Question :
159.The Lavender Company completed the following sales and cash receipts : 1258273
159.The Lavender Company completed the following sales and cash receipts transactions during the first week of December. The Lavender Company uses the periodic inventory system.
Dec. 1Sold merchandise for $6,700 on credit to the Banks Co., terms 2/10, n/30, invoice no. 1455. Cost of the merchandise sold is $3,600.
Dec. 1Sold merchandise for $3,400 on credit to the Warsaw Co., terms 2/10, n/30. Invoiceno. 1456. Cost of the merchandise sold is $1,800.
Dec. 2Sold merchandise for $590 for cash to the Draper Co. Invoice no. 1457. Cost ofthe merchandise sold is $300.
Dec. 3Borrowed $10,000 from Franklin Savings on a long-term note payable.
Dec. 3Sold merchandise for $7,200 on credit to the Wentner Co., terms 2/10, n/30. Invoice no. 1458. Cost of the merchandise sold is $4,000.
Dec. 5Received the amount due from the Banks Co. from the sale on December 1.
Dec. 6Sold merchandise on credit for $950 to the Global Co., terms 2/10, n/30. Invoice No. 1459.
Dec. 6Received the amount due from the Warsaw Co. from the sale on December 1.
a. Use the sales journal and the cash receipts journal to record these transactions. b. Prepare a schedule of accounts receivable. There was no accounts receivable balance at December 1.
Sales Journal
DateAccount DebitedInvoiceNumberPRAccounts ReceivableDr. Sales Cr.
Cash Receipts Journal
DateAccount CreditedExplanationPRCash Dr.Sales Discount Dr.Accounts Receivable Cr.Sales Cr.Other Accounts Cr.
160.The following information is available for Soda Station, Inc. (all amounts are in millions):
U.S.CanadaMexico
Segment sales$6,300$5,200$3,800
Segment operating income2,1202,2401,200
Segment average assets3,8004,2002,800
a. Determine the segment return on assets for each geographic segment. b. Comment on the results. How do the segments compare with respect to profitability? c. What measures could be taken to improve segment return?
a.
161.The following segment information is available for the three regions of the country in which Fresh Snacks, Inc. does business (all amounts are in millions):
MidwestWestSouth
Segment operating income12038075
Segment average assets310782103
a. Determine the segment return on assets for each geographic segment. b. Comment on the results. How do the segments compare with respect to profitability?
a.
162.Plimpton Sales uses special journals to record business transactions. Plimpton sells office equipment. The company completed the following transactions a through j. Identify the journal in which each transaction should be recorded.
a.Paid an installment on a bank loan.
b.Purchased inventory on credit.
c.Paid cash to a creditor.
d.Sold equipment to a customer on credit.
e.Sold equipment to a customer for cash.
f.Paid employees’ salaries in cash.
g.Received payment from a customer on credit.
h.Purchased office supplies on account.
i.Returned inventory to creditor before payment.
j.Sold equipment on account.
163.Jamison Company uses special journals to record transactions. All of the companies listed below supply inventory to Jamison except McGarry Co. that supplies equipment. Use the purchases journal given below to answer the following questions: a. Foot and crossfoot the journal for accuracy.
Purchases Journal
DateAccountDate ofInvoiceTermsPRAccountsPayableCr.InventoryDr.OfficeSupplies Dr.OtherAccountsDr.
5/3Jones Co.5/22/10, n/30 20,00020,000
5/5Perry Co.5/42/10, n/30 18,00018,000
5/7McGarry Co./Equip.5/6n/60 36,000 36,000
5/8Colder Co.5/72/10, n/30 10,000
5/9French Co.5/82/10, n/30 12,00012,000
b. An error was made in the journal. Identify the error and indicate how to correct it. c. When Jamison compares the general ledger Accounts Payable account to the Accounts Payable ledger, it notices that the general ledger control account is $10,000 more than the schedule of Accounts Payable. What is the most likely cause and how should it be corrected?
a.
164.Morris Company uses special journals to record transactions. Below are the sales journal and cash receipts journal for Morris. Prepare the following:a. Open an accounts receivable subsidiary ledger having a T-account for each customer. Post the invoices to the subsidiary ledger.b. Open an Accounts Receivable controlling T-Account. Post the end-of the month totals that affect the Accounts Receivable account only.c. Prepare a schedule of accounts receivable and prove that its total equals the Accounts Receivable controlling account balance.
Sales Journal
DateAccount DebitedInvoiceNumberPRAccounts Receivable Dr.Sales Cr.Cost of Goods Sold Dr.Inventory Cr.
12/1Wazoo Co.1200 6,9003,500
12/1Fargo Co.1201 3,4001,800
12/3Jansen Co.1202 7,2004,000
12/6Marsh Co.1203 3,0001,500
165.Fagin Company uses special journals to record transactions. Below are the sales journal and cash receipts journal for Fagin in the first part of August.Required: a. Open an accounts receivable subsidiary ledger having a T-account for each customer. Post the invoices to the subsidiary ledger. b. Open an Accounts Receivable controlling T-Account. Post the end-of the month totals that affect the Accounts Receivable account only. c. Prepare a schedule of accounts receivable and prove that its total equals the Accounts Receivable controlling account balance.
Sales Journal
DateAccount DebitedInvoice No.PRAccounts Receivable Dr.Sales Cr.Cost of Goods Sold Dr.Inventory Cr.
8/1Pip Co.1200 6,9003,000
8/1Rivers Co.1201 4,2001,900
8/3Lloyd Co.1202 7,2004,000
8/6Carmen Co.1203 2,5001,200
Totals 20,80010,100
Cash Receipts Journal
166.Valley Company shows the following customer accounts in its subsidiary ledger and the Accounts Receivable account in the general ledger for the month of July. Prepare a schedule of accounts receivable as proof that the subsidiary ledger balances equals the Accounts Receivable controlling account balance.
LaredoSpringDallasPreston
2,5001,2005,6505,6503,9501,9507,200
1,300 0 2,000 7,200
AccountsReceivable
19,3008,800
10,500
