Wiset Company completes these transactions during April of the current year (the

Question

Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30).

Assume that Wiset Co. uses the perpetual inventory system.

4-a. Prepare a trial balance of the general ledger.
4-b. Prepare a schedule of accounts receivable.

Apr. 2 Purchased $15,800 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60. 3 (a) Sold merchandise on credit to Page Alistair, Invoice No. 760, for $4,900 (cost is $3,000). 3 (b) Purchased $1,520 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM. 4 Issued Check No. 587 to World View for advertising expense, $931. 5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,900 (cost is $6,200). 6 Received an $70 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3. 9 Purchased $12,175 of store equipment on credit from Hal’s Supply, invoice dated April 9, terms n/10 EOM. 11 Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $12,700 (cost is $7,700). 12 Issued Check No. 588 to Noth Company in payment of its April 2 invoice less the discount. 13 (a) Received payment from Page Alistair for the April 3 sale less the discount. 13 (b) Sold $10,400 of merchandise on credit to Page Alistair (cost is $5,000), Invoice No. 763. 14 Received payment from Paula Kohr for the April 5 sale less the discount. 16 (a) Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $11,150. Cashed the check and paid employees. 16 (b) Cash sales for the first half of the month are $53,090 (cost is $41,100). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.) 17 Purchased $11,200 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30. 18 Borrowed $56,000 cash from First State Bank by signing a long-term note payable. 20 (a) Received payment from Nic Nelson for the April 11 sale less the discount. 20 (b) Purchased $890 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM. 23 (a) Received a $1,100 credit memorandum from Grant Company for the return of defective merchandise received on April 17. 23 (b) Received payment from Page Alistair for the April 13 sale less the discount. 25 Purchased $11,525 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60. 26 Issued Check No. 590 to Grant Company in payment of its April 17 invoice less the return and the discount. 27 (a) Sold $3,350 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,740). 27 (b) Sold $7,600 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $5,380). 30 (a) Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $11,150. 30 (b) Cash sales for the last half of the month are $72,000 (cost is $64,000).

Explanation / Answer

Solution 1 & 2: Please see below screenshot for the full solution and then the working at the end.

Wiset Co.

Trail Balance for the month of April

Particulars

Dr.

Cr.

Purchases

     37,425.00

Sales

1,73,940.00

North Company

     11,525.00

Office Supplies

       1,450.00

Advertising

           931.00

Custer Inc.

       1,450.00

Paula Kohr

       3,350.00

Store Equipment

     13,065.00

Hal's Supply

     13,065.00

Nic Nelson

       7,600.00

Bank/Cash

1,69,619.00

Cash Discount

           240.00

Salaries

     22,300.00

Long term Notes Payable

     56,000.00

2,55,980.00

2,55,980.00

Working :

Purchase A/c

Date

Particulars

Amount

Date

Particulars

Amount

02-Apr

To North Company

     15,800.00

23-Apr

Grant Company

       1,100.00

17-Apr

To Grant Company

     11,200.00

(Purchase ret)

25-Apr

To Noth Company

     11,525.00

30-Apr

By balance c/f

     37,425.00

     38,525.00

     38,525.00

Sales A/c

Date

Particulars

Amount

Date

Particulars

Amount

03-Apr

By Page Alistair

       4,900.00

30-Apr

To Balance c/f

1,73,940.00

05-Apr

By Paula Kohr

       9,900.00

11-Apr

By Nick Nelson

     12,700.00

13-Apr

By Page Alistair

     10,400.00

16-Apr

By Bank

     53,090.00

27-Apr

By Paul Kohr

       3,350.00

27-Apr

By Nick Nelson

       7,600.00

30-Apr

By Bank

     72,000.00

1,73,940.00

1,73,940.00

Page Alistair A/c

Date

Particulars

Amount

Date

Particulars

Amount

03-Apr

To Sales

       4,900.00

13-Apr

By Bank

       4,802.00

13-Apr

To Sales

     10,400.00

13-Apr

By Cash Discount

             98.00

23-Apr

By Bank

     10,192.00

23-Apr

By Cash Discount

           208.00

     15,300.00

     15,300.00

Noth Company A/c

Date

Particulars

Amount

Date

Particulars

Amount

12-Apr

To Bank

     15,484.00

02-Apr

By Purchases

     15,800.00

12-Apr

To Cash Discount

           316.00

25-Apr

By Purchases

     11,525.00

30-Apr

To balance c/f

     11,525.00

     27,325.00

     27,325.00

Office Supplies A/c

Date

Particulars

Amount

Date

Particulars

Amount

03-Apr

To Custer Inc.

       1,520.00

06-Apr

By Custer Inc.

             70.00

30-Apr

By balance c/f

       1,450.00

       1,520.00

       1,520.00

Advertising A/c

Date

Particulars

Amount

Date

Particulars

Amount

04-Apr

To Bank A/c

           931.00

30-Apr

By balance c/f

           931.00

           931.00

           931.00

Custer Inc. A/c

Date

Particulars

Amount

Date

Particulars

Amount

06-Apr

To Office Supplies

             70.00

03-Apr

By Office Supplies

       1,520.00

30-Apr

To balance c/f

       1,450.00

       1,520.00

       1,520.00

Paula Kohr A/c

Date

Particulars

Amount

Date

Particulars

Amount

05-Apr

To Sales

       9,900.00

14-Apr

By Bank

       9,702.00

27-Apr

To Sales

       3,350.00

14-Apr

By Cash Discount

           198.00

30-Apr

By balance c/f

       3,350.00

     13,250.00

     13,250.00

Store Equipment A/c

Date

Particulars

Amount

Date

Particulars

Amount

09-Apr

To Hal's Supply

     12,175.00

30-Apr

To balance c/f

     13,065.00

20-Apr

To Hal's Supply

           890.00

     13,065.00

     13,065.00

Hal's Supply A/c

Date

Particulars

Amount

Date

Particulars

Amount

30-Apr

To balance c/f

     13,065.00

09-Apr

By Store Equipment

     12,175.00

20-Apr

By Store Equipment

           890.00

     13,065.00

     13,065.00

Nic Nelson A/c

Date

Particulars

Amount

Date

Particulars

Amount

11-Apr

To Sales

     12,700.00

20-Apr

By Bank

     12,446.00

27-Apr

To Sales

       7,600.00

20-Apr

By Cash Discount

           254.00

30-Apr

By Balance c/f

       7,600.00

     20,300.00

     20,300.00

Bank A/c

Date

Particulars

Amount

Date

Particulars

Amount

13-Apr

To Page Alistair

       4,802.00

04-Apr

By Advertising

           931.00

14-Apr

To Paula Kohr

       9,702.00

12-Apr

By Noth Company

     15,484.00

16-Apr

To Sales

     53,090.00

18-Apr

By Salaries

     11,150.00

18-Apr

To Long term Notes Payable

     56,000.00

26-Apr

By Grant Co

       9,898.00

20-Apr

To Nic Nelson

     12,446.00

30-Apr

By Salaries

     11,150.00

23-Apr

To Page Alistair

     10,192.00

30-Apr

By Balance c/f

1,69,619.00

30-Apr

To Sales

     72,000.00

2,18,232.00

2,18,232.00

Cash Disount A/c

Date

Particulars

Amount

Date

Particulars

Amount

13-Apr

To Page Alistair

             98.00

12-Apr

By Noth Company

           316.00

14-Apr

To Paula Kohr

           198.00

26-Apr

By Grant Co.

           202.00

20-Apr

To Nic Nelson

           254.00

30-Apr

By Balance c/f

           240.00

23-Apr

To page Alistair

           208.00

           758.00

           758.00

Grant Company A/c

Date

Particulars

Amount

Date

Particulars

Amount

23-Apr

To Purchases

       1,100.00

17-Apr

By Purchases

     11,200.00

26-Apr

To Bank

       9,898.00

26-Apr

To Cash Discount

           202.00

     11,200.00

     11,200.00

Salaries A/c

Date

Particulars

Amount

Date

Particulars

Amount

16-Apr

To Bank

     11,150.00

30-Apr

By Balance c/f

     22,300.00

30-Apr

To Bank

     11,150.00

     22,300.00

     22,300.00

there might be some formatting issues in working but I tried pasted the screenshots but its not working

please feel free to ask me anything.

Wiset Co.

Trail Balance for the month of April

Particulars

Dr.

Cr.

Purchases

     37,425.00

Sales

1,73,940.00

North Company

     11,525.00

Office Supplies

       1,450.00

Advertising

           931.00

Custer Inc.

       1,450.00

Paula Kohr

       3,350.00

Store Equipment

     13,065.00

Hal's Supply

     13,065.00

Nic Nelson

       7,600.00

Bank/Cash

1,69,619.00

Cash Discount

           240.00

Salaries

     22,300.00

Long term Notes Payable

     56,000.00

2,55,980.00

2,55,980.00

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