Martin Manufacturing Company Uses a Cash Receipt Journal Provide a Summary General Journal Entry, Including All Accounts That

question 67

Essay

Martin Manufacturing Company uses a cash receipt journal. At the end of March, the cash receipts journal was completed as follows:
Cash Receipts Journal $\begin{array} { | c | r | r | r | r | r | r | r | } \hline \text { Date } & \begin{array} { c } \text { Cash } \\\text { Debit }\end{array} & \begin{array} { c } \text { Sales } \\\text { Discount } \\\text { Debit }\end{array} & \begin{array} { c } \text { Sales } \\\text { Revenue } \\\text { Credit }\end{array} & \begin{array} { c } \text { Accts. } \\\text { Rec. } \\\text { Credit }\end{array} & \begin{array} { c } \text { Other } \\\text { Accounts }\end{array} & \begin{array} { c } \text { Other } \\\text { Accounts } \\\text { Amount }\end{array} & \begin{array} { l } \text { COGS DR DR } \\\text { CR }\end{array} \\\hline \text { Mar 3 } & \$ 100 & & \$ 100 & & & & \$ 42 \\\hline&& & & & \text { Chaney, } \\ 5 & 2,000 &&&\$2,000& \text { A}&& \\\hline 11 & 3,920 & \$ 80 & & 4,000 & \text { Keen, R. } & & \\\hline 15 & 750 & & & & \text { Rentrev. } & \$ 750 & \\\hline 19 & 804 & & 804 & & & & \$ 335 \\\hline 24 & 220 & & & 220 & \text { Sutz, M. } & & \\\hline 29 & 3,528 & 72 & & 3,600 & \text { Ash, C. } & & \$ 1,400 \\\hline & \$ 11,322 & \$ 152 & \$ 904 & \$ 9,820 & & \$ 750 & \$ 1,777 \\\hline\end{array}$ Provide a summary general journal entry, including all accounts that were affected during the month. $$\begin{array} { | l | l | l | } \hline ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&~~~~~~~~~~ & ~~~~~~~~~~~\\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline\end{array}$$

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Definitions:

Risk Free Rate

The risk-free rate is the theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher risk and potential return, while a beta less than 1 implies less risk and return.

Cost of Debt

The effective rate that a company pays on its current debt, including loans, bonds, and any other form of debt.

Cost of Equity

The theoretical earnings paid by a business to its equity holders as compensation for the risk they take by investing.