Comprehensive problem 2 chapter 6 warren reeve duchac 25e page 305/306..... I ne

Question

Comprehensive problem 2 chapter 6 warren reeve duchac 25e page 305/306..... I need to break it down into general journal, purchases journal, cash payments journal, sales journal, cash receipts journal, Unadjusted Trial Balance, Adjusting Entries, Adjusted Trial Balance, Income statement, Statement of owners equity, Balance sheet, schedule of accounts payable, Schedule of accounts receivable, closing entries, General Ledger, and a post closing trial balance. I just need help on what goes where and how to break it all down.

Explanation / Answer

Ans: Purchase Journal: All purchase of goods entries will posted to Purchase journals;

Sales Journal: All sales of goods entries will be posted to Sales Journals;

Cash Journals : All the payments for purhcase of goods, revenue expenses, capital expenses, receipts on accounts of sales of goods, capital receipts, revenue receips in short all the inflows & outflows of cash will be recorded in the cash journals;

General Journal: All the entries non cash and adjusting entries will be recorded in the general journals like example, Depreciation will be recorded in the general journals;

Adjusted trial balance: All the closing balances appearing in every accounts personal acocunts, real accounts & nominal acocunts will be posted into the balance called trial balance;

Unadjeted trial balance: All the suspense accounts items will be covered in the unadjsted trial balance;

Income statement: All the accounts appearing in the trial balance need to be identified for its nature whether revenue or capital (income & expenses) accourdingly it will be refleted to the statement called income statments;

Balance Sheet: THe final balances after net profit loss from income statment will be transferred to the statement called balance sheet.

Schedules of accounts payables & receivables : A Summarised statement form of debtors & creditors accounts will be recorded in the statement called schedules to balance sheet for accounts payables & receivables.

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