P7-1A Kozma Company\'s chart of accounts includes the following selected account

Question

P7-1A Kozma Company's chart of accounts includes the following selected accounts 101 Cash 112 Accounts Receivable 120Inventory 301 Owner's Capital 401 Sales Revenue 414 Sales Discounts 505 Cost of Goods Sold Journalize transactions in cash receipts journal; post to control account and subsidiary ledger. (LO 2, 3) GLS 7 Accounting Information Systems On April 1, the accounts receivable ledger of Kozma Company showed the following bal ances: Morrow $1,550, Rose $1,200, Jennings Co. $2,900, and Dent $2,200. The April transactions involving the receipt of cash were as follows Apr The owner, T. Kozma, invested additional cash in the business $7,200 Received check for payment of account from Dent less 2% cash discount Received check for $920 in payment of invoice no. 307 from Jennings Co Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was $4,347. Received check for $600 in payment of invoice no. 309 from Morrow Received cash refund from a supplier for damaged merchandise $740 Received check for $1,000 in payment of invoice no. 310 from Jennings Co Received check for payment of account from Rose (no cash discount allowed) 4 5 8 10 11 23 29 Instructions alancing totals $25,452(a) Journalize the transactions above in a six-column cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr. Foot and cross-foot the journal (b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts (c) Prove the agreement of the control account and subsidiary account balances ccounts Receivable 1,930

Explanation / Answer

Answer 1. KOZMA COMPANY Cash Receipts Journal Date Account Credited Ref. Cash Dr. Sales Discount Dr. Accounts Receivable Cr. Sales Revenue Cr. Other Account Cr. Cost of Goods Sold Dr. Inventory Cr. 1-Apr Owner's Capital       7,200.00      7,200.00 4-Apr Accounts receivable - Dent       2,156.00            44.00          2,200.00 5-Apr Accounts receivable - Jennings           920.00              920.00 8-Apr Cash Sales       7,245.00      7,245.00               4,347.00 10-Apr Accounts receivable - Morrow           600.00              600.00 11-Apr Inventory (Cash Refund)           740.00          740.00 23-Apr Accounts receivable - Jennings       1,000.00          1,000.00 29-Apr Accounts receivable - Rose       1,200.00          1,200.00 Total     21,061.00            44.00          5,920.00      7,245.00      7,940.00               4,347.00 Answer 2. Accounts Receivable Beg. Bal.    7,850.00    2,200.00 4-Apr       920.00 5-Apr       600.00 10-Apr    1,000.00 23-Apr    1,200.00 29-Apr End. Bal.    1,930.00 Subsidiary Account Accounts Receivable - Morrow Accounts Receivable - Rose Beg. Bal.    1,550.00       600.00 10-Apr Beg. Bal.    1,200.00    1,200.00 29-Apr End. Bal.       950.00 End. Bal.                 -   Accounts Receivable - Jennings Co. Accounts Receivable - Dent Beg. Bal.    2,900.00       920.00 5-Apr Beg. Bal.    2,200.00    2,200.00 4-Apr    1,000.00 23-Apr End. Bal.       980.00 End. Bal.                 -   Answer 3. Subsidiary Accounts: Accounts Receivable - Morrow       950.00 Accounts Receivable - Rose                 -   Accounts Receivable - Jennings Co.       980.00 Accounts Receivable - Dent                 -   Total    1,930.00

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