130. Williams Company began business on May 1. They use the perpetual 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 were no accounts payable on May 1.
Purchases Journal
Date
Account
Date of Invoice
Terms
PR
Accounts 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.
131. The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the perpetual inventory system.a. Use the sales journal and the cash receipts journal to record these transactions.
b. Prepare a schedule of accounts receivable. There were no account receivables at December 1.
Cash Receipts Journal
Date
Account Credited
Explanation
PR
Cash Dr.
Sales Discount Cr.
Accounts Receivable Dr.
Sales Cr.
Other Accounts Cr.
Cost of Goods Sold Dr. Inventory Cr.
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