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 $15,800 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 $5,600 (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, $850.
		5		Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,300 (cost is $6,600).
		6		Received an $70 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3.
		9		Purchased $10,850 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 $12,200 (cost is $6,800).
		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 $6,300 of merchandise on credit to Page Alistair (cost is $3,300), 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, $10,200. Cashed the check and paid employees.
		16		Cash sales for the first half of the month are $52,040 (cost is $44,400). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.)
		17		Purchased $13,100 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30.
		18		Borrowed $64,000 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 $1,160 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM.
		23		Received a $900 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 $11,775 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 $3,170 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,690).
		27		Sold $8,600 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,955).
		30		Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $10,200.
		30		Cash sales for the last half of the month are $72,500 (cost is $59,600).

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 ($84,000), Inventory ($130,000), Long-Term Notes Payable ($114,000), 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.

Review the April transactions of Wiset Company and enter those transactions that should be journalized in the purchases journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the cash disbursements journal. Prepare a general journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the general journal. Enter the March 31 balances of Cash ($84,000), Inventory ($130,000), Long-Term Notes Payable ($114,000), 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. Prepare a trial balance. Prepare a schedule of accounts payable.

Answer 1

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).
Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Purchase Journal Date Apr Apr 3 Apr 9 Date of Invoice Terms Apr 2 Apr 2 Apr 9 Apr 17 Apr 19 Accounts Payable Cr Inventory Dr Office Supplies Dr Other Accounts Dr Account Noth Compan Custer Inc Hals Grant Co Hals Noth Compan 2/10.n/60 n/10 EOM n/10 EOM 2/10,n/30 n/10 EOM 2/10,n/60 15,800$ 15,800 1,590 10,850 13,100$ 13,100 1,160 11,775$ 11,775 1,590 10,850 Apr 20 1,100 Total 54,275 40,675 1,590 $ 11,950 Cash Disbursment Account Debited Advertising Expense Noth Compan Sales Salaries Expense Grant Co Sales Salaries Expense Cash Credit I Date Apr 4 Apr 12 Apr 16 Apr 26 it Accounts Payable DebPurchase Dr Other Acc Dr 316 $ 244 S Inventory cred 850 15,484 10,200 850 15,800 10,200 10,200 21,250 11,956S 12,200 r 30 $10,200 Total 48,690 $ 560 $ 28,000

General Journal: Account Accounts Payable-Custer Office Supplies Date Credit Apr 6 70 70 Accounts Payable-Grant nventory Apr 23 900 900

Trial Balance Debit Credit Cash Accounts Receivable Inventoryy 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 $256,582 11,770 $38,070 1,520 1,160 10,850 25,305 178,000 100,000 169,710 668 $131,145 20,400 850 $473,015 $ 473,015 Schedule of Accounts Payable Custer Inc Hal's Supply Noth Company Grant Company 1,520 12,010 11,775 Total Accounts Pyable $ 25,305

Accounts Payable-Custer Accounts Payable-Grant Co Debit Credit Balance Debit Credit Balance Date Apr 3 Apr 6 Date Apr 17 Apr 23 Apr 26 1,590 5 1,590 1,520 $13,10013,100 $12,200 70 900 12,200 Accounts Payable-Hals Debit Accounts Payable-Noth Date Apr 9 Apr 20 Credit Balance Date Apr 2 Apr 12 Apr 25 Debit Credit Balance 10,850 12,010 10,850$ 15,800 $ 15,800 1,160 15,800 $11,775 11,775