Cash disbursements and purchases journal Williams Company began business on May 1. The...

Cash disbursements and purchases journal

Williams Company began business on May 1. The following transactions involving purchases and cash disbursements occurred during the first week of May.

May 2 Purchased $25,000 of merchandise inventory on credit from the Sioux City Company, terms 2/10, n/30. Invoice dated May 1.

3 Purchased $12,000 of merchandise inventory on credit from the Wichita Company, terms 2/10, n/30. Invoice dated May 2.

3 Purchased $3,000 of office supplies for cash from Bettendorf Co. Check no. 1267.

4 Purchased $36,000 of office equipment on credit from Office Outfitters, terms n/60. Invoice dated May 3.

6 Paid the amount due for the merchandise purchased from Sioux City Company. Check no. 1268.

6 Purchased $14,500 of merchandise inventory for cash from the Davenport Co. Check no. 1269.

Required

a. Prepare a purchases journal like that in Exhibit 12.8 and a cash disbursements journal like that in Exhibit 12.10. Number all journal pages as page 20.

b. Prepare a schedule of accounts payable as of May 31. There were no accounts payable on May 1.

Reference Exhibit 12.8: