chapter 7 homework 496547

Aug 29, 2021 | Uncategorized

Finer Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of May.
May. 2 Sold merchandise costing $370 to B. Facer for $555 cash, invoice no. 5703.
5 Purchased $2,300 of merchandise on credit from Marchant Corp.
7 Sold merchandise costing $999 to J. Dryer for $1,449, terms 1/10, n/30, invoice no. 5704.
8 Borrowed $8,000 cash by signing a note payable to the bank.
12 Sold merchandise costing $250 to R. Lamb for $400, terms n/30, invoice no. 5705.
16 Received $1,435 cash from J. Dryer to pay for the purchase of May 7.
19 Sold used store equipment for $900 cash to Golf, Inc.
25 Sold merchandise costing $420 to T. Taylor for $659, terms n/30, invoice no. 5706.

Journalize the May transactions that should be recorded in the sales journal assuming the perpetual inventory system is used.

Ali Co. uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of November.
Nov. 3 The company purchased $3,000 of merchandise on credit from Hart Co., terms n/20.
7

The company sold merchandise costing $792 on credit to J. Than for $870, subject to an $17 sales discount if paid by the end of the month.
9

The company borrowed $3,225 cash by signing a note payable to the bank.
13

J. Ali, the owner, contributed $4,525 cash to the company.
18

The company sold merchandise costing $126 to B. Cox for $224 cash.
22

The company paid Hart Co. $3,000 cash for the merchandise purchased on November 3.
27

The company received $853 cash from J. Than in payment of the November 7 purchase.
30 The company paid salaries of $1,500 in cash.

Journalize the November transactions that should be recorded in the cash receipts journal assuming the perpetual inventory system is used.

Marx Supply uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of April.
April 3 Purchased merchandise for $2,400 on credit from Seth, Inc., terms 3/10, n/30.
9 Issued check no. 210 to Kitt Corp. to buy store supplies for $384.
12 Sold merchandise costing $434 on credit to C. Myrs for $729, terms n/30.
17 Issued check no. 211 for $1,500 to pay off a note payable to City Bank.
20 Purchased merchandise for $3,000 on credit from Lite, terms 3/10, n/30.
28

Issued check no. 212 to Lite to pay the amount due for the purchase of April 20, less the discount.
29 Paid salary of $1,350 to B. Dock by issuing check no. 213.
30 Issued check no. 214 to Seth, Inc., to pay the amount due for the purchase of April 3.

Journalize the April transactions that should be recorded in the cash disbursements journal assuming the perpetual inventory system is used.

At the end of May, the sales journal of Mountain View appears as follows.

Date Account
Debited		 Invoice Number PR Accounts Receivable Dr.
Sales Cr.		 Cost of Goods Sold Dr.
Inventory Cr.
May 6 Aaron Reckers 190 4,320 3,283
10 Sara Reed 191 3,380 2,789
17 Anna Page 192 1,504 884
25 Sara Reed 193 602 354
31 Totals 9,806 7,310

Mountain View also recorded the return of defective merchandise with the following entry.

Date General Journal Debit Credit
May 20 Sales Returns and Allowances 250
Accounts Receivable Anna Page 250
Customer returned (worthless) merchandise.

4.award:

10 out of

10.00 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:
1.1

Review 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:
1.1

Review 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.