| 1)
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. |
2)
| 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. |
3)
| 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. |
4)
| 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. |
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| 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 | |||||||
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| 31 | Totals | 9,806 | 7,310 | ||||||||
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| 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. | |||
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| 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. |
7)
[The following information applies to the questions displayed below.]
| 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 |
| Review the transactions of Wiset Company and enter those that should be journalized in the sales journal.
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| 1.2 | 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. |
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.
| 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. |
