Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Newton Company completed these transactions during April 2020. The terms of all credit sales are 2/10,n/30. April 2 Purchased merchandise on credit from Baskin Company,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Newton Company completed these transactions during April 2020. The terms of all credit sales are 2/10,n/30. April 2 Purchased merchandise on credit from Baskin Company, invoice dated April 2, terms 2/10, 1/60, $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., 51, 340. Invoice dated April 2, terns n/10 EOM. Issued cheque #587 to The Record for advertising expense, $1,020. 5 Sold merchandise on credit to Paul Abrams, invoice #761, $9, 100. Cost, $5,600. 6 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 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. 17 Purchased merchandise on credit from Sprocket Company, invoice dated April 16, terms 2/10, n/30, $12,750. 18 Borrowed $50,000 from First Bank by giving a long-term note payable. 20 Received payment from Kelly Schaefer for the April 11 sale. 20 Purchased store supplies on credit from Frank's Supply, invoice dated April 19, terme n/10 EOM, $650. 23 Received a $400 credit memo from Sprocket Company for detective merchandise received on April 17 and returned 23 Received payment from Linda Hobart for the April 13 sale. 25 Purchased merchandise on credit from Baskin Company, invoice dated April 24, terma 2/10, 1/60, $10.900. 26 Issued cheque #590 to Sprocket Company in payment of its April 16 invoice. 27 Sold merchandise on credit to Paul Abrams, invoice #764, $3,800. Cost, $2,300. 27 Sold merchandise on credit to Kelly Schaefer, invoice 1765, S6,200. Cost, $3,800. 30 Issued cheque #591, payable to Payroll, in payment of the sales salaries for the last half of the month, $9,500. Yor simplicity, we assume one cheque 30 Cash sales for the last half of the month were $69.000. Cost, $41,400. Required: 1-4. Journalize the transactions of Newton Company into the appropriate special journal, posting to the subledgers where required. Post the items that should be posted as individual amounts from the journals and Foot and crossfoot the journals and make the month end postings. Enter the March 31 balances of $167,000 for Cash; $105,000 for Merchandise Inventory S105,000 for Jeff Newton Capital and $167,000 for Long-Term Notes Payable (Enter the transactions in the order provided in the question.) NEWTON COMPANY Sales Journal Date (2020) Account Debited Invoice No. AIR Dr. Sales Cr. Required: 1-4. Journalize the transactions of Newton Company into the appropriate special journal, posting to the subledgers where required. Post the items that should be posted as individual amounts from the journals and Foot and crossfoot the journals and make the month- end postings. Enter the March 31 balances of $167,000 for Cash: $105,000 for Merchandise Inventory, $105,000 for Jeff Newton Capital; and $167,000 for Long-Term Notes Payable (Enter the transactions in the order provided in the question.) NEWTON COMPANY Sales Journal Account Debited Invoice No. Date (2020) A/R Dr. Sales C. Totals (106/413) NEWTON COMPANY Cash Receipts Journal Date (2020) Account Debited Explanation Cash Debit Sales Discount Debit Acct Rec. Credit Sales Credit Other Accts Credit Totals NEWTON COMPANY Cash Receipts Journal Acct. Date (2020) Account Debited Explanation Cash Debit Sales Discount Debit Rec. Credit Sales Credit Other Accts Credit Totals (101) (415) (106) (413) 00) NEWTON COMPANY Purchases Journal Date (2020) Account Credited Date of Invoice Terms Accounts Payable Credit Purchases Debit Office Supplies Debit Other Accounts Debit Totals (201) (505) (124) NEWTON COMPANY Cash Disbursements Journal Ch. Date (2020) No Payee Account Debited Cash Credit Purchase Discount Credit Other Accts. Debit Accts. Payable Debit Totals (101) (506) (201) View transaction list Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Cost Accounting A Managerial Emphasis

Authors: Srikant Datar, Madhav Rajan

17th Global Edition

129236307X, 9781292363073

More Books

Students also viewed these Accounting questions

Question

When do I give in to my bad habit?

Answered: 1 week ago