Chapter 7 Homework

  At the end of May, the sales journal of Mountain View appears as follows.  DateAccountDebitedInvoice NumberPRAccounts Receivable Dr.Sales Cr.Cost of Goods Sold Dr.Inventory Cr.May 6      Aaron Reckers190  4,320    3,283   10      Sara Reed191  3,380    2,789   17      Anna Page192  1,504    884   25      Sara Reed193  602    354           31      Totals   9,806    7,310             Mountain View also recorded the return of defective merchandise with the following entry. DateGeneral JournalDebitCreditMay 20  Sales Returns and Allowances250                       Accounts Receivable—Anna Page 250                  Customer returned (worthless) merchandise.    4.award:10 out of10.00 points    Required:1.Post to the customer accounts the entries in the sales journal and any portion of the general journal entry that affects a customer’s account.      2.Post the sales journal amounts first and then any portion of the general journal entry that affects these accounts. Dates may not be chronological in the general ledger accounts.    Prepare a schedule of accounts receivable.  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 $16,000 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 $4,800 (cost is $2,900).3 Purchased $1,450 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, $906.5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,500 (cost is $6,700).6 Received an $95 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3.9 Purchased $12,545 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 $11,900 (cost is $7,700).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 $10,900 of merchandise on credit to Page Alistair (cost is $3,000), 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, $9,850. Cashed the check and paid employees.16 Cash sales for the first half of the month are $59,410 (cost is $44,300). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.)17 Purchased $11,900 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30.18 Borrowed $67,000 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 $980 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM.23 Received a $1,200 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 $11,650 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 $3,140 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,620).27 Sold $6,800 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,940).30 Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $9,850.30 Cash sales for the last half of the month are $73,500 (cost is $62,400). Assume that Wiset Co. uses the perpetual inventory system. Required:1.1Review the transactions of Wiset Company and enter those that should be journalized in the sales journal. 2.Enter the March 31 balances for Cash ($91,000), Inventory ($151,000), Long-Term Notes Payable ($142,000), 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.        Prepare a trial balance.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 $14,600 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60.3 Sold merchandise on credit to Brooke Page Alistair, Invoice No. 760, for $5,500 (cost is $3,800).3 Purchased $1,570 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, $893.5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $8,900 (cost is $6,500).6 Received an $90 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3.9 Purchased $12,725 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 $12,700 (cost is $6,100).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 $7,300 of merchandise on credit to Page Alistair (cost is $4,400), 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, $11,450. Cashed the check and paid employees.16 Cash sales for the first half of the month are $59,710 (cost is $42,800). (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 $63,000 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 $980 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 $11,145 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 $3,190 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,410).27 Sold $9,900 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $5,475).30 Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $11,450.30 Cash sales for the last half of the month are $73,900 (cost is $58,800).         Assume that Wiset Co. uses the perpetual inventory system.     Required:1.1Review 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 ($99,000), Inventory ($148,000), Long-Term Notes Payable ($147,000), 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.