Question : 153.Trimble Company began business July 1. They use the perpetual : 1258272

 

153.Trimble Company began business on July 1. They use the perpetual inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of July.
 

July 4Purchased $25,000 of merchandise inventory on credit from the Fort City Company, terms 2/10, n/30. Invoice dated July 1.

July 5Purchased $12,000 of merchandise inventory on credit from the Phoenix Company, terms 2/10, n/30. Invoice dated July 2.

July 8Purchased $3,000 of office supplies for cash from Gleason Co. Check no. 1267.

July 10Purchased $36,000 of office equipment on credit from Office Minder, terms n/60. Invoice dated July 3.

July 13Paid the amount due for the merchandise purchased from Fort City Company. Check no. 1268.

July 22Purchased $14,500 of merchandise inventory for cash from the Shilling Co. Check no. 1269.

a. Use the purchases journal and the cash disbursements journal provided to record these transactions.
b. Prepare a schedule of accounts payable as of July 31. There was no accounts payable on July 1.
 

Purchases Journal

Date

Account
Date of
Invoice

Terms

PRAccounts
Payable
Cr.
Inventory
Dr.Office
Supplies
Dr.Other
Accounts
Dr.

 

 

 

 

 

Cash Disbursements Journal

Date

Ck. No.

Payee
Account
Debited

PR
Cash Cr.
Inventory
Cr.Other
Accounts
Dr.Accounts
Payable
Dr.

 

 

 

 

 
 

a.

 

154.The Moonlight Company completed the following sales and cash receipts transactions during the first week of November. The Moonlight Company uses the perpetual inventory system.
 

Nov. 1Sold merchandise for $6,700 on credit to the Three Rivers Co., terms 2/10, n/30. Invoice no. 1455. Cost of the merchandise sold is $3,600.

Nov. 1Sold merchandise for $3,400 on credit to the Milwaukee Co., terms 2/10, n/30. Invoice no. 1456. Cost of the merchandise sold is $1,800.

Nov. 2Sold merchandise for $590 for cash to the Madison Co. Invoice no. 1457. Cost of the merchandise sold is $300.

Nov. 3Borrowed $10,000 from Lake City Bank on a long-term note payable.

Nov. 3Sold merchandise for $7,200 on credit to the Pare Co., terms 2/10, n/30. Invoice no. 1458. Cost of the merchandise sold is $4,000.

Nov. 5Received the amount due from the Three Rivers Co. from the sale on November 1.

Nov. 6Sold merchandise on credit for $950 to the Manitowok Co., terms 2/10, n/30. Invoice No. 1459. Cost of the merchandise is $500.

Nov. 10Received the amount due from the Milwakee Co. from the sale on November 1.

a. Use the sales journal and the cash receipts journal to record these transactions.
b. Prepare a schedule of accounts receivable as of November 10. There was no accounts receivable balance at November 1.
 

Sales Journal

Date
Account Debited
Invoice
Number

PRAccounts Receivable
Dr.
Sales Cr.Cost of Goods Sold
Dr.
Inventory Cr.

 

 

 

 

 

 

 

 

Cash Receipts Journal

Date

Account
Credited

Explanation

PR

Cash Dr.
Sales
Discount Dr.
Accounts
Receivable
Cr.

Sales Cr.
Other
Accounts
Cr.Cost of
Goods Sold Dr.
Inventory Cr.

 

 

 

 

 
 

a

155.Climbers Unlimited uses special journals to record its daily transactions. They use the perpetual inventory system. Shown below is its cash receipts journal and selected ledger accounts. Post the cash receipts journal to the appropriate ledger accounts.
 

Date
Account
Credited

Explanation

PR
Cash
DebitSales
Disc.
DebitAccts.
Rec.
Credit
Sales
CreditOther
Accts.
Credit
COGS Dr.
Inv. Cr.

July 4Bale Co.Invoice 303 3,200343,234  2,000

7SalesCash sales 700  700 450

9SMT Co.Invoice 304 950 950

10Notes PayBank loan 5,400   5,400

20Notes Rec.Delta Co.     2,200

20Int. Rev.   2,310                                               110

12,560344,1847007,7102,450

 

General Ledger

Cash  No. 101                         Notes Payable No. 250

DatePRDebitCreditBalanceDatePRDebitCreditBalance

7/1   4,500

Accounts Receivable   No. 106Sales No. 403

DatePRDebitCreditBalanceDatePRDebitCreditBalance

7/1   6,7007/1   30,000

Inventory No. 109Sales Discounts No. 405

DatePRDebitCreditBalanceDatePRDebitCreditBalance

7/1   15,0007/1   400

Notes Receivable No. 115Interest Revenue    No. 415

DatePRDebitCreditBalanceDatePRDebitCreditBalance

7/1   2,200

Accounts Payable  No. 201Cost of Goods Sold    No. 502

DatePRDebitCreditBalanceDatePRDebitCreditBalance

7/1   3,4507/1   18,000

 

Accounts Receivable Subsidiary Ledger

Bale Co.SMT Co.

DatePRDebitCreditBalanceDatePRDebitCreditBalance

7/1   4,7507/1   1,950

 
7/4R11 3,2341,5167/9R11 9501,000

156.The Skyview Company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. They use the periodic inventory method. The following sales and cash collections transactions occurred during the month of December:
 

Dec. 4Sold merchandise on credit for $3,300 to the B&A Co., Invoice No. 313.

10Sold merchandise for $500 cash to CAR Corp., Invoice 314.

13Collected $3,300 from the B&A Co. for merchandise sold on December 4.

24Sold merchandise on credit for $4,500 to Cowl Corp., Invoice No. 315.

Record these transactions using the journals below.
 

Sales Journal
Page 15

DateAccount DebitedInvoice
NumberPRAccounts Receivable Dr.
Sales Cr.

 

 

 

Cash Receipts JournalPage 17

Date
Account Credited

Explanation

PR
Cash Dr.Sales Discount Cr.Accounts Receiv. Cr.
Sales Cr.Other Accounts Dr.

 

 

 

 
 

 

157.The Skyview Company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. They use the periodic inventory method. The following purchase and cash payments transactions occurred during the month of December:
 

Dec. 8Purchased merchandise on credit for $1,800 from the Wexler Co., terms 2/10, n/30. Invoice dated December 8.

17Paid amount owed to Wexler Co. from December 8 purchase, Check No. 1011.

27Paid $400 cash for monthly rent to Iowa Properties, Check No. 1012.

31Purchased equipment for $3,055 from Gore Corp., Check No. 1013.

Record these transactions using the journals below.
 

Purchases JournalPage 20

DateAccountDate of
InvoiceTermsPRAccounts
Payable
Cr.Inventory
Dr.Office Supplies Dr.Other Accounts Dr.

 

 

 

Cash Disbursements Journal
Page 22

Date

Ck. No.

Payee

Account
Debited

PR

Cash Cr.
Inventory
Cr.OtherAccountsDr.AccountsPayable
Dr.

 

 

158.Daisy Company began business on May 1. They use the periodic inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May.
 

May 2Purchased $25,000 of merchandise inventory on credit from the Farthing Company, terms 2/10, n/30. Invoice dated May 1.

May 3Purchased $12,000 of merchandise inventory on credit from the Hacks Company, terms 2/10, n/30. Invoice dated May 2.

May 3Purchased $3,000 of office supplies for cash from Liston Co. Check no. 1267. May

May 4Purchased $36,000 of office equipment on credit from Superior Office, terms n/60. Invoice dated May 3.

May 6Paid the amount due for the merchandise purchased from Farthing Company.
Check no. 1268.

May 6Purchased $14,500 of merchandise inventory for cash from the Hills Co.
Check no. 1269.

a. Use the purchases journal and the cash disbursements journal to record these transactions.
b. Prepare a schedule of accounts payable. There was no accounts payable balance on May 1.
 

Purchases Journal Page 20

Date

Account
Date of Invoice

Terms

PRAccounts Payable Cr.
Purchases Dr.Office Supplies Dr.Other Accounts Dr.

 

 

 

 

 

Cash Disbursements Journal   Page 22

Date

Ck. No.

Payee
Account Debited

PR

Cash Cr.Purchases Discount Cr.Other Accounts Dr.Accounts Payable Dr.