The Williams Company sells a product called Mix-Right for $15 each and uses a perpetual inventory system to account for its merchandise. The beginning balance of Mix-Rights and transactions during October 2020 were as follows: Oct 1 Balance: 94 units costing $5 each. 3 Purchased 109 units from Arnold Brothers costing $7.50 each 4 Returned 29 of the units purchased on October 3. 9 Sold 84 units to Kitchen Club, invoice #210. 15 Purchased 209 units from Arnold Brothers costing $8.20 each. 18 Sold 168 units to Thorhild Co-op, invoice #211. 19 Paid for the October 3 purchase; cheque #101. 23 Paid for the October 15 purchase, cheque #102. 24 Sold 59 units to Boyle Grocery, invoice #212. 31 Purchased 84 units from Arnold Brothers costing $8.00 each. Q: Journalize the October transactions in the sales, purchases, and cash disbursements journals. Assume all sales and purchases are on credit; terms 2/10, n/30. Under the assumption that the company keeps its records on a weighted average basis, enter the beginning balances and post each transaction on an inventory sub-ledger record. Posting to other sub-ledgers is not required. (Enter in the order provided and two decimal places) Sales Journal (Format Image 1): Purchase Journal (Format Image 2): Cash Disembursements (Format Image 2)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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The Williams Company sells a product called Mix-Right for $15 each and uses a perpetual inventory system to account for its merchandise. The beginning balance of Mix-Rights and transactions during October 2020 were as follows:

Oct	1	Balance: 94 units costing $5 each.
	3	Purchased 109 units from Arnold Brothers costing $7.50 each
	4	Returned 29 of the units purchased on October 3.
	9	Sold 84 units to Kitchen Club, invoice #210.
	15	Purchased 209 units from Arnold Brothers costing $8.20 each.
	18	Sold 168 units to Thorhild Co-op, invoice #211.
	19	Paid for the October 3 purchase; cheque #101.
	23	Paid for the October 15 purchase, cheque #102.
	24	Sold 59 units to Boyle Grocery, invoice #212.
	31	Purchased 84 units from Arnold Brothers costing $8.00 each.

Q:
Journalize the October transactions in the sales, purchases, and cash disbursements journals. Assume all sales and purchases are on credit; terms 2/10, n/30. Under the assumption that the company keeps its records on a weighted average basis, enter the beginning balances and post each transaction on an inventory sub-ledger record. Posting to other sub-ledgers is not required. (Enter in the order provided and two decimal places)

Sales Journal (Format Image 1):

Purchase Journal (Format Image 2):

Cash Disembursements (Format Image 2)

Purchases Journal
Merchandise
Inventory
Debit
Other
Accounts
Accounts
Office
Date (2020)
Account Credited
Payable
Credit
Supplies
Debit
Debit
WILLIAMS COMPANY
Cash Disbursements Journal
Other
Cash
Credit
Merchandise
Inventory Cr.
Ch.
Date (2020)
Accts.
Debit
Accts. Payable
Debit
Payee
Account Debited
No.

WILLIAMS COMPANY
Sales Journal
COGS Dr.
Invoice
A/R Dr.
Date (2020) Account Debited
Merchandise
Number
Sales Cr.
Inventory Cr.

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