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 $15,100 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 $5,500 (cost is $3,500).
		3		Purchased $1,400 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, $854.
		5		Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,500 (cost is $6,300).
		6		Received an $80 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3.
		9		Purchased $10,055 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 $12,400 (cost is $7,600).
		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 $6,500 of merchandise on credit to Page Alistair (cost is $5,200), 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, $9,350. Cashed the check and paid employees.
		16		Cash sales for the first half of the month are $60,280 (cost is $43,600). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.)
		17		Purchased $12,400 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30.
		18		Borrowed $73,000 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 $1,080 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 $11,275 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 $3,410 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,560).
		27		Sold $7,500 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,030).
		30		Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $9,350.
		30		Cash sales for the last half of the month are $78,300 (cost is $60,000).

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 ($100,000), Inventory ($150,000), Long-Term Notes Payable ($150,000), 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. Purchase Journal Inventory DrOffice Supplies Dr Date of Invoice Terms Accounts Payable Cr Other Accounts Dr Date Apr 2 Apr 3 Apr 9 Apr 17 Apr 20 Apr 25 Account Noth Compan Custer Inc 2/10,n/60 n/10 EOM n/10 EOM 2/10,n/30 n/10 EOM 2/10,n/60 15,100 1,400 10,055 15,100 Apr 2 Apr 9 Apr 17 Apr 19 1,400 10,055 Grant Co 12,400 $ 12,400 1,080 11,275 1,080 Noth Compan 11,275 Total 51,310 38,775 1,400 11,135 Cash Disbursment 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 CreditInventory credit Accounts Payable Debit Purchase Dr Other Acc Dr 854 14,798 9,350 11,172S 9,350 854 9,350 9,350 19,554 302 5 15,100 228 5 11,400 $45,524$ 530 Total 26,500

9.50 15,000 124027.40 A 27 341C 3410 sales Listo Balac 5,3E0 ip 20 24 p 23 5. 11,275 35150 140

в wiset Capital Long Term Note Payable Credit Debit Credit Date Balance Date Balance 150,000 223,000 Balance 100,000 73,000 Apr 18 Sales Salaries Expense Debit Advertising Expense Credit Balance Date Debit Credit Balance 9,350 18,700 Apr 16 Apr 30 9,350 9,350 Accounts Payable-Custer Accounts Payable-Grant Co Debit Debit Credit Balance Date Apr 17 Apr 23 Credit 1,400 12,400 12,400 $11,400 1,400 1,320 1,000 11,400 Accounts Payable-Hals Debit Accounts Payable-Noth Credit Balance Date Debit Credit Balance 15,10015,100 10,055 ,门80 10,055 11,135 Apr 70 15,100 511,275 11,275 Credit $299,278 10,910 InventoryY Office Supplies Store Supplies Store Equipment Accounts Payable Long Term Note Payable Owner's Capital 1,320 1,080 10,055 23,730 223,000 100,000 183,390 Sales Discount Cost of Goods Sold Sales Salaries Expense Advertising Expense 132,790 18,700 854 $530,120 $ 530,120 Total hedule of Accounts Payable Custer Inc Hal's Supply Noth Company Grant Company 320 11,135 11,275 Total Accounts Pyable $ 23,730