Question

t 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 $14,200 of merchandise on credit from Noth Company, terms 2/10, n/60.
		3		(a)		Sold merchandise on credit to Page Alistair, Invoice No. 760, for $5,100 (cost is $2,500).
		3		(b)		Purchased $1,460 of office supplies on credit from Custer, Inc. terms n/30.
		4				Issued Check No. 587 to World View for advertising expense of $869.
		5				Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,300 (cost is $7,100).
		6				Returned $75 of office supplies purchased on April 3 to Custer, Inc. Wiset reduces accounts payable by that amount.
		9				Purchased $10,975 of store equipment on credit from Hal’s Supply, terms n/30.
		11				Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $10,000 (cost is $7,700).
		12				Issued Check No. 588 to Noth Company in payment of its April 2 purchase less the discount of $284.
		13		(a)		Received payment from Page Alistair for the April 3 sale less the discount of $102.
		13		(b)		Sold $6,400 of merchandise on credit to Page Alistair (cost is $4,700), Invoice No. 763.
		14				Received payment from Paula Kohr for the April 5 sale less the discount of $186.
		16		(a)		Issued Check No. 589 for $10,150, payee is Payroll, in payment of sales salaries expense for the first half of the month.
		16		(b)		Cash sales for the first half of the month are $55,790 (cost is $40,000). These cash sales are recorded in the cash receipts journal on April 16.
		17				Purchased $14,300 of merchandise on credit from Grant Company, terms 2/10, n/30.
		18				Borrowed $66,000 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 of $200.
		20		(b)		Purchased $940 of store supplies on credit from Hal’s Supply, terms n/30.
		23		(a)		Returned $1,000 of defective merchandise purchased on April 17 to Grant Company. Wiset reduces accounts payable by that amount.
		23		(b)		Received payment from Page Alistair for the April 13 sale less the discount of $128.
		25				Purchased $11,275 of merchandise on credit from Noth Company, 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 of $266.
		27		(a)		Sold $3,220 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,430).
		27		(b)		Sold $7,800 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $5,200).
		30		(a)		Issued Check No. 591 for $10,150, payee is Payroll, in payment of the sales salaries expense for the last half of the month.
		30		(b)		Cash sales for the last half of the month are $71,700 (cost is $64,500). These cash sales are recorded in the cash receipts journal on April 30.

Assume that Wiset Co. uses the perpetual inventory system.

     
Required:

1-a. Enter the transaction of the Wiset Company that should be journalized in the purchases journal.
1-b. Enter the transaction of the Wiset Company that should be journalized in the cash payments journal.
1-c. Prepare a general journal. Enter the transaction of the Wiset Company that should be journalized in the general journal.
2 & 3. Enter the March 31 balances of Cash ($91,000), Inventory ($136,000), Long-Term Notes Payable ($127,000), 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

Answer 1

Solution to 1a)

solution to 1b)

solution to 1c)