Horngrens Accounting Volume 1 Canadian 10Th Edition Nobles Solutions Manual Full Chapter PDF

Horngrens Accounting Volume 1
Canadian 10th Edition Nobles Solutions

Manual
Visit to download the full and correct content document: https://testbankdeal.com/dow
nload/horngrens-accounting-volume-1-canadian-10th-edition-nobles-solutions-manual
/
Chapter 7
Accounting Information Systems
Questions
1. The five criteria of an effective accounting system are
a. The extent to which the system helps control operations and an
example is management actions to control cash payments to avoid
theft through unauthorized payments.
b. The system’s compatibility, or ability to work smoothly, with the
business’s particular structure and an example is the ability to
produce segmented results of the business.
c. The system’s flexibility, or ability to adjust responsively to changes
in the business’s structure or goals and an example is the ability of
the system to integrate the financial records of a new acquisition.
d. The system’s ability to create reports that meet users’ needs, and an
example would be a budget or multi-step income statement.
e. A favourable cost/benefit relationship such that its benefits in terms
of information for decisions exceed the cost of the system.
Expensing asset items that are below a $500 limit so that
amortization is not recorded on minor purchases.
2. In batch processing, transaction inputs of a given type are entered as a
group, with posting completed as a batch at a later time. This allows
faster data entry since each entry is not processed immediately into an
account. In an online processing system, transactions can be accepted
one by one at various times and from different locations, and posted
immediately upon entry.
3. 1 = Assets, 2 = Liabilities, 3 = Owner’s Equity, 4 = Revenues, 5 = Expenses
4. The number 112 could be assigned to Accounts Receivable on the basis
of the following reasoning: 1 denotes Assets; 11 refers to Current Assets.
If the number 111 is assigned to Cash, then 112 logically goes to
Accounts Receivable. Add more digits to 112, and you signify individual
customer receivables. Therefore, the number 1120708 would apply to an
individual customer account receivable.
5. Menus organize the access paths to different accounting functions in a
computerized accounting system. Menu structures differ from system to
system.
Copyright © 2017 Pearson Canada Inc.

Horngren’s Accounting, 10Ce Chapter 7 Instructor’s Solutions Manual
6. Four special journals and the transactions they are designed to account
for are:
 the sales journal (sales on account)
 the cash receipts journal (cash receipts)
 the purchases journal (purchases on account)
 the cash payments journal (cash payments).
7. Special journals result in less work. Their column headings identify the
accounts to be debited and credited, so it is not necessary to print each
account title for every entry. Also, explanations for entries are not
needed. The nature of the entry is identified by the special journal in
which it is recorded.
Another advantage of special journals is streamlined posting as similar
transactions are recorded and posted efficiently, and in the same place.
Column totals may be posted instead of each transaction’s debit and
credit.
8. A control account is kept in the general ledger. It is backed up with a
subsidiary ledger of individual accounts. Two common control accounts
are Accounts Receivable and Accounts Payable.
9. Eighty-eight postings appear in this sales journal: 86 postings to the
individual customer accounts in the accounts receivable subsidiary
ledger, one posting of the total amount to Accounts Receivable in the
general ledger, and one posting of the total amount to Sales Revenue in
the general ledger.
10. This error would be detected when the ledgers are balanced or
reconciled. The debit balance in Accounts Receivable will not agree with
the sum of the balances of the individual customer accounts in the
accounts receivable subsidiary ledger.
11. Individual debits and credits to the accounts receivable and accounts
payable subsidiary ledgers are posted daily. Column totals are posted
less frequently, often monthly.
12. Sales tax collected from customers may be accounted for by recording
the sales tax amount for each sale in a sales journal that has a Sales Tax
Payable Cr. column. Accounts Receivable is debited for the gross
amount including taxes, with sales and sales tax payable credited for
their respective amounts.
13. Balancing or reconciling the ledgers is a check of the accuracy of the
accounting records, specifically, the agreement between a subsidiary
ledger and its control account in the general ledger.
7-516 Copyright © 2017 Pearson Canada Inc.

14. This does not necessarily indicate that the trial balance is out of balance.
Lack of agreement between a subsidiary ledger and its control account
may be due to an error that did not affect the general ledger, from which
the trial balance is taken, but rather affected the subsidiary ledger.
15. Two errors that may cause a lack of agreement between a subsidiary
ledger and the related control account in the general ledger are posting to
the subsidiary ledger incorrectly and adding the account balances in the
subsidiary ledger incorrectly.
Copyright © 2017 Pearson Canada Inc. 7-517

Starters
(5 min.) S 7-1
Control is the most important feature because a business must safeguard its
assets.
Reports that meet users’ needs rank high on the list; a favourable cost-benefit
relationship must be considered if financial resources are limited.
(5 min.) S 7-2
Example Component
1. Server B. Processing and Storage
2. Bank cheques A. Source Documents and Input Devices
3. Reports C. Outputs
4. Keyboard A. Source Documents and Input Devices
5. Software B. Processing and Storage
6. Financial statements C. Outputs
7. Bar code scanner A. Source Documents and Input Devices
(5 min.) S 7-3
1. The trial balance transferred to or entered on the worksheet. (m)
2. Automatic posting to the general ledger. (c)
3. The use of UPC codes for inventory. (c)
4. Printing financial statements. (c)
5. Closing the accounts by debiting income summary and crediting
expenses. (m)
6. Starting the cycle with account balances in the general ledger. (b)
(5-10 min.) S 7-4

4 5
H F
A L
3
S E R V E R
O D X
1 6
C F W C
O T A R
2
N E T W O R K E
T A E D
R R I
7
O B E N E F I T
L S

(5 min.) S 7-5
1. I
2. I
3. I
4. I
5. I
6. O
7. O
8. I
9. O
10. O
11. N
(10 min.) S 7-6

Inventory ............................................ 151
Accounts Payable ............................... 201
LP, Capital ......................................... 301
LP, Withdrawals................................. 311
Selling Expenses ................................ 531
Assets, Current Assets, and Revenues are headings and would not be
assigned an account number. Some students may also list Selling Expenses
as a heading. The authors consider this acceptable.
(5 min.) S 7-7
Aug. 8 Sold merchandise with a cost of $1,250 for $3,000 cash.
10 Owner Ruff invested $2,500 cash in the business.
15 Received $340 on account from Lucille Adams, no discount.
27 Received $490 on account from Marshall Field, $10 sales
discount.
(5 min.) S 7-8
1. $2,071 Inventory account in the General Ledger
2. $4,319 Posted to Sales Revenue on November 30
3. $ 907 Susan Levy account in the Accounts Receivable Subsidiary
Ledger
4. $4,319 Accounts Receivable account in the General Ledger

(5 min.) S 7-9
1. Accounts Receivable Subsidiary Ledger
2. Accounts Receivable (control) account in the General Ledger.
3. General Ledger
Accounts Receivable ........................................... $4,319
From the Accounts Receivable Subsidiary Ledger:

Slopes Ski Shop
Schedule of Accounts Receivable
November 30, 2017
Claudette Cabot ................................................... $ 935
Brent Harmon ...................................................... 694
Susan Levy .......................................................... 907
Clay Schmidt ....................................................... 1,783
Total accounts receivable ......................................... $4,319
(10 min.) S 7-10

1. $6,134
2. Cash collections on account:
Nov. 14 ............................................. $ 900
22 .............................................. 300
Total ................................................. 1,200
Total discounts ................................. 35
Decrease in accounts receivable .......................... $1,235
3. $3,172
4. $1,000
To learn of payments on the loan, look in (a) the Note Payable to
Scotiabank account in the general ledger, or (b) the cash payments
journal.
(5 min.) S 7-11
1. Total inventory purchases ................................... $1,706
2. Accounts Payable (Exhibit 7-9) .......................... 2,876
Cash .............................................................. 2,876
Paid on account. Slopes Ski Shop cannot take any purchase discount.
The accounts payable subsidiary ledger would have to be updated as well to
reflect the payment to all the individual suppliers.

(5-10 min.) S 7-12

1. $2,876 ( = $1,706 + $103 + $1,067)
2. $819
3. Slopes Ski Shop owes JVG Canada Inc. $451.
In total, Slopes owes $2,057 on account.
(10 min.) S 7-13

1. Cash (Exhibit 7-9) ...................................................... $1,875
2. Gross sales revenue (Exhibit 7-7) .............................. $7,491
Less: Sales discounts (Exhibit 7-7) ............................ (35)
Net sales revenue........................................................ $7,456
3. On account – journal reference page 8 (purchases journal page 8)
(Exhibit 7-8)
4. City Office Supply Co. (Exhibit 7-8)
November 30 balance (Exhibit 7-9) ........................... $543
(5 min.) S 7-14
G = General journal
S = Sales journal
CR = Cash receipts journal
P = Purchases journal
CP = Cash payments journal
Transactions:
CR a. Cash sale of inventory

CP b. Payment of rent
G c. Amortization of computer equipment
P d. Purchases of inventory on account
CR e. Collection of accounts receivable
G f. Expiration of prepaid insurance
S g. Sale on account
CP h. Payment on account
CP i. Cash purchase of inventory
CR j. Collection of dividend revenue earned on an investment
CP k. Prepayment of insurance
CR l. Borrowing money on a long-term note payable
P m. Purchase of equipment on account
S n. Cost of goods sold along with a credit sale
G o. Return of merchandise

(5 min.) S 7-15
1) CR, S, G
2) P, G, CP
3) G
4) CR, CP, G
5) P, CP, G
6) CR, S
7) G
8) CR, CP, P, S, G
(10 min.) S 7-16

DATE ACCOUNTS AND EXPLANATION DEBIT CREDIT
Mar. 6 Sales Returns and Allowances 300
Accounts Receivable—B. Kielman 300
Merchandise Inventory 230

Cost of Goods Sold 230
Issued credit memo for sales return.
28 Accounts Payable—Poloskey Company 500

Merchandise Inventory 500
Issued debit memo for purchase return.
Date Transaction Special Journal

Mar. 2 Sold merchandise inventory on account Sales journal
21 Purchased merchandise inventory on account Purchases journal

(15 min.) S 7-17

1. Since Slopes Ski Shop is assumed to have a periodic inventory system, the column
entitled Cost of Goods Sold Dr./Inventory Cr. would be deleted from the current sales
journal. Since credit sales to customers are subject to GST and PST, Slopes would add
two new columns to the sales journal: Sales Tax Payable Cr. and GST Payable Cr.
2. Since Slopes Ski Shop is assumed to have a periodic inventory system, the column
entitled Cost of Goods Sold Dr./Inventory Cr. would be deleted from the current cash
receipts journal. Since cash sales to customers are subject to GST and PST, Slopes
would add two new columns to the sales journal: Sales Tax Payable Cr. and GST
Payable Cr.
3. Since Slopes Ski Shop is assumed to have a periodic inventory system, the debit
column currently entitled Inventory would be renamed Purchases. Since only GST is
tracked separately (PST is added to the cost of the purchase), Slopes would add a new
debit column to the purchases journal entitled GST Recoverable. (Slopes would
subtract this recoverable amount from the GST collected in other special journals and
remit the difference to the federal government.)
4. Since Slopes Ski Shop is assumed to have a periodic inventory system, the credit
column currently entitled Inventory would be renamed Purchase Discounts. Since many
cash payments contain a GST portion, Slopes would add a new debit column to the
cash payments journal entitled GST Recoverable. (Slopes would subtract this
recoverable amount from the GST collected in other special journals and remit the
difference to the federal government.)

Exercises
(5 min.) E 7-1
Flexibility, since changes in the business call for changes in the accounting
information system. The “go green” initiative would not require a major
overhaul of the system and could produce efficiencies and cost savings, so it
has a favourable cost-benefit relationship.
(10 min.) E 7-2

Number Account
101 Cash
102 Accounts receivable
103 Inventory
104 Supplies
105 Computer equipment
106 Accumulated amortization—computer equipment
201 Accounts payable
221 Note payable, long-term
301 Randy Welluck, capital
321 Randy Welluck, withdrawals
401 Sales revenue
501 Cost of goods sold
521 Amortization expense—computer equipment
(10-15 min.) E 7-3

Steps 3 and 4 and part of step 5 complete the posting and balancing of the
general ledger accounts. Step 5 and parts of steps 6 and 7 could easily be
completed as reports. For examples, the trial balance, financial statements, and
post-closing trial balance need only a keystroke to be produced. Closing
procedures in step 7 are automatic prior to beginning the next period.
(10–15 min.) E 7-4

Total assets = $57,000 ($16,800 + $40,200)
Owner’s equity = $46,800 ($40,800 + $54,000 – $33,000 – $15,000)
Total liabilities = $10,200 ($57,000 – $46,800)

(10 min.) E 7-5

Cash Receipts Journal PAGE 1
DEBITS CREDITS
OTHER ACCOUNTS
COST OF GOODS
SALES ACCOUNTS SALES POST. SOLD DR.
DATE CASH DISCOUNTS RECEIVABLE REVENUE ACCOUNT TITLE REF. AMOUNT INVENTORY CR.
May 16 220 220 I. Pax 
19 120 120 F. Zehr 
24 600 600 380
30 120 120 W. Singh 
31 1,060 460 600 Totals 380
1,060 1,060

(5-10 min.) E 7-6

Posting Reference Actual Reference
a ........................................... 
b ........................................... 
c ........................................... 125
d ........................................... 520
e ........................................... 
f ........................................... 110
g ........................................... 512
h ........................................... 120
i ........................................... 510
j ........................................... X

(10 min.) E 7-7

Req. 1. and 2.
PAGE 1
Sales Journal
ACCOUNTS
RECEIVABLE COST OF GOODS SOLD
DR DR
INVOICE CUSTOMER POST. SALES REVENUE MERCHANDISE INVENTORY
DATE NO. ACCOUNT DEBITED REF. CR CR
2017
Feb. 1 401 Curtis Co. 1,025 780
20 402 Delgado Co. 440 330
28 Totals 1,465 1,110
(10 min.) E 7-8

PAGE 1
Cash Receipts Journal
COST OF
GOODS SOLD
DR
SALES ACCOUNTS SALES OTHER MERCHANDISE
ACCOUNT POST. CASH DISCOUNTS RECEIVABLE REVENUE ACCOUNTS INVENTORY
DATE CREDITED REF. DR DR CR CR CR CR
2017
Feb. 6 860 860 640
12 Interest 80 80
Revenue
15 Curtis Co. 1,025 1,025
22 560 560 420
26 Office Supplies 80 80
28 Delgado Co. 431 9 440
28 Totals 3,036 9 1,465 1,420 160 1,060

(15 min.) E 7-9
Sales Journal
COST OF GOODS
ACC. REC. DR. SOLD DR.
DATE ACCOUNT DEBITED SALES REV. CR. INVENTORY CR.
Jul. 9 Evans Company 4,600 2,700
10 Sails and Boats 5,700 2,450
31 Totals 10,300 5,150
General Journal
DATE ACCOUNTS DEBIT CREDIT
Jul. 20 Sales Returns and Allowances 2,800
Accounts Rec.-Sails and Boats 2,800
Inventory 1,200
Cost of Goods Sold 1,200

DEBITS CREDITS
DATE CASH SALES ACC. SALES OTHER ACCT. AMOUNT CGS DR.
DIS. REC. REV. INV. CR.
Jul. 12 3,000 3,000 Bruce Services 1,250
16 3,400 Capital 3,400
18 580 580 Lucille Adams
30 6,980 580 Totals 3,400 1,250
(5 min.) E 7-10
a. 5
b. 6
c. 3
d. 1
e. 1
f. 6
g. 6
h. 5

(5 min.) E 7-11
Nov. 1 Opening balance
9 Sale on account to Beaver Valley Lumber Inc.
18 Kettle credited the customer’s account. Beaver Valley Lumber
Inc. returned merchandise or received a sales allowance from
Kettle.
30 Cash receipt from Beaver Valley Lumber Inc.
Req. 1 (posting to the general ledger) (15-20 min.) E 7-12
ACCOUNT INVENTORY 131

JRNL.
DATE ITEM REF. DEBIT CREDIT BALANCE
Sep. 30 P.7 2,200 2,200 (Dr)
ACCOUNT SUPPLIES 141

JRNL.
Sep. 30 P.7 340 340 (Dr)
ACCOUNT EQUIPMENT 171

JRNL.
Sep. 26 P.7 450 450 (Dr)
ACCOUNT ACCOUNTS PAYABLE 210

JRNL.
Sep. 30 P.7 2,990 2,990 (Cr)
Copyright © 2017 Pearson Canada Inc.

Req. 2 (posting to the accounts payable ledger) (continued) E 7-12
ACCOUNT BROTHERTON INC.

JRNL.
Sep. 2 P.7 800 800 (Cr)
13 P.7 1,400 2,200 (Cr)
ACCOUNT MARKS EQUIPMENT COMPANY

JRNL.
Sep. 26 P.7 450 450 (Cr)
ACCOUNT ROLF OFFICE SUPPLY

JRNL.
Sep. 5 P.7 340 340 (Cr)
Req. 3 (balancing the ledgers)

General Ledger
Accounts Payable $2,990
Accounts Payable Subsidiary Ledger
Lightening Snowboards
Schedule of Accounts Payable
September 30
Balance
Brotherton Inc. $2,200
Marks Equipment Company 450
Rolf Office Supply 340
Total Accounts Payable $2,990
Req. 4
Lightning Snowboards uses a perpetual inventory system. Purchases are debited to
Inventory.

(10-15 min.) E 7-13

Cash Payments Journal
DEBITS CREDITS
CHQ. POST OTHER ACCOUNTS
DATE NO. ACCOUNTS DEBITED REF. ACCOUNTS PAYABLE INVENTORY CASH
Feb. 3 Marquis Corp. 500 10 490
6 Inventory 3,800 3,800
11 Supplies 300 300
16 LaGrange Ltd. 24,100 24,100
21 Furniture 2,800 2,800
26 Graff Software Ltd. 4,000 100 3,900
28 Interest Expense 2,400 2,400
28 Totals 9,300 28,600 110 37,790
37,900 37,900
The February 15 purchase of inventory should not be recorded in the cash disbursements journal. It belongs in the purchases journal.

(30-40 min.) E 7-14

1. Cash Receipts Journal
2. Cash Payments Journal
3. General Journal
4. Sales Journal
5. Cash Receipts Journal
6. Cash Payments Journal
7. Purchases Journal
8. Purchases Journal
9. Sales Journal
10. General Journal
11. General Journal
12. General Journal
(30-40 min.) E 7-15

Sales Journal
COST OF
GOODS
ACCOUNTS SALES SOLD DR.
INVOICE ACCOUNTS POST. RECEIVABLE REVENU INVENTORY
DATE NO. DEBITED REF. DR. E CR. CR.
May 1 310 J. Williams 2,600 2,600 1,700
Pat’s
15 311 Restaurant 5,000 5,000 3,400
31 7,600 7,600 5,100

(continued) E 7-15

DEBITS CREDITS
OTHER ACCOUNTS
COST OF
GOODS
SOLD DR.
SALES ACCOUNTS SALES POST. INVENTORY
DATE CASH DISCOUNTS RECEIVABLE REVENUE ACCOUNT TITLE REF. AMOUNT CR.
May 5 400 400 220
22 2,600 2,600 J. Williams
26 5,000 5,000 Pat’s Restaurant
31 8,000 0 7,600 400 220
Purchases Journal
CREDITS DEBITS
OTHER ACCOUNTS
ACCOUNT INVOICE POST. ACCOUNTS POST.
DATE CREDITED DATE TERMS REF. PAYABLE INVENTORY ACCOUNT TITLE REF. AMOUNT
May 2 Sisco Corp. 02/05 1/ , n/ 8,000 8,000
10 60
31 8,000 8,000

(continued) E 7-15

DEBITS CREDITS
CHQ. ACCOUNTS POST OTHER ACCOUNTS
DATE NO. DEBITED REF. ACCOUNTS PAYABLE INVENTORY CASH
May 10 401 Inventory 600 600
29 402 Sisco Corp. 8,000 8,000
31 600 8,000 0 8,600

(10-15 min.) E 7-16

General Journal
POST.
DATE ACCOUNT TITLES AND EXPLANATIONS REF. DEBIT CREDIT
Apr. 5 Supplies 400
Accounts Payable—Central Co. 400
Purchased supplies on account.
11 Inventory 1,200
Accounts Payable—McDonald Ltd. 1,200
Purchased inventory on account.
14 Accounts Payable—Central Co. 400

Cash 400
Paid account of Central Co.
19 Equipment 4,300
Accounts Payable—Baker Corp. 4,300
Purchased equipment on account.
20 Accounts Payable—Baker Corp. 4,300

Cash 4,300
Paid account of Baker Corp.
22 Inventory 2,210
Accounts Payable—Khalil Inc. 2,210
Purchased inventory on account.

(continued) E 7-16
Purchases Journal
CREDITS DEBITS
OTHER ACCOUNTS
ACCOUNT INVOICE POST ACCOUNTS ACCOUNT POST.
DATE CREDITED DATE TERMS REF. PAYABLE INVENTORY SUPPLIES TITLE REF. AMOUNT
Apr. 5 Central Co. 04/05 400 400
McDonald 04/11
11 Ltd. 1,200 1,200
19 Baker Corp. 04/19 4,300 Equipment 4,300
22 Khalil Inc. 04/22 2,210 2,210
30 8,110 3,410 400 4,300
Recording the transactions in the purchases journal is quicker because it takes less writing.

(10-15 min.) E 7-17

Req. 1 EDDIE’S BICYCLE SHOP JOURNAL ENTRIES SCHWINN JOURNAL ENTRIES
General Journal
DATE
2017 ACCOUNT TITLE DEBIT CREDIT ACCOUNT TITLE DEBIT CREDIT
Mar. 14 Inventory 2,400 Accounts Receivable––Eddie’s 2,400
Accounts Payable––Schwinn 2,400 Sales Revenue 2,400
Cost of Goods Sold 1,280

Inventory 1,280
20 Accounts Payable––Schwinn 528 Sales Returns and Allowances 528

Inventory 528 Accounts Receivable––Eddie’s 528
Inventory 256
Cost of Goods Sold 256
21 Accounts Payable––Schwinn Cash 1,835

($2,400 – $528) 1,872 Sales Discounts 37
Inventory ($1,872 × 0.02) 37 Accounts Receivable––Eddie’s 1,872
Cash ($1,872 – $37) 1,835 Bicycle Shop
Req. 2
If both companies had periodic inventory systems, Eddie’s Bicycle Shop would use Purchases, Purchase Returns, and Purchase
Discounts instead of Inventory for the preceding entries. Schwinn would not make the two compound entries involving cost of goods
sold and inventory.

(30-40 min.) E 7-18

Sales Journal
COST OF
SALES GOODS
ACCOUNTS TAX GST SALES SOLD DR.
INVOICE ACCOUNTS POST. RECEIVABLE PAYABLE PAYABLE REVENUE INVENTORY
DATE NO. DEBITED REF. DR. CR. CR. CR. CR.
May 1 310 J. Williams 2,860 130 130 2,600 1,700
Pat’s
15 311 Restaurant 5,500 250 250 5,000 3,400
31 8,360 380 380 7,600 5,100

(continued) E 7-18

DEBITS CREDITS
OTHER ACCOUNTS
COST OF
GOODS
SOLD DR.
SALES ACCOUNTS SALES PST GST POST INVENTORY
DATE CASH DISCOUNTS RECEIVABLE REVENUE PAYABLE PAYABLE ACCOUNT TITLE . REF. AMOUNT CR.
May 5 440 400 20 20 220
22 2,860 2,860 J. Williams
31 8,800 0 8,360 400 20 20 220
Purchases Journal
CREDITS DEBITS
OTHER ACCOUNTS
ACCOUNT INVOICE POST. ACCOUNTS GST ACCOUNT POST.
DATE CREDITED DATE TERMS REF. PAYABLE INVENTORY RECOVERABLE TITLE REF. AMOUNT
May 2 Sisco Corp. 02/05 1/ , n/ 8,400 8,000 400
10 60
31 8,400 8,000 400

(continued) E 7-18
DEBITS CREDITS
CHQ. ACCOUNTS POST OTHER ACCOUNTS GST
DATE NO. DEBITED REF. ACCOUNTS PAYABLE RECOVERABLE INVENTORY CASH
May 10 401 Inventory 600 30 630
29 402 Sisco Corp. 8,400 8,400
31 600 8,400 30 0 9,030
(30-40 min.) E 7-19

Sales Journal
ACCOUNTS HST SALES
INVOICE ACCOUNTS POST. RECEIVABLE PAYABLE REVENUE COST OF GOODS SOLD
DATE NO. DEBITED REF. DR. CR. CR. DR. INVENTORY CR.
May 1 310 J. Williams 2,938 338 2,600 1,700
Pat’s
15 311 Restaurant 5,650 650 5,000 3,400
31 8,588 988 7,600 5,100

(continued) E 7-19
DEBITS CREDITS
OTHER ACCOUNTS
COST OF GOODS
SALES ACCOUNTS SALES HST POST SOLD DR.
DATE CASH DISCOUNTS RECEIVABLE REVENUE PAYABLE ACCOUNT TITLE . REF. AMOUNT INVENTORY CR.
May 5 452 400 52 220
22 2,938 2,938 J. Williams
31 9,040 0 8,588 400 52 220
Purchases Journal
CREDITS DEBITS
OTHER ACCOUNTS
ACCOUNT INVOICE POST. ACCOUNTS HST ACCOUNT POST.
DATE CREDITED DATE TERMS REF. PAYABLE INVENTORY RECOVERABLE TITLE REF. AMOUNT
May 2 Sisco Corp. 02/05 1/ , n/ 9,040 8,000 1,040
10 60
31 9,040 8,000 1,040

(continued) E 7-19

DEBITS CREDITS
CHQ. ACCOUNTS POST OTHER ACCOUNTS HST
DATE NO. DEBITED REF. ACCOUNTS PAYABLE RECOVERABLE INVENTORY CASH
May 10 401 Inventory 600 78 678
29 402 Sisco Corp. 9,040 9,040
31 600 9,040 78 0 9,718

(50–60 min.) E 7-20

Req. 1 and 3
General Ledger
ACCOUNT CASH ACCOUNT NO. 101
JRNL.
DATE 2016 ITEM REF. DEBIT CREDIT BALANCE
Jul. 1 Bal. 23,750 (Dr)
31 CR.1 11,200 39,050 (Dr)
31 CP.1 13,300 21,650 (Dr)
ACCOUNT ACCOUNTS RECEIVABLE ACCOUNT NO. 102

JRNL.
Jul. 1 Bal. 1,900 (Dr)
31 S.1 4,000 5,900 (Dr)
SOFTWARE INVENTORY ACCOUNT NO. 103

JRNL.
Jul. 1 Bal. 0
31 P.1 6,600 6,600 (Dr)
31 S.1 1,400 5,200 (Dr)
31 CR.1 2,261 2,939 (Dr)
31 G6 226 2,713 (Dr)
ACCOUNT SUPPLIES ACCOUNT NO. 104

JRNL.
Jul. 1 Bal. 100 (Dr)

(continued) E 7-20
ACCOUNT PREPAID RENT ACCOUNT NO. 105
JRNL.
Jul. 1 Bal. 0
2 CP1 9,000 9,000 (Dr)
31 G6 3,000 6,000 (Dr)
ACCOUNT EQUIPMENT ACCOUNT NO. 110

JRNL.
Jul. 1 Bal. 1,000 (Dr)
ACCOUNT ACCUMULATED AMORTIZATION —EQUIPMENT ACCOUNT NO. 115

JRNL.
Jul. 1 Bal. 42 (Cr)
31 G6 42 84 (Cr)
ACCOUNT FURNITURE ACCOUNT NO. 120

JRNL.
Jul. 1 Bal. 5,000 (Dr)
ACCOUNT ACCUMULATED AMORTIZATION—FURNITURE ACCOUNT NO. 125

JRNL.
Jul. 1 Bal. 167 (Cr)
31 G6 167 334 (Cr)
ACCOUNT ACCOUNTS PAYABLE ACCOUNT NO. 201

JRNL.
Jul. 1 Bal. 5,000 (Cr)
31 P.1 6,600 12,700 (Cr)
31 CP.1 2,000 9,600 (Cr)

(continued) E 7-20
ACCOUNT SALARY PAYABLE ACCOUNT NO. 202
JRNL.
Jul. 1 Bal. 500 (Cr)
31 CP.1 500 0
31 G6 1,000 1,000 (Cr)
ACCOUNT UNEARNED REVENUE ACCOUNT NO. 205

JRNL.
Jul. 1 Bal. 1,200 (Cr)
ACCOUNT MICHAEL LEE, CAPITAL ACCOUNT NO. 301

JRNL.
Jul. 1 Bal. 24,841 (Cr)
ACCOUNT MICHAEL LEE, WITHDRAWALS ACCOUNT NO. 302

JRNL.
Jul. 1 Bal. 0
ACCOUNT SERVICE REVENUE ACCOUNT NO. 401

JRNL.
Jul. 31 CR.1 7,200 7,200 (Cr)
31 S.1 900 8,100 (Cr)
ACCOUNT SALES REVENUE ACCOUNT NO. 402

JRNL.
Jul. 31 CR.1 4,000 4,000 (Cr)
31 S.1 3,100 7,100 (Cr)

(continued) E 7-20
ACCOUNT COST OF GOODS SOLD ACCOUNT NO. 501
JRNL.
Jul. 31 S.1 1,400 1,400 (Dr)
31 CR.1 2,261 3,661 (Dr)
31 G6 226 3,887 (Dr)
ACCOUNT RENT EXPENSE ACCOUNT NO. 511

JRNL.
Jul. 31 G6 3,000 3,000 (Dr)
ACCOUNT UTILITIES EXPENSE ACCOUNT NO. 513

JRNL.
Jul. 24 CP1 300 300 (Dr)
ACCOUNT SALARY EXPENSE ACCOUNT NO. 515

JRNL.
Jul. 16 CP1 1,500 1,500 (Dr)
31 G6 1,000 2,500 (Dr)
ACCOUNT AMORTIZATION EXPENSE—EQUIPMENT ACCOUNT NO. 521

JRNL.
Jul. 31 G6 42 42 (Dr)
ACCOUNT AMORTIZATION EXPENSE—FURNITURE ACCOUNT NO. 522

JRNL.
Jul. 31 G6 167 167 (Dr)
ACCOUNT SUPPLIES EXPENSE ACCOUNT NO. 530

JRNL.
Jul. 0 (Dr)

(continued) E 7-20
Req. 2
Sales Journal PAGE 1
CREDITS COST OF GOODS

ACCOUNTS SOLD DR.
DATE INVOICE ACCOUNTS POST. RECEIVABLE SERVICE SALES SOFTWARE
2016 NO. DEBITED REF. DR. REVENUE REVENUE INVENTORY CR.
Jul. 18 Customer 3,100 3,100 1,400
19 Customer 900 900
31 4,000 900 3,100 1,400
(102) (401) (402) (103/501)

(continued) E 7-20
DEBITS CREDITS
OTHER ACCOUNTS
DATE ACCOUNTS SALES SERVICE POST COST OF GOODS SOLD DR.
2016 CASH RECEIVABLE REVENUE REVENUE ACCOUNT TITLE . REF. AMOUNT SOFTWARE INVENTORY CR.
Jul. 2 7,200 7,200
28 4,000 4,000 2,261
31 11,200 4,000 7,200 2,261

(101) (402) (401) (103/501)
Purchases Journal PAGE 1
CREDITS DEBITS
OTHER ACCOUNTS
DATE ACCOUNT INVOICE POST ACCOUNTS SOFTWARE ACCOUNT POST.
2016 CREDITED DATE TERMS REF. PAYABLE INVENTORY TITLE REF. AMOUNT
Jul. 7 Supplier 07/07/17 2,000 2,000
22 Supplier 07/22/17 4,600 4,600
31 6,600 6,600
(201) (103)

(continued) E 7-20
Cash Payments Journal PAGE 1
DEBITS CREDITS
DATE CHQ. ACCOUNTS POST OTHER ACCOUNTS
2016 NO. DEBITED REF. ACCOUNTS PAYABLE SALARY PAYABLE INVENTORY CASH
Jul. 2 Prepaid rent 105 9,000 9,000
16 Salary expense 515 1,500 500 2,000
21 July 7 account  ( 2,000 2,000
24 Utilities expense 513 300 300
31 10,800 2,000 500 13,300
 (201) (202) (101)
Copyright © 2017 Pearson Education Canada 7-549

Req. 4 (continued) E 7-20

Lee Management Consulting
Worksheet
For the Month Ended July 31, 2016
TRIAL ADJUSTED TRIAL
BALANCE ADJUSTMENTS BALANCE
ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
Cash 21,650 21,650
Accounts receivable 5,900 5,900
Inventory 2,939 226 2,713
Supplies 100 100
Prepaid rent 9,000 3,000 6,000
Equipment 1,000 1,000
Accumulated Amortization—equipment 42 42 84
Furniture 5,000 5,000
Accumulated Amortization—furniture 167 167 334
Accounts payable 9,600 9,600
Salary payable 0 1,000 1,000
Unearned revenue 1,200 1,200
Michael Lee, capital 24,841 24,841
Michael Lee, withdrawals 0 0
Service revenue 8,100 8,100
Sales revenue 7,100 7,100
Cost of goods sold 3,661 226 3,887
Rent expense 0 3,000 3,000
Utilities expense 300 300
Salary expense 1,500 1,000 2,500
Amortization expense—equipment 0 42 42
Amortization expense—furniture 0 167 167
Supplies expense 0 0
51,050 51,050 4,435 4,435 52,259 52,259

(continued) E 7-20
General Journal PAGE 6

DATE POST.
2016 ACCOUNT TITLES AND EXPLANATIONS REF. DEBIT CREDIT
ADJUSTING ENTRIES
Jul. 31 Salary Expense 515 1,000
Salary Payable 202 1,000
31 Rent Expense 511 3,000

Prepaid Rent 105 3,000
31 Amortization Expense—Equipment 521 42

Accumulated Amortization—Equipment 115 42
31 Amortization Expense—Furniture 522 167

Accumulated Amortization—Furniture 125 167
31 Cost of Goods Sold 501 226

Software Inventory 103 226
(120 × $2,261 = $2,713;
$2,939 – $2,713 = $226)

Challenge Exercise
(15-20 min.) E 7-21

1. Net sales revenue
Sales revenue ($4,319 + $3,172) $7,491
Less: Sales discounts (35) $7,456
Cost of goods sold ($1,814 + $1,707) (3,521)
Gross margin $3,935
2. Cost of goods sold:

Beginning inventory $3,885
Net purchases ($1,706 + $2,200 – $21) 3,885
Cost of goods available for sale 7,770
Less: Ending inventory (4,249)
Cost of goods sold $3,521

Beyond the Numbers
(15 min.) BN 7-1
Sales Returns and Allowances Journal

SALES RETURNS
AND INVENTORY
ALLOWANCES DR.
CREDIT DR. COST OF
DATE INVOICE POST. ACCOUNTS GOODS SOLD
2017 NO. ACCOUNTS CREDITED REF. RECEIVABLE CR. CR.
Dec. 1 27 Clay Schmidt  1,783 431
430/115 131/511
Purchases Returns and Allowances Journal

DEBIT ACCOUNTS PAYABLE
DATE INVOICE POST. DEBIT
2017 NO. ACCOUNTS CREDITED REF. INVENTORY CREDIT
Dec. 2 16 JVG Canada Inc.  431
210/131

Ethical Issue
Req. 1
Recording the transaction in the general journal (instead of in the cash
payments journal) does not cause an error in the financial statements. If all
journal entries are posted, the cash balance and the amount of total expenses
should be correct.
Req. 2
Alliksar wanted this transaction recorded in the general journal to avoid
having the company president review it in the cash payments journal.
Req. 3
The ethical issue is the use of company money to pay Delgados’ wife’s
expenses. Delgado should not have submitted the expenses in the first place,
and Alliksar should not have approved their payment. Unless the president of
the company approves, having the company pay Delgados’ wife’s expenses
amounts to stealing from the company.
Accounting plays this role: Alliksar uses accounting to conceal payment and
so to avoid the president’s disapproval of the excessive reimbursement to
Delgado. It also encourages further abuse by Delgado.

Problems
Group A
(15 min.) P 7-1A

1. The breach of customer data is a key threat to a business. Not only does
a business have to be concerned about employees accessing customer
data, but there is also a risk that unauthorized individuals outside of the
business might hack into the system to obtain customer information.
Sally should evaluate whether customer service reps. should have access
to all customer data. It might be possible to encrypt some of the data
and allow only managers to have access. In addition, Sally should set up
guidelines and procedures for how data should be stored and protected.
She should also review the federal regulations regarding the security of
credit card and personal information to ensure that ShopCan.ca is in
compliance. Network surveillance, encryption and software security
procedures will all reduce the risk of data breach and abuse.
2. The department store Target suffered a massive data breach at the end of
2013 that compromised the information of 70 million or more customers.
Class actions lawsuits have been filed with the total cost and outcome of
this breach yet to be fully released.
(10-15 min.) P 7-2A

1. The main problem with the chart of accounts is the withdrawals has been
assigned an account number that would place it in a liability category.
This would affect the financial statements as the standards reports are
programmed to print out items within the appropriate categories such as
Assets, Revenue, Expenses, etc. Prior to recording the entries this account
number should be changed to a capital account # beginning with 3.
2. During the closing process withdrawals will not be closed to capital
because the system is programed to close all revenue, expense and
withdrawals accounts using predetermined account numbers. If
Withdrawals has been given a liability account number it will not be
closed with this category because liabilities are permanent accounts that
are not closed.

(20-30 min.) P 7-3A

Req. 1
The correct entry is the January 13 cash receipt on the note receivable. Cash
is properly debited for $57,400, and Note Receivable and Interest Revenue
are credited for $53,900 and $3,500, respectively.
Req. 2
The errors in the other four transactions are:
Date Errors
Jan. 4 $4,200 should be debited to Cash instead of to Sales
Discounts.
7 $6,220 should be credited to Accounts Receivable instead
of to Other Accounts.
20 $4,620 debit to Cash was omitted; it is incorrectly included
in the $15,400 debit on the next line.
30 $15,400 debit to Cash is incorrect; it should be $10,780.
AND
There should be a customer name in the Account Title
column and a  in Post. Ref. column.

Req. 3 (corrected cash receipts journal) (continued) P 7-3A

DEBITS CREDITS
OTHER ACCOUNTS
COST OF GOODS
SALES ACCOUNTS SALES POST. SOLD DR.
DATE CASH DISCOUNTS RECEIVABLE REVENUE ACCOUNT TITLE REF. AMOUNT INVENTORY CR.
Jan. 4 4,200 4,200 2,030
7 6,000 220 6,220 Debbie Hughes 
13 57,400 Note Receivable 13 53,900
Interest Revenue 45 3,500
20 4,620 4,620 2,100
30 10,780 10,780 Customer name 
31 83,000 220 17,000 8,820 Totals 57,400 4,130
(11) (42) (12) (41) () (51/13)
Total Dr = $83,220 Total Cr = $83,220

(15 min.) P 7-4A

G = General journal
P = Purchases journal
S = Sales journal
CP = Cash payments journal
CR = Cash receipts journal
A/R = Accounts receivable subsidiary ledger
A/P = Accounts payable subsidiary ledger
Date Journal Subsidiary Ledger

July 2 S A/R
3 P A/P
5 CR
5 CP
8 CR
9 S A/R
10 CP
12 CR A/R
13 CP A/P
13 P A/P
15 S A/R
17 G A/R
18 S A/R
19 CR A/R
20 P A/P
22 P A/P
22 CP
24 CR
25 CP
28 P A/P
29 G A/P
29 S A/R
30 CP A/P
31 CR A/R
31 CP

Req. 1, 2, and 3 (20-30 min.) P 7-5A
Sales Journal
ACCOUNTS COST OF
RECEIVABLE GOODS SOLD
DR. DR.
POST. SALES REVENUE INVENTORY
DATE ACCOUNTS DEBITED REF. CR. CR.
Jul. 2 Fortin Inc.  2,800 1,600
9 A.L. Price  29,280 20,440
11 Sloan Forge Ltd.  20,416 14,080
15 Wilkie & Blinn  14,600 9,040
20 Sloan Forge Ltd.  2,516 1,800
25 Olsen Inc.  6,080 4,200
29 R.O. Bankston Inc.  968 680
31 Total 76,660 51,840
(12/41) (51/13)
General Journal
POST.
DATE ACCOUNT TITLES AND EXPLANATIONS REF. DEBIT CREDIT
Jul. 18 Sales Returns and Allowances 43 2,400
Accounts Receivable—A.L. Price 12/ 2,400
18 Inventory 13 1,760
Costs of Goods Sold 51 1,760
30 Sales Returns and Allowances 43 160

Accounts Receivable—Olsen Inc. 12/ 160
30 Inventory 13 100
Cost of Goods Sold 51 100

Another random document with
no related content on Scribd:
¹And Rehoboam went to Shechem: for all
Israel were come to Shechem to make him
king.
1. Shechem] Chosen by Rehoboam for its central position, for it
is in the heart of Western Palestine between Mt Ebal and Mt
Gerizim.
²And it came to pass, when Jeroboam the son

of Nebat heard of it, (for he was in Egypt,
whither he had fled from the presence of king
Solomon,) that Jeroboam returned out of
Egypt. ³And they sent and called him; and
Jeroboam and all Israel came, and they spake
to Rehoboam, saying,
2. Jeroboam] For his antecedents (which are not given by the
Chronicler) see 1 Kings xi. 26 ff.
that Jeroboam returned out of Egypt] So we should read also in 1

Kings xii. 2 for “and Jeroboam dwelt in Egypt.” The difference in
Hebrew between the two readings when written without the vowels is
confined to one letter, ‫ מ‬instead of ‫ב‬.
⁴Thy father made our yoke grievous: now

therefore make thou the grievous service of
thy father, and his heavy yoke which he put
upon us, lighter, and we will serve thee. ⁵And
he said unto them, Come again unto me after
three days. And the people departed.
4. the grievous service of thy father] The “service” complained of
is described (in part) in 1 Kings v. 13, 14 (no parallel in Chronicles).
Compare viii. 9 (= 1 Kings ix. 22), note.
and we will serve thee] The people claim their ancient right to a
voice in the appointment of a king; compare 1 Samuel xi. 14, 15
(Saul) and 2 Samuel v. 1‒3 (David).
⁶And king Rehoboam took counsel with the old

men, that had stood before Solomon his father
while he yet lived, saying, What counsel give
ye me to return answer to this people?
6. stood before] Compare Deuteronomy i. 38; 1 Kings xvii. 1. The
phrase is used to express service, whether rendered to God or to
man.
⁷And they spake unto him, saying, If thou be

kind to this people, and please them, and
speak good words to them, then they will be
thy servants forever. ⁸But he forsook the
counsel of the old men which they had given
him, and took counsel with the young men that
were grown up with him, that stood before
him. ⁹And he said unto them, What counsel
give ye, that we may return answer to this
people, who have spoken to me, saying, Make
the yoke that thy father did put upon us
lighter? ¹⁰And the young men that were grown
up with him spake unto him, saying, Thus
shalt thou say unto the people that spake unto
thee, saying, Thy father made our yoke heavy,
but make thou it lighter unto us; thus shalt
thou say unto them, My little finger is thicker
than my father’s loins.
7. If thou be kind to this people, and please them] The Chronicler
has softened the forcible words of the parallel passage (1 Kings xii.
7), “If thou wilt be a servant unto this people this day, and wilt serve
them.” The words which were too blunt for Rehoboam were also too
blunt for the Chronicler.
¹¹And now whereas my father did lade you

with a heavy yoke, I will add to your yoke: my
father chastised you with whips, but I will
chastise you with scorpions. ¹²So Jeroboam
and all the people came to Rehoboam the
third day, as the king bade, saying, Come to
me again the third day.
11. with whips] A whip or flail was among the insignia of an
Egyptian (and perhaps also of an Israelite) king. Compare Erman,
Ancient Egypt, English Translation p. 60 (where an illustration is
given) and p. 63.
with scorpions] The expression may be proverbial and

metaphorical, but some authorities (e.g. Peshitṭa) take “scorpion” to
be the name of a particular kind of scourge, the lash of which was
provided with thorns or hooks.
¹³And the king answered them roughly; and

king Rehoboam forsook the counsel of the old
men, and spake to them after the counsel of
the young men, saying, My father made your
yoke heavy, but I will add thereto: my father
chastised you with whips, but I will chastise
you with scorpions.
13. answered them roughly] It was difficult for the son of so
powerful a king as Solomon to realise that there was any necessity
for a soft answer. Solomon had put down Israelite discontent by
driving Jeroboam into exile in Egypt, and David had put down
somewhat easily the movement under Sheba son of Bichri (2
Samuel xx. 1‒22). Could the good fortune of the house of David fail
at this third crisis?
¹⁵So the king hearkened not unto the people;

for it was brought about of God, that the Lord
might establish his word, which he spake by
the hand of Ahijah the Shilonite to Jeroboam
the son of Nebat.
15. Ahijah] Compare 1 Kings xi. 29‒39. The incident referred to is
not narrated in Chronicles, being assumed to be known.
16‒19 (= 1 Kings xii. 16‒19).

The Revolt.
¹⁶And when all Israel saw that the king

hearkened not unto them, the people
answered the king, saying, What portion have
we in David? neither have we inheritance in
the son of Jesse: every man to your tents, O
Israel: now see to thine own house, David. So
all Israel departed unto their tents.
16. What portion have we in David ... the son of Jesse] The same
protest was voiced by Sheba in his brief rebellion against David (1
Samuel xx. 1). Contrast the language of the ten tribes after the
collapse of Absalom’s rebellion: We have ten parts in the king (2
Samuel xix. 43).
to your tents] See note on vii. 10.
¹⁷But as for the children of Israel that dwelt in

the cities of Judah, Rehoboam reigned over
them.
17. The order is much improved if this verse be read after verse
19.
¹⁸Then king Rehoboam sent Hadoram, who

was over the levy; and the children of Israel
stoned him with stones, that he died. And king
Rehoboam made speed to get him up to his
chariot, to flee to Jerusalem. ¹⁹So Israel
rebelled against the house of David, unto this
day.
18. Hadoram] Called “Adoram” in the parallel passage (1 Kings
xii. 18) and “Adoniram” (1 Kings iv. 6, v. 14 [28, Hebrew]).
Chapter XI.
1‒4 (= 1 Kings xii. 21‒24).
Shemaiah forbids Civil War.
The Chronicler here omits the elevation of Jeroboam to be king

over Israel (1 Kings xii. 20).
¹And when Rehoboam was come to

Jerusalem, he assembled the house of Judah
and Benjamin, an hundred and fourscore
thousand chosen men, which were warriors, to
fight against Israel, to bring the kingdom again
to Rehoboam.
1. an hundred and fourscore thousand] The number is small
compared with the Judean armies mentioned in xiii. 3, xiv. 7, xvii. 14;
yet it is far greater than is credible. The word rendered thousand
may originally have been used to denote a tribal division, thus
including women and children and old men. If so, the actual warriors
represented by 180 such “thousands” would be about 30,000, a very
large number for so small a state, yet not impossible. But, however
that may be for the early days, there is little or no doubt that the
Chronicler understood the word in its strict sense: a literal thousand.
See the note on xvii. 14.
²But the word of the Lord came to Shemaiah

the man of God, saying,
2. Shemaiah] See xii. 5, 15.
³Speak unto Rehoboam the son of Solomon,
king of Judah, and to all Israel in Judah and
Benjamin, saying, ⁴Thus saith the Lord, Ye
shall not go up, nor fight against your
brethren: return every man to his house; for
this thing is of me. So they hearkened unto the
words of the Lord, and returned from going
against Jeroboam.
3. to all Israel in Judah and Benjamin] The Chronicler does not
hesitate to use the term “Israel” in speaking of Judah. Thus the
princes of the Southern Kingdom are called “the princes of Israel”
(xii. 6, xxi. 4), the populace as a whole is called “Israel” (xii. 1, xv.
17), Jehoshaphat and Ahaz are each called “king of Israel” (xxi. 2,
xxviii. 19), and the sepulchres of the kings at Jerusalem are called
the “sepulchres of the kings of Israel” (xxviii. 27). Israel in Chronicles
then = the covenant-people. In Kings, on the contrary, Israel
generally means the Northern Kingdom.
5‒23.
The Prosperity of Rehoboam.
These verses have no corresponding section in 1 Kings On the

other hand, the Chronicler omits three important sections of 1 Kings,
viz. xii. 25‒33 (the setting up of the golden calves), xiii. 1‒32 (the
episode of the prophet who cried against the altar in Beth-el) and xiv.
1‒18 (the death of the son of Jeroboam).
⁵And Rehoboam dwelt in Jerusalem, and built

cities for defence in Judah.
5. built cities for defence] This does not mean that all these cities
were then built for the first time; certainly Beth-lehem, Tekoa, and
Hebron were ancient places. Rebuilding, strengthening, and
fortifying are included in the meaning of the Hebrew verb bānāh =
build. The cities mentioned were situated some in the hill country of
Judah, some in the Shephelah. It is probable that they were
strengthened as a measure of defence against Egypt. Less likely is
the suggestion that they were fortified chiefly to prevent or suppress
insurrection against Rehoboam in Judah. See also Introduction § 7,
p. xlviii.
⁶He built even Beth-lehem, and Etam, and

Tekoa,
6. Etam] Probably represented by some ruins a little to the south-
west of Beth-lehem, by which is a spring called Ain ‘Atān. Compare 1
Chronicles iv. 3. Bädeker, Palestine⁵, p. 109.
⁷and Beth-zur, and Soco, and Adullam,

7. Beth-zur] Represented by the ruin Burj Ṣūr to the north of
Hebron. Compare Joshua xv. 58. Bädeker, Palestine⁵, p. 112.
Soco] The cities hitherto mentioned were situated in the hill

country, but the position of the Soco here mentioned and Adullam is
uncertain. Two places bore the name Soco or Socoh, one situated in
the Shephelah (Joshua xv. 35; 1 Samuel xvii. 1, Revised Version),
and one in the hill country (“the mountains,” Joshua xv. 48)—see
note 1 Chronicles iv. 18. For Adullam compare Joshua xv. 35; 1
Chronicles xi. 15 (note on the cave of Adullam).
⁸and Gath, and Mareshah, and Ziph,

8. Gath] compare 1 Chronicles xviii. 1.
Mareshah] In the Shephelah south of the modern Beit Jibrin.

Compare xiv. 9, xx. 37.
Ziph] Probably Tell Zif south of Hebron.

⁹and Adoraim, and Lachish, and Azekah,
9. Adoraim] The modern Dora west of Hebron.
Azekah] In the Shephelah, mentioned along with Socoh in

Joshua xv. 35.
¹⁰and Zorah, and Aijalon, and Hebron, which

are in Judah and in Benjamin, fenced cities.
¹¹And he fortified the strong holds, and put
captains in them, and store of victual, and oil
and wine.
10. Zorah] Joshua xv. 33 (Revised Version). It was situated in the
Shephelah.
Aijalon] The modern Yalo, a little north of the Jaffa road about
midway between Ramleh and Jerusalem. It is an ancient place
mentioned in the Tell el-Amarna letters. Compare xxviii. 18 and 1
Chronicles vi. 69; also Smith, Historical Geography of the Holy Land
pp. 210‒213.
and in Benjamin] None of the fifteen cities seems to have been in

Benjamin. Zorah and Aijalon were in Dan (Joshua xix. 41, 42,
Revised Version), while the remaining thirteen were in Judah.
Compare verse 5.
Benjamin, in reality, belonged to the Northern Kingdom until, after

the fall of Samaria, its territory was included in the Judean kingdom
(see 1 Kings xii. 20). Later, the idea prevailed that it had been one
with the Southern Kingdom from the beginning—as appears here,
and apparently in 1 Kings xi. 31. At any rate the phrase, Judah and
Benjamin, came to be used as a general expression denoting the
Southern Kingdom. How long any sense of its partial inaccuracy
remained is uncertain.
¹²And in every several city he put shields and
spears, and made them exceeding strong.
And Judah and Benjamin belonged to him.
12. And Judah and Benjamin belonged to him] If the view,
discussed in the note on verse 5, that Rehoboam’s military
precautions were carried through to suppress or prevent rebellion in
Judah, then this phrase should be rendered And so Judah and
Benjamin became his.
¹³And the priests and the Levites that were in

all Israel resorted to him out of all their border.
13. resorted to him] Literally took their stand by him.
¹⁴For the Levites left their suburbs and their

possession, and came to Judah and
Jerusalem: for Jeroboam and his sons cast
them off, that they should not execute the
priest’s office unto the Lord:
14. suburbs] See note on 1 Chronicles v. 16.
cast them off, that they should not execute the priest’s office unto
the Lord] The point is in the concluding words “unto the Lord” (i.e.
Jehovah). Jeroboam did not abandon the worship of Jehovah,
although later generations thought so and could not conceive that
the famous “calves wherewith he made Israel to sin” were images
symbolic of Jehovah. The Chronicler regards him as having lapsed
into gross idolatry (see verse 15) and as having ejected all the
Levites from his kingdom. A less stringent opinion as to his treatment
of the priests of Jehovah is expressed in 1 Kings xii. 31, xiii. 33
where it is not said that Jeroboam rejected the tribe of Levi, but only
that he allowed men of any tribe to become priests; “he ... made
priests from among all the people” (Revised Version). Comparison of
Kings and Chronicles is here very valuable as an illustration of the
care with which the history in Chronicles has been adapted to
indicate that the Northern Kingdom was wholly wicked and apostate
from the start. The Chronicler’s hostility to the North is really directed
against the Samaritans: see Introduction § 6.
¹⁵and he appointed him priests for the high

places, and for the he-goats ¹, and for the
calves which he had made. ¹⁶And after them,
out of all the tribes of Israel, such as set their
hearts to seek the Lord, the God of Israel,
came to Jerusalem to sacrifice unto the Lord,
the God of their fathers.
¹ Or, satyrs See Leviticus xvii. 7.
15. the he-goats] The heathen Arabs believed in the existence of

demons (called jinn) having various animal forms and inhabiting
deserted places, and this belief was shared by the Hebrews
(compare Isaiah xiii. 21). In this verse and in Leviticus xvii. 7, the
writers seem to identify the gods worshipped by the heathen with
these demons. (Compare W. R. Smith, Religion of the Semites², pp.
120 ff.)
the calves] Not previously mentioned in Chronicles; 1 Kings xii.

28.
¹⁷So they strengthened the kingdom of Judah,

and made Rehoboam the son of Solomon
strong, three years: for they walked three
years in the way of David and Solomon.
17. three years] There were three years of prosperity, in the
fourth year Judah fell away into idolatry, and in the fifth year
chastisement overtook them by the hand of Shishak (xii. 1‒3). For
the significance of this, see the note on xii. 14.
of David and Solomon] The Chronicler here as elsewhere ignores

the fall of Solomon. In 1 Kings xi. 4‒6 an express distinction is made
between the way of David and the way of Solomon.
¹⁸And Rehoboam took him a wife, Mahalath

the daughter of Jerimoth the son of David, and
of Abihail ¹ the daughter of Eliab the son of
Jesse; ¹⁹and she bare him sons; Jeush, and
Shemariah, and Zaham.
¹ Or, and Abihail.
18. Jerimoth] Nothing is known regarding a son of David of this

name. He may have been the son of a concubine (1 Chronicles iii.
9).
and of Abihail] i.e. Mahalath’s father was Jerimoth, her mother

Abihail. The Authorized Version “and Abihail” wrongly implies that
Abihail was, like Mahalath, a wife of Rehoboam.
Eliab] David’s eldest brother; 1 Samuel xvi. 6, xvii. 13.
²⁰And after her he took Maacah ¹ the daughter

of Absalom; and she bare him Abijah, and
Attai, and Ziza, and Shelomith. ²¹And
Rehoboam loved Maacah the daughter of
Absalom above all his wives and his
concubines: (for he took eighteen wives, and
threescore concubines, and begat twenty and
eight sons and threescore daughters.) ²²And
Rehoboam appointed Abijah the son of
Maacah to be chief, even the prince among
his brethren: for he was minded to make him
king.
¹ In chapter xiii. 2, Micaiah the daughter of Uriel.
20. Maacah] Perhaps the grand-daughter of Absalom, since she

is called the daughter of Uriel of Gibeah in xiii. 2 (where, with LXX.,
read “Maacah” for “Michaiah”; and see the note there). According to
2 Samuel xviii. 18 Absalom had “no son to keep his name in
remembrance” but he may have had a daughter who married Uriel
and became the mother of this Maacah; and further in 2 Samuel xiv.
27 it is said that Absalom had three sons and a daughter named
Tamar. These sons may all have died young, but perhaps xiv. 27 is
another tradition differing from xviii. 18.
Abijah] Called “Abijam” 1 Kings xv. 1.
²³And he dealt wisely, and dispersed of all his

sons throughout all the lands of Judah and
Benjamin, unto every fenced city: and he gave
them victual in abundance. And he sought for
them many wives ¹.
¹ Or, sought a multitude of wives.
23. all the lands] i.e. the territory of Judah; compare 1 Chronicles
xiii. 2 (margin).
And he sought for them many wives] More exactly, as margin,
And he sought a multitude of wives. It is difficult to say whether or
not the Chronicler has Deuteronomy xvii. 17 in his mind and is
implicitly blaming the king. In any case he goes on in the next verse
to say that Rehoboam forsook the law of the Lord. It is however
probable that there is a slight error in the Hebrew and that the text
ran originally thus, And he took for them (i.e. for his sons) a multitude
of wives. Rehoboam’s own conjugal affairs have been already
described in verse 21.
Chapter XII.
1‒12 (compare 1 Kings xiv. 22, 25‒28).
The Invasion of Shishak.
¹And it came to pass, when the kingdom of

Rehoboam was established, and he was
strong, that he forsook the law of the Lord,
and all Israel with him.
1. all Israel] i.e. all the Southern Kingdom; compare note on xi. 3.
The details of Judah’s apostasy are given in 1 Kings xiv. 22‒24.
²And it came to pass in the fifth year of king

Rehoboam, that Shishak king of Egypt came
up against Jerusalem, because they had
trespassed against the Lord,
2. Shishak] The Egyptian king has commemorated this expedition
in a pictorial inscription on the wall of the temple of Karnak. It
appears that the Northern Kingdom suffered as well as the Southern;
much spoil was carried off, but no permanent conquest of Canaan
was attempted. (Breasted, History of Egypt, pp. 529 f.)
because they had trespassed] A touch characteristic of the

Chronicler; compare xiii. 18, xxi. 10, xxiv. 24, xxv. 20, xxvii. 6, xxviii.
19; and 1 Chronicles x. 13, 14. The Chronicler sees the working of
temporal rewards and of temporal punishments everywhere.
³with twelve hundred chariots, and threescore

thousand horsemen: and the people were
without number that came with him out of
Egypt; the Lubim, the Sukkiim, and the
Ethiopians.
3. with twelve hundred chariots] The details given in this verse
are absent from 1 Kings.
Lubim] i.e. the Libyans of North Africa. Shishak was a leader of

Libyan mercenaries. He made himself master of Egypt circa 950
b.c., and is known as the founder of the xxiind dynasty.
Sukkiim] LXX. Τρωγλοδύται, i.e. the cave dwellers of the

mountains which fringe the west coast of the Red Sea. But whether
these are really meant here is doubtful.
⁴And he took the fenced cities which pertained

to Judah, and came unto Jerusalem.
4. the fenced cities] Compare xi. 5.
⁵Now Shemaiah the prophet came to

Rehoboam, and to the princes of Judah, that
were gathered together to Jerusalem because
of Shishak, and said unto them, Thus saith the
Lord, Ye have forsaken me, therefore have I
also left you in the hand of Shishak.
5. Now Shemaiah the prophet came] This intervention of
Shemaiah is not mentioned in 1 Kings For an earlier appearance of
the prophet see xi. 2 ff. = 1 Kings xii. 22 ff.
have I also left you in the hand] Rather, I also have forsaken
you and delivered you into the hand.
⁶Then the princes of Israel and the king

humbled themselves; and they said, The
Lord is righteous.
6. princes of Israel] Called “princes of Judah” in verse 5; compare
note on xi. 3.
humbled themselves] i.e. they fasted and put on sackcloth;

compare 1 Kings xxi. 27, 29.
The Lord is righteous] Compare Pharaoh’s confession (Exodus

ix. 27), and the Psalmist’s address to God, “That thou mayest be
justified (literally ‘mayest be righteous’) when thou speakest, and be
clear when thou judgest” (Psalms li. 4). The “righteousness” of God
is made known to man in His judgement, whether the judgement be
of condemnation (as here) or of acquittal (as 1 John i. 9, Revised
Version).
⁷And when the Lord saw that they humbled

themselves, the word of the Lord came to
Shemaiah, saying, They have humbled
themselves; I will not destroy them: but I will
grant them some deliverance ¹, and my wrath
shall not be poured out upon Jerusalem by the
hand of Shishak.
¹ Or, deliverance within a little while Or, a few that shall escape.
7. some deliverance] Render, as margin, deliverance within a

little while.
⁸Nevertheless they shall be his servants; that

they may know my service, and the service of
the kingdoms of the countries.
8. that they may know my service, etc.] i.e. that they may learn
the difference between my service and other service.
⁹So Shishak king of Egypt came up against

Jerusalem, and took away the treasures of the
house of the Lord, and the treasures of the
king’s house; he took all away: he took away
also the shields of gold which Solomon had
made.
9. he took all away] Shishak was bought off with a heavy present
from attacking Jerusalem; compare the case of Sennacherib (2
Kings xviii. 13‒16).
shields] Rather, targets, i.e. small shields; compare note on ix.

15.
¹⁰And king Rehoboam made in their stead

shields of brass, and committed them to the
hands of the captains of the guard ¹, that kept
the door of the king’s house. ¹¹And it was so,
that as oft as the king entered into the house
of the Lord, the guard came and bare them,
and brought them back into the guard
chamber.
¹ Hebrew runners.
10. the guard] margin (more literally) the runners. These derived
their name from the duty of running before the king’s chariot to clear
the way for him; compare 2 Samuel xv. 1; 1 Kings i. 5.
¹²And when he humbled himself, the wrath of

the Lord turned from him, that he would not
destroy him altogether: and moreover in
Judah there were good things found.
12. in Judah were good things found] i.e. piety, compare xix. 3.
This is said as giving an additional reason for the mercy which God
had showed (verse 7). Doubtless it is also intended to emphasise the
religious superiority of the South over the North; compare the note
on xi. 20.
13‒16 (compare 1 Kings xiv. 21, 29‒31).

Summary of Rehoboam’s Reign.
¹³So king Rehoboam strengthened himself in

Jerusalem, and reigned: for Rehoboam was
forty and one years old when he began to
reign, and he reigned seventeen years in
Jerusalem, the city which the Lord had
chosen out of all the tribes of Israel, to put his
name there: and his mother’s name was
Naamah the Ammonitess.
13. strengthened himself] See note on i. 1. The immediate
reference is to a recovery of strength after the departure of Shishak;
the further reference is to xi. 5.
forty and one years old ... and he reigned seventeen years] So
read both the Hebrew and LXX. here and in 1 Kings xiv. 21, but in
the additional passage which follows 1 Kings xii. 24 in LXX. (B, not
A) we read, sixteen years old ... and twelve years he reigned. No
importance however can be attached to this variation, for the
passage which contains it is plainly midrashic in character.
the city which the Lord had chosen] Though the Ten Tribes were
lost to the house of David, the Lord kept his oath to David by
securing to his seed the possession of the one holy city of Israel.
¹⁴And he did that which was evil, because he

set not his heart to seek the Lord.
14. he set not his heart] The phrase implies steady purpose. The
Chronicler concludes that Rehoboam must be classed as a king who
was good but not entirely so. The considerations which chiefly
influenced him in determining the character of this reign were
perhaps two: on the one hand the invasion of Shishak was felt to be
a fixed point, a disaster only to be accounted for in the Chronicler’s
view by some falling away from assiduous worship of Jehovah; and
on the other hand it seemed incredible that the second direct
descendant of David on the throne of Israel should have been
seriously corrupt. The situation was met by representing Rehoboam
as having been three years faithful (and therefore prosperous), and
one year faithless (and therefore assailed by Shishak in the fifth
year). The favourable aspect of his reign was further emphasised by
the statement of verse 16, and by the suppression of the three
damaging passages in Kings, referred to in the head-note to xi. 5‒
23. It is very obvious that the resultant picture of the king is much
less true to historical reality than the account in Kings; but it serves
excellently to illustrate the Chronicler’s contention that virtue
prospers and vice is punished. And once more we may insist that the
value of this writer for us lies supremely in the energy and the
conviction with which he seeks to drive home this great moral and
spiritual belief.
¹⁵Now the acts of Rehoboam, first and last,

are they not written in the histories ¹ of
Shemaiah the prophet and of Iddo the seer,
after the manner of genealogies ²? And there
were wars between Rehoboam and Jeroboam
continually. ¹⁶And Rehoboam slept with his
fathers, and was buried in the city of David:
and Abijah his son reigned in his stead.
¹ Hebrew words. ² Or, in reckoning the genealogies.
15. in the histories of ...] See Introduction § 5.
Iddo] compare xiii. 22, and see note on ix. 29.
after the manner of genealogies] margin in reckoning the

genealogies; but literally “to enrol themselves.” This most obscure
phrase is perhaps a meaningless fragment due to textual corruption.
Another suggestion is that it has been misplaced and should be read
at the end of xi. 16.

Horngrens Accounting Volume 1 Canadian 10Th Edition Nobles Solutions Manual Full Chapter PDF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Horngrens Accounting Volume 1 Canadian 10Th Edition Nobles Solutions Manual Full Chapter PDF

Uploaded by

Copyright:

Available Formats

Horngrens Accounting Volume 1

Canadian 10th Edition Nobles Solutions

Accounting Information Systems

Copyright © 2017 Pearson Canada Inc.

7-516 Copyright © 2017 Pearson Canada Inc.

Copyright © 2017 Pearson Canada Inc. 7-517

(5-10 min.) S 7-4

7-518 Copyright © 2017 Pearson Canada Inc.

(10 min.) S 7-6

Copyright © 2017 Pearson Canada Inc. 7-519

From the Accounts Receivable Subsidiary Ledger:

(10 min.) S 7-10

7-520 Copyright © 2017 Pearson Canada Inc.

(5-10 min.) S 7-12

(10 min.) S 7-13

CR a. Cash sale of inventory

Copyright © 2017 Pearson Canada Inc. 7-521

(10 min.) S 7-16

Merchandise Inventory 230

28 Accounts Payable—Poloskey Company 500

Date Transaction Special Journal

7-522 Copyright © 2017 Pearson Canada Inc.

(15 min.) S 7-17

Copyright © 2017 Pearson Canada Inc. 7-523

(10 min.) E 7-2

(10-15 min.) E 7-3

(10–15 min.) E 7-4

7-524 Copyright © 2017 Pearson Canada Inc.

(10 min.) E 7-5

Copyright © 2017 Pearson Canada Inc. 7-525

(5-10 min.) E 7-6

7-526 Copyright © 2017 Pearson Canada Inc.

(10 min.) E 7-7

(10 min.) E 7-8

Copyright © 2017 Pearson Canada Inc. 7-527

(15 min.) E 7-9

Cash Receipts Journal

7-528 Copyright © 2017 Pearson Canada Inc.

Req. 1 (posting to the general ledger) (15-20 min.) E 7-12

ACCOUNT INVENTORY 131

ACCOUNT SUPPLIES 141

ACCOUNT EQUIPMENT 171

ACCOUNT ACCOUNTS PAYABLE 210

Copyright © 2017 Pearson Canada Inc.

Req. 2 (posting to the accounts payable ledger) (continued) E 7-12

ACCOUNT BROTHERTON INC.

ACCOUNT MARKS EQUIPMENT COMPANY

ACCOUNT ROLF OFFICE SUPPLY

Req. 3 (balancing the ledgers)

7-530 Copyright © 2017 Pearson Canada Inc.

(10-15 min.) E 7-13

Copyright © 2017 Pearson Canada Inc. 7-531

(30-40 min.) E 7-14

(30-40 min.) E 7-15

7-532 Copyright © 2017 Pearson Canada Inc.

Cash Receipts Journal

Copyright © 2017 Pearson Canada Inc. 7-533

Cash Payments Journal

7-534 Copyright © 2017 Pearson Canada Inc.

(10-15 min.) E 7-16

14 Accounts Payable—Central Co. 400

20 Accounts Payable—Baker Corp. 4,300