Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

SOLUTION TO EXERCISE F-2

1. CR
2. CP
3. GJ
4. CR
5. CP
6. GJ
7. CP
8. CP
9. GJ
10. S
11. P
12. CP
13. GJ
14. CP
15. GJ
16. GJ
17. GJ
18. GJ
19. GJ
20. CP
21. CP
22. CP
23. GJ
24. CP
25. GJ
26. GJ
27. CP
28. CP
29. CP
30. CR
31. CP
32. CR
33. S
34. P
35. CR
36. CR

Approach and Explanation: Keep in mind that a special journal is used to record similar types of transactions, such as all sales of merchandise or all cash receipts. Write down a brief description of the types of transactions to be recorded in each of the journals used in this exercise. They are:

Sales journal—all sales of merchandise on account.

Cash receipts journal—all receipts of cash (including cash sales).

Purchases journal—all purchases of merchandise on account.

Cash payments journal—all payments of cash (including cash purchases).

General journal—all transactions that do not appropriately fit in a special journal (including adjustments and closing entries).

Identify the transactions that involve sales of merchandise on credit (items 10 and 33). They go in the sales journal. Identify the transactions that involve purchases of merchandise on account (items 11 and 34). They go in the purchases journal. Identify the transactions that involve the receipt of cash (items 1, 4, 30, 32, 35, and 36). They are to be recorded in the cash receipts journal.

Identify the transactions that involve a cash payment (items 2, 5, 7, 8, 12, 14, 20, 21, 22, 24, 27, 28, 29, and 31). They go in the cash payments journal. Identify the transactions that do not fit those first four categories (items 3, 6, 9, 13, 15, 16, 17, 18, 19, 23, 25, and 26). They go in the general ...