Question

The following transactions occurred during December, the first month of operations for Harris Company. Prepare journal entries and create a T-account for accounts payable that includes the following five transactions.

1	Purchased $1,100 of inventory on account.
2	Purchased $900 of inventory on account.
3	Paid suppliers $1,200.
4	Purchased $1,000 of inventory on account.
5	Paid suppliers $900.

Answer 1

Journal entries in the books of Harris company

Date	General journal	debit	credit
1	purchases/inventory	$1,100
	Accounts payable		$1,100
	To record of inventory purchased on account
2	purchases	$900
	Accounts payable		$900
	To record of inventory purchased on account
3	accounts payable	$1200
	Cash		$1200
	To record of cash paid to suppliers
4	purchases	$1000
	Accounts payable		$1000
	To record of inventory purchased on account
5	accounts payable	$900
	Cash		$900
	To record of cash paid to suppliers

Accounts payable account

Account	debit	account	credit
Cash	$1200	Purchases	$1,100
Cash	900	Purchases	900
Closing balance	$900	Purchases	1000
Balance	$3000	balance	$3000

Explanation

1) accounts payable account is one of the ledger accounts which records credit purchases and cash paid to suppliers.

2)accounts payable account arises when you purchase inventory or goods from the suppliers on account (credit ).

3) the purpose of preparation of accounts payable account is to know the balance you have to pay it to the suppliers at the end of the month or quarter .

4) accounts payable is the current liability which records on balance sheet on liabilities side.