Reference no: EM132585043

On April 1, the accounts receivable ledger of Kozma Company showed the following balances: 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. 1 The owner, T. Kozma, invested additional cash in the business $7,200.

4 Received check for payment of account from Dent less 2% cash discount.

5 Received check for $920 in payment of invoice no. 307 from Jennings Co.

8 Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was $4,347.

10 Received check for $600 in payment of invoice no. 309 from Morrow.

11 Received cash refund from a supplier for damaged merchandise $740.

23 Received check for $1,000 in payment of invoice no. 310 from Jennings Co.

29 Received check for payment of account from Rose (no cash discount allowed).

Instructions

Question 1: 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.

Question 2: Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts.

Question 3: Prove the agreement of the control account and subsidiary account balances.