You must complete Problem 7 A before attempting this

problem #4410
You must complete Problem 7 A before attempting this problem. Using the information in
Problem 4A, complete the following requirements assuming a periodic inventory system:In
Problem 4AApr. 17 Purchased merchandise on credit from Sprocket Company, invoice dated
April 16, terms 2/10, n/30, $12,750. 18 Borrowed $50,000 from First Bank by giving a long-term
note payable. 20 Received payment from Kelly Schaefer for the April 11 sale. 20 Purchased
store supplies on credit from Frank's Supply, invoice dated April 19, terms n/10 EOM, $650. 23
Received a $400 credit memorandum from Sprocket Company for defective merchandise
received on April 1 7 and returned. 23 Received payment from Linda Hobart for the April 13
sale25 Purchased merchandise on credit from Baskin Company, invoice dated April 24, terms
2/10, n/60, $10,900.26 Issued cheque #590 to Sprocket Company in payment of its April 16
invoice.27 Sold merchandise on credit to Paul Abrams, invoice #764, $3,800. Cost, $2,30027
Sold merchandise on credit to Kelly Schaefer, invoice #765, $6,200. Cost, $3,80030 Issued
cheque #591, payable to Payroll, in payment of the sales salaries for the last half of the month,
$9,500. For simplicity, we assume one cheque. 30 Cash sales for the last half of the month
were $69,000. Cost, $41,400Required1. Set up the following General Ledger accounts: Cash
(101); Accounts Receivable (106); Merchandise Inventory (119); Office Supplies (124); Store
Supplies (125); Store Equipment (165); Accounts Payable (201); Long-Term Notes Payable
(251); Jeff Newton, Capital (301); Sales (413); Sales Discounts (415); Purchases (505);
Purchase Discounts (506); Purchase Returns and Allowances (507); Sales Salaries Expense
(621); and Advertising Expense (655). Enter the March 31 balances of $167,000 for Cash;
$105,000 for Merchandise Inventory; $105,000 for Jeff Newton, Capital; and $167,000 for Long-
Term Notes Payable.2. Continuing from 'Problem 7-7A, journalize the remaining April
transactions for Newton Company Into the appropriate special journals, posting to the sub
ledgers where required.3. Post the items that should be posted as individual amounts from the
journals.4. Foot and cross foot the journals and make the month-end postings.View Solution:
You must complete Problem 7 A before attempting this problem

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