(Solution) - Caspari Company s chart of accounts includes the following selec -(2025 Original AI-Free Solution)

Paper Details

Caspari Company?s chart of accounts includes the following selected accounts.
101 .......... Cash
112 .......... Accounts Receivable
120 .......... Inventory
311 .......... Common Stock
401 .......... Sales Revenue
414 .......... Sales Discounts
505 .......... Cost of Goods Sold
On June 1, the accounts receivable ledger of Caspari Company showed the following balances: Detwiler & Son $2,500, Flores Co. $1,900, Glaimo Bros. $1,600 and Loomis Co. $1,500. The June transactions involving the receipt of cash were as follows.
June 1 Stockholders invested $12,000 additional cash in the business, in exchange for common stock.
3 Received check in full from Loomis Co. less 2% cash discount.
6 Received check in full from Flores Co. less 2% cash discount.
7 Made cash sales of merchandise totaling $7,220. The cost of the merchandise sold was $4,800.
9 Received check in full from Detwiler & Son less 2% cash discount.
11 Received cash refund from a supplier for damaged merchandise $320.
15 Made cash sales of merchandise totaling $4,500. The cost of the merchandise sold was $3,000.
20 Received check in full from Glaimo Bros. $1,600.

Instructions
(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 crossfoot the journal.
(b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the June transactions to these accounts.
(c) Prove the agreement of the control account and subsidiary account balances.