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Williams Company Began Business on May 1 A Use the Purchases Journal and the Cash Disbursements Journal

question 152

Essay

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.
$\begin{array}{|l|l|l|}\hline\text { May } & 2 & \begin{array}{l}\text { Purchased } \$ 25,000 \text { of merchandise inventory on credit from the Sioux City Company, } \\\text { terms } 2 / 10, n / 30 . \text { Invoice dated May } 1 .\end{array} \\\hline \text { May } & 3 & \begin{array}{l}\text { Purchased } \$ 12,000 \text { of merchandise inventory on credit from the Wichita Company, terms } \\2 / 10, n / 30 . \text { Invoice dated May } 2 .\end{array} \\\hline \text { May } & 3 & \text { Purchased } \$ 3,000 \text { of office supplies for cash from Bettendorf Co. Check no. } 1267 . \\\hline \text { May } & 4 & \begin{array}{l}\text { Purchased } \$ 36,000 \text { of office equipment on credit from Office Outfitters, terms } \mathrm{n} / 60 . \\\text { Invoice dated May } 3 .\end{array} \\\hline \text { May } & 6 & \begin{array}{l}\text { Paid the amount due for the merchandise purchased from Sioux City Company. Check no. } \\1268 .\end{array} \\\hline \text { May } & 6 & \begin{array}{l}\text { Purchased } \$ 14,500 \text { of merchandise inventory for cash from the Davenport Co. Check no. } \\\text { 1269. }\end{array} \\\hline\end{array}$
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.
$Williams Company began business on May 1.They use the perpetual inventory method.The following transactions involving purchases and cash disbursements occurred during the first week of May. \begin{array}{|l|l|l|} \hline\text { May } & 2 & \begin{array}{l} \text { Purchased } \$ 25,000 \text { of merchandise inventory on credit from the Sioux City Company, } \\ \text { terms } 2 / 10, n / 30 . \text { Invoice dated May } 1 . \end{array} \\ \hline \text { May } & 3 & \begin{array}{l} \text { Purchased } \$ 12,000 \text { of merchandise inventory on credit from the Wichita Company, terms } \\ 2 / 10, n / 30 . \text { Invoice dated May } 2 . \end{array} \\ \hline \text { May } & 3 & \text { Purchased } \$ 3,000 \text { of office supplies for cash from Bettendorf Co. Check no. } 1267 . \\ \hline \text { May } & 4 & \begin{array}{l} \text { Purchased } \$ 36,000 \text { of office equipment on credit from Office Outfitters, terms } \mathrm{n} / 60 . \\ \text { Invoice dated May } 3 . \end{array} \\ \hline \text { May } & 6 & \begin{array}{l} \text { Paid the amount due for the merchandise purchased from Sioux City Company. Check no. } \\ 1268 . \end{array} \\ \hline \text { May } & 6 & \begin{array}{l} \text { Purchased } \$ 14,500 \text { of merchandise inventory for cash from the Davenport Co. Check no. } \\ \text { 1269. } \end{array} \\ \hline \end{array} a. Use the purchases journal and the cash disbursements journal to record these transactions b. Prepare a schedule of accounts payable as of May 7. There was no accounts payable on May 1.$
$Williams Company began business on May 1.They use the perpetual inventory method.The following transactions involving purchases and cash disbursements occurred during the first week of May. \begin{array}{|l|l|l|} \hline\text { May } & 2 & \begin{array}{l} \text { Purchased } \$ 25,000 \text { of merchandise inventory on credit from the Sioux City Company, } \\ \text { terms } 2 / 10, n / 30 . \text { Invoice dated May } 1 . \end{array} \\ \hline \text { May } & 3 & \begin{array}{l} \text { Purchased } \$ 12,000 \text { of merchandise inventory on credit from the Wichita Company, terms } \\ 2 / 10, n / 30 . \text { Invoice dated May } 2 . \end{array} \\ \hline \text { May } & 3 & \text { Purchased } \$ 3,000 \text { of office supplies for cash from Bettendorf Co. Check no. } 1267 . \\ \hline \text { May } & 4 & \begin{array}{l} \text { Purchased } \$ 36,000 \text { of office equipment on credit from Office Outfitters, terms } \mathrm{n} / 60 . \\ \text { Invoice dated May } 3 . \end{array} \\ \hline \text { May } & 6 & \begin{array}{l} \text { Paid the amount due for the merchandise purchased from Sioux City Company. Check no. } \\ 1268 . \end{array} \\ \hline \text { May } & 6 & \begin{array}{l} \text { Purchased } \$ 14,500 \text { of merchandise inventory for cash from the Davenport Co. Check no. } \\ \text { 1269. } \end{array} \\ \hline \end{array} a. Use the purchases journal and the cash disbursements journal to record these transactions b. Prepare a schedule of accounts payable as of May 7. There was no accounts payable on May 1.$

Definitions:

Sugar

A sweet crystalline substance obtained primarily from sugarcane and sugar beet, used as a sweetener in food and drink.

Slope

The rate at which a dependent variable changes with respect to an independent variable in a linear relation.

API Gravity Degrees

An oil industry standard that compares the density of petroleum liquids to that of water, determining whether they are heavier or lighter.

Outliers

Observations in data that do not follow the pattern of the majority, significantly differing from other observations.