Williams Company Began Business on May 1 AUse the Purchases Journal and the Cash Disbursements Journal to Inventory

Essay

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:
$$\begin{array}{|l|l|}\hline\text{May 2}&\text{Purchased \$ 25,000 of merchandise inventory on credit from the Sioux City Company,}\\&\text{terms 2/10,}~ \text{n/30 . Invoice dated May 1 .}\\\hline\text{May 3}&\text{Purchased \$ 12,000 of merchandise inventory on credit from the Wichita Company,}\\&\text{ terms 2/10,}~\mathrm{n} / 30 . \text{Invoice dated May 2 .}\\\hline\text{May 3}&\text{Purchased \$ 3,000 of office supplies for cash from Bettendorf Co. Check no. 1267.}\\\hline\text{May 4}&\text{Purchased \$ 36,000 of office equipment on credit from Office Outfitters, terms n/60 .}\\&\text{Invoice dated May 3.}\\\hline\text{May 6}&\text{Paid the amount due for the merchandise purchased from Sioux City Company.}\\&\text{Check no. 1268 .}\\\hline\text{May 6}&\text{Purchased \$ 14,500 of merchandise inventory for cash from the Davenport Co. Check}\\&\text{no. 1269}\\\hline\end{array}$$
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.
$$\begin{array}{l}\mathbf{ Purchases~ Journal }\\\begin{array} { | l | l | l | l | l | l | l | l | l | } \hline \text { Date } & \text { Account } & \begin{array} { l } \text { Date of } \\\text { Invoice }\end{array} & \text { Terms } & \text { PR } & \begin{array} { l } \text { Accounts } \\\text { Payable Cr. }\end{array} & \begin{array} { l } \text { Purchases } \\\text { Dr. }\end{array} & \begin{array} { l } \text { Office }\\\text { Supplies } \\\text { Dr. }\end{array} & \begin{array} { l } \text { Other }\\\text { Accounts } \\\text { Dr. }\end{array} \\\hline & & & & & & & & \\\hline & & & & & & & & \\\hline & & & & & & & & \\\hline & & & & & & & & \\\hline & & & & & & & & \\\hline\end{array}\end{array}$$
$$\begin{array}{l}\text { Cash Disbursements Journal }\\\begin{array} { | l | l | l | l | l | l | l | l | l | } \hline \text { Date } & \begin{array} { l } \text { Ck. } \\\text { No. }\end{array} & \text { Payee } & \begin{array} { l } \text { Account } \\\text { Debited }\end{array} & \text { PR } & \begin{array} { l } \text { Cash } \\\text { Cr. }\end{array} & \begin{array} { l } \text { Purchase } \\\text { Discount } \\\text { Cr. }\end{array} & \begin{array} { l } \text { Other } \\\text { Accounts } \\\text { Dr. }\end{array} & \begin{array} { l } \text { Accounts } \\\text { Payable } \\\text { Dr. }\end{array} \\\hline & & & & & & & & \\\hline & & & & & & & & \\\hline & & & & & & & & \\\hline & & & & & & & & \\\hline & & & & & & & & \\\hline\end{array}\end{array}$$