Professional Documents
Culture Documents
Apr. 2 Withdraw from personal savings account and deposited to the name of the
business as additional investment.10,000
2 Purchased 13,300 of merchandise on credit from Negi Company, terms
2/10, n/60 FOB shipping-point.
2 Receive and paid the electric bill.345.
2 Receive and paid freight charges on April 2 purchased, 210.
3 Sold merchandise on credit to Brooke Sledd, for 3,000. FOB destination
(cost of goods sold 2,000).
3 Purchased 1,380 of office supplies on credit from Madison, terms n/30.
4 Paid U.S. View for advertising expense, 999.
4 Receive freight charges for April 3 sales. 130.
4 Received water bill from City Water District.128.
5 Sold merchandise on credit to Paul Kohr, for 8,000 (cost of goods sold 6,500).
6 Received an 85 credit memorandum from Madison, Inc., for the return of
some of the office supplies received on April 3.
6 Receive returned from Paul Kohr April 5 sales. 220. (cost of goods 130).
9 Purchased 11,125 of store equipment on credit from Neds Supply, terms n/10 EOM.
11 Sold merchandise on credit to Amy Nilson, for 9,500 (cost of goods sold 7,000).
12 Issued Check to Negi Company in payment of its April 2.
13 Received payment from Brooke Sledd for the April 3 sale.
13 Sold 4,100 of merchandise on credit to Brooke Sledd (cost of goods sold 2,600)
14 Received payment from Paul Kohr for the April 5 sale.
15 Paid freight charges of April 3 sales.
16 Made payment of salaries expense for the first half of the month, 9,750.
16 Cash sales for the first half of the month are 50,840 (cost of goods sold 33,880).
(Cash sales are recorded daily from cash register data but are recorded only twice in this
problem to reduce repetitive entries.)
17 Purchased 12,750 of merchandise on credit from Price Company, terms 2/10, n/30.
18 Made partial payment to Neds supply for April 9. 5,000.
20 Received payment from Amy Nilson for the April 11 sale.
20 Purchased 730 of store supplies on credit from Neds Supply, terms n/10 EOM.
23 Received a 400 credit memorandum from Price Company for the
return of defective merchandise received on April 17.
23 Received payment from Brooke Sledd for the April 13 sale.
25 Purchased 10,375 of merchandise on credit from Negi Company, dated April 24, terms 2/10, n/60.
26 Issued Check to Price Company in payment of its April 17 invoice.
27 Sold 3,070 of merchandise on credit to Paul Kohr, (cost of goods sold 2,420).
27 Sold 5,700 of merchandise on credit to Amy Nilson, (cost of goods sold 3,305).
28 Deposited cash to the name of owner for personal use. 2,500.
30 Made payment of the salaries expense for the last half of the month, 9,750.
30 Cash sales for the last half of the month are 70,975 (cost of goods sold 55,900).
Required;
1. Open the following general ledger accounts: 111 Cash, 113 Accounts Receivable;115 Supplies; 123 Inventory;
125 Store Equipment ; 211 Accounts Payable; 214 Long-Term Notes Payable;
311 B. Wise, Capital, 312 B. Wise, withdrawal; 412 Sales; 415 Sales Discounts;
417 Sales Return and Allowances; 501 Cost of Goods Sold; 513 Salaries Expense; 516 Freight out;
527 Advertising Expense; 547 Utilities Expense
8,000
05 ACCOUNTS RECEIVABLE 113
SALES 412 8,000
BROOKE SLEDD, 2/10,N/30, FOB
DESTINATION
408,257 408,257
513,219 513,221
CASH 111 DR
CA 111 CR
ACCOUNT113 DR
113 CR
SUPPLIE 115 DR
SU 115 CR
INVENT 123 DR
I 123 CR
STORE E 125
125
ACCOUNT211 DR
211 CR
LONG-TE214 DR
214 CR
WISE, C 311 DR
W 311 CR
WISE, W 312 DR
312 CR
SALES 412 DR
SA 412 CR
SALES D 415 DR
415 CR
SALES R 417 DR
417 CR
COST OF 501 DR
501 CR
SALARIE 513 DR
S 513 CR
FREIGHT 516 DR
F 516 CR
ADVERTI 527 DR
527 CR
UTILITIE 547 DR
U 547 CR
GJ 3
DATE PARTICULARS R DEBIT CREDIT
APRIL 16 SALARIES EXPENSE 513 9,750
CASH 111 9,750
PAYMENTS FOR SALARIES
12,350
26 ACCOUNTS PAYABLE 211
CASH 111 12,103
INVENTORY 123 247
PAYMENTS TO PRICE COMPANY
GJ 4
DATE PARTICULARS R DEBIT CREDIT
APRIL 27 ACCOUNTS RECEIVABLE 113 3,070
SALES 412 3,070
PAUL KOHR, 2/10,N/30,
FREIGHT-OUT 516
BALANCE
DATE ITEM POST. DEBIT CREDIT DR CR
APRIL 4 GJ1 130 130
30 GJ5 130 0
-
311 WISE, CAPITAL 110,000
312 WISE, WI 2,500
412 SALES 155,185
415 SALES DIS 488
417 SALES RET 220
501 COST OF G 113,475
513 SALARIES 19,500
516 FREIGHT O 130
527 ADVERTISI 999
547 UTILITIES 473
WISE COMPANY
TRIAL BALANCE
30-Apr-17
NET SALES
SALES 155,185
LESS:
SALES RETURNS AND ALLOWANCES 488
SALES DISCOUNTS 220 (708)
NET SALES 154,477
LESS:
COST OF GOODS SOLD (113,475)
GROSS PROFIT 41,002
LESS: EXPENSES
SALARIES EXPENSE 19,500
FREIGHT OUT 130
ADVERTISING EXPENSE 999
UTILITIES EXPENSE 473 (21,102)
NET INCOME 19,900
WISE COMPANY
STATEMENT OF OWNER'S EQUITY
FOR THE MONTH ENDED 4/30/2017
ASSETS
111 CASH 186,886
113 ACCOUNTS RECEIVABLE 8,770
115 SUPPLIES 2,025
123 INVENTORY 47,247
125 STORE EQUIPMENT 11,125
TOTAL ASSETS 256,053
LIABILITIES
211 ACCOUNTS PAYABLE 18,653
214 LONG-TERM NOTES PAYABLE 110,000
TOTAL LIABILITIES 128,653
OWNER'S EQUITY
311 WISE, CAPITAL 127,400
TOTAL LIABILITIES AND OWNER'S EQUITY 256,053
WISE COMPANY
STATEMENT OF CASHFLOWS
FOR THE MONTH ENDED 4/30/2017