Problem AII-3A & 4A (Newton Company completed these transactions during April 2020. The terms of all credit sales are 2/10, n/30.)

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 Sales Journal Invoice No. A/R Dr. Sales Cr. Date (2020) Account Debited Cost of Goods Sold Dr. Merchandise Inventory Cr. Totals (106/413) (502/119) NEWTON COMPANY Cash Receipts Journal Date (2020) Accounts Credited Explanation Cash Dr. Sales Disc Dr. A/R Cr. Sales Cr. Other Accounts Cr. COGS Dr. Merchandise Inventory Cr. Totals (101) (415) (106) (413) (X) (502/119) NEWTON COMPANY Purchases Journal Date (2020) Accounts Credited Date of Invoice Terms Accts. Payable Credit Merchandise Inventory Debit Office Supplies Debit Other Accts. Debit Totals (201) (119) (124) NEWTON COMPANY Cash Disbursements Journal Date (2020) Ch. No. Payee Account Debited Cash Credit Merchandise Inventory Credit Other Accts. Debit Accts. Payable Debit Totals (101) (119) (X) (201) Journal entry worksheet 12 Record the returned office supplies. Note: Enter debits before credits. Date (2020) General Journal Debit Credit Apr. 6 Record entry Clear entry View general journal Journal entry worksheet 1 2 Record the returned merchandise. Note: Enter debits before credits. General Journal Debit Credit Date (2020) Apr. 23 Record entry Clear entry View general journal 2. Post the entries into the subsidiary ledgers and general ledger accounts. 101: Cash PR 106: Accounts Receivable Explanation PR Debit Date (2020) Explanation Debit Credit Balance Date (2020) 119: Merchandise Inventory Explanation PR Debit 124: Office Supplies PR Debit Date (2020) Credit Balance Date (2020) Explanation 125: Store Supplies PR Debit 165: Store Equipment Explanation PR Debit Date (2020) Explanation Credit Balance Date (2020) 3. Prepare a trial balance of the General Ledger and prepare schedules of accounts receivable and accounts payable. NEWTON COMPANY Schedule of Accounts Receivable April 30, 2020 Total accounts receivable NEWTON COMPANY Trial Balance April 30, 2020 Account Debit Credit Totals