Question

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 2016 are as follows:
Oct. 2. Purchased office supplies on account from Meade Co., $400.
5. Purchased office equipment on account from Peach Computers Co., $3,980.
9. Purchased office supplies on account from Executive Office Supply Co., $320.
13. Purchased field supplies on account from Yamura Co., $1,420.
14. Purchased field supplies on account from Omni Co., $2,940.
17. Purchased field supplies on account from Yamura Co., $1,890.
24. Purchased field supplies on account from Omni Co., $3,880.
29. Purchased office supplies on account from Executive Office Supply Co., $310.
31. Purchased field supplies on account from Omni Co., $1,800.
Instructions
1. Insert the following balances in the general ledger as of October 1:
14 Field Supplies.................$ 5,920
15 Office Supplies...................75018 Office Equipment............12,300
21 Accounts Payable..............1,170
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............................................-
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.

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

Answer 1

			Sterling Forest Landscaping
			General Ledger
1)	Account: Field Supplies #14					Balance
	Date	Item	Post.Ref	Debit	Credit	Debit	Credit
	1-Oct					$                   5,920.00
	13-Oct			$               1,420.00		$                   7,340.00
	14-Oct			$               2,940.00		$                 10,280.00
	17-Oct			$               1,890.00		$                 12,170.00
	24-Oct			$               3,880.00		$                 16,050.00
	31-Oct			$               1,800.00		$                 17,850.00
	Account: Office Supplies #15					Balance
	Date	Item	Post.Ref	Debit	Credit	Debit	Credit
	1-Oct					$                       750.00
	2-Oct			$                   400.00		$                   1,150.00
	9-Oct			$                   320.00		$                   1,470.00
	29-Oct			$                   310.00		$                   1,780.00
	Account: Office Equipment #18					Balance
	Date	Item	Post.Ref	Debit	Credit	Debit	Credit
	1-Oct					$                 12,300.00
	5-Oct			$               3,980.00		$                 16,280.00
	Account: accounts Payable #21					Balance
	Date	Item	Post.Ref	Debit	Credit	Debit	Credit
	1-Oct					$                                -	$          1,170.00
	2-Oct				$                      400.00		$          1,570.00
	5-Oct				$                   3,980.00		$          5,550.00
	9-Oct				$                      320.00		$          5,870.00
	13-Oct				$                   1,420.00		$          7,290.00
	14-Oct				$                   2,940.00		$       10,230.00
	17-Oct				$                   1,890.00		$       12,120.00
	24-Oct				$                   3,880.00		$       16,000.00
	29-Oct				$                      310.00		$       16,310.00
	31-Oct				$                   1,800.00		$       18,110.00
2)			Accounts Payable Subsidiary Ledger
	Executive Office Supply Company
	Date	Item	Post Ref	Debit	Credit	Balance
	1-Oct	Balance				$                       390.00
	9-Oct		P30		$                      320.00	$                       710.00
	29-Oct		P30		$                      310.00	$                   1,020.00
	Meade Co.
	Date	Item	Post Ref	Debit	Credit	Balance
	1-Oct	Balance				$                       780.00
	2-Oct		P30		$                      400.00	$                   1,180.00
	Omni Co.
	Date	Item	Post Ref	Debit	Credit	Balance
	14-Oct				$                   2,940.00	$                   2,940.00
	24-Oct				$                   3,880.00	$                   6,820.00
	31-Oct				$                   1,800.00	$                   8,620.00
	Peach Computer Company
	Date	Item	Post Ref	Debit	Credit	Balance
	5-Oct				$                   3,980.00	$                   3,980.00
	Yamura Co.
	Date	Item	Post Ref	Debit	Credit	Balance
	13-Oct				$                   1,420.00	$                   1,420.00
	17-Oct				$                   1,890.00	$                   3,310.00
3 and 4)
				Purchases Journal
Date	Amount Credited	Post Ref.	Accounts Payable (Cr)	Field supplies (Dr)	Office supplies (Dr)	Other Accounts (Dr)	Post Ref.	Amount
2-Oct	Meade Co.		$                          400.00		$                      400.00
5-Oct	Peach Computer co.		$                       3,980.00			$                   3,980.00
9-Oct	Executive Office Suply Co.		$                          320.00		$                      320.00
13-Oct	Yamura Co.		$                       1,420.00	$               1,420.00
14-Oct	Omni Co.		$                       2,940.00	$               2,940.00
17-Oct	Yamura Co.		$                       1,890.00	$               1,890.00
24-Oct	Omni Co.		$                       3,880.00	$               3,880.00
29-Oct	Executive Office Suply Co.		$                          310.00		$                      310.00
31-Oct	Omni Co.		$                       1,800.00
			$                    16,940.00	$             10,130.00	$                   1,030.00	$                   3,980.00
	Balance in Accounts Payable Subisidiary Ledger on 31st October
5a)	Executive Office Supply Co.	$       1,020.00
	Meade Co.	$       1,180.00
	Peach Comuter Co.	$       3,980.00
	Omni Co.	$       8,620.00
	Yamura Co.	$       3,310.00
5b)	Balance in Accounts Payable	$     18,110.00