College Accounting A Contemporary Approach 3rd Edition Haddock Solutions Manual 1
College Accounting A Contemporary Approach 3rd Edition Haddock Solutions Manual 1
College Accounting A Contemporary Approach 3rd Edition Haddock Solutions Manual 1
CHAPTER 4
THE GENERAL JOURNAL AND THE GENERAL LEDGER
Chapter Opener: Thinking Critically
They would probably record (debit) the cost of the arm to their Equipment or Machinery account and
credit Accounts Payable. The robotic arm will be used for many years so its cost will be expensed over its
years of useful life.
Fast Facts
• William Boeing founded Pacific Aero Products Company in 1916; the name was changed to
Boeing in 1917.
• In 1917, the company employed 28 people. In 2013, Boeing employed more than 170,000 people
across the United States and in 70 countries.
• Boeing is the largest contractor working for NASA.
• Along with the ISS, the Boeing Company manufactures and services commercial airplanes,
military aircraft, helicopters, a variety of electronic defense systems, and advanced
communication systems.
• Boeing’s 2012 sales were $81.6 billion from customers in 150 countries. Seventy percent of
commercial airplane revenue historically from customers outside the United States.
Discussion Questions
Note to instructor: These questions are designed to check students’ understanding of new terms, concepts,
and procedures presented in the chapter.
1. Transfer of data from a journal to a ledger.
2. Groups of accounts.
3. Assets, liabilities, and owner’s equity first, followed by revenue accounts, then expenses. They are
in order of the financial statements.
4. Notations of the page number of the journal from which a figure comes; number of account to which
the figure was posted; to provide cross-references.
5. To record business transactions in chronological order.
6. Helps establish audit trail.
7. Record month, day, debited account/amount, credited account/amount, description.
8. Entry that includes more than a single debit and credit—two or more debits and/or credits.
9. Before entry posted: cross out incorrect item, write correct data above it. After posted: journalize
and post a correcting entry.
10. Chain of references; prevents fraud and errors.
11. Steps performed to classify, record, and summarize financial data for a business.
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2
EXERCISE 4.1
EXERCISE 4.2
11 16 Automobile 141 14 5 0 0 00 11
12 Cash 101 14 5 0 0 00 12
13 Purchased an automobile, Check 1001 13
14 14
15 20 Supplies 121 5 2 0 00 15
16 Cash 101 5 2 0 00 16
17 Purchased supplies, Check 1002 17
18 18
19 23 Cash 101 1 7 0 00 19
20 Supplies 121 1 7 0 00 20
21 Returned damaged supplies and 21
22 received cash refund 22
23 23
24 30 Accounts Payable 202 4 2 0 0 00 24
25 Cash 101 4 2 0 0 00 25
26 Paid Den, Inc., on account for 26
27 Invoice 9823, Check 1003 27
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3
EXERCISE 4.2 (continued)
GENERAL JOURNAL PAGE 2
POST.
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 Sept. 30 Jewell Tucker, Drawing 302 3 0 0 0 00 2
3 Cash 101 3 0 0 0 00 3
4 Owner withdrew cash for personal use 4
5 5
6 30 Rent Expense 511 1 7 0 0 00 6
7 Cash 101 1 7 0 0 00 7
8 Paid October rent, Check 1004 8
9 9
10 30 Cash 101 2 7 5 0 00 10
11 Fees Income 401 2 7 5 0 00 11
12 Performed services for cash 12
13 13
14 30 Telephone Expense 517 4 3 5 00 14
15 Cash 101 4 3 5 00 15
16 Paid monthly telephone bill, Check 1005 16
17 17
18 18
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4
EXERCISE 4.3
GENERAL LEDGER
ACCOUNT Cash ACCOUNT NO. 101
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Sept. 1 J1 60 0 0 0 00 60 0 0 0 00
16 J1 14 5 0 0 00 45 5 0 0 00
20 J1 5 2 0 00 44 9 8 0 00
23 J1 1 7 0 00 45 1 5 0 00
30 J1 4 2 0 0 00 40 9 5 0 00
30 J2 3 0 0 0 00 37 9 5 0 00
30 J2 1 7 0 0 00 36 2 5 0 00
30 J2 2 7 5 0 00 39 0 0 0 00
30 J2 4 3 5 00 38 5 6 5 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Sept. 20 J1 5 2 0 00 5 2 0 00
23 J1 1 7 0 00 3 5 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Sept. 4 J1 6 5 0 0 00 6 5 0 0 00
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5
EXERCISE 4.3 (continued)
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Sept. 16 J1 14 5 0 0 00 14 5 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Sept. 4 J1 6 5 0 0 00 6 5 0 0 00
30 J1 4 2 0 0 00 2 3 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Sept. 1 J1 60 0 0 0 00 60 0 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Sept. 30 J2 3 0 0 0 00 3 0 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Sept. 30 J2 2 7 5 0 00 2 7 5 0 00
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6
EXERCISE 4.3 (continued)
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Sept. 30 J2 1 7 0 0 00 1 7 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Sept. 30 J2 4 3 5 00 4 3 5 00
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7
EXERCISE 4.4
GENERAL JOURNAL PAGE
POST.
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 Nov. 5 Cash 19 0 0 0 00 2
3 Accounts Receivable 21 0 0 0 00 3
4 Fees Income 40 0 0 0 00 4
5 Performed services for Job Search 5
6 receiving part of fees in cash with 6
7 remainder due in 60 days 7
8 8
9 18 Equipment 4 2 5 00 9
10 Supplies 5 7 5 00 10
11 Cash 1 0 0 0 00 11
12 Purchased graphing calculator and 12
13 supplies, Check 1008 13
14 14
15 23 Automobile Expense 2 1 0 0 00 15
16 Cash 1 0 5 0 00 16
17 Accounts Payable 1 0 5 0 00 17
18 Received Invoice 1602 from Automotive 18
19 Technicians Repair, issued Check 1009 19
20 for half the amount, balance due in 30 days 20
21 21
EXERCISE 4.5
GENERAL JOURNAL PAGE
POST.
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 July 30 Telephone Expense 1 0 0 0 00 2
3 Utilities Expense 1 0 0 0 00 3
4 To correct July 9 error charging 4
5 telephone bill to Utilities Expense 5
6 6
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8
EXERCISE 4.6
GENERAL JOURNAL PAGE
POST.
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 Oct. 1 Repair Expense 8 0 0 00 2
3 Truck 8 0 0 00 3
4 To correct September 16 error charging 4
5 truck charges to the Truck account 5
6 6
PROBLEM 4.1A
GENERAL JOURNAL PAGE 1
POST.
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 Sept. 1 Rent Expense 1 9 0 0 00 2
3 Cash 1 9 0 0 00 3
4 Paid September rent, Check 1169 4
5 5
6 5 Cash 3 0 0 0 00 6
7 Fees Income 3 0 0 0 00 7
8 Performed services for cash 8
9 9
10 6 Accounts Receivable 1 8 5 0 00 10
11 Fees Income 1 8 5 0 00 11
12 Performed services on credit 12
13 13
14 10 Telephone Expense 7 0 0 00 14
15 Cash 7 0 0 00 15
16 Paid monthly telephone bill, Check 1170 16
17 17
18 11 Equipment Repair Expense 9 4 0 00 18
19 Cash 9 4 0 00 19
20 Paid for repairs, Check 1171 20
21 21
22 12 Cash 3 7 0 0 00 22
23 Accounts Receivable 3 7 0 0 00 23
24 Received cash on account 24
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9
PROBLEM 4.1A (continued)
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10
PROBLEM 4.1A (continued)
PROBLEM 4.2A
GENERAL JOURNAL PAGE 1
POST.
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 Oct. 1 Cash 101 60 0 0 0 00 2
3 Satillo Richey, Capital 301 60 0 0 0 00 3
4 Beginning investment of owner 4
5 5
6 2 Rent Expense 514 3 0 0 0 00 6
7 Cash 101 3 0 0 0 00 7
8 Paid October rent, Check 1001 8
9 9
10 5 Office Equipment 141 15 0 0 0 00 10
11 Accounts Payable 202 15 0 0 0 00 11
12 Purchased equipment from Office Furniture 12
13 Mart, Inc., Invoice 6704, payable in 60 days 13
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distribution in any manner. 4-10
PROBLEM 4.2A (continued)
4 4
5 7 Supplies 121 1 5 5 0 00 5
6 Cash 101 1 5 5 0 00 6
7 Purchased supplies, Check 1003 7
8 8
9 10 Office Cleaning Expense 511 6 0 0 00 9
10 Cash 101 6 0 0 00 10
11 Paid for office cleaning, Check 1004 11
12 12
13 12 Cash 101 4 1 0 0 00 13
14 Accounts Receivable 111 1 9 0 0 00 14
15 Fees Income 401 6 0 0 0 00 15
16 Performed services for cash and on credit 16
17 17
18 15 Cash 101 4 0 0 00 18
19 Supplies 121 4 0 0 00 19
20 Returned damaged supplies for cash refund 20
21 21
22 18 Office Equipment 141 3 0 0 0 00 22
23 Cash 101 1 7 5 0 00 23
24 Accounts Payable 202 1 2 5 0 00 24
25 Purchased equip. from Office Furniture Mart, Inc., 25
26 Invoice 7108; Check 1005; balance due in 30 days 26
27 27
28 20 Accounts Payable 202 7 5 0 0 00 28
29 Cash 101 7 5 0 0 00 29
30 Paid Office Furniture Mart, Inc., on account, 30
31 Invoice 6704; Check 1006 31
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distribution in any manner. 4-11
PROBLEM 4.2A (continued)
POST.
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 Oct. 26 Accounts Receivable 111 4 4 0 0 0 2
3 Fees Income 401 4 4 0 0 0 3
Performed services on credit
4 4
5 27 Telephone Expense 520 3 2 5 00 5
6 Cash 101 3 2 5 00 6
7 Paid monthly telephone bill, Check 1007 7
8 8
9 30 Cash 101 3 7 0 0 00 9
10 Accounts Receivable 111 3 7 0 0 00 10
11 Received cash on account 11
12 12
13 30 Utilities Expense 523 4 0 0 00 13
14 Cash 101 4 0 0 00 14
15 Paid monthly utility bill, Check 1008 15
16 16
17 30 Salaries Expense 517 8 0 0 0 00 17
18 Cash 101 8 0 0 0 00 18
19 Paid monthly salaries, Checks 1009-1011 19
20 20
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PROBLEM 4.2A (continued)
GENERAL LEDGER
ACCOUNT Cash ACCOUNT NO. 101
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 1 J1 60 0 0 0 00 60 0 0 0 00
2 J1 3 0 0 0 00 57 0 0 0 00
6 J1 3 2 0 0 00 53 8 0 0 00
7 J1 1 5 5 0 00 52 2 5 0 00
10 J1 6 0 0 00 51 6 5 0 00
12 J1 4 1 0 0 00 55 7 5 0 00
15 J1 4 0 0 00 56 1 5 0 00
18 J2 1 7 5 0 00 54 4 0 0 00
20 J2 7 5 0 0 00 46 9 0 0 00
27 J3 3 2 5 00 46 5 7 5 00
30 J3 3 7 0 0 00 50 2 7 5 00
30 J3 4 0 0 00 49 8 7 5 00
30 J3 8 0 0 0 00 41 8 7 5 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 12 J1 1 9 0 0 00 1 9 0 0 00
26 J3 4 4 0 0 00 6 3 0 0 00
30 J3 3 7 0 0 00 2 6 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 7 J1 1 5 5 0 00 1 5 5 0 00
15 J1 4 0 0 00 1 1 5 0 00
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PROBLEM 4.2A (continued)
GENERAL LEDGER
ACCOUNT Office Equipment ACCOUNT NO. 141
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 5 J1 15 0 0 0 00 15 0 0 0 00
18 J2 3 0 0 0 00 18 0 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 6 J1 3 2 0 0 00 3 2 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 5 J1 15 0 0 0 00 15 0 0 0 00
18 J2 1 2 5 0 00 16 2 5 0 00
20 J2 7 5 0 0 00 8 7 5 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 1 J1 60 0 0 0 00 60 0 0 0 00
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PROBLEM 4.2A (continued)
GENERAL LEDGER
ACCOUNT Wilson Adams, Drawing ACCOUNT NO. 302
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 12 J1 6 0 0 0 00 6 0 0 0 00
26 J3 4 4 0 0 00 10 4 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 10 6 0 0 00 6 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 2 J1 3 0 0 0 00 3 0 0 0 00
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distribution in any manner. 4-15
PROBLEM 4.2A (continued)
GENERAL LEDGER
ACCOUNT Salaries Expense ACCOUNT NO. 517
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 30 J3 8 0 0 0 00 8 0 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 27 J3 3 2 5 00 3 2 5 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Oct. 30 J3 4 0 0 00 4 0 0 00
PROBLEM 4.3A
Analyze: After correcting the three entries, the assets are increased by $11,800 ($12,400 - $1,000 + $400).
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PROBLEM 4.4A
GENERAL JOURNAL PAGE 1
POST.
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 Nov. 1 Cash 101 55 0 0 0 00 2
3 Tools 131 2 0 0 0 00 3
4 Dennis Ortiz, Capital 301 57 0 0 0 00 4
5 Beginning investment of owner 5
6 6
7 2 Equipment 151 2 0 5 0 00 7
8 Office Supplies 121 5 5 0 00 8
9 Cash 101 7 0 0 00 9
10 Accounts Payable 202 1 9 0 0 00 10
11 Purchased equipment and office supplies from 11
12 Office Depot, Invoice 501; issued Check 100 12
13 for a down payment, balance payable in 30 days 13
14 14
15 10 Cash 101 1 0 0 0 00 15
16 Accounts Receivable 111 1 9 0 0 00 16
17 Fees Income 401 2 9 0 0 00 17
18 Services for cash and credit 18
19 19
20 20 Machinery 141 4 0 0 0 00 20
21 Cash 101 1 5 0 0 00 21
22 Accounts Payable 202 2 5 0 0 00 22
23 Purchased machinery from Craft Machinery Inc., 23
24 Invoice 709; issued Check 101 24
25 for a down payment, balance due in 30 days 25
26 26
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distribution in any manner. 4-17
PROBLEM 4.4A (continued)
GENERAL LEDGER
ACCOUNT Cash ACCOUNT NO. 101
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Nov. 1 J1 55 0 0 0 00 55 0 0 0 00
2 J1 7 0 0 00 54 3 0 0 00
10 J1 1 0 0 0 00 55 3 0 0 00
20 J1 1 5 0 0 00 53 8 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Nov. 10 J1 1 9 0 0 00 1 9 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Nov. 2 J1 5 5 0 00 5 5 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Nov. 1 J1 2 0 0 0 00 2 0 0 0 00
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distribution in any manner. 4-18
PROBLEM 4.4A (continued)
GENERAL LEDGER
ACCOUNT Machinery ACCOUNT NO. 141
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Nov. 20 J1 4 0 0 0 00 4 0 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Nov. 2 J1 2 0 5 0 00 2 0 5 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Nov. 2 J1 1 9 0 0 00 1 9 0 0 00
20 J1 2 5 0 0 00 4 4 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Nov. 1 J1 57 0 0 0 00 57 0 0 0 00
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distribution in any manner. 4-19
PROBLEM 4.4A (continued)
GENERAL LEDGER
ACCOUNT Fees Income ACCOUNT NO. 401
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Nov. 10 J1 2 9 0 0 00 2 9 0 0 00
PROBLEM 4.1B
GENERAL JOURNAL PAGE 1
POST
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 Sept. 1 Cash 50 0 0 0 00 2
3 Charles Brown, Capital 50 0 0 0 00 3
4 Beginning investment of owner 4
5 5
6 5 Cash 6 0 0 0 00 6
7 Fees Income 6 0 0 0 00 7
8 Performed services for cash 8
9 9
10 6 Rent Expense 2 5 0 0 00 10
11 Cash 2 5 0 0 00 11
12 Paid for September, Check 1000 12
13 13
14 7 Accounts Receivable 6 3 0 0 00 14
15 Fees Income 6 3 0 0 00 15
16 Performed services on credit 16
17 17
18 9 Telephone Expense 6 4 0 00 18
19 Cash 6 4 0 00 19
20 Paid telephone bill, Check 1001 20
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distribution in any manner. 4-20
PROBLEM 4.1B (continued)
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distribution in any manner. 4-21
PROBLEM 4.1B (continued)
PROBLEM 4.2B
GENERAL JOURNAL PAGE 1
POST.
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 June 1 Cash 101 18 0 0 0 00 2
3 Carolyn Davis, Capital 301 18 0 0 0 00 3
4 Beginning investment of owner 4
5 5
6 2 Rent Expense 514 1 2 5 0 00 6
7 Cash 101 1 2 5 0 00 7
8 Paid rent for June, Check 1001 8
9 9
10 5 Office Equipment 141 7 5 0 0 00 10
11 Accounts Payable 202 7 5 0 0 00 11
12 Purchased office equipment fromDeSoto, 12
13 Inc., Invoice 5312, payable in 60 days 13
14 14
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distribution in any manner. 4-22
PROBLEM 4.2B (continued)
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distribution in any manner. 4-23
PROBLEM 4.2B (continued)
POST.
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 June 27 Telephone Expense 520 5 8 0 00 2
3 Cash 101 5 8 0 00 3
4 Paid monthly phone bill, Check 1007 4
5 5
6 30 Cash 101 2 1 0 0 00 6
7 Accounts Receivable 111 2 1 0 0 00 7
8 Received cash on account 8
9 9
10 30 Utilities Expense 523 5 7 5 00 10
11 Cash 101 5 7 5 00 11
12 Paid monthly utility bill, Check 1008 12
13 13
14 30 Salaries Expense 517 5 6 0 0 00 14
15 Cash 101 5 6 0 0 00 15
16 Paid monthly salaries to employees, 16
17 Checks 1009-1011 17
18 18
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distribution in any manner. 4-24
PROBLEM 4.2B (continued)
GENERAL LEDGER
ACCOUNT Cash ACCOUNT NO. 101
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 1 J1 18 0 0 0 00 18 0 0 0 00
2 J1 1 2 5 0 00 16 7 5 0 00
6 J1 1 9 0 0 00 14 8 5 0 00
7 J1 5 3 8 00 14 3 1 2 00
10 J1 4 0 0 00 13 9 1 2 00
12 J1 1 3 0 0 00 15 2 1 2 00
15 J1 1 5 0 00 15 3 6 2 00
18 J2 5 0 0 00 14 8 6 2 00
20 J2 2 5 0 0 00 12 3 6 2 00
27 J3 5 8 0 00 11 7 8 2 00
30 J3 2 1 0 0 00 13 8 8 2 00
30 J3 5 7 5 00 13 3 0 7 00
30 J3 5 6 0 0 00 7 7 0 7 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 12 J1 1 3 0 0 00 1 3 0 0 00
26 J2 2 0 0 0 00 3 3 0 0 00
30 J3 2 1 0 0 00 1 2 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 7 J1 5 3 8 00 5 3 8 00
15 J1 1 5 0 00 3 8 8 00
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distribution in any manner. 4-25
PROBLEM 4.2B (continued)
GENERAL LEDGER
ACCOUNT Office Equipment ACCOUNT NO. 141
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 5 J1 7 5 0 0 00 7 5 0 0 00
18 J2 1 8 5 0 00 9 3 5 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 6 J1 1 9 0 0 00 1 9 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 5 J1 7 5 0 0 00 7 5 0 0 00
18 J2 1 3 5 0 00 8 8 5 0 00
20 J2 2 5 0 0 00 6 3 5 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 1 J1 18 0 0 0 00 18 0 0 0 00
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distribution in any manner. 4-26
PROBLEM 4.2B (continued)
GENERAL LEDGER
ACCOUNT Wallace King, Drawing ACCOUNT NO. 302
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 12 J1 2 6 0 0 00 2 6 0 0 00
26 J2 2 0 0 0 00 4 6 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 10 4 0 0 00 4 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 2 J1 1 2 5 0 00 1 2 5 0 00
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distribution in any manner. 4-27
PROBLEM 4.2B (continued)
GENERAL LEDGER
ACCOUNT Salaries Expense ACCOUNT NO. 517
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 30 J3 5 6 0 0 00 5 6 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 27 J3 5 8 0 00 5 8 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 30 J3 5 7 5 00 5 7 5 00
Analyze: The Cash account balance after the June 27 transaction was $11,782.
PROBLEM 4.3B
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PROBLEM 4.4B
GENERAL JOURNAL PAGE 1
POST.
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 Dec. 3 Cash 101 20 0 0 0 00 2
3 James Boynton, Capital 301 20 0 0 0 00 3
4 Beginning investment of owner 4
5 5
6 4 Computers 131 2 4 0 0 00 6
7 Cash 101 2 4 0 0 00 7
8 Paid cash for computer 8
9 9
10 5 Furnitures and Fixtures 151 6 5 0 0 00 10
11 Accounts Payable 202 6 5 0 0 00 11
12 Purchased office furniture on credit 12
13 13
14 6 Office Equipment 141 2 1 5 0 00 14
15 Cash 101 2 1 5 0 00 15
16 Paid cash for equipment 16
17 17
18 10 Accounts Receivable 111 2 6 0 0 00 18
19 Fees Income 401 2 6 0 0 00 19
20 Rendered services on account 20
21 21
22 11 Office Supplies 121 9 5 0 00 22
23 Cash 101 9 5 0 00 23
24 Paid cash for supplies 24
25 25
26 15 Accounts Payable 202 6 5 0 0 00 26
27 Cash 101 6 5 0 0 00 27
28 Paid invoice for furniture purchased on 28
29 December 5 29
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distribution in any manner. 4-29
PROBLEM 4.4B (continued)
GENERAL LEDGER
ACCOUNT Cash ACCOUNT NO. 101
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Dec. 3 J1 20 0 0 0 00 20 0 0 0 00
4 J1 2 4 0 0 00 17 6 0 0 00
6 J1 2 1 5 0 00 15 4 5 0 00
11 J1 9 5 0 00 14 5 0 0 00
15 J1 6 5 0 0 00 8 0 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Dec. 10 J1 2 6 0 0 00 2 6 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Dec. 11 J1 9 5 0 00 9 5 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Dec. 4 J1 2 4 0 0 00 2 4 0 0 00
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distribution in any manner. 4-30
PROBLEM 4.4B (continued)
GENERAL LEDGER
ACCOUNT Office Equipment ACCOUNT NO. 141
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Dec. 6 J1 2 1 5 0 00 2 1 5 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Dec. 5 J1 6 5 0 0 00 6 5 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Dec. 5 J1 6 5 0 0 00 6 5 0 0 00
15 J1 6 5 0 0 00 − 0 −
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Dec. 3 J1 20 0 0 0 00 20 0 0 0 00
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PROBLEM 4.4B (continued)
GENERAL LEDGER
ACCOUNT Fees Income ACCOUNT NO. 401
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
Dec. 10 J1 2 6 0 0 00 2 6 0 0 00
Analyze: Two postings were recorded, one debit and one credit.
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CRITICAL THINKING PROBLEM 4.1 (continued)
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CRITICAL THINKING PROBLEM 4.2
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CRITICAL THINKING PROBLEM 4.2 (continued)
POST.
DATE DESCRIPTION REF. DEBIT CREDIT
1 2016 1
2 June 11 Accounts Payable 202 3 0 0 0 00 2
3 Cash 101 3 0 0 0 00 3
4 Paid Lowe's Office Supply on account 4
5 for Invoice 5103, Check 206 5
6 6
7 12 Cash 101 9 0 0 0 00 7
8 Fees Income 401 9 0 0 0 00 8
9 Performed services for cash 9
10 10
11 15 Salaries Expense 517 5 0 0 0 00 11
12 Cash 101 5 0 0 0 00 12
13 Paid semimonthly salary, Check 207 13
14 14
15 18 Cash 101 4 0 0 0 00 15
16 Accounts Receivable 111 4 0 0 0 00 16
17 Received payment on account 17
18 18
19 20 Accounts Payable 202 6 0 0 0 00 19
20 Cash 101 6 0 0 0 00 20
21 Paid Special Moves, Inc., 21
22 on account, Invoice 2122, Check 208 22
23 23
24 25 Telephone Expense 520 3 5 0 00 24
25 Cash 101 3 5 0 00 25
26 Paid telephone bill, Check 209 26
27 27
28 27 Utilities Expense 523 8 0 0 00 28
29 Cash 101 8 0 0 00 29
30 Paid utility bill, Check 210 30
31 31
32 28 Ashley Jackson, Drawing 302 4 0 0 0 00 32
33 Cash 101 4 0 0 0 00 33
34 Owner withdrew cash for personal use, 34
35 Check 211 35
36 36
37 30 Salaries Expense 517 5 0 0 0 00 37
38 Cash 101 5 0 0 0 00 38
39 Paid semimonthly salary, Check 212 39
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CRITICAL THINKING PROBLEM 4.2 (continued)
GENERAL LEDGER
ACCOUNT Cash ACCOUNT NO. 101
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 1 J1 30 0 0 0 00 30 0 0 0 00
2 J1 1 8 0 0 00 28 2 0 0 00
3 J1 2 0 0 0 00 26 2 0 0 00
4 J1 1 5 0 0 00 24 7 0 0 00
6 J1 6 0 0 0 00 30 7 0 0 00
7 J1 2 0 0 0 00 28 7 0 0 00
8 J1 5 0 0 0 00 23 7 0 0 00
11 J2 3 0 0 0 00 20 7 0 0 00
12 J2 9 0 0 0 00 29 7 0 0 00
15 J2 5 0 0 0 00 24 7 0 0 00
18 J2 4 0 0 0 00 28 7 0 0 00
20 J2 6 0 0 0 00 22 7 0 0 00
25 J2 3 5 0 00 22 3 5 0 00
27 J2 8 0 0 00 21 5 5 0 00
28 J2 4 0 0 0 00 17 5 5 0 00
30 J2 5 0 0 0 00 12 5 5 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 10 J2 4 5 0 0 00 4 5 0 0 00
18 J2 4 0 0 0 00 5 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 4 J1 1 5 0 0 00 1 5 0 0 00
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CRITICAL THINKING PROBLEM 4.2 (continued)
GENERAL LEDGER
ACCOUNT Office Furniture ACCOUNT NO. 141
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 3 J1 12 0 0 0 00 12 0 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 8 J1 15 0 0 0 00 15 0 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 3 J1 10 0 0 0 00 10 0 0 0 00
8 J1 10 0 0 0 00 20 0 0 0 00
11 J2 3 0 0 0 00 17 0 0 0 00
20 J2 6 0 0 0 00 11 0 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 1 J1 30 0 0 0 00 30 0 0 0 00
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CRITICAL THINKING PROBLEM 4.2 (continued)
GENERAL LEDGER
ACCOUNT Ashley Jackson, Drawing ACCOUNT NO. 302
4
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 28 J2 4 0 0 0 00 4 0 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 6 J1 6 0 0 0 00 6 0 0 0 00
10 J2 4 5 0 0 00 10 5 0 0 00
12 J2 9 0 0 0 00 19 5 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 7 J1 2 0 0 0 00 2 0 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 2 J1 1 8 0 0 00 1 8 0 0 00
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CRITICAL THINKING PROBLEM 4.2 (continued)
GENERAL LEDGER
ACCOUNT Salaries Expense ACCOUNT NO. 517
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 15 J2 5 0 0 0 00 5 0 0 0 00
30 J2 5 0 0 0 00 10 0 0 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 25 J2 3 5 0 00 3 5 0 00
POST BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2016
June 27 J2 8 0 0 00 8 0 0 00
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CRITICAL THINKING PROBLEM 4.2 (continued)
Cash 12 5 5 0 00
Accounts Receivable 5 0 0 00
Supplies 1 5 0 0 00
Office Furniture 12 0 0 0 00
Recording Equipment 15 0 0 0 00
Accounts Payable 11 0 0 0 00
Ashley Jackson, Capital 30 0 0 0 00
Ashley Jackson, Drawing 4 0 0 0 00
Fees Income 19 5 0 0 00
Advertising Expense 2 0 0 0 00
Rent Expense 1 8 0 0 00
Salaries Expense 10 0 0 0 00
Telephone Expense 3 5 0 00
Utilities Expense 8 0 0 00
Totals 60 5 0 0 00 60 5 0 0 00
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CRITICAL THINKING PROBLEM 4.2 (continued)
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SOLUTIONS TO BUSINESS CONNECTIONS
Managerial Focus:
1. Inefficient flow of information; errors and insufficient information.
2. For prompt and accurate journalizing of all transactions.
3. To assure accuracy and safeguards against fraud.
4. Journal: detailed chronological record. Ledger: permanent, classified record of all financial events.
Ethical Dilemma:
You must check to see if the cash account is going down because of her actions. Is Mesia keeping the
cash from the reversed sales because she has made so many errors? Is this something she does each
month? It is unethical to accept a dinner for fixing her error.
Analyze Online:
Answers will vary depending on the year.
Teamwork:
Answers will vary. Journal Entry to General Ledger to Trial Balance to Financial Statement.
Internet Connection:
Sites that might be displayed are: www.careerbank.com , www.careersinaccounting.com ,
www.account.com .
Suggested experience would require 5 years or more, with an AA degree. Skills would include good
communication skills, detailed and multi-task oriented.
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SOLUTIONS TO PRACTICE TEST
Part A Matching
1. a
2. f
3. b
4. j
5. i
6. h
7. d
8. e
9. c
10. g
Part B Completion
1. ledger
2. posting references
3. brief or concise
4. credit
5. debit
6. debit
7. year
8. chronological or date
9. assets or balance sheet accounts
10. posted
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