The Transactions Completed by Franklin Company During January, Its First $R$

question 68

Short Answer

The transactions completed by Franklin Company during January, its first month of operations, are listed below. Assume that Franklin Company uses the following journals: cash receipts (CR), cash payments (CP), revenue (R), purchases (P), and general (G). Assume that it uses accounts receivable and accounts payable subsidiary ledgers as well as a general ledger. Indicate by letters which journal would be used for each transaction and whether or not the entry requires a posting to a subsidiary ledger.
a. CR, no subsidiary posting
b. CP, no subsidiary posting
c. $R$ , no subsidiary posting
d. P, no subsidiary posting
e. $G$ , no subsidiary posting
f. CR, subsidiary posting
g. CP, subsidiary posting
h. R, subsidiary posting
i. P, subsidiary posting
j. G, subsidiary posting
-Purchased a computer for cash

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Definitions:

Treasury Bills

Short-term government securities with maturities of one year or less, used by governments to raise funds and regulate money supply.

Budget

An estimation of revenue and expenses over a specified future period of time, often structured as a financial plan.

Annually Balanced Budget

A fiscal policy approach where government revenues and expenditures are equal within a one-year period.

Recession

An economic downturn characterized by a decrease in GDP, employment, and trade activities, typically lasting for a period.