The document provides details of transactions recorded in special journals for Cope Company in June and July. It asks questions to determine the balances of accounts receivable and accounts payable control accounts after postings for July, and to identify the accounts that various journal totals are posted to. It also provides instructions for exercises involving posting transactions to control and subsidiary accounts from special journals.

1. EXERCISES: SET B
E7-1B Cope Company uses both special journals and a general journal as described in this
chapter. On June 30, after all monthly postings had been completed, the Accounts Receiv-
able control account in the general ledger had a debit balance of $200,000; the Accounts
Payable control account had a credit balance of $120,000.
The July transactions recorded in the special journals are summarized below. No
entries affecting accounts receivable and accounts payable were recorded in the general
journal for July.
Sales journal Total sales $252,000
Purchases journal Total purchases $151,000
Cash receipts journal Accounts receivable column total $211,000
Cash payments journal Accounts payable column total $152,000
Instructions
(a) What is the balance of the Accounts Receivable control account after the monthly
postings on July 31?
(b) What is the balance of the Accounts Payable control account after the monthly post-
ings on July 31?
(c) To what account(s) is the column total of $252,000 in the sales journal posted?
(d) To what account(s) is the accounts receivable column total of $231,000 in the cash
receipts journal posted?
E7-2B Presented below is the subsidiary accounts receivable account of Morgan Hoover.
Determine control account
balances, and explain posting
of special journals.
(LO 2, 3)
Explain postings to
subsidiary ledger.
(LO 2)
CHAPTER 7
Date Ref. Debit Credit Balance
2017
Sept. 4 S29 16,000 16,000
7 G4 2,000 14,000
23 CR9 14,000 —
Instructions
Write a memo to Danny Marshall, chief financial officer, that explains each
transaction.
E7-3B On September 1 the balance of the Accounts Receivable control account in the general
ledger of Bridges Company was $12,960. The customers’ subsidiary ledger contained
account balances as follows: Gedeno $1,940, Verduzco $3,140, Fernetti $2,560, Fanestil
$5,320. At the end of September the various journals contained the following information.
Sales journal: Sales to Fernetti $900; to Gedeno $1,400; to Miranda $1,500; to Fanestil
$1,200.
Cash receipts journal: Cash received from Fernetti $1,610; from Fanestil $2,600; from
Miranda $580; from Verduzco $2,100; from Gedeno $1,540.
General journal: An allowance is granted to Fanestil $325.
Instructions
(a) Set up control and subsidiary accounts and enter the beginning balances. Do not con-
struct the journals.
(b) Post the various journals. Post the items as individual items or as totals, whichever
would be the appropriate procedure. (No sales discounts given.)
(c) Prepare a list of customers and prove the agreement of the controlling account with
the subsidiary ledger at September 30, 2017.
E7-4B Zelli Company has a balance in its Accounts Receivable control account of $15,000
on January 1, 2017. The subsidiary ledger contains three accounts: Kline Company, balance
$6,000; Black Company, balance $3,700; and Finney Company. During January, the following
receivable-related transactions occurred.
Credit Sales Collections Returns
Kline Company $16,000 $12,000 $ -0-
Black Company 11,000 4,000 4,500
Finney Company 13,000 14,000 -0-
Post various journals to
control and subsidiary
accounts.
(LO 2, 3)
Determine control and
subsidiary ledger balances
for accounts receivable.
(LO 2)

2. 2 7 Accounting Information Systems
Instructions
(a) What is the January 1 balance in the Finney Company subsidiary account?
(b) What is the January 31 balance in the control account?
(c) Compute the balances in the subsidiary accounts at the end of the month.
(d) Which January transaction would not be recorded in a special journal?
E7-5B Magathan Company has a balance in its Accounts Payable control account of
$11,600 on January 1, 2017. The subsidiary ledger contains three accounts: Smythe Com-
pany, balance $4,200; Edds Company, balance $2,600; and Willhite Company. During Jan-
uary, the following receivable-related transactions occurred.
Determine control and
subsidiary ledger balances
for accounts payable.
(LO 2)
Purchases Payments Returns
Smythe Company $9,500 $8,400 $ -0-
Edds Company 7,350 2,600 3,100
Willhite Company 8,900 9,500 -0-
Instructions
(a) What is the January 1 balance in the Willhite Company subsidiary account?
(b) What is the January 31 balance in the control account?
(c) Compute the balances in the subsidiary accounts at the end of the month.
(d) Which January transaction would not be recorded in a special journal?
E7-6B Orender Company uses special journals and a general journal. The following trans-
actions occurred during September 2017.
Sept. 2 Sold merchandise on account to R. Sears, invoice no. 101, $800, terms n/30. The
cost of the merchandise sold was $480.
10 Purchased merchandise on account from M. Stoltz $900, terms 2/10, n/30.
12 Purchased office equipment on account from C. Cottrain 7,000.
21 Sold merchandise on account to W. Noyes, invoice no. 102 for $1,000, terms
2/10, n/30. The cost of the merchandise sold was $600.
25 Purchased merchandise on account from W. Loper $1,200, terms n/30.
27 Sold merchandise to K. Salma for $850 cash. The cost of the merchandise sold
was $510.
Instructions
(a) Prepare a sales journal (see Illustration 7-7) and a single-column purchase journal (see
Illustration 7-13). (Use page 1 for each journal.)
(b) Record the transaction(s) for September that should be journalized in the sales
journal and the purchases journal.
E7-7B Strobel Co. uses special journals and a general journal. The following transactions
occurred during May 2017.
May 1 F. Yancey invested $40,000 cash in the business.
2 Sold merchandise to B. Counder for $3,800 cash. The cost of the merchandise
sold was $2,500.
3 Purchased merchandise for $4,300 from S. Trader using check no. 101.
14 Paid salary to G. Waldorf $650 by issuing check no. 102.
16 Sold merchandise on account to F. Etondo for $550, terms n/30. The cost of the
merchandise sold was $350.
22 A check of $5,400 is received from M. Moritz in full for invoice 101; no discount given.
Instructions
(a) Prepare a multiple-column cash receipts journal (see Illustration 7-9) and a multiple-
column cash payments journal (see Illustration 7-16). (Use page 1 for each journal.)
(b) Record the transaction(s) for May that should be journalized in the cash receipts jour-
nal and cash payments journal.
E7-8B Tufts Company uses the columnar cash journals illustrated in the textbook. In April,
the following selected cash transactions occurred.
1. Received cash refund from supplier for merchandise returned.
2. Received collection from customer within the 3% discount period.
Record transactions in sales
and purchases journal.
(LO 3)
Record transactions in cash
receipts and cash payments
journal.
(LO 3)
Explain journalizing in cash
journals.
(LO 3)

3. Exercises: Set B 3
3. Made cash sales.
4. Paid a creditor within the 3% discount period.
5. Received collection from customer after the 3% discount period had expired.
6. Paid freight on merchandise purchased.
7. Paid cash for office equipment.
8. Made a refund to a customer for return of damaged goods.
9. Withdrew cash for personal use of owner.
10. Purchased merchandise for cash.
Instructions
Indicate (a) the journal, and (b) the columns in the journal that should be used in record-
ing each transaction.
E7-9B Gaston Company has the following selected transactions during March.
Mar. 2 Purchased equipment costing $7,500 from Otto Company on account.
5 Received credit of $350 from Wade Company for merchandise damaged in
shipment to Gaston.
7 Issued credit of $300 to Red Company for merchandise the customer
returned. The returned merchandise had a cost of $200.
Gaston Company uses a one-column purchases journal, a sales journal, the columnar cash
journals used in the text, and a general journal.
Instructions
(a) Journalize the transactions in the general journal.
(b) In a brief memo to the president of Gaston Company, explain the postings to
the control and subsidiary accounts from each type of journal.
E7-10B Below are some typical transactions incurred by Cabrera Company.
1. Return of merchandise sold for credit.
2. Payment of creditors on account.
3. Collection on account from customers.
4. Sale of merchandise on account.
5. Sale of land for cash.
6. Sale of merchandise for cash.
7. Received credit for merchandise purchased on credit.
8. Payment of employee wages.
9. Sales discount taken on goods sold.
10. Income summary closed to owner’s capital.
11. Purchase of office supplies for cash.
12. Depreciation on building.
13. Purchase of merchandise on account.
Instructions
For each transaction, indicate whether it would normally be recorded in a cash receipts journal,
cash payments journal, sales journal, single-column purchases journal, or general journal.
E7-11B The general ledger of Hastco Company contained the following Accounts Payable
control account (in T-account form). Also shown is the related subsidiary ledger.
Instructions
(a) Indicate the missing posting reference and amount in the control account, and the
missing ending balance in the subsidiary ledger.
(b) Indicate the amounts in the control account that were dual-posted (i.e., posted to the
control account and the subsidiary accounts).
Journalize transactions in
general journal and post.
(LO 3)
Indicate journalizing in
special journals.
(LO 3)
Explain posting to control
account and subsidiary
ledger.
(LO 2, 3)
GENERAL LEDGER
Accounts Payable
Feb. 15 General journal 1,900 Feb. 1 Balance 29,500
28 ? ? 5 General journal 400
11 General journal 700
28 Purchases 58,000
Feb. 28 Balance 39,000

4. 4 7 Accounting Information Systems
E7-12B Selected accounts from the ledgers of Bosco Company at July 31 showed the
following.
Prepare purchases and
general journals.
(LO 2, 3)
ACCOUNTS PAYABLE LEDGER
Gomez Huang
Feb. 28 Bal. 16,400 Feb. 28 Bal. ?
Le
Feb. 28 Bal. 3,200
Equipment No. 153
Date Explanation Ref. Debit Credit Balance
July 1 G1 3,500 3,500
Accounts Payable No. 201
Date Explanation Ref. Debit Credit Balance
July 1 G1 3,500 3,500
15 G1 500 4,000
18 G1 120 3,880
25 G1 180 3,700
31 P1 7,750 11,450
Inventory No. 120
Date Explanation Ref. Debit Credit Balance
July 15 G1 500 500
18 G1 120 380
25 G1 180 200
31 P1 7,750 7,950
GENERAL LEDGER
Instructions
From the data prepare:
(a) the single-column purchases journal for July.
(b) the general journal entries for July.
E7-13B Best Products uses both special journals and a general journal as described in
this chapter. Best also posts customers’ accounts in the accounts receivable subsidiary
ledger. The postings for the most recent month are included in the subsidiary T accounts
on the next page.
Instructions
Determine the correct amount of the end-of-month posting from the sales journal to the
Accounts Receivable control account.
Determine correct posting
amount to control account.
(LO 2, 3)
Dakin Co.
Date Explanation Ref. Debit Credit Balance
July 14 P1 950 950
25 G1 180 770
Eldridge Co.
Date Explanation Ref. Debit Credit Balance
July 12 P1 400 400
21 P1 550 950
Fleche Inc.
Date Explanation Ref. Debit Credit Balance
July 15 G1 500 500
Alma Equipment Co.
Date Explanation Ref. Debit Credit Balance
July 1 G1 3,500 3,500
Baker Co.
Date Explanation Ref. Debit Credit Balance
July 3 P1 2,200 2,200
20 P1 600 2,800
Crofoot Corp.
Date Explanation Ref. Debit Credit Balance
July 17 P1 1,250 1,250
18 G1 120 1,130
29 P1 1,800 2,930
ACCOUNTS PAYABLE LEDGER

5. Exercises: Set B 5
E7-14B Selected account balances for Hegenbart Company at January 1, 2017, are pre-
sented below.
Accounts Payable $22,000
Accounts Receivable 29,000
Cash 20,000
Inventory 18,000
Hegenbart’s sales journal for January shows a total of $120,000 in the selling price
column, and its one-column purchases journal for January shows a total of $93,000.
The column totals in Hegenbart’s cash receipts journal are: Cash Dr. $81,000; Sales Dis-
counts Dr. $2,000; Accounts Receivable Cr. $50,000; Sales Revenue Cr. $12,000; and Other
Accounts Cr. $17,000.
The column totals in Hegenbart’s cash payments journal for January are: Cash Cr.
$70,000; Inventory Cr. $2,000; Accounts Payable Dr. $58,000; and Other Accounts Dr.
$13,000. Hegenbart’s total cost of goods sold for January is $80,000.
Accounts Payable, Accounts Receivable, Cash, Inventory, and Sales Revenue are not
involved in the “Other Accounts” column in either the cash receipts or cash payments
journal, and are not involved in any general journal entries.
Instructions
Compute the January 31 balance for Hegenbart in the following accounts.
(a) Accounts Payable.
(b) Accounts Receivable.
(c) Cash.
(d) Inventory.
(e) Sales Revenue.
Compute balances in various
accounts.
(LO 3)
West Quayle
Bal. 500 375 Bal. 225 225
300 360
Younger Wells
Bal. –0– 210 Bal. 180 180
210 290
225