ACCT211 2014 Spring D- LearnSmart 31 Assignment Week 5 HOMEWORK 3

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ACCT211 2014 Spring D- LearnSmart 31 Assignment Week 5 HOMEWORK 3

Question # 00061140 Posted By: spqr Updated on: 04/14/2015 01:08 AM Due on: 05/12/2015

Subject Accounting Topic Accounting Tutorials:

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Exercise 7-10 Posting to subsidiary ledger accounts; preparing a schedule of accounts receivable LO P2

At the end of May, the sales journal of Mountain View appears as follows.

Date	Account Debited	Invoice Number	PR	Accounts Receivable Dr. Sales Cr.	Cost of Goods Sold Dr. Inventory Cr.
May 6	Aaron Reckers	190			2,290	1,740
10	Sara Reed	191			1,350	1,114
17	Anna Page	192			601	353
25	Sara Reed	193			240	141

31	Totals				4,481	3,348

Mountain View also recorded the return of defective merchandise with the following entry.

Date	General Journal	Debit	Credit
May 20	Sales Returns and Allowances	450
	Accounts Receivable—Anna Page		450
	Customer returned (worthless) merchandise.

Exercise 7-10 Part 3

3.	Prepare a schedule of accounts receivable.

Problem 7-1A Special journals, subsidiary ledgers, and schedule of accounts receivable-perpetual LO C3, P1, P2

[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).

Apr. 2		Purchased $14,000 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60.
3		Sold merchandise on credit to Page Alistair, Invoice No. 760, for $5,200 (cost is $3,100).
3		Purchased $1,520 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM.
4		Issued Check No. 587 to World View for advertising expense, $911.
5		Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,000 (cost is $7,400).
6		Received an $65 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3.
9		Purchased $10,030 of store equipment on credit from Hal’s Supply, invoice dated April 9, terms n/10 EOM.
11		Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $13,100 (cost is $6,700).
12		Issued Check No. 588 to Noth Company in payment of its April 2 invoice, less the discount.
13		Received payment from Page Alistair for the April 3 sale, less the discount.
13		Sold $12,100 of merchandise on credit to Page Alistair (cost is $4,000), Invoice No. 763.
14		Received payment from Paula Kohr for the April 5 sale, less the discount.
16		Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $9,400. Cashed the check and paid employees.
16		Cash sales for the first half of the month are $55,440 (cost is $41,000). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.)
17		Purchased $13,900 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30.
18		Borrowed $58,000 cash from First State Bank by signing a long-term note payable.
20		Received payment from Nic Nelson for the April 11 sale, less the discount.
20		Purchased $1,180 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM.
23		Received a $700 credit memorandum from Grant Company for the return of defective merchandise received on April 17.
23		Received payment from Page Alistair for the April 13 sale, less the discount.
25		Purchased $11,335 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60.
26		Issued Check No. 590 to Grant Company in payment of its April 17 invoice, less the return and the discount.
27		Sold $3,440 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,690).
27		Sold $6,900 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,265).
30		Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $9,400.
30		Cash sales for the last half of the month are $77,900 (cost is $61,400).

Assume that Wiset Co. uses the perpetual inventory system.

Problem 7-1A Part 1

Required:
1.1	Review the transactions of Wiset Company and enter those that should be journalized in the sales journal.

SALES JOURNAL
Date	Account Debited	Invoice Number	Accounts Receivable Dr. Sales Cr.	Cost of Goods Sold Dr. Inventory Cr.
Apr. 03	Page Alistair	760	$5,200	$3,100
Apr. 05	Paula Kohr	761	9,000	7,400
Apr. 11	Nic Nelson	762	13,100	6,700
Apr. 13	Page Alistair	763	12,100	4,000
Apr. 27 Kohr	Paula Kohr	764	3,440	2,690
Apr. 27 Nelson	Nic Nelson	765	6,900	4,265



Apr. 30	Totals		$49,740	$28,155

Review the transactions of Wiset Company and enter those that should be journalized in the cash receipts journal. The terms of all credit sales are 2/10, n/30.

Problem 7-1A Part 2

2.

Enter the March 31 balances for Cash ($93,000), Inventory ($154,000), Long-Term Notes Payable ($147,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the following general ledger accounts and in the accounts receivable subsidiary ledger accounts for Paula Kohr, Page Alistair, and Nic Nelson.

Problem 7-1A Part 3

3.	Prepare a trial balance

Problem 7-3A Special journals, subsidiary ledgers, trial balance-perpetual LO C3, P1, P2

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

Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30).

Mar. 1	Purchased $40,000 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30.
2	Sold merchandise on credit to Min Cho, Invoice No. 854, for $16,000 (cost is $8,000).
3	Purchased $1,200 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM.
3	Sold merchandise on credit to Linda Witt, Invoice No. 855, for $8,000 (cost is $4,000).
6	Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
9	Purchased $19,400 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOM.
10	Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $4,000 (cost is $2,000).
12	Received payment from Min Cho for the March 2 sale less the discount.
13	Sent Van Industries Check No. 416 in payment of the March 1 invoice less the discount.
13	Received payment from Linda Witt for the March 3 sale less the discount.
14	Purchased $29,720 of merchandise from the CD Company, invoice dated March 13, terms 2/10, n/30.
15	Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $12,400. Cashed the check and paid the employees.
15	Cash sales for the first half of the month are $64,000 (cost is $51,200). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)
16	Purchased $1,720 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM.
17	Received a $2,972 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.
19	Received a $582 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit.
20	Received payment from Jovita Albany for the sale of March 10 less the discount.
23	Issued Check No. 418 to CD Company in payment of the invoice of March 13 less the March 17 return and the discount.
27	Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $13,200 (cost is $5,280).
28	Sold merchandise on credit to Linda Witt, Invoice No. 858, for $5,000 (cost is $2,000).
31	Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $12,400. Cashed the check and paid the employees.
31	Cash sales for the last half of the month are $70,400 (cost is $42,240).
31	Verify that amounts impacting customer and creditor accounts were posted and that any amounts that should have been posted as individual amounts to the general ledger accounts were posted. Foot and crossfoot the journals and make the month-end postings.

Assume the following ledger account amounts Inventory (March 1 beg. bal. is $60,000), Z. Church, Capital (March 1 beg. bal. is $60,000).

Problem 7-3A Part 1

Required:

2.1

Enter the transactions in a sales journal.

Enter the transactions in a purchases journal.

Enter the transactions in a cash receipts journal.

Enter the transactions in a cash disbursements journal.

Enter the transactions in a general journal.

Problem 7-2A Special journals, subsidiary ledgers, and schedule of accounts payable-perpetual LO C3, P1, P2

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

Apr. 2		Purchased $15,700 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60.
3		Sold merchandise on credit to Brooke Page Alistair, Invoice No. 760, for $5,800 (cost is $2,200).
3		Purchased $1,450 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM.
4		Issued Check No. 587 to World View for advertising expense, $894.
5		Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,200 (cost is $6,400).
6		Received an $70 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3.
9		Purchased $12,560 of store equipment on credit from Hal’s Supply, invoice dated April 9, terms n/10 EOM.
11		Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $12,500 (cost is $7,600).
12		Issued Check No. 588 to Noth Company in payment of its April 2 invoice, less the discount.
13		Received payment from Page Alistair for the April 3 sale, less the discount.
13		Sold $7,900 of merchandise on credit to Page Alistair (cost is $4,100), Invoice No. 763.
14		Received payment from Paula Kohr for the April 5 sale, less the discount.
16		Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $10,100. Cashed the check and paid employees.
16		Cash sales for the first half of the month are $59,170 (cost is $37,400). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.)
17		Purchased $11,600 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30.
18		Borrowed $67,000 cash from First State Bank by signing a long-term note payable.
20		Received payment from Nic Nelson for the April 11 sale, less the discount.
20		Purchased $920 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM.
23		Received a $900 credit memorandum from Grant Company for the return of defective merchandise received on April 17.
23		Received payment from Page Alistair for the April 13 sale, less the discount.
25		Purchased $11,580 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60.
26		Issued Check No. 590 to Grant Company in payment of its April 17 invoice, less the return and the discount.
27		Sold $3,350 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,560).
27		Sold $9,400 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $5,485).
30		Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $10,100.
30		Cash sales for the last half of the month are $76,100 (cost is $65,800).

Assume that Wiset Co. uses the perpetual inventory system.

Required:

1.1

Review the April transactions of Wiset Company and enter those transactions that should be journalized in the purchases journal.

Review the April transactions of Wiset Company and enter those transactions that should be journalized in the cash disbursements journal.

Prepare a general journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the general journal.

2.	Enter the March 31 balances of Cash ($80,000), Inventory ($130,000), Long-Term Notes Payable ($110,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the following general ledger accounts and in the accounts payable subsidiary ledger accounts for Hal’s Supply, Noth Company, Grant Company and Custer, Inc.

4.1

Prepare a trial balance.

4.2	Prepare a schedule of accounts payable.

Exercise 8-5 Petty cash fund accounting LO P2

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

Palmona Co. establishes a $230 petty cash fund on January 1. On January 8, the fund shows $137 in cash along with receipts for the following expenditures: postage, $38; transportation-in, $13; delivery expenses, $15; and miscellaneous expenses, $27. Palmona uses the perpetual system in accounting for merchandise inventory.

xercise 8-5 Part 1

(1)	Prepare journal entry to establish the fund on January 1.

Exercise 8-5 Part 2

(2)	Prepare journal entry to reimburse it on January 8.

Exercise 8-5 Part 3

(3)	Prepare journal entries to both reimburse the fund and increase it to $280 on January 8, assuming no entry in part 2.

Problem 8-4A Prepare a bank reconciliation and record adjustments LO P3

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

The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2013.

a.	On July 31, the company’s Cash account has a $25,642 debit balance, but its July bank statement shows a $28,005 cash balance.
b.	Check No. 3031 for $1,530 and Check No. 3040 for $757 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $541 and Check No. 3069 for $2,298, both written in July, are not among the canceled checks on the July 31 statement.
c.	In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,210 but was erroneously entered in the accounting records as $1,200.
d.	A credit memorandum enclosed with the July bank statement indicates the bank collected $6,000 cash on a non-interest-bearing note for Branch, deducted a $30 collection fee, and credited the remainder to its account. Branch had not recorded this event before receiving the statement.
e.	A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.
f.	Enclosed with the July statement is a $9 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.
g.	Branch’s July 31 daily cash receipts of $7,152 were placed in the bank’s night depository on that date, but do not appear on the July 31 bank statement.

Section Break

Problem 8-4A Pr

Problem 8-4A Part 1

Required:
1.	Prepare the bank reconciliation for this company as of July 31, 2013.

roblem 8-4A Part 2

2.	Prepare the journal entries necessary to bring the company’s book balance of cash into conformity with the reconciled cash balance as of July 31, 2013. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

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Solution: ACCT211 2014 Spring D- LearnSmart 31 Assignment Week 5 HOMEWORK 3

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ACCT211 2014 Spring D- LearnSmart 31 Assignment Week 5 HOMEWORK 3

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