Question

1. Purchases and Cash Payments Journals

   Happy Tails Inc. has a September 1, 20Y4 accounts payable balance of $815, which consists of $520 due Labradore Inc. and $295 due Meow Mart Inc. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of September 20Y4 are as follows:

   Sept. 4.	Purchased pet supplies from Best Friend Supplies Inc. on account, $350.
   Sept. 6.	Issued Check No. 345 to Labradore Inc. in payment of account, $520.
   Sept. 13.	Purchased pet supplies from Poodle Pals Inc., $1,005.
   Sept. 18.	Issued Check No. 346 to Meow Mart Inc. in payment of account, $295.
   Sept. 19.	Purchased office equipment from Office Helper Inc. on account, $3,435.
   Sept. 23.	Issued Check No. 347 to Best Friend Supplies Inc. in payment of account from purchase made on September 4.
   Sept. 27.	Purchased pet supplies from Meow Mart Inc. on account, $535.
   Sept. 30.	Issued Check No. 348 to Sanders Inc. for cleaning expenses, $75.

   Happy Tails Inc. uses the following accounts:

   Cash	11
   Pet Supplies	14
   Office Equipment	18
   Accounts Payable	21
   Cleaning Expense	54

   a. Prepare a purchases journal and a cash payments journal to record these transactions in chronological order. If an amount box does not require an entry, leave it blank.

   If no entry is required in "Other Accounts Dr." then select "No entry required".

   PURCHASES JOURNAL							PAGE 16
   DATE	Account Credited	Post. Ref.	Accounts Payable Cr.	Pet Supplies Dr.	Other Accounts Dr.	Post. Ref.	Amount
   20Y4
   		✔
   		✔
   		✔
   		✔
   			()	()

   CASH PAYMENTS JOURNAL						PAGE 22
   DATE	Ck. No.	Account Debited	Post. Ref.	Other Accounts Dr.	Accounts Payable Dr.	Cash Cr.
   20Y4
   			✔
   			✔
   			✔
   					()	()

   b. Prepare a listing of accounts payable creditor balances on September 30, 20Y4. Verify that the total of the accounts payable creditor balances equals the balance of the accounts payable controlling account on September 30, 20Y4.

   Happy Tails Inc.
   Accounts Payable Creditor Balances
   September 30, 20Y4
   Meow Mart Inc.	$
   Poodle Pals Inc.
   Office Helper Inc.
   Total creditor (supplier) accounts	$

   c. Happy Tails Inc. uses a subsidiary ledger for accounts payable for all of the following reasons EXCEPT:

Answer 1

1
PURCHASES JOURNAL							PAGE 16
DATE	Account Credited	Post. Ref.	Accounts Payable Cr.	Pet Supplies Dr.	Other Accounts Dr.	Post. Ref.	Amount
20Y4
4-Sep	Best Friend Supplies Inc.	✔	350	350
13-Sep	Poodle pals Inc	✔	1,005	1,005
19-Sep	Office Helper Inc	✔	3,435		Office Equipment	18	3,435
27-Sep	Meow Mart Inc	✔	535	535
30-Sep			5,325	1,890			3,435
			21	14

CASH PAYMENTS JOURNAL						PAGE 22
DATE	Ck. No.	Account Debited	Post. Ref.	Other Accounts Dr.	Accounts Payable Dr.	Cash Cr.
20Y4
6-Sep	345	Labradore Inc	✔		520	520
18-Sep	346	Meow Mart Inc	✔		295	295
23-Sep	347	Best Friend Supplies Inc	✔		350	350
30-Sep	348	Cleaning Expense	54	75		75
30-Sep				75	1165	1240
					21	11

2
Happy Tails Inc. Accounts Payable Creditor Balances September 30, 20Y4
Meow Mart Inc.	$535
Poodle Pals Inc.	$1,005
Office Helper Inc.	$3,435
Total creditor (supplier) account	$4,975

3

Happy Tails Inc uses a subsidiary ledger for accounts payable to track its credit purchases and payments to the individual supplier. This is needed so that it knows how much it owes to each individual supplier. Without the subsidiary ledger, it would be difficult for it to accurately pay suppliers for the amount owed in a timely manner

Happy Tails Inc. uses a subsidiary ledger for accounts payable for all of the following reasons EXCEPT to eliminate the need for an accounts payable controlling account.