Question

Answer the whole question, please.

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		(a)	Sold merchandise on credit to Page Alistair, Invoice No. 760, for $4,600 (cost is $3,500).
		3		(b)	Purchased $1,550 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, $934.
		5			Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,500 (cost is $7,300).
		6			Received an $90 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3.
		9			Purchased $11,390 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 $11,800 (cost is $6,100).
		12			Issued Check No. 588 to Noth Company in payment of its April 2 invoice less the discount.
		13		(a)	Received payment from Page Alistair for the April 3 sale less the discount.
		13		(b)	Sold $11,100 of merchandise on credit to Page Alistair (cost is $3,100), Invoice No. 763.
		14			Received payment from Paula Kohr for the April 5 sale less the discount.
		16		(a)	Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $9,950. Cashed the check and paid employees.
		16		(b)	Cash sales for the first half of the month are $58,610 (cost is $38,100). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.)
		17			Purchased $11,200 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		(a)	Received payment from Nic Nelson for the April 11 sale less the discount.
		20		(b)	Purchased $1,040 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM.
		23		(a)	Received a $800 credit memorandum from Grant Company for the return of defective merchandise received on April 17.
		23		(b)	Received payment from Page Alistair for the April 13 sale less the discount.
		25			Purchased $11,310 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		(a)	Sold $3,310 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,630).
		27		(b)	Sold $8,400 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,920).
		30		(a)	Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $9,950.
		30		(b)	Cash sales for the last half of the month are $79,300 (cost is $59,800).

Assume that Wiset Co. uses the perpetual inventory system.

Required:

1-a. Review the transactions of Wiset Company and enter those that should be journalized in the sales journal.

1-b. Review the transactions of Wiset Company and enter those that should be journalized in the cash receipts journal. The terms of all credit sales are 2/10, n/30.

SALES JOURNAL Account DebitedNumber Invoice Accounts Receivable Cost of Goods Sold Date Dr. Sales Cr Dr. Inventory Cr Apr. 30 Totals Req 1A Req 1B>

2 & 3. Enter the March 31 balances for 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 receivable subsidiary ledger accounts for Paula Kohr, Page Alistair, and Nic Nelson.

4-a. Prepare a trial balance of the general ledger.

4-b. Prepare a schedule of accounts receivable.

Answer 1

Solution to 1(a):

Sales Journal

Date	Account Debited	Invoice Number	Account receivable dr. Sales Cr.	Cost of goods sold dr. Inventory cr.
Apr 3	Page Alistair	760	4,600	3,500
Apr 5	Paula Kohr	761	9,500	7,300
Apr 11	Nic Nelson	762	11,800	6,100
Apr 13	Page Alistair	763	11,100	3,100
Apr 27	Paula Kohr	764	3,310	2,630
Apr 27	Nic Nelson	765	8,400	4,920
Apr 30	Total		48710	27550

Solution to 1(b) :

Cash Receipts Journal

Date	Account Credited	Cash Dr.	Sales Discount Dr.	Account Receivable Cr.	Sales Cr.	Other Accounts Cr.	Cost of Goods Sold Dr. Inventory Cr.
Apr 13	Page Alistair	4580	92	4600	-	-	-
Apr 14	Paula Kohr	9310	190	9500	-	-	-
Apr 16	Sales	58610	-	-	58610	-	38100
Apr 18	Long Term Notes Payable	65000	-	-	-	-	-
Apr 20	Nic Nelson	11564	236	11800	-	-	-
Apr 23	Page Alistair	10878	222	11100	-	-	-
Apr 30	Sales	79300	-	-	79300	-	59800
Apr 30	Totals	239242	740	37000	137910	-	97900

Solution to Ques 2 & 3 :

General Ledger

CASH

Date	Debit	Credit	Balance
Mar 31	-	-	100000
Apr 4	-	934	99066
Apr 12	-	14798	84268
Apr 13	4580	-	88848
Apr 14	9310	-	98158
Apr 16	58610	-	156768
Apr 16	-	9950	146818
Apr 18	65000	-	211818
Apr 20	11564	-	223382
Apr 23	10878	-	234260
Apr 26	-	10192	224068
Apr 30	-	9950	214118
Apr 30	79300	-	293418 (dr.)

Inventory

Date	Debit	Credit	Balance
Mar 31	-	-	150000
Apr 2	15100	-	165100
Apr 3	-	3,500	161600
Apr 5	-	7,300	154300
Apr 11	-	6,100	148200
Apr 13	-	3,100	145100
Apr 16	-	38100	107000
Apr 17	11200	-	118200
Apr 23	-	800	117400
Apr 27	-	2,630	114770
Apr 27	-	4,920	109850
Apr 30	-	59800	50050 (dr.)

Long Term Notes Payable

Date	Debit	Credit	Balance
mar 31	-	-	150000
Apr 18	-	65000	215000
Apr 30	-	-	215000 (cr.)

B. Wiset, Capital

Date	Debit	Credit	Balance
mar 31	-	-	100000
Apr 30	-	-	100000 (cr.)

Sales Discount

date	Debit	credit	Balance
Apr 13	92	-	92
Apr 14	190	-	282
Apr 20	236	-	518
Apr 23	222	-	740 (dr.)

Cost of Goods Sold

date	Debit	credit	Balance
Apr 3	3,500	-	3500
Apr 5	7,300	-	10800
Apr 11	6,100	-	16900
Apr 13	3,100	-	20000
Apr 16	38100	-	58100
Apr 23	800	-	58900
Apr 27	2,630	-	61530
Apr 27	4,920	-	66450
Apr 30	59800	-	126250 (Dr.)

Accounts Receivable Ledger :

Page Alistair

date	Debit	credit	Balance
Apr 3	4600	-	4600
Apr 13	-	4600	0
Apr 13	11100	-	11100
Apr 23	-	11100	0
Apr 30			0

Paula Kohr

date	Debit	credit	Balance
Apr 5	9500	-	9500
Apr 14	-	9500	0
Apr 27	3310	-	3310
Apr 30			3310 (dr.)

Nic Nelson

date	Debit	credit	Balance
Apr 11	11800	-	11800
Apr 20	-	11800	0
Apr 27	8400	-	8400
Apr 30			8400 (dr.)

Note for question 4(a):

Trail balance of all the general ledger is nothing but the end of period balance of all the general ledger. For help i have written the type of account at the balance of apr 30 for each ledger example nic nelson's account has Dr, $8400 balance.

Note for question 4(b):

Schedule for account receivable is simply the summary of individual balances of Debtors which are already made in general ledger.