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 $14,700 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 $8,000 (cost is $7,000). April 3 (b) Purchased $1,490 of office supplies on credit from Custer, Incorporated, terms n/30. April 4 Issued Check Number 587 to World View for advertising expense of $904. April 5 Sold merchandise on credit to Paula Kohr, Invoice Number 761, for $15,000 (cost is $13,500). 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 Hal’s Supply, terms n/30. April 11 Sold merchandise on credit to Nic Nelson, Invoice Number 762, for $21,600 (cost is $18,100). April 12 Issued Check Number 588 to Noth Company in payment of its April 2 purchase less the discount of $294. April 13 (a) Received payment from Page Alistair for the April 3 sale less the discount of $160. April 13 (b) Sold $11,600 of merchandise on credit to Page Alistair (cost is $10,100), Invoice Number 763. April 14 Received payment from Paula Kohr for the April 5 sale less the discount of $300. April 16 (a) Issued Check Number 589 for $10,350; 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 $52,840 (cost is $35,880). These cash sales are recorded in the cash receipts journal on April 16. April 17 Purchased $12,750 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 $432. April 20 (b) Purchased $730 of store supplies on credit from Hal’s Supply, terms n/30. April 23 (a) Returned $650 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 $232. April 25 Purchased $11,975 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 $7,340 of merchandise on credit to Paula Kohr, Invoice Number 764 (cost is $6,690). April 27 (b) Sold $11,700 of merchandise on credit to Nic Nelson, Invoice Number 765 (cost is $9,305). April 30 (a) Issued Check Number 591 for $10,350; 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. Required: 2. Enter the March 31 balances of Cash ($88,000), Inventory ($189,000), Long-Term Notes Payable ($177,000), 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 of Cash ($88,000), Inventory ($189,000), Long-Term Notes Payable ($177,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the respective accounts payable subsidiary ledger accounts for Hal’s Supply, Noth Company, Grant Company and Custer, Incorporated. 4-a. Prepare a trial balance of the general ledger accounts. 4-b. Prepare a schedule of accounts payable.

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 $14,700 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 $8,000 (cost is $7,000). April 3 (b) Purchased $1,490 of office supplies on credit from Custer, Incorporated, terms n/30. April 4 Issued Check Number 587 to World View for advertising expense of $904. April 5 Sold merchandise on credit to Paula Kohr, Invoice Number 761, for $15,000 (cost is $13,500). 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 Hal’s Supply, terms n/30. April 11 Sold merchandise on credit to Nic Nelson, Invoice Number 762, for $21,600 (cost is $18,100). April 12 Issued Check Number 588 to Noth Company in payment of its April 2 purchase less the discount of $294. April 13 (a) Received payment from Page Alistair for the April 3 sale less the discount of $160. April 13 (b) Sold $11,600 of merchandise on credit to Page Alistair (cost is $10,100), Invoice Number 763. April 14 Received payment from Paula Kohr for the April 5 sale less the discount of $300. April 16 (a) Issued Check Number 589 for $10,350; 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 $52,840 (cost is $35,880). These cash sales are recorded in the cash receipts journal on April 16. April 17 Purchased $12,750 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 $432. April 20 (b) Purchased $730 of store supplies on credit from Hal’s Supply, terms n/30. April 23 (a) Returned $650 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 $232. April 25 Purchased $11,975 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 $7,340 of merchandise on credit to Paula Kohr, Invoice Number 764 (cost is $6,690). April 27 (b) Sold $11,700 of merchandise on credit to Nic Nelson, Invoice Number 765 (cost is $9,305). April 30 (a) Issued Check Number 591 for $10,350; 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. Required: 2. Enter the March 31 balances of Cash ($88,000), Inventory ($189,000), Long-Term Notes Payable ($177,000), 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 of Cash ($88,000), Inventory ($189,000), Long-Term Notes Payable ($177,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the respective accounts payable subsidiary ledger accounts for Hal’s Supply, Noth Company, Grant Company and Custer, Incorporated. 4-a. Prepare a trial balance of the general ledger accounts. 4-b. Prepare a schedule of accounts payable.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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 $14,700 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 $8,000 (cost is $7,000).
April 3 (b)	Purchased $1,490 of office supplies on credit from Custer, Incorporated, terms n/30.
April 4	Issued Check Number 587 to World View for advertising expense of $904.
April 5	Sold merchandise on credit to Paula Kohr, Invoice Number 761, for $15,000 (cost is $13,500).
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 Hal’s Supply, terms n/30.
April 11	Sold merchandise on credit to Nic Nelson, Invoice Number 762, for $21,600 (cost is $18,100).
April 12	Issued Check Number 588 to Noth Company in payment of its April 2 purchase less the discount of $294.
April 13 (a)	Received payment from Page Alistair for the April 3 sale less the discount of $160.
April 13 (b)	Sold $11,600 of merchandise on credit to Page Alistair (cost is $10,100), Invoice Number 763.
April 14	Received payment from Paula Kohr for the April 5 sale less the discount of $300.
April 16 (a)	Issued Check Number 589 for $10,350; 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 $52,840 (cost is $35,880). These cash sales are recorded in the cash receipts journal on April 16.
April 17	Purchased $12,750 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 $432.
April 20 (b)	Purchased $730 of store supplies on credit from Hal’s Supply, terms n/30.
April 23 (a)	Returned $650 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 $232.
April 25	Purchased $11,975 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 $7,340 of merchandise on credit to Paula Kohr, Invoice Number 764 (cost is $6,690).
April 27 (b)	Sold $11,700 of merchandise on credit to Nic Nelson, Invoice Number 765 (cost is $9,305).
April 30 (a)	Issued Check Number 591 for $10,350; 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.

Required:

2. Enter the March 31 balances of Cash ($88,000), Inventory ($189,000), Long-Term Notes Payable ($177,000), 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 of Cash ($88,000), Inventory ($189,000), Long-Term Notes Payable ($177,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the respective accounts payable subsidiary ledger accounts for Hal’s Supply, Noth Company, Grant Company and Custer, Incorporated.
4-a. Prepare a trial balance of the general ledger accounts.
4-b. Prepare a schedule of accounts payable.

**General Ledger and Accounts Payable Ledger**

### General Ledger

#### Cash
- **Date:** March 31
- **Credit:** $88,000
- Balance section shown with credit entry.

#### Inventory
- **Date:** March 31
- Blank sections for debit, credit, and balance.

#### Office Supplies
- Blank sections for date, debit, credit, and balance.

#### Store Supplies
- Blank sections for date, debit, credit, and balance.

#### Store Equipment
- Blank sections for date, debit, credit, and balance.

#### Accounts Payable
- Blank sections for date, debit, credit, and balance.

#### Long-Term Notes Payable
- **Date:** March 31
- Blank sections for debit, credit, and balance.

#### B. Wiset, Capital
- **Date:** March 31
- Blank sections for debit, credit, and balance.

#### Sales Salaries Expense
- Blank sections for date, debit, credit, and balance.

#### Advertising Expense
- Blank sections for date, debit, credit, and balance.

### Accounts Payable Ledger

#### Custoc, Incorporated
- Blank sections for date, debit, credit, and balance.

#### Grant Company
- Blank sections for date, debit, credit, and balance.

#### Half's Supply
- Blank sections for date, debit, credit, and balance.

#### Notch Company
- Blank sections for date, debit, credit, and balance.

**Instructions:**

The task is to enter the March 31 balances of Cash ($88,000), Inventory ($189,000), Long-Term Notes Payable ($177,000), and B. Wiset, Capital ($100,000) into the respective general ledger accounts. Additionally, post the total amounts from the journal into the respective accounts payable subsidiary ledger accounts for Half’s Supply, Roth Company, Grant Company, and Custoc, Incorporated.

**WISET COMPANY**

**Schedule of Accounts Payable**

**April 30**

| Company | Amount ($) |
|-------------------------|------------|
| Custer, Incorporated | |
| Hal’s Supply | |
| Noth Company | |
| Grant Company | |
| **Total accounts payable** | **0** |

**Prepare a trial balance of the general ledger accounts.**

**WISET COMPANY**

**Trial Balance**

**April 30**

| Account | Debit ($) | Credit ($) |
|-------------------------|-----------|------------|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| **Totals** | **0** | **0** |

- **Explanation of Tables:**
- The first table is a "Schedule of Accounts Payable," listing different companies (Custer, Incorporated; Hal’s Supply; Noth Company; Grant Company) and the total amount due to them as of April 30. The total accounts payable is shown as $0.
- The second table is a "Trial Balance" for April 30. It includes sections for various accounts with columns for debits and credits, both showing totals of $0.

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Using the information given that is errors in the trial balance and AP schedule, can you assist in figuring out these issues?

**Trial Balance - April 30**

This trial balance summarizes the financial accounts with their respective debit or credit balances as of April 30.

| Account | Debit | Credit |
|------------------------------|---------|----------|
| Cash | ██████ | |
| Accounts Receivable | 19,040 | |
| Inventory | ██████ | |
| Long-term Notes Payable | | 237,000 |
| B. Wiset, Capital | | 100,000 |
| Sales | | 202,055 |
| Sales Discounts | 1,124 | |
| Cost of Goods Sold | 159,475 | |

**Totals**
*Debit:* $179,639
*Credit:* $539,055

Explanation:
- This trial balance lists accounts with their debit or credit status.
- Debit accounts include Cash, Accounts Receivable, Inventory, Sales Discounts, and Cost of Goods Sold.
- Credit accounts include Long-term Notes Payable, B. Wiset, Capital, and Sales.
- The highlighted values in Cash and Inventory are not specifically provided.
- The totals for debits and credits are not equal, indicating a discrepancy that should be investigated.

**WISET COMPANY**

**Schedule of Accounts Payable**

**April 30**

| Creditor | Amount Payable ($) | Paid Status |
|------------------------|--------------------|-------------|
| Custer, Incorporated | 11,975 | ❌ |
| Hal’s Supply | 1,400 | ❌ |
| Noth Company | 12,955 | ❌ |
| Grant Company | 0 | ✔️ |
| **Total accounts payable** | **26,330** | |

**Description:**

This table details the accounts payable for Wiset Company as of April 30. It lists creditors and the corresponding amounts owed. A red 'X' indicates an amount that is due but not yet paid, while a green check mark indicates a settled account.

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