Question

L01,2 (45 min) 10A-3. Wendy Drew operates a wholesale computer center and has hired you as her bookkeeper to record the following transactions. She would like you to (1) jour- nalize the following transactions, (2) record to the accounts payable subsidiary ledger and post to the general ledger as appropriate, and (3) prepare a schedule ounts payable. If using working papers, be sure to put in the following beginning balances: Andersen Co., $1,200; Henderson Co., $400; Squash Co., $900; Xhosa Co., $1,300; Cash, $22,000; Accounts Payable, $3,800; Merchandise inventory $4,000. Use the perpetual method. 2018 Check Figure: Total of schedule of accounts payble $1,850 March 1 Paid half the amount owed Henderson Co. from previous purchases of computers on account, less a 7% purchases discount, check no. 21. 3 Bought a delivery truck for $8,000 cash, check no. 22, payable to Bill Singer Co. 6 Bought computer merchandise from Lossless Co., check no. 23, $2,500. 18 Bought additional computer merchandise from Paced Co., check no. 24, $750. 24 Paid Xhosa Co. the amount owed for computer merchandise, less a 7% purchases discount, check no. 25. 28 Paid rent expense to Viscount's Realty Trust, check no. 26, $2,200. 29 Paid utilities expense to Granite Utility Co., check no. 27, $280. 30 Paid half the amount owed Squash Co., no discount, check no. 28.

Answer 1

Answer to part 1 In the books of Drew Computer Centre General Journal Description Mar-01 Henderson Co Debit Credit S 200 Date $ 186 Cash Discount Received (being cash paid and discount received) 14 Mar-03 Delivery truck $8,000 $8,000 Cash (being truck purchased for cash) Mar-06 Merchandise Inventory Lossless Co. |(being computer merchandise purchased) $2,500 $2,500 Mar-18 Merchandise Inventory S 750 S 750 Paced Co. (beinga dditional computer merchandise purchased) Mar-24 Xho sa Co. $1,300 $1,209 Cash Discount Received 91 (being cash paid and discount received) Mar-28 Rent $2,200 $2,200 Cash (being rent expenses paid) Mar-29 Utility expenses $280 280 Cash |(being utility expenses paid) $ 450 Mar-30 Squash Co S 450 Cash (being amount paid)

Answer to part 2 In the books of Drew Computer Centre Accounts Payable Subsidiary ledger Anderson Co. Date Description Post ref Debit Credit Cr. Balance Mar-01 Opening balance 1200 Mar-31 Closing Balance 1200 Henderson Co. Date Description Mar-01 Opening balance Mar-01 Cash Post ref Debit Credit Cr. Balance 400 186 Discount received 14 200 Mar-31 Closing Balance 200 Squash Co. Post ref Debit Date Description Cr. Balance Credit Mar-01 Opening balance 900 450 Mar-30 Cash 450 Mar-31 Closing balance 450 Xhosa Co Date Description Post ref Debit Cr. Balance Credit Mar-01 Opening balance 1300 Mar-24 Cash 1209 Discount received 91 Mar-31 Closing Balance Lossless Co. Date Description Post ref Debit Cr. Balance Credit Mar-06 Merchandi se Inventory 2500 2500 2500 Mar-31 Closing balance Paced Co. Post ref Debit Date Description Credit Cr.Balance Mar-18 Merchandise Inventory 750 750 Mar-31 Closing balance 750 In the books of Drew Computer Centre Partial General Ledger Cash Date Post ref Debit Description Credit Balance Dr.Balance Cr Balance 22000 Mar-01 opening balance Mar-01 Henderson Co Mar-03 Delivery Truck Mar-24 Xhosa Co. 21814 186 13814 8000 1209 12605 Mar-28 Rent Mar-29 Utility expenses Mar-30 Squash Co 2200 10405 280 10125 450 9675 Mar-31 Closing Balance 9675 Merchandise Inventory Date Description Post ref Debit Credit Balance Dr.Balance Cr Balance Mar-01 opening Balance 4000 Mar-06 Lossless Co Mar-18 Paced Co. 2500 6500 750 7250 7250 Mar-31 Closing Balance Delivery Truck Date Description Post ref Debit Credit Balance Dr.Balance Cr Balance 8000 Mar-03 Cash 8000 Mar-31 Closing Balance 8000 Accounts Payable Date Description Post ref Debit Credi Balance Dr.Balance cr Balance 3800 3600 Mar-01 Opening Balance Mar-01 Cash 200 Mar-06 Merchandise Inventory Mar-18 Merchandise Inventory Mar-24 cash 6100 2500 750 6850 1300 5550 Mar-30 Cash 5100 450 Rent Expenses Date Description Post ref Debit Credit Balance Dr.Balance Cr Balance Mar-28 cash 2200 2200 Mar-31 Closing Balance 8000 Utility Expenses Date Post ref Debit Description Credit Balance Dr.Balance Cr Balance 280 Mar-29 Cash 280 Mar-31 Closing Balance 280

Answer to part 3 Schedule of Accounts Payable Invoice Payments SI no. Balance due Amount Made Date Name 1 Anderson Co Mar-01 1,200 2 Henderson co Mar-01 400 200 S Mar-03 200 3 Squash Co Mar-01 900 450 S Mar-30 450 4 Xhosa Co. Mar-01 1,300 $ 1,300 S Mar-24 5 Lossless co Mar-06 $2,500 2,500 Mar-18 S 750 6 Paced Co. 750