In: Accounting
Chapter 5 Homework Assignment (part 2)
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Posting a Purchases Journal
The purchases journal for Newmark Exterior Cleaners Inc. follows. The accounts payable account has a March 1, 20Y2, balance of $605 for an amount owed to Nicely Co. No payments were made on creditor invoices during March.
PURCHASES JOURNAL | Page 16 | ||||||||||||||
Date | Account Credited | Post. Ref. |
Accts. Payable Cr. |
Cleaning Supplies Dr. |
Other Accounts Dr. |
Post. Ref. |
Amount | ||||||||
20Y2 | |||||||||||||||
Mar. 4 | Enviro-Wash Supplies Inc. | 945 | 945 | ||||||||||||
Mar. 15 | Nicely Co. | 410 | 410 | ||||||||||||
Mar. 20 | Office Mate Inc. | 4,475 | Office Equipment | 4,475 | |||||||||||
Mar. 26 | Enviro-Wash Supplies Inc. | 545 | 545 | ||||||||||||
Mar. 31 | 6,375 | 1,900 | 4,475 |
a. & b. Post the transactions from the purchases journal to the creditor accounts and determine their ending balances.
Enviro-Wash Supplies Inc. | |||
---|---|---|---|
31 Bal. |
Nicely Co. | |||
---|---|---|---|
31 Bal. |
Office Mate Inc. | |||
---|---|---|---|
31 Bal. |
c. Prepare T accounts for the accounts payable control and cleaning supplies accounts. Post control totals to the two accounts, and determine their ending balances. Cleaning Supplies had a zero balance at the beginning of the month.
Accounts Payable | |||
---|---|---|---|
31 Bal. |
Cleaning Supplies | |||
---|---|---|---|
31 Bal. |
d. Prepare a schedule of the creditor account balances to verify the equality of the sum of the accounts payable creditor balances and the accounts payable controlling account balance.
Newmark Exterior Cleaners Inc. | |
Accounts Payable Creditor Balances | |
March 31, 20Y2 | |
Enviro-Wash Supplies Inc. | $ |
Nicely Co. | |
Office Mate Inc. | |
Total supplier account balances | $ |
e. All of the following are ways a computerized accounting system might differ from the use of a purchases journal in recording purchase transactions EXCEPT:
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a. & b. Post the transactions from the purchases journal to the creditor accounts and determine their ending balances. | ||||
Enviro-Wash Supplies Inc. | ||||
Mar 4 | $ 945 | |||
Mar 26 | $ 545 | |||
31 Bal. | $ 1,490 | |||
Nicely Co. | ||||
Beginning | $ 605 | |||
Mar 15 | $ 410 | |||
31 Bal. | $ 1,015 | |||
Office Mate Inc. | ||||
Mar 20 | $ 4,475 | |||
31 Bal. | $ 4,475 | |||
C. | ||||
Accounts Payable | ||||
Beginning | $ 605 | |||
Mar 4 | $ 945 | |||
Mar 15 | $ 410 | |||
Mar 20 | $ 4,475 | |||
Mar 26 | $ 545 | |||
31 Bal. | $ 6,980 | |||
Cleaning Supplies | ||||
Mar 4 | $ 945 | |||
Mar 15 | $ 410 | |||
Mar 26 | $ 545 | |||
31 Bal. | $ 1,900 | |||
d. | ||||
Newmark Exterior Cleaners Inc. | ||||
Accounts Payable Creditor Balances | ||||
March 31, 20Y2 | ||||
Enviro-Wash Supplies Inc. | $ 1,490.00 | |||
Nicely Co. | $ 1,015.00 | |||
Office Mate Inc. | $ 4,475.00 | |||
Total supplier account balances | $ 6,980.00 |