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More Review of Special Journals!. Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Question 1.

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Presentation on theme: "More Review of Special Journals!. Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Question 1."— Presentation transcript:

1 More Review of Special Journals!

2 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Question 1 Use (T) to indicate whether you would post only the column total, (E) to post each individual transaction, or (B) to post each to the subsidiary ledger and the column total to the controlling account in the general ledger. General Credit__________ Sales Credit__________ Sales Tax Payable Credit__________ Accounts Receivable Credit__________ Sales Discounts Debit__________ Cash in Bank Debit__________ Chapter 16 Review CHAPTER 16

3 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Answer 1 1. General Credit: E 2. Sales Credit : T 3. Sales Tax Payable Credit: T 4. Accounts Receivable Credit: B 5. Sales Discounts Debit: T 6. Cash in Bank Debit: T Chapter 16 Review CHAPTER 16

4 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Question 2 A company has the following journals and ledgers: sales, cash receipts, purchases, cash payments, general, and an accounts receivable subsidiary ledger. For each of the following transactions, indicate (a) the correct journal and (b) whether the subsidiary ledger is used. 1. sale for cash 2. sale on credit 3. payment of accounts payable 4. purchase of equipment on credit 5. cash receipt on account from customer 6. sales for customers using bankcards 7. cash received for sale of unneeded equipment 8. cash discount taken on account by customer Chapter 16 Review CHAPTER 16

5 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Answer 2 1. Sale for cash: (a) cash receipts 2. Sale on credit: (a) sales (b) A/R subsidiary ledger 3. Payment of accounts payable: (a) cash payments 4. Purchase of equipment on credit: (a) purchases 5. Cash receipt on account from customer: (a) cash receipts (b) A/R subsidiary ledger 6. Sales for customers using bankcards: (a) cash receipts 7. Cash received for sale of unneeded equipment: (a) cash receipts 8. Cash discount taken on account by customer: (a) cash receipts (b) A/R subsidiary ledger Chapter 16 Review CHAPTER 16

6 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Question 3 In the cash receipts journal, why must you post every payment on account to the customer’s subsidiary account immediately? Chapter 16 Review CHAPTER 16

7 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Answer 3 Most of the information in the cash receipts journal can be posted when you total the journal. However, the subsidiary ledger must be kept current and show the accurate amount owed by each customer in the event a customer inquires about his or her account status or that the current total is needed for some other reason. This also means that until the column total is posted to the controlling account, the total of the subsidiary ledger accounts and the controlling account in the general ledger will not agree. Chapter 16 Review CHAPTER 16


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