Question

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 $16,000 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 $5,900 (cost is $2,800). 3 Purchased $1,590 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, $906. 5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,400 (cost is $6,700). 6 Received an $65 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3. 9 Purchased $12,900 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 $11,900 (cost is $7,500). 12 Issued Check No. 5BB 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 $ 7,200 of merchandise on credit to Page Alistair (cost is $3,000), 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, $10.450. Cashed he check and paid employees. 16 Cash sales for the first half of the month are $57,200 (cost is $39,800). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.) 17 Purchased $11, 600 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30. 1B Borrowed $50,000 cash from First State Bank by signing a long-term note payable. 20 Received payment from Nie Nelson for the April 11 sale less the discount. 20 Purchased $1,170 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 23 Received payment from Page Alistair for the April 13 sale less the discount. 25 Purchased $11,720 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 $3,310 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,680). 27 Sold $9,600 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,775). 30 Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $10,450. 30 Cash sales for the last half of the month are $79,200 (cost is $66,000). 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 ($81,000). Inventory ($132,000). Long-Term Notes Payable ($113,000), 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.

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Wiset Office Supplies Dr Other Accounts Dr 1,590 Date Apr 2 Apr 3 Apr 9 Apr 17 Apr 20 Apr 25 Account Noth Company Custer Inc Hals Grant Co Hals Noth Company Date of Invoid Terms Apr 2 2/10,n/60 Apr 2 n/10 EOM Apr 9 n/10 EOM Apr 17 2/10,n/30 Apr 19 n/10 EOM 2/10,n/60 Purchase Journal Accounts Payable Cr Inventory Dr 16,000 $ 16,000 1,590 12,900 11,600 $ 11,600 1,170 11,720 $ 11,720 12,900 1,170 Total 54,980$ 39,320 $ 1,590 $ 14,070 Other Acc Dr 906 Date Apr 4 Apr 12 Apr 16 Apr 26 Apr 30 Account Debited Advertising Expense Noth Company Sales Salaries Expense Grant Co Sales Salaries Expense Cash Disbursment Cash Credit Inventory credit Accounts Payable Debit | Purchase Dr $ 906 $ 15,680 $ 320$ 16,000 $ 10,450 $ 10,388 $ 212 $ 10,600 $ 10,450 10,450 10,450 Total $ 47,874 $ 532 $ 26,600 21,806 COGS Debit Credit Debit Credit Date Apr 6 General Journal: Account Accounts Payable-Custer Office Supplies 65 Date Apr 3 Apr 5 Apr 11 Apr 13 Apr 16 Apr 27 Apr 27 Apr 30 2,800 6,700 7,500 3,000 39,800 2,680 4,775 66,000 Balance $ 2,800 $ 9,500 $ 17,000 $ 20,000 $ 59,800 $ 62,480 $ 67,255 $ 133,255 Apr 23 $ 1,000 Accounts Payable-Grant Inventory $ 1,000 Inventory Cash Debit $ 81,000 Credit Balance Debit 81,000 132,000 16,000 $ $ 906 15,680 $ $ $ $ 5,782 9,212 $ 10,450 $ Date Beg Balance Apr 4 Apr 12 Apr 13 Apr 14 Apr 16 Apr 16 Apr 18 Apr 20 Apr 23 Apr 26 Apr 30 Apr 30 $ $ $ $ 57,200 58,000 11,662 7,056 80,094 64,414 70,196 79,408 68,958 126,158 184,158 195,820 202,876 192,488 182,038 261,238 Date Beg Bal Apr 2 Apr 3 Apr 5 Apr 11 Apr 12 Apr 13 Apr 16 Apr 17 Apr 23 Apr 25 Apr 26 Apr 27 Apr 27 Apr 30 Credit Balance $ 132,000 $ 148,000 $ 2,800 $ 145,200 $ 6,700 $ 138,500 $ 7,500 $ 131,000 $ 320 $ 130,680 $ 3,000 $ 127,680 $ 39,800 $ 87,880 $ 99,480 $ 1,000 $ 98,480 $ 110,200 $ 212 $ 109,988 $ 2,680 $ 107,308 $ 4,775 $ 102,533 $ 66,000 $ 36,533 11,600 11,720 10,388 $ 10,450 $ Ś $ 79,200 S

Store Supplies Office Supplies Debit Credit $ 1,590 Balance Debit Date Apr 3 Apr 6 Credit Date Apr 20 Balance $ 1,170 1,170 1,590 1,525 65 $ Store Equipment Debit Credit $ 12,900 Accounts Payable Debit Date Balance Date Apr 9 12,900 16,000 Apr 2 Apr 3 Apr 6 Apr 9 Apr 12 Apr 17 Apr 20 Apr 23 Apr 25 Apr 26 Credit Balance $ 16,000 $ 16,000 $ 1,590 $ 17,590 $ 17,525 $ 12,900 $ 30,425 $ 14,425 $ 11,600 $ 26,025 $ 1,170 $ 27,195 $ 26,195 $ 11,720 $ 37,915 $ 27,315 1,000 10,600 B Wiset Capital Debit Date Beg Balance Apr 18 Long Term Note Payable Debit Credit Balance $ 113,000 $ $ 58,000 $ Date Beg Balance Credit $ 100,000 Balance $ 100,000 113,000 171,000 Balance Date Date Apr 16 Apr 30 Credit Sales Salaries Expense Debit Credit $ 10,450 $ 10,450 Advertising Expense Debit 906 Balance $ 906 Apr 4 10,450 20,900 Accounts Payable-Custer Debit Credit Date Apr 3 Apr 6 Balance $ $ 1,590 1,590 1,525 Date Apr 17 Apr 23 Apr 26 Accounts Payable-Grant Co Debit Credit $ 11,600 1,000 10,600 Balance $ 11,600 $ 10,600 $ - 65 Melo Date Accounts Payable-Hals Debit Credit $ $ Apr 9 Apr 20 Balance 12,900 $ 1,170 $ 12,900 14,070 Date Apr 2 Apr 12 Apr 25 Accounts Payable-Noth Debit Credit Balance $ 16,000 $ 16,000 16,000 $ 11,720 $ 11,720

Debit Date Apr 3 Apr 5 Apr 11 Apr 13 Apr 16 Apr 27 Apr 27 Apr 30 Sale Credit Balance $ 5,900 $ 5,900 $ 9,400 $ 15,300 $ 11,900 $ 27,200 $ 7,200 $ 34,400 $ 57,200 $ 91,600 $ 3,310 $ 94,910 $ 9,600 $ 104,510 $ 79,200 $ 183,710 Date Apr 3 Apr 5 Apr 11 Apr 13 Apr 13 Apr 14 Apr 20 Apr 23 Apr 27 Apr 27 AR Debit Credit Balance $ 5,900 $ 5,900 $ 9,400 $ 15,300 $ 11,900 $ 27,200 $ 5,900 $ 21,300 $ 7,200 $ 28,500 $ 9,400 $ 19,100 $ 11,900 $ 7,200 $ 7,200 $ . $ 3,310 $ 3,310 $ 9,600 $ 12,910 Date Apr 13 Apr 14 Sales Discount Debit Credit $ 118 $ 188 Balance 118 $ 306 306 544 Apr 20 Apr 23 $ $ 238 144 > 688

Trial Balance Credit Debit $ 261,238 $ 12,910 $ 36,533 1,525 1,170 $ 12,900 Cash Accounts Receivable Inventory Office Supplies Store Supplies Store Equipment Accounts Payable Long Term Note Payable Owner's Capital Sales Sales Discount Cost of Goods Sold Sales Salaries Expense Advertising Expense 27,315 171,000 100,000 183,710 $ $ $ $ 688 133,255 20,900 906 Total $ 482,025 $ 482,025 Schedule of Accounts Payable Custer Inc Hal's Supply Noth Company Grant Company 1,525 14,070 11,720 Total Accounts Pyable $ 27,315