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CASE STUDY QUESTION Wally's Wallpaper Company sells wall- paper, installed on the customer's wall. Wally does not stock the wallpaper, but buys it after the

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CASE STUDY QUESTION Wally's Wallpaper Company sells wall- paper, installed on the customer's wall. Wally does not stock the wallpaper, but buys it after the customer has made a selection. During April, his company picked up 500 rolls of wall- paper from the wholesale house and installed all 500 rolls, charging the customers $10 per roll, installed. At the end of the month, he had collected for all of his sales except for the sale to one customer (Uncle George), who still owed him for 25 rolls. Wally has a charge account at the wholesale house, which charges him $4 per roll. He has paid for 350 of those wallpaper rolls and still owes the wholesaler for 150 rolls. During April, Wally's company also has these trans- actions: . The company pays April rent of $300 for its small office. . The company receives a telephone bill for $120 but does not pay it until May 5. . Hot weather is coming, so Wally signs up for a drinking-water service. He writes a company check for $175. Of that, $50 is for a bottle of water, and $125 is a deposit on the cooler that holds the bottle of water. (When and if the cooler is returned to the water company, the deposit will be re- funded to Wally's company.) . Wally has one helper, Jack. Jack started with the company in late March and earned $300 in March and $800 in April. The company pays Jack on the first day of the month for all the work performed the previous month. In this computation, pretend the year is 1928there is no social security or income tax withheld. Jack is paid his entire salary, with no de- ductions. (Remember, this is pretend, to make it simple. Do not pay your employees this way in these modern, IRS-afflicted times.) Your assignment: Make up two reports for Wally's Wallpaper Company: (1) A cash receipts and disbursements re- port for April and (2) an accrual basis income and expense report for April

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