Question

SANCHEZ COMPUTER CENTER
The following is an updated schedule of accounts payable as of January 31, 201X.
Schedule of Accounts Payable
Office Depot $ 50
System Design Furniture 1,400
Pac Bell 150
Multi Systems, Inc. 450
Total Accounts Payable $ 2,050
Tasks
a. Journalize the transactions.
b. Record in the accounts payable subsidiary ledger and post to the general ledger as appropriate. A
partial general ledger is included in the working papers that accompany this text.
c. The following accounts have been added to the chart of accounts: Purchases #6000, Purchase
Returns and Allowances #6010, and Purchase Discounts #6020.
d. Prepare a schedule of accounts payable as of February 28, 201X.
The transactions for the month of February, 201X, are as follows:
Feb. 1 Prepaid the rent for the months of February, March, and April, $1,200, check #2585.
Feb. 4 Bought merchandise on account from Multi Systems, Inc., purchase order no. 4010, $450;
terms 3/10, n/30.
Feb. 8 Bought office supplies on account from Office Depot, purchase order no. 4011, $250; terms
n/30.
Feb. 9 Purchased merchandise on account from Computer Connection, purchase order no. 4012,
$500; terms 1/30, n/60.
Feb. 15 Paid purchase order no. 4010 in full to Multi Systems, Inc., check #2586.
Feb. 21 Issued debit memorandum no. 10 to Computer Connection for merchandise returned from
purchase order no. 4012, $100.
Feb. 27 Paid for office supplies, $50, check #2587.

Answer 1

Journal Credit ($) No. Date Account Titles and Explanation 1-Feb Prepaid rent Debit ($) 1,200 Bank 1,200 (To record the rent paid in advance) 450 4-Feb Purchase Accounts payable To record the merchandise purchased on credit) 450 250 8-Feb Supplies Accounts payable (To record the supplies purchased on credit) 250 500 9-Feb Purchase Accounts payable |(To record the merchandise purchased on credit) 500 450 15-Feb Accounts payable Bank (To record the payment made to creditors) 450 100 21-Feb Accounts Payable Purchase Return (To record the purchase return) 50 27-Feb Accounts payable Bank (To record the payment made to creditors)

Cheq No. Debit Credit Balance Cheq No. Debit Credit Balance b Multi Systems, Inc. Date Purchase order no. 31-Jan Beginning Bal. 4-Feb Office Depot Date Purchase order no. 31-Jan Beginning Bal. 8-Feb 50 450 450 4010 4011 250 2586 450 450 Ending Bal. $ $ 900 25871 $ $ 50 50 450 Ending Bal. $ 300 $ 250 Computer Connection Date Purchase order no. Accounts Payable Date Account Title Debit Credit Balance Ref. Debit Credit Balance Ref. 4012 Return 100 Multi Systems, Inc. Office Depot Computer Connection System Design Furniture Pac Bell Ending Bal. 450 250 400 1,400 150 $ 2,650 Ending Bal. 100 $ 500 $ 400 - $ 2,650