Newton Company completed these transactions during April 2014. The terms of all credit sales are 2/10, n/30.
Apr. 2 Purchased merchandise on credit from Baskin Company, invoice dated April 2, terms 2/10, n/60, $12,800.
3 Sold merchandise on credit to Linda Hobart, invoice #760, $3,200. Cost, $1,900
3 Purchased office supplies on credit from Eau Claire Inc., $1,340. Invoice dated April 2, terms n/10 EOM.
4 Issued cheque #587 to The Record for advertising expense, $1,020.
5 Sold merchandise on credit to Paul Abrams, invoice #761, $9,400. Cost, $5,600
6 Received an $85 credit memorandum from Eau Claire Inc. for office supplies received on April 3 and returned for credit.
9 Purchased store equipment on credit from Frank's Supply, invoice dated April 9, terms n/10 EOM, $10,500.
11 Sold merchandise on credit to Kelly Schaefer, invoice #762, $10,000. Cost, $6,000
12 Issued cheque #588 to Baskin Company in payment of its April 2 invoice.
13 Received payment from Linda Hobart for the April 3 sale.
13 Sold merchandise on credit to Linda Hobart, invoice #763, $5,200. Cost, $3,100
14 Received payment from Paul Abrams for the April 5 sale.
16 Issued cheque #589, payable to Payroll, in payment of the sales salaries for the first half of the month, $9,500. For simplicity, we assume one cheque.
16 Cash sales for the first half of the month were $54,000. Cost, $32,400 Cash sales are usually recorded daily from the cash register readings. However, they are recorded only once in this problem to reduce the repetitive transactions.

Required
1. Set up Accounts Receivable Sub ledger accounts for Paul Abrams, Linda Hobart, and Kelly Schaefer.
2. Set up Accounts Payable Sub ledger accounts for Frank's Supply, Baskin Company, Sprocket Company, and Eau Claire Inc.
3. Journalize the transactions of Newton Company into the appropriate special journal, posting to the sub ledgers where required. Use page 3 for all journals.