Newton Company completed these transactions during April 2020. 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 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, terms n/10 EOM, $650. 23 Received a $400 credit memo from Sprocket Company for defective 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, terms 2/10, n/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 #765, $6,200. 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. For simplicity, we assume one cheque. 30 Cash sales for the last half of the month were $69,000. Cost, $41,400. Required: 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.) 1. Record their entries in the Special Journals. NEWTON COMPANY Cash Disbursements Journal Date (2020) Ch. No. Payee Account Debited Cash Credit Merchandise Inventory Credit Other Accts. Debit Accts. Payable Debit 587 The Record 1,020 1,020 12,544 588 256 12,800 Apr. 04 Apr. Apr. 16 Apr. 26 Apr. 30 589 Advertising expense skin Company Sales salaries expense Sprocket Company Sales salaries expense 9,500 Baskin Company Payroll Sprocket Company Payroll 9,500 590 591 9,500 9,500 Totals 32,564 256 20,020 (X) 12,800 (201) (101) (119) View transaction list Journal entry worksheet