2. Prepare a sales journal, cash receipts journal, purchases journal, cash disbursements journal, and general journal like the ones illustrated in this chapter. 2. Journalize the April transactions into the appropriate journal (do not post to the subledgers or the general ledger). Problem AII-3A Special journals, subledgers-perpetual LO4 Newton Company completed these transactions during April 2020. The terms of all credit sales are 2/10, 1/30. ain 6 Apr. WW2. Purchased merchandise on credit from Baskin Company, Invoice dated April 2 terms 2/10, 1/60, $12,800 - Sold merchandise on credit to Linda Hobart, invoice #760, $3,200. Cost, $1,900. Purchased office supplies on credit from Eau Claire Inc. $1,340 Invoice dated April 2. terms 1/10 EOM. Issued cheque #587 to The Record for advertising expense, $1,020 WAS Sold merchandise on credit to Paul Abrams, invoice #761,$9,400. Cost $5,600, Received an $85 credit memo 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 1/10 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 sole. 13 Sold merchandise on credit to Linda Hobart, Involce #763, $5,200. Cost, $3,100. 14 Received payment from Poul 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 AP-38 Appendix Accounting Information Systems u ping Required 1. Set up accounts receivable subledger accounts for Paul Abrams, Linda Hobart, and Kelly Schaefer 2. Set up accounts payable subledger 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 subledgers where required. Use page 3 for all journals. Problem All-4A Special Journals, subledgers, schedules of accounts receivable and accounts payable, and trial balance-perpetual L04 CHECK FIGURE: 5. Trial balance $506305 This is a continuation of Problem All-3A. You must complete Problem All-A before attempting this problem. Additional transactions for April follow (W163) Apr 17 18 20 20 23 23 25 26 27 27 30 Purchased merchandise on credit from Sprocket Company, Invoice dated April 16, terms 2/10, 1/30. $12,750. Borrowed $50,000 tron First Bank by giving a long-term not payable Received payment from Kelly Schaefer for the April 11 se Purchased store supplies on credit from Frank's Supply invoice dated April 19, terms 10 EOM, 5650. Received a $400 credit memo from Sprocket Company for defective merchandise received on April 17 and returned Received payment from Linda Hobart for the April 13 sale Purchased merchandise on credit from Basin Company, Invoice dated April 24, terms 2/10, 1/60, 510,900. Issued cheque 1590 to Sprocket Company in payment of its April 16 invoice Sold merchandise on credit to Paul Abrams, voice 7764. $3,800. Cost $2.300 Sold merchandise on credit to Kelly Schaefer invoice #765, 56,200. Cost $3,800 Issued cheque #591. payable to Payroll In payment of the sales salaries for the last half of the month $9,500 For simplicity, we assume one cheque Cash sales for the last half of the month were $69.000. Cost, $41,400 30 Required 1. Set up the following general ledger accounts: Cash (101); Accounts Receivable (106); Merchandise Inven- tory (119), Office Supplies (124); Store Supplies (125); Store Equipment (165): Accounts Payable (201), Long-Term Notes Payable (251). Jeff Newton, Capital (301); Sales (413) Sales Discounts (415): Cost of Goods Sold (502): Sales Salaries Expense (621), and Advertising Expense (655). Enter the March 31 balan- ces of $167,000 for Cash; $105,000 for Merchandise Inventory: $105,000 for Jeff Newton, Capital; and $167,000 for Long Term Notes Payable. 2. Continuing from Problem All-3A, journalize the remaining April transactions for Newton Company into the appropriate special journal, posting to the subledgers as required. 3. Post the items that should be posted as individual amounts from the journals. 4. Foot and crossfoot the journals and make the month-end postings. 5. Prepare a trial balance of the general ledger and prepare schedules of accounts receivable and accounts payable Analysis Component: Assume that the sum of the account balances on the schedule of accounts receivable does not equal the balance of the controlling amount in the general ledger. Describe the steps you would go through to discover the error(s). AP-39 2. Prepare a sales journal, cash receipts journal, purchases journal, cash disbursements journal, and general journal like the ones illustrated in this chapter. 2. Journalize the April transactions into the appropriate journal (do not post to the subledgers or the general ledger). Problem AII-3A Special journals, subledgers-perpetual LO4 Newton Company completed these transactions during April 2020. The terms of all credit sales are 2/10, 1/30. ain 6 Apr. WW2. Purchased merchandise on credit from Baskin Company, Invoice dated April 2 terms 2/10, 1/60, $12,800 - Sold merchandise on credit to Linda Hobart, invoice #760, $3,200. Cost, $1,900. Purchased office supplies on credit from Eau Claire Inc. $1,340 Invoice dated April 2. terms 1/10 EOM. Issued cheque #587 to The Record for advertising expense, $1,020 WAS Sold merchandise on credit to Paul Abrams, invoice #761,$9,400. Cost $5,600, Received an $85 credit memo 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 1/10 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 sole. 13 Sold merchandise on credit to Linda Hobart, Involce #763, $5,200. Cost, $3,100. 14 Received payment from Poul 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 AP-38 Appendix Accounting Information Systems u ping Required 1. Set up accounts receivable subledger accounts for Paul Abrams, Linda Hobart, and Kelly Schaefer 2. Set up accounts payable subledger 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 subledgers where required. Use page 3 for all journals. Problem All-4A Special Journals, subledgers, schedules of accounts receivable and accounts payable, and trial balance-perpetual L04 CHECK FIGURE: 5. Trial balance $506305 This is a continuation of Problem All-3A. You must complete Problem All-A before attempting this problem. Additional transactions for April follow (W163) Apr 17 18 20 20 23 23 25 26 27 27 30 Purchased merchandise on credit from Sprocket Company, Invoice dated April 16, terms 2/10, 1/30. $12,750. Borrowed $50,000 tron First Bank by giving a long-term not payable Received payment from Kelly Schaefer for the April 11 se Purchased store supplies on credit from Frank's Supply invoice dated April 19, terms 10 EOM, 5650. Received a $400 credit memo from Sprocket Company for defective merchandise received on April 17 and returned Received payment from Linda Hobart for the April 13 sale Purchased merchandise on credit from Basin Company, Invoice dated April 24, terms 2/10, 1/60, 510,900. Issued cheque 1590 to Sprocket Company in payment of its April 16 invoice Sold merchandise on credit to Paul Abrams, voice 7764. $3,800. Cost $2.300 Sold merchandise on credit to Kelly Schaefer invoice #765, 56,200. Cost $3,800 Issued cheque #591. payable to Payroll In payment of the sales salaries for the last half of the month $9,500 For simplicity, we assume one cheque Cash sales for the last half of the month were $69.000. Cost, $41,400 30 Required 1. Set up the following general ledger accounts: Cash (101); Accounts Receivable (106); Merchandise Inven- tory (119), Office Supplies (124); Store Supplies (125); Store Equipment (165): Accounts Payable (201), Long-Term Notes Payable (251). Jeff Newton, Capital (301); Sales (413) Sales Discounts (415): Cost of Goods Sold (502): Sales Salaries Expense (621), and Advertising Expense (655). Enter the March 31 balan- ces of $167,000 for Cash; $105,000 for Merchandise Inventory: $105,000 for Jeff Newton, Capital; and $167,000 for Long Term Notes Payable. 2. Continuing from Problem All-3A, journalize the remaining April transactions for Newton Company into the appropriate special journal, posting to the subledgers as required. 3. Post the items that should be posted as individual amounts from the journals. 4. Foot and crossfoot the journals and make the month-end postings. 5. Prepare a trial balance of the general ledger and prepare schedules of accounts receivable and accounts payable Analysis Component: Assume that the sum of the account balances on the schedule of accounts receivable does not equal the balance of the controlling amount in the general ledger. Describe the steps you would go through to discover the error(s). AP-39
