Question :
134. Williams Company began business May 1. They use the periodic : 1256303
134. Williams 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 2
Purchased $25,000 of merchandise inventory on credit from the Sioux City Company, terms 2/10, n/30. Invoice dated May 1.
May 3
Purchased $12,000 of merchandise inventory on credit from the Wichita Company, terms 2/10, n/30. Invoice dated May 2.
May 3
Purchased $3,000 of office supplies for cash from Bettendorf Co. Check no. 1267.
May 4
Purchased $36,000 of office equipment on credit from Office Outfitters, terms n/60. Invoice dated May 3.
May 6
Paid the amount due for the merchandise purchased from Sioux City Company. Check no. 1268.
May 6
Purchased $14,500 of merchandise inventory for cash from the Davenport 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 as of May 7. There was no accounts payable on May 1.
Purchases Journal
Date
Account
Date of Invoice
Terms
PR
Accounts Payable Cr.
Purchases Dr.
Office Supplies Dr.
Other Accounts Dr.
Cash Disbursements Journal
Date
Ck. No.
Payee
Account Debited
PR
Cash Cr.
Purchase Discount Cr.
Other Accounts Dr.
Accounts Payable Dr.
135. The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the periodic inventory system.
Dec. 1
Sold merchandise for $6,700 on credit to the Two Rivers Co., terms 2/10, n/30. Invoice no. 1455. Cost of the merchandise sold is $3,600.
Dec. 1
Sold merchandise for $3,400 on credit to the Berlin Co., terms 2/10, n/30. Invoice no. 1456. Cost of the merchandise sold is $2,900.
Dec. 2
Sold merchandise for $590 for cash to the Ellison Co. Invoice no. 1457. Cost of the merchandise sold is $300.
Dec. 3
Borrowed $10,000 from Custer Bank on a long-term note payable.
Dec. 3
Sold merchandise for $7,200 on credit to the Amherst Co., terms 2/10, n/30. Invoice no. 1458. Cost of the merchandise sold is $4,000
Dec. 5
Received the amount due from the Two Rivers Co. from the sale on December 1.
Dec. 6
Sold merchandise on credit for $950 to the Waupaca Co., terms 2/10, n/30. Invoice No. 1459.
Dec. 6
Received the amount due from the Berlin Co. from the sale on December 1.
a. Use the sales journal and the cash receipts journal to record these transactions b. Prepare a schedule of accounts receivable. There were no accounts receivable at December 1.
Sales Journal
Date
Account Debited
Invoice Number
PR
Accounts Receivable Dr. Sales Cr.
Cash Receipts Journal
Date
Account Credited
Explanation
PR
Cash Dr.
Sales Discount Dr.
Accounts Receivable Cr.
Sales Cr.
Other Accounts Cr.
