Problem 77B Zwicky Sales Company, which uses the perpetual inventory system and makes all credit sales with terms 1 10, n 30, had these transactions during January Jan 2 Issued invoice no 191 for sale on account to Wooten Design Ltd , $9,400 Zwickys cost of this inventory was $5,560 Credit sales terms are 1 10, n 30 3 Purchased inventory on credit terms of 3 10, n 60 from Delwood Co , $23,600 The invoice was dated January 3 4 Sold inventory for cash, $3,232 (cost, $2,040) 5 Issued cheque no 473 to purchase furniture for cash, $4,348 8 Collected interest revenue of $10,760 9 Issued invoice no 192 for sale on account to Piver Inc , $25,000 (cost, $13,200) Credit sales terms are 1 10, n 30 10 Purchased inventory for cash, $3,104, issuing cheque no 474 12 Received $9,306 cash from Wooten Design Ltd in full settlement of its account receivable 13 Issued cheque no 475 to pay Delwood Co net amount owed from January 3 13 Purchased supplies on account from Lehigh Corp , $5,756 Terms were the net end of the month The invoice was dated January 13 15 Sold inventory on account to Cradick Ltd , issuing invoice no 193 for $2,972 (cost, $1,640) Credit sales terms are 1 10, n 30 17 Issued credit memo to Cradick Ltd for $2,972 for merchandise sent in error and returned to Zwicky by Cradick It also accounted for receipt of the inventory 18 Issued invoice no 194 for credit sale to Wooten Design Ltd , $7,300 (cost, $3,880) Credit sales terms are 1 10, n 30 19 Received $24,750 from Piver Inc in full settlement of its account receivable from January 9 20 Purchased inventory on credit terms of net 30 from Jasper Sales Ltd , $5,600 The invoice was dated January 19 22 Purchased furniture on credit terms of 3 10, n 60 from Delwood Co , $13,100 The invoice was dated January 22 22 Issued cheque no 476 to pay for insurance coverage, debiting Prepaid Insurance for $5,380 24 Sold supplies to an employee for cash of $1,344, which was the value of the supplies 25 Issued cheque no 477 to pay utilities, $4,552 28 Purchased inventory on credit terms of 2 10, n 30 from Lehigh Corp , $1,684 The invoice was dated January 28 29 Returned damaged inventory to Lehigh Corp , issuing a debit memo for $1,684 29 Sold goods on account to Piver Inc , issuing invoice no 195 for $5,268 (cost, $3,256) Credit sales terms are 1 10, n 30 30 Issued cheque no 478 to pay Lehigh Corp on account from January 13 31 Received cash in full on account from Wooten Design Ltd for credit sale of January 18 There was no discount 31 Issued cheque no 479 to pay monthly salaries of $7,400 Required For Zwicky Sales Company, open the following three column general ledger accounts using the account numbers given Cash 111 Sales Revenue 411 Accounts Receivable 112 Sales Discounts 412 Supplies 116 Sales Returns and Allowances 413 Prepaid Insurance 117 Interest Revenue 419 Inventory 118 Cost of Goods Sold 511 Furniture 151 Salaries Expense 531 Accounts Payable 211 Utility Expense 541 Open these accounts in the subsidiary ledgers accounts receivable subsidiary ledgerPiver Inc , Cradick Ltd , and Wooten Design Ltd accounts payable subsidiary ledgerDelwood Co , Lehigh Corp , and Jasper Sales Ltd Enter the transactions in a sales journal (Page 8), a cash receipts journal (Page 3), a purchases journal (Page 6), a cash payments journal (Page 9), and a general journal (Page 4), as appropriate Disregard PST and GST in this question Post daily to the accounts receivable subsidiary ledger and to the accounts payable subsidiary ledger Post the individual amounts to the general ledger on the date recorded in the journal post column totals to the general ledger on January 31 Total each column of the special journals Show that total debits equal total credits in each journal Balance or reconcile the accounts receivable subsidiary ledger and Accounts Receivable in the general ledger Do the same for the accounts payable subsidiary ledger and Accounts Payable in the general ledger

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Problem 77B Zwicky Sales Company, which uses the perpetual inventory system and makes all credit sales with terms 1/10, n/30, had these transactions during January:

Jan.2

Issued invoice no. 191 for sale on account to Wooten Design Ltd., $9,400. Zwickys cost of this inventory was $5,560. Credit sales terms are 1/10, n/30.

Purchased inventory on credit terms of 3/10, n/60 from Delwood Co., $23,600. The invoice was dated January 3.

Sold inventory for cash, $3,232 (cost, $2,040).

Issued cheque no. 473 to purchase furniture for cash, $4,348.

Collected interest revenue of $10,760.

Issued invoice no. 192 for sale on account to Piver Inc., $25,000 (cost, $13,200). Credit sales terms are 1/10, n/30.

Purchased inventory for cash, $3,104, issuing cheque no. 474.

Received $9,306 cash from Wooten Design Ltd. in full settlement of its account receivable.

Issued cheque no. 475 to pay Delwood Co. net amount owed from January 3.

Purchased supplies on account from Lehigh Corp., $5,756. Terms were the net end of the month. The invoice was dated January 13.

Sold inventory on account to Cradick Ltd., issuing invoice no. 193 for $2,972 (cost, $1,640). Credit sales terms are 1/10, n/30.

Issued credit memo to Cradick Ltd. for $2,972 for merchandise sent in error and returned to Zwicky by Cradick. It also accounted for receipt of the inventory.

Issued invoice no. 194 for credit sale to Wooten Design Ltd., $7,300 (cost, $3,880). Credit sales terms are 1/10, n/30.

Received $24,750 from Piver Inc. in full settlement of its account receivable from January 9.

Purchased inventory on credit terms of net 30 from Jasper Sales Ltd., $5,600. The invoice was dated January 19.

Purchased furniture on credit terms of 3/10, n/60 from Delwood Co., $13,100. The invoice was dated January 22.

Issued cheque no. 476 to pay for insurance coverage, debiting Prepaid Insurance for $5,380.

Sold supplies to an employee for cash of $1,344, which was the value of the supplies.

Issued cheque no. 477 to pay utilities, $4,552.

Purchased inventory on credit terms of 2/10, n/30 from Lehigh Corp., $1,684. The invoice was dated January 28.

Returned damaged inventory to Lehigh Corp., issuing a debit memo for $1,684.

Sold goods on account to Piver Inc., issuing invoice no. 195 for $5,268 (cost, $3,256). Credit sales terms are 1/10, n/30.

Issued cheque no. 478 to pay Lehigh Corp. on account from January 13.

Received cash in full on account from Wooten Design Ltd. for credit sale of January 18. There was no discount.

Issued cheque no. 479 to pay monthly salaries of $7,400.

Required

For Zwicky Sales Company, open the following three-column general ledger accounts using the account numbers given:

Cash	111	Sales Revenue	411
Accounts Receivable	112	Sales Discounts	412
Supplies	116	Sales Returns and Allowances	413
Prepaid Insurance	117	Interest Revenue	419
Inventory	118	Cost of Goods Sold	511
Furniture	151	Salaries Expense	531
Accounts Payable	211	Utility Expense	541

Open these accounts in the subsidiary ledgers: accounts receivable subsidiary ledgerPiver Inc., Cradick Ltd., and Wooten Design Ltd.; accounts payable subsidiary ledgerDelwood Co., Lehigh Corp., and Jasper Sales Ltd.
Enter the transactions in a sales journal (Page 8), a cash receipts journal (Page 3), a purchases journal (Page 6), a cash payments journal (Page 9), and a general journal (Page 4), as appropriate. Disregard PST and GST in this question.
Post daily to the accounts receivable subsidiary ledger and to the accounts payable subsidiary ledger. Post the individual amounts to the general ledger on the date recorded in the journal; post-column totals to the general ledger on January 31.
Total each column of the special journals. Show that total debits equal total credits in each journal.
Balance or reconcile the accounts receivable subsidiary ledger and Accounts Receivable in the general ledger. Do the same for the accounts payable subsidiary ledger and Accounts Payable in the general ledger.