Wiset Company completes these transactions during April of the current year (the
ID: 2410856 • Letter: W
Question
Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30) Apr. 2 Purchased $14,300 of merchandise on credit from Noth Company, Invoice dated April 2, terms 2/18, n/68 3 Sold merchandise on credit to Page Alistair, Invoice No. 760, for $4,800 (cost is $3,880) 3 Purchased $1,480 of office supplies on credit from Custer, Inc. Invoice dated April 2, terns n/e 4 Issued Check No. 587 to world View for advertising expense, $899 5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $8,000 (cost is $6,500) 6 Received an $88 credit menorandum from Custers Inc., for the return of some of the office supplies received on Aprfl 3 9 Purchased $12,125 of store equipment on credit from Hal's Supply, invoice dated April 9, terms n/? EON 11 Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $1e,5ee (cost is $7,888) 12 Issued Check No. 588 to Noth Company in payment of its April 2 invoice less the discount 13 Received payment from Page Alistair for the April 3 sale less the discount 13 Sold S5, 100 of merchandise on credit to Page Alistair (cost is $3,600), invoice No. 763 14 Received payment from Paula Kohr for the April 5 sale less the discount 16 Issued Check No. 589, payable to Payro11, in payment of sales salaries expense for the first half of the month, $10,750. Cashed the check and paid employees 16 Cash sales for the first half of the month are $52,840 (cost is $35,880). (Cash sales are recorded daily from cash register data but are recorded only twice in this problen to reduce repetitive entries.) 17 Purchased $13,75e of merchandise on credit from Grant Company, invoice dated April 17, terms 2/18, n/3 18 Borrowed $68,888 cash from First State Bank by signing a long-term note payable 28 Received payment from Nic Nelson for the April 11 sale less the discount 28 Purchased $838 of store supplies on credit from Hal's Supply, invoice dated April 19, terms n/ie Eom 23 Received a $750 credit memorandum from Grant Company for the return of defective merchandise received on April 17 23 Received payment from Page Alistair for the April 13 sale less the discount 25 Purchased $11,375 of merchandise on credit from Noth Company, invoice dated April 24, terns 2/18, n/68. 26 Issued Check No. 590 to Grant Company in payment of its April i7?voice less the return and the discount 27 Sold 53,170 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,520) 27 Sold $6,700 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,305) 30 Issued check No. 591, payable to Payroll, in paynent of the sales salaries expense for the last half of the month, $10,750 38 Cash sales for the last half of the nonth are $73,975 (cost is $ss,9ee) References Assume that Wiset Co. uses the perpetual inventory system 1-a. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the purchases journal. 1-b. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the cash disbursements 1-c. Prepare a general journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized 2 & 3. Enter the March 31 balances of Cash ($85,000) Inventory ($125.000). Long-Term Notes Payable (S110,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the following general ledger accounts and in the accounts payable subsidiary ledger accounts for Hal's Supply. Noth Company. Grant Company and Custer. Inc. 4-a. Prepare a trial balance 4-b. Prepare a schedule of accounts payableExplanation / Answer
Wiset Company General Journal Date Particular Amount (Dr) Amount (Cr) 2-Apr Mercendise Inventory $ 14,300.00 To Accounts Payable $ 14,300.00 (Being Amount of Mercendise Purchased on account from North Company) 3-Apr Accounts receivable $ 4,000.00 To Sales Revenue $ 4,000.00 (Being amount of sales on credit to Page Alistair against inv.no.760) 3-Apr Cost of goods sold $ 3,000.00 To Mercendise Inventory $ 3,000.00 (Being amount of cost of goods sold) 3-Apr Office Supplies $ 1,480.00 To Accounts Payable $ 1,480.00 (Being amount of Supplies against invoice dt 2 April) 4-Apr Advertisement Exp $ 899.00 To Bank $ 899.00 (Being Amount of Advertisement expenses paid Via Cheque number587) 5-Apr Accounts receivable $ 8,000.00 To Sales Revenue $ 8,000.00 (Being amount of sales on credit to Paula Kohr against inv.no.761) 5-Apr Cost of goods sold $ 6,500.00 To Mercendise Inventory $ 6,500.00 (Being amount of cost of goods sold) 6-Apr Accounts Payable $ 80.00 To Office Supplies $ 80.00 (Being amount of return of office Supplies purchased from cluster inc.) 9-Apr Office Equipment $ 12,125.00 To Accounts Payable $ 12,125.00 (Being Amount of Office Equipment Purchased from Hal's Supply) 11-Apr Accounts receivable $ 10,500.00 To Sales Revenue $ 10,500.00 (Being amount of sales on credit to Nic.Nelson against inv.no.7612 11-Apr Cost of goods sold $ 7,000.00 To Mercendise Inventory $ 7,000.00 (Being amount of cost of goods sold) 12-Apr Accounts Payable $ 14,300.00 To Mercendise Inventory=($14300*2%) $ 286.00 To Cash=($1200)*98% $ 14,014.00 (Being Amount paid to North Company vide cheque no 588) 13-Apr Cash=(4000*98%) $ 3,920.00 Discount=($4000*2%) $ 80.00 To Accounts Receivable $ 4,000.00 (Being Amount received from Alistair ) 13-Apr Accounts receivable $ 5,100.00 To Sales Revenue $ 5,100.00 (Being amount of sales on credit to Page Alistair against inv.no.763) 13-Apr Cost of goods sold $ 3,600.00 To Mercendise Inventory $ 3,600.00 (Being amount of cost of goods sold) 14-Apr Cash=(8000*98%) $ 7,840.00 Discount=($8000*2%) $ 160.00 To Accounts Receivable $ 8,000.00 (Being Amount received from Paula Kohr ) 16-Apr Sales Salaries Expenses $ 10,759.00 To Cash $ 10,759.00 (Being amount of Sales Salaries paid to employee vide Cheque No.589 ) 16-Apr Cash $ 52,840.00 To Sales Revenue $ 52,840.00 (Being Amount of cash sales) 16-Apr Cost of goods sold $ 35,880.00 To Mercendise Inventory $ 35,880.00 (Being Amount of cost of goods sold) 17-Apr Mercendise Inventory $ 13,750.00 To Accounts Payable $ 13,750.00 (Being amount of Mercendise Purchased from Grant company) 18-Apr Cash $ 60,000.00 To Long Term Notes Payable $ 60,000.00 (Being Amount of Long term noted payable) 20-Apr Cash=(10500*98%) $ 10,290.00 Discount=($10500*2%) $ 210.00 To Accounts Receivable $ 10,500.00 (Being Amount received from Nic Nelson ) 552 20-Apr Stores Supplied $ 830.00 To Accounts Payable $ 830.00 (Being Amount of Stores Supplied from Hal's Supply) 23-Apr Accounts Payable $ 750.00 To Mercendise Inventory $ 750.00 (Being Amount of Purchase return to grant company purchase dt 9th April)) 23-Apr Cash=(5100*98%) $ 4,998.00 Discount=($5100*2%) $ 102.00 To Accounts Receivable $ 5,100.00 (Being Amount received from Nic Nelson ) 25-Apr Mercendise Inventory $ 11,375.00 To Accounts Payable $ 11,375.00 (Being Amount of Mercendise Purchased on account from North Company) 26-Apr Accounts Payable($13750-$750) $ 13,000.00 To Cash=($13000*98%) $ 12,740.00 To Merchandise Inventory=($13000*2%) $ 260.00 (being amount paid for mercendise purchase from Grant company) 27-Apr Accounts receivable $ 3,170.00 To Sales Revenue $ 3,170.00 (Being amount of sales on credit to Paula Kohr inv.no.764 27-Apr Cost of goods sold $ 2,520.00 To Mercendise Inventory $ 2,520.00 (Being amount of cost of goods sold) 27-Apr Accounts receivable $ 6,700.00 To Sales Revenue $ 6,700.00 (Being amount of sales on credit to Nic.Nelson against inv.no.765 27-Apr Cost of goods sold $ 4,305.00 To Mercendise Inventory $ 4,305.00 (Being amount of cost of goods sold) 30-Apr Sales Salaries $ 10,750.00 To Cash $ 10,750.00 (Being Amount of Sales Salaries Paid) 30-Apr Cash $ 73,975.00 To Sales Revenue $ 73,975.00 (Being Amount of cash sales) 30-Apr Cost of goods sold $ 58,900.00 To Mercendise Inventory $ 58,900.00 (Being Amount of cost of goods sold) Merchandise Inventory To Bal B/d $ 1,25,000.00 By Cost of goods sold $ 3,000.00 To Accounts Payable $ 14,300.00 By Cost of goods sold $ 6,500.00 To Accounts Payable $ 13,750.00 By Cost of goods sold $ 7,000.00 To Accounts Payable $ 11,375.00 By Accounts Payable $ 286.00 By Cost of goods sold $ 3,600.00 By Cost of goods sold $ 35,880.00 By Accounts Payable $ 750.00 By Accounts Payable $ 260.00 By Cost of goods sold $ 2,520.00 By Cost of goods sold $ 4,305.00 By Cost of goods sold $ 58,900.00 By Bal C/d $ 41,424.00 Total $ 1,64,425.00 Total $ 1,64,425.00 Sales Revenue Particular Amount Particular Amount To Balance C/d $ 1,64,285.00 By Accounts Receivable $ 4,000.00 By Accounts Receivable $ 8,000.00 By Accounts Receivable $ 10,500.00 By Accounts Receivable $ 5,100.00 By Cash $ 52,840.00 By Accounts Receivable $ 3,170.00 By Accounts Receivable $ 6,700.00 By Cash $ 73,975.00 Total $ 1,64,285.00 Total $ 1,64,285.00 Cost of goods sold Particular Amount Particular Amount To Mercendise Inventory $ 3,000.00 By Balance C/d $ 1,21,795.00 To Mercendise Inventory $ 6,500.00 To Mercendise Inventory $ 7,000.00 To Mercendise Inventory $ 3,600.00 To Mercendise Inventory $ 35,880.00 To Mercendise Inventory $ 2,520.00 To Mercendise Inventory $ 4,305.00 To Mercendise Inventory $ 58,900.00 Total $ 1,21,705.00 Total $ 1,21,795.00 Accounts Receivable Particular Amount Particular Amount To Sales Revenue $ 4,000.00 By Cash $ 3,920.00 To Sales Revenue $ 8,000.00 By Discount $ 80.00 To Sales Revenue $ 10,500.00 By Cash $ 7,840.00 To Sales Revenue $ 5,100.00 By Discount $ 160.00 To Sales Revenue $ 3,170.00 By Cash $ 10,290.00 To Sales Revenue $ 6,700.00 By Discount $ 210.00 By Cash $ 4,998.00 By Discount $ 102.00 By Bal C/d $ 9,870.00 Total $ 37,470.00 Total $ 37,470.00 Accounts Payable Particular Amount Particular Amount To Office Supplies $ 80.00 By Mercendise Inventory $ 14,300.00 To Mercendise Inventory $ 750.00 By Office Supplies $ 1,480.00 To Mercendise Inventory $ 286.00 By Office Equipment $ 12,125.00 To Cash $ 14,014.00 By Mercendise Inventory $ 13,750.00 To Mercendise Inventory $ 260.00 By Mercendise Inventory $ 11,375.00 To Cash $ 12,740.00 To Bal C/d $ 24,900.00 Total $ 53,030.00 Total $ 53,030.00 Cash A/c Particular Amount Particular Amount To Bal b/d $ 85,000.00 To Accounts Receivable $ 3,920.00 By Advertisement $ 899.00 To Accounts Receivable $ 7,840.00 By Accounts Payable $ 14,014.00 To Sales Revenue $ 52,840.00 By Merchandise Inventory $ 12,740.00 To Long Term Note Payable $ 60,000.00 By Sales Salaries $ 10,759.00 To Accounts Receivable $ 10,290.00 By Sales Salaries $ 10,750.00 To Accounts Receivable $ 4,998.00 By Bal C/d $ 2,49,701.00 To Sales Revenue $ 73,975.00 Total $ 2,98,863.00 $ 2,98,863.00 Trial Balance Account Title Debit Credit Cash $ 2,49,701.00 Accounts Receivable $ 9,870.00 Mercendise Inventory $ 41,424.00 Office Equipment $ 12,125.00 Cost of goods sold $ 1,21,795.00 Sales Allowances $ 552.00 Store Supplies $ 830.00 Sales Salaries $ 21,509.00 Sales Revenue $ 1,64,285.00 Accounts Payable $ 24,900.00 Long Term Note Payable $ 1,70,000.00 Wiset's Capital $ 1,00,000.00 Office Supplies $ 1,400.00 Advertisement $ 899.00 Total $ 4,60,105.00 $ 4,59,185.00
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