Question

Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger

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 are as follows:

Oct. 2.		Purchased office supplies on account from Meade Co., $4,240.
5.		Purchased office equipment on account from Peach Computers Co., $6,090.
9.		Purchased office supplies on account from Executive Office Supply Co., $440.
13.		Purchased field supplies on account from Yamura Co., $4,820.
14.		Purchased field supplies on account from Omni Co., $630.
17.		Purchased field supplies on account from Yamura Co., $11,480.
24.		Purchased field supplies on account from Omni Co., $3,230.
29.		Purchased office supplies on account from Executive Office Supply Co., $290.
31.		Purchased field supplies on account from Omni Co., $4,230.

Note: Posting references have been provided.

Required:

1. Insert the following balances in the general ledger as of October 1:

14	Field Supplies	$8,630
15	Office Supplies	1,980
18	Office Equipment	29,110
21	Accounts Payable	7,410

After completing the recording of transactions in part 3, post the purchases journal to the accounts in the general ledger. If an amount box does not require an entry, leave it blank.

GENERAL LEDGER
					Balance
Date	Item	Post. Ref.	Debit	Credit	Dr	Cr
Account: Field Supplies #14
Oct. 1	Balance	✔
		P30
Account: Office Supplies #15
Oct. 1	Balance	✔
		P30
Account: Office Equipment #18
Oct. 1	Balance	✔
		P30
Account: Accounts Payable #21
Oct. 1	Balance	✔
		P30

2. Insert the following balances in the accounts payable subsidiary ledger as of October 1:

Executive Office Supply Co.	$2,450
Meade Co.	4,960
Omni Co.	-
Peach Computers Co.	-
Yamura Co.	-

After completing the recording of transactions in part 3, post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry. If an amount box does not require an entry, leave it blank.

ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Date	Item	Post. Ref.	Debit	Credit	Balance
Account: Executive Office Supply Co.
Oct. 1	Balance	✔
		P30
		P30
Account: Meade Co.
Oct. 1	Balance	✔
		P30
Account: Omni Co.
		P30
		P30
		P30
Account: Peach Computers Co.
		P30
Account: Yamura Co.
		P30
		P30

3. Journalize the transactions for October (in chronological order), using the purchases journal below (p. 30) similar to the one illustrated in this chapter. Post to the creditor accounts in the accounts payable subsidiary ledger (in part 2) immediately after each entry.

4. Post the purchases journal to the accounts in the general ledger (in part 1). If an amount box does not require an entry, leave it blank.

If no other account is needed in the "Other Accounts Dr." column select "No entry required".

PURCHASES JOURNAL								PAGE 30
Date	Account Credited	Post. Ref.	Accounts Payable Cr.	Field Supplies Dr.	Office Supplies Dr.	Other Accounts Dr.	Post. Ref.	Amount
Oct. 2		✔
Oct. 5		✔
Oct. 9		✔
Oct. 13		✔
Oct. 14		✔
Oct. 17		✔
Oct. 24		✔
Oct. 29		✔
Oct. 31		✔
Oct. 31
Oct. 31								(✔)

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

5b. What is the balance of the account 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

GENERAL LEDGER Balance Date 1 Item Post. Ref. Debit Credit Dr. Cr. Account: Field Supplies #14 1-Oct Balance 31-Oct| Acounts Payable 8630 33020 P30 24390 Account: Office Supplies #15 1-Oct|Balance 31-Oct|Acounts Payable ATLATHTH ΠΗΓΗΤΗΤΗΤΗ 1980 6950 P30 4970 Account: Ofice Equipment #17 1-Oct|Balance 63 31-Oct Acounts Payable 29110 35200 P30 6090 Account: Accounts Payable #21 1-Oct Balance 67 31-Jan Fied supplies, office supplies 68 69 7410 42860 P30 35450

Credit Balance ACCOUNTS PAYABLE SUBSIDIARY LEDGER Date Item Post. Ref. Debit Account: Executive Office Supply Co. 1-Oct|Balance 9-Oct Purchase Journal P30 29-Oct|Purchase Journal P30 2450 2890 440 290 3180 Account: Meade Co. 4960 79 80 1-Oct Balance 2-Oct Purchase Journal P30 4240 9200 81 P30 P30 P30 630 3230 4230 630 3860 8090 82 Account: Omni Co. 14-Oct Purchase Journal 84 24-Oct Purchase Journal 85 31-Jan Purchase Journal 86 87 Account: Peach Computers Co. 88 5-Oct|Purchase Journal 89 90 Account: Yamura Co. 13-Oct Purchase Journal 17-Oct|Purchase Journal P30 1 6090 6090 4 P30 P30 4820 11480 820 16300

PURCHASES JOURNAL PAGE 1 Account Credited Date Accounts Dr Office Supplies Post. Ref. Field Supplies Dr. lo Dr. Other Accounts Post. Amount Payable Cr. Dr. Ref. 4240 6090 440 2-OctMeade Co. 5-Oct Peach Computers Co. 9-Oct Executive Office Supply Co. 13-OctYamura Co. 14-Oct Omni Co. 17-Oct Yamura Co. 24-Oct Omni Co. 29-Oct Executive Office Supply Co. 31-Oct Omni Co. 31-Oct 31-Oct 30-Apr Total 4240 6090 440 4820 630 11480 3230 290 4230 4820 630 11480 3230 No Entry Required office Equipment No Entry Required No Entry Required No Entry Required No Entry Required No Entry Required 290 No Entry Required No Entry Required 4230 35450 24390 4970 6090 46 47

96 5a. What is the sum of the creditor balances in the subsidiary ledger at October 31? 98 99 200 101 Executive Office Supply Co. 3180 Meade Co. 9200 Omni Co. 8090 Peach Computers Co. 6090 102 Yamura Co. 16300 103 Total 42860 104 105 5b. What is the balance of the account payable controlling account at October 31? 106 42860