A-Kien, Capital
Shirley Ng-A-Kien, Drawings
2/000
99 0
0
0
-
37 0
2
7
46
-
Revenue — Golf
60 7 9 0 -
Revenue — Food
It 2 9 0 50
6
«
2._25
3
la
LIAIZL
Automotive Expense
Bank Charges Expense
Utilities Expense
Mointenonce Expense
Miycei/qneous Expense
Mortgage Interest Expense
Telephone Expense
Wages Expense
-
'
"
19 0 I 5 30
333 0
172
Accounting 1 Teacher's Key
0
/
92
333 0
0
I
92
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
Name
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (corl)
Exercise 8 (cont.)
Harbour Golf Links
Income Statement
Ten Months Ended October 31, 20—
Revenue
Total Revenue
£xi>enses
Automotive Expense
Bank Charges Expense
Utilities Expense
Maintenance Expense
Miscellaneous Expense
Mortgage Interest Expense
Telephone Expense
Wages Expense
Total Expenses
Net Income
t:s
Copyright €> 2002 Pearson Education Canada Inc., Toronto, Ontario
Chapter 7 Posting
173
Name
Date
ANSWERS TO CHAPTER 7 REVIEW EXERCISES (cont)
Exercise 8 (cont)
D.
Harbour GolfLinks
Balance Sheet
October 31, 20—
Assets
Bank
$
Supplies — Golf Course
Supplies — Office
Property
Buildings
1 0 8
II 3
3 3
95 0
1
29
6
2
60
6
0
25
0
0
00
85 3
6
0
00
Automotive Equipment
40 9
5
6
00
Maintenance Equipment
22 6
5
Total Assets
0
60
$259 7 7 0
74
$120 0 0 0
00
Uabilities
Bank Loan
AIR — Blair's Automotive
5
AIR — Main Supply
1 1
AIR — Pro Equipment
GST Payable
4
5
70
1 8
36
2 1 9
8
85
5
6
48
1 8
80
0
0
00
$223 7 0 8
19
$ 7 1 2 25
GST Recoverable
1 8
5
77
PST Payable
3
Mortage Payable
99 0
Total Liabilities
2
Owner's Eauitv
Shirley Ng-A-Kien, Capital (January 1)
$37 0 2
Net Income
$20 035.09
Drawings
(21 000.00)
Decrease in Equity
(
ShirleyNg-A'Kien, Capital (October 31)
6
4
91)
36 0
Total Liabilities and Equity
174 Accounting I Teacher's Key
9
7 46
6
2
55
$259 7 7 0
74
Copyright ©2002 Pearson Education Canada Inc., Toronto, Ontario
mnnu
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