Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Use the following information for the Problems below. (Algo) Skip to question [The following information applies to the questions displayed below.] Wiset Company

Required information

Use the following information for the Problems below. (Algo)

Skip to question

[The following information applies to the questions displayed below.]

Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30).

April 2 Purchased $13,500 of merchandise on credit from Noth Company, terms 2/10, n/60.
April 3 (a) Sold merchandise on credit to Page Alistair, Invoice Number 760, for $9,000 (cost is $8,000).
April 3 (b) Purchased $1,560 of office supplies on credit from Custer, Incorporated, terms n/30.
April 4 Issued Check Number 587 to World View for advertising expense of $868.
April 5 Sold merchandise on credit to Paula Kohr, Invoice Number 761, for $18,000 (cost is $16,500).
April 6 Returned $90 of office supplies purchased on April 3 to Custer, Incorporated. Wiset reduces accounts payable by that amount.
April 9 Purchased $12,225 of store equipment on credit from Hals Supply, terms n/30.
April 11 Sold merchandise on credit to Nic Nelson, Invoice Number 762, for $21,300 (cost is $17,800).
April 12 Issued Check Number 588 to Noth Company in payment of its April 2 purchase less the discount of $270.
April 13 (a) Received payment from Page Alistair for the April 3 sale less the discount of $180.
April 13 (b) Sold $10,800 of merchandise on credit to Page Alistair (cost is $9,300), Invoice Number 763.
April 14 Received payment from Paula Kohr for the April 5 sale less the discount of $360.
April 16 (a) Issued Check Number 589 for $10,650; payee is Payroll, in payment of sales salaries expense for the first half of the month.
April 16 (b) Cash sales for the first half of the month are $52,040 (cost is $35,080). These cash sales are recorded in the cash receipts journal on April 16.
April 17 Purchased $12,850 of merchandise on credit from Grant Company, terms 2/10, n/30.
April 18 Borrowed $60,000 cash from First State Bank by signing a long-term note payable.
April 20 (a) Received payment from Nic Nelson for the April 11 sale less the discount of $426.
April 20 (b) Purchased $830 of store supplies on credit from Hals Supply, terms n/30.
April 23 (a) Returned $750 of defective merchandise purchased on April 17 to Grant Company. Wiset reduces accounts payable by that amount.
April 23 (b) Received payment from Page Alistair for the April 13 sale less the discount of $216.
April 25 Purchased $10,775 of merchandise on credit from Noth Company, terms 2/10, n/60.
April 26 Issued Check Number 590 to Grant Company in payment of its April 17 invoice less the return and the $242 discount.
April 27 (a) Sold $7,140 of merchandise on credit to Paula Kohr, Invoice Number 764 (cost is $6,490).
April 27 (b) Sold $14,600 of merchandise on credit to Nic Nelson, Invoice Number 765 (cost is $12,205).
April 30 (a) Issued Check Number 591 for $10,650; payee is Payroll, in payment of the sales salaries expense for the last half of the month.
April 30 (b) Cash sales for the last half of the month are $73,975 (cost is $58,900). These cash sales are recorded in the cash receipts journal on April 30.

Problem 7-2A (Algo) Special journals, subsidiary ledgers, and schedule of accounts receivable LO P1, P2

Required:

1-a. Enter the transactions of the Wiset Company that should be journalized in the sales journal.

1-b. Enter the transactions of the Wiset Company that should be journalized in the cash receipts journal. The terms of all credit sales are 2/10, n/30.

2. Enter the March 31 balances for Cash ($79,000), Inventory ($191,000), Long-Term Notes Payable ($170,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the respective general ledger accounts.

3. Enter the March 31 balances for Cash ($79,000), Inventory ($191,000), Long-Term Notes Payable ($170,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the respective accounts receivable subsidiary ledger accounts for Paula Kohr, Page Alistair, and Nic Nelson.

4-a. Prepare a trial balance of the general ledger accounts.

4-b. Prepare a schedule of accounts receivable.

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

Step: 3

blur-text-image

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

The Audit Principle 5 Powerful Steps To Align Your Life With The Laws Of Success

Authors: Jane Ann Craig

1st Edition

1732729107, 978-1732729100

More Books

Students also viewed these Accounting questions

Question

My opinions/suggestions are valued.

Answered: 1 week ago