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urchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger Sterling Forest Landscaping designs and installs landscaping....

urchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger

Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October are as follows:

Oct. 2. Purchased office supplies on account from Meade Co., $400.
Oct. 5. Purchased office equipment on account from Peach Computers Co., $3,980.
Oct. 9. Purchased office supplies on account from Executive Office Supply Co., $320.
Oct. 13. Purchased field supplies on account from Yamura Co., $1,420.
Oct. 14. Purchased field supplies on account from Omni Co., $2,940.
Oct. 17. Purchased field supplies on account from Yamura Co., $1,890.
Oct. 24. Purchased field supplies on account from Omni Co., $3,880.
Oct. 29. Purchased office supplies on account from Executive Office Supply Co., $310.
Oct. 31. Purchased field supplies on account from Omni Co., $1,800.

Note: Posting references have been provided.

Required:

1. Insert the following balances in the general ledger as of October 1:

14 Field Supplies $5,920
15 Office Supplies 750
18 Office Equipment 12,300
21 Accounts Payable 1,170

After completing the recording of transactions in part 3, post the purchases journal to the accounts in the general ledger. If an amount box does not require an entry, leave it blank.

GENERAL LEDGER
Balance
Date Item Post. Ref. Debit Credit Dr. Cr.
Account: Field Supplies #14
Oct. 1 Balance ✔
P30
Account: Office Supplies #15
Oct. 1 Balance ✔
P30
Account: Office Equipment #18
Oct. 1 Balance ✔
P30
Account: Accounts Payable #21
Oct. 1 Balance ✔
P30

2. Insert the following balances in the accounts payable subsidiary ledger as of October 1:

Executive Office Supply Co. $390
Meade Co. 780
Omni Co. -
Peach Computers Co. -
Yamura Co. -

After completing the recording of transactions in part 3, post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry. If an amount box does not require an entry, leave it blank.

ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Date Item Post. Ref. Debit Credit Balance
Account: Executive Office Supply Co.
Oct. 1 Balance ✔
P30
P30
Account: Meade Co.
Oct. 1 Balance ✔
P30
Account: Omni Co.
P30
P30
P30
Account: Peach Computers Co.
P30
Account: Yamura Co.
P30
P30

3. Journalize the transactions for October, using a purchases journal (p. 30) similar to the one illustrated in this chapter. Prepare the purchases journal with columns for Accounts Payable, Field Supplies, Office Supplies, and Other Accounts. Post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry.

4. Post the purchases journal to the accounts in the general ledger (in part 1). If an amount box does not require an entry, leave it blank.

If no other account is needed in the "Other Accounts Dr." column select "No Entry Required".

PURCHASES JOURNAL PAGE 30
Date Account Credited Post. Ref. Accounts Payable Cr. Field Supplies Dr. Office Supplies Dr. Other Accounts Dr. Post. Ref. Amount
Oct. 2 ✔
Oct. 5 ✔
Oct. 9 ✔
Oct. 13 ✔
Oct. 14 ✔
Oct. 17 ✔
Oct. 24 ✔
Oct. 29 ✔
Oct. 31 ✔
Oct. 31
Oct. 31 (✔)

5a. What is the sum of the creditor balances in the subsidiary ledger at October 31?
$

5b. What is the balance of the accounts payable controlling account at October 31?
$

6. What type of e-commerce application would be used to plan and coordinate transactions with suppliers?

Solutions

Expert Solution

1 & 4.

General Ledger
Account : Field Supplies #14
Balance
Date Item Post Ref Debit Credit Debit credit
Oct.1 Balance 5920
Oct.30 Purchase P30 11930 17850
17850
Account : Office Supplies #15
Balance
Date Item Post Ref Debit Credit Debit credit
Oct.1 Balance 750
Oct.30 Purchase P30 1030 1780
Account : Office Equipment #18
Balance
Date Item Post Ref Debit Credit Debit credit
Oct.1 Balance 12300
Oct.30 Purchase P30 3980 16280
16280
Account : Accounts Payable #21
Balance
Date Item Post Ref Debit Credit Debit credit
Oct.1 Balance 1170 1170
Oct.30 Purchase 16940 18110
18110

2.

Accounts Payable Subsidiary Ledger
Date Item Post Ref Debit Credit Balance
Account: Executive Office Supply Co.
Oct.1 Balance 390
Oct.9 Purchase 320 710
Oct.29 Purchase 310 1020
Account: Meade Co.
Oct.1 Balance 780
Oct.2 Purchase 400 1180
1180
Account: Omni Co.
Oct.1 Balance 0
Oct.14 Purchase 2940 2940
Oct.24 Purchase 3880 6820
Oct.31 Purchase 1800 8620
Account: Peach Computer Co.
Oct.1 Balance 0
Oct.5 Purchase 3980 3980
3980
Account: Yamura Co.
Oct.1 Balance 0
Oct.13 Purchase 1420 1420
Oct.17 Purchase 1890 3310

3.

PURCHASES JOURNAL
Account Credited Accounts Payable Cr. Field Supplies Dr. Office Supplies Dr. Other Accounts Dr.
Date Post. Ref. Post. Ref.
Oct. 2 Meade co. ✔ 400 400 P30
Oct. 5 Peach Computers ✔ 3980 3980 P30
Oct. 9 Executive Office Supply Co. ✔ 320 320 P30
Oct. 13 Yamura Co. ✔ 1420 1420 P30
Oct. 14 Omni Co. ✔ 2940 2940 P30
Oct. 17 Yamura Co. ✔ 1890 1890 P30
Oct. 24 Omni Co. ✔ 3880 3880 P30
Oct. 29 Executive Office Supply Co. ✔ 310 310 P30
Oct. 31 Omni Co. ✔ 1800 1800 P30
Oct. 31 Total 16940 11930 1030 3980 P30

5a. Sum of creditor balances is $18,110.

Schedule of Accounts Payable as at Oct.31
Supplies Name Amount
Executive Office Supply Co. 1020
Meade Co. 1180
Omni Co. 8620
Peach Compter Co. 3980
Yamura co. 3310
Total 18110

5.b. Balance in accounts payable control account $18,110.

Account : Accounts Payable #21
Balance
Date Item Post Ref Debit Credit Debit credit
Oct.1 Balance 1170 1170
Oct.30 Purchase 16940 18110
18110

ekkarill92 answered 2 years ago
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