Question

L01,2 (45 min) Wendy Drew operates a wholesale computer center and has hired you as her bookkeeper to record the following transactions. She would like you to (1) jour- nalize the following transactions, (2) record to the accounts payable subsidiary ledger and post to the general ledger as appropriate, and (3) prepare a schedule of accounts payable. If using working papers, be sure to put in the following beginning balances: Andersen Co., $1,200; Henderson Co., $400; Squash Co., $900; Xhosa Co., $1,300; Cash, $22,000; Accounts Payable, $3,800; Merchandise inventory $4,000. Use the perpetual method. 201X Check Figure: Total of schedule of accounts payble $1,850 March 1 Paid half the amount owed Henderson Co. from previous purchases of computers on account, less a 7% purchases discount, check no. 21. 3 Bought a delivery truck for $8,000 cash, check no. 22, payable to Bill Singer Co. 6 Bought computer merchandise from Lossless Co., check no. 23, $2,500. 18 Bought additional computer merchandise from Paced Co., check no. 24, $750. 24 Paid Xhosa Co. the amount owed for computer merchandise, less a 7% purchases discount, check no. 25. 28 Paid rent expense to Viscount's Realty Trust, check no. 26, $2,200. 29 Paid utilities expense to Granite Utility Co., check no. 27, $280. 30 Paid half the amount owed Squash Co., no discount, check no. 28.

Answer 1

1.

Date	General Journal	Debit	Credit
20IX		$	$
March 1	Accounts Payable : Henderson Co.	200
	Merchandise Inventory		14
	Cash		186
3	Delivery Truck	8,000
	Cash		8,000
6	Merchandise Inventory	2,500
	Cash		2,500
18	Merchandise Inventory	750
	Cash		750
24	Accounts Payable : Xhosa Co.	1,300
	Merchandise Inventory		91
	Cash		1,209
28	Rent Expense	2,200
	Cash		2,200
29	Utilities Expense	280
	Cash		280
30	Accounts Payable : Squash Co.	450
	Cash		450

2.

Accounts Payable Subsidiary Ledger
Andersen Co.
Date	Particulars	Ref.	Debit	Credit	Balance
March 1	Beginning Balance				$ 1,200 Cr.
March 31	Ending Balance				1,200 Cr.
Henderson Co.
Date	Particulars	Ref.	Debit	Credit	Balance
March 1	Beginning Balance				$ 400 Cr.
March 1	Payment	Ch. # 21	$ 200		200 Cr.
March 31	Ending Balance				200 Cr.
Squash Co.
Date	Particulars	Ref.	Debit	Credit	Balance
March 1	Beginning Balance				$ 900 Cr.
March 30	Payment	Ch. # 28	$ 450
March 31	Ending Balance				450 Cr.

3.

Schedule of Accounts Payable March 31
Anderson Co.	$ 1,200
Henderson Co.	200
Squash Co.	450
Total	$ 1,850