PLEASE HELP Problem 7-3A Special journals, subsidiary ledgers, and schedule of a
ID: 2517600 • Letter: P
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PLEASE HELP
Problem 7-3A Special journals, subsidiary ledgers, and schedule of accounts payable-perpetual LO C3, P1, P2
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 $14,800 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60.
3 Sold merchandise on credit to Page Alistair, Invoice No. 760, for $4,800 (cost is $3,600).
3 Purchased $1,570 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM.
4 Issued Check No. 587 to World View for advertising expense, $943.
5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $8,500 (cost is $7,500).
6 Received an $65 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3.
9 Purchased $11,050 of store equipment on credit from Hal’s Supply, invoice dated April 9, terms n/10 EOM.
11 Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $13,700 (cost is $6,700).
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 $7,700 of merchandise on credit to Page Alistair (cost is $5,000), Invoice No. 763.
14 Received payment from Paula Kohr for the April 5 sale less the discount.
16 Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $9,450. Cashed the check and paid employees.
16 Cash sales for the first half of the month are $58,050 (cost is $41,000). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.)
17 Purchased $12,200 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30.
18 Borrowed $65,000 cash from First State Bank by signing a long-term note payable.
20 Received payment from Nic Nelson for the April 11 sale less the discount.
20 Purchased $1,120 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM.
23 Received a $1,000 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 $11,410 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60.
26 Issued Check No. 590 to Grant Company in payment of its April 17 invoice less the return and the discount.
27 Sold $3,470 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,420).
27 Sold $6,200 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $5,325).
30 Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $9,450.
30 Cash sales for the last half of the month are $76,400 (cost is $66,900).
Assume that Wiset Co. uses the perpetual inventory system.
Required:
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 journal.
1-c. Prepare a general journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the general journal.
2 & 3. Enter the March 31 balances of Cash ($97,000), Inventory ($133,000), Long-Term Notes Payable ($130,000), 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 payable.
Explanation / Answer
Sales Journal Accounts Receivable Dr COGS Dr Date Account Debited Invoice No Ref Sales cr Inventory Cr April 3 Page Alistair 760 4800 3600 April 5 Paula Kohr 761 8500 7500 April 11 Nic Nelson 762 13700 6700 April 13 Page Alistair 763 7700 5000 April 27 Paula Kohr 764 3470 2420 April 27 Nic Nelson 765 6200 5325 44370 30545 Cash Receipt Journal COGS Dr Date Account Credited Explanation Ref Cash Dr Sales Discount Dr Accounts Receivable Cr Sales Cr Note Payable Cr Inventory Cr April 13 Page Alistair 4704 96 4800 April 14 Paula Kohr 8330 170 8500 April 16 Sales Cash Sale 58050 58050 41000 April 18 Note Payable Borrowed 65000 65000 April 20 Nic Nelson 13426 274 13700 April 23 Page Alistair 7546 154 7700 April 30 Sales Cash Sale 76400 76400 66900 233456 694 34700 134450 65000 107900 Purchase Journal Date Account Date of Invoice Term Ref Accounts Payable Cr Purchase Dr Office Supplies Dr Store Supplies Dr Store Equipment Dr April 2 Noth Company April 2 2/10,n/60 14800 14800 April 3 Office Supplies/Custer April 2 n/10 EOM 1570 1570 April 9 Store Equipment/Hal's Supply April 9 n/10 EOM 11050 11050 April 17 Grant Company April 17 2/10,n/30 12200 12200 April 20 Store Supplies/Hal's Supply April 19 n/10 EOM 1120 1120 April 25 Noth Company April 24 2/10,n/60 11410 11410 52150 38410 1570 1120 11050 Cash DisbursmentJournal Date Check No Payee Accounts Debited Ref Cash Cr Purchase Discount Cr Sales Salaries expense Dr Accounts Payable Dr Other Accounts Dr April 4 587 World View Advertising Expense 943 943 April 12 588 Noth Company Noth Company 14504 296 14800 April 16 589 Payroll Sales Salaries Expense 9450 9450 April 26 590 Grant Company Grant Company 10976 224 11200 April 30 591 Payroll Sales Salaries Expense 9450 9450 45323 520 18900 26000 943 General Journal April 6 Accounts Payable-Custer, Inc 65 Office Supplies 65 April 23 Accounts Payable-Grant Company 1000 Inventory 1000 General Ledger Cash Date Ref Debit Credit Balance April 1 Balance 97000 97000 April 30 233456 330456 April 30 45323 285133 Inventory Date Ref Debit Credit Balance April 1 Balance 133000 133000 April 30 Purchase 38410 171410 April 30 Cost of Goods Sold 30545 140865 April 30 Cost of Goods Sold-Cash Sale 107900 32965 April 30 Return to Grant 1000 31965 Long Term Note payable Date Ref Debit Credit Balance April 1 Balance 130000 130000 April 18 Borrowed 65000 195000 B Wise Capital Date Ref Debit Credit Balance April 1 Balance 100000 100000 Account Payable Date Ref Debit Credit Balance April 6 Office Supply return 65 -65 April 30 Purchases 52150 52085 April 30 Payment 26000 26085 April 23 Inventory return 1000 25085 Account Receivable Date Ref Debit Credit Balance April 30 Sale 44370 44370 April 30 Colelction 34700 9670 Schedule of Accounts Payable Working Purchase Payment/Return Net Noth Company 14800 14800 0 Custer 1570 65 1505 Hal's Supply 11050 11050 Grant Company 12200 12200 0 Hal's Supply 1120 1120 Noth Company 11410 11410 Schedule: Custer 1505 Hal's Supply 11050 Hal's Supply 1120 Noth Company 11410 Total 25085
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