Question

In: Accounting

We have purchased 20 items of inventory at $2,500 each on 26 July 2019 from Suppliers...

We have purchased 20 items of inventory at $2,500 each on 26 July 2019 from Suppliers on account. Ignore GST

Suppliers is your only creditor. Assume a perpetual inventory system, as per the Practice Set.

All numerical answers should consist of digits from 0 to 9 (no symbols, spaces or commas).

Dates should be entered as dd/mm/yy (eg 01/06/19).

Each box must have an answer - If it would normally be blank enter 0.

Select whether the following are impacted by this transaction.

Inventory AnswerYesNo

Subsidiary Ledgers AnswerYesNo

Which special journal will this transaction be recorded in? AnswerSalesPurchasesCash ReceiptsCash PaymentsGeneral

What is the most likely date that this transaction will be posted to:

The General Ledger: Answer

The Subsidiary Ledger: Answer

Enter the transaction into the journal provided, update inventory and post to the subsidiary and general ledger.

Purchases Journal (P1)

AnswerDebitsCredits AnswerCreditsDebits
Date

Account Credited

Terms

Post Ref

Inventory

Supplies

Accounts Payable
Answer Answer AnswerT0 Answer Answer Answer

Inventory Record

Purchases Sales Inventory on Hand
Date No. of Units Unit Cost Total Cost No. of Units Cost Total Cost No. of Units Unit Cost Total Cost
01/07/19 5 2000 10000
Answer Answer Answer Answer Answer Answer Answer

Accounts Payable Subsidiary Ledger

Suppliers
Date Ref Debit Credit Balance
01/07/19 20000
Answer Answer Answer Answer Answer

General Ledger

Accounts Payable
Date Ref Debit Credit Balance
01/07/19 20000
Answer Answer Answer Answer Answer
Inventory
Date Ref Debit Credit Balance
01/07/19 35000
Answer Answer Answer Answer Answer

Assume you pay the full amount owing to Suppliers on 02/08/19.

Complete the journal recording this payment:

Answer Journal (CP1)

AnswerDebitsCredits AnswerCreditsDebits
Date

Account Debited

Post Ref

Accounts Payable Cash
Answer Answer   Answer Answer

Solutions

Expert Solution

Inventory Yes

Subsidiary Ledgers Yes

Which special journal will this transaction be recorded in? PurchasesGeneral

What is the most likely date that this transaction will be posted to:

The General Ledger: 26/07/09

The Subsidiary Ledger: 26/07/09

Purchases Journal (P1)

AnswerDebitsCredits AnswerCreditsDebits
Date

Account Credited

Terms

Post Ref

Inventory

Supplies

Accounts Payable
26/07/19 Accounts Payable 0 20 Inventory 50000

Inventory Record

Purchases Sales Inventory on Hand
Date No. of Units Unit Cost Total Cost No. of Units Cost Total Cost No. of Units Unit Cost Total Cost
01/07/19 5 2000 10000
26/07/19 20 2500 50000 20 2500 50000

Accounts Payable Subsidiary Ledger

Suppliers
Date Ref Debit Credit Balance
01/07/19 20000
26/07/19 0 0 50000 50000

General Ledger

Accounts Payable
Date Ref Debit Credit Balance
01/07/19 20000
26/07/19 0 0 50000 70000
Inventory
Date Ref Debit Credit Balance
01/07/19 35000
26/07/19 0 50000 0 85000

payment of the full amount owing to Suppliers on 02/08/19.

Journal entry for this payment:

Answer Journal (CP1)

Debits Credits
Date

Account Debited

Post Ref

Accounts Payable Cash
02/08/19 Accounts Payable 70000 70000

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