Question

Problem 7-3A Objective: To record and post purchases and freight charges McMillan Appliance and Supply Company is located in Albuquerque, New Mexico The following credit purchases were made by the firm during June 20XX Note: all directions before journalizing and posting the June transactions.): 20XX Jun. 1 Refrigerators from Allard Co., $7.790, Invoice No. 211; freight, $425, FOB Albuquerque. 5 Microwave ovens and toasters from Technical Products Co., $8,800, Invoice No. 212; freight, $510, FOB Birmingham, Alabama. 8 Ceiling fans from Buena Vista Co., $1,900, Invoice No. 213; freight, $88, FOB Las Cruces, New Mexico. 10 Space heaters from Alamogordo Co., $1,050, Invoice No. 214; freight, $77.50, FOB Alamogordo, New Mexico. 12 Office equipment from Thompson Suppliers, $5,500, Invoice No. 215; freight, $212, FOB Albuquerque. Chapter 7 Accounting for a Merchandising Business 319

Answer 1

General ledger

Office equipment
Date	Particulars	Debit	Date	Particulars	Credit
1-Jun	To Opening balance	12,900	30-Jun	By Closing blance	18,612
12-Jun	To Accounts payable (5500+212)	5,712
TOTAL		18,612			18,612
Store equipment
Date	Particulars	Debit	Date	Particulars	Credit
1-Jun	To Opening balance	25,900	30-Jun	By Closing blance	30,928
18-Jun	To Accounts payable (4800+228)	5,028
TOTAL		30,928			30,928
Accounts payable
Date	Particulars	Debit	Date	Particulars	Credit
30-Jun	To closing balance	59,434	1-Jun	By opening balance	15,955
			1-Jun	By purchases	7,790
			1-Jun	Freight in	425
			5-Jun	By purchases	8,800
			5-Jun	Freight in	510
			8-Jun	By purchases	1,900
			8-Jun	Freight in	88
			10-Jun	By purchases	1,050
			10-Jun	Freight in	77.50
			12-Jun	By Office Equipment	5,712
			18-Jun	By Store Equipment	5,028
			24-Jun	By purchases	6,980
			24-Jun	Freight in	418
			30-Jun	By purchases	4,600
			30-Jun	Freight in	100
TOTAL		59,434			59,434
Purchases
Date	Particulars	Debit	Date	Particulars	Credit
1-Jun	To opening balance	125,800	30-Jun	By Closing blance	156,920
1-Jun	To Accounts Payable	7,790
5-Jun	To Accounts Payable	8,800
8-Jun	To Accounts Payable	1,900
10-Jun	To Accounts Payable	1,050
24-Jun	To Accounts Payable	6,980
30-Jun	To Accounts Payable	4,600
TOTAL		156,920			156,920
Freight in
Date	Particulars	Debit	Date	Particulars	Credit
1-Jun	To opening balance	2,410	30-Jun	By Closing blance	4,029
1-Jun	To Accounts Payable	425
5-Jun	To Accounts Payable	510
8-Jun	To Accounts Payable	88
10-Jun	To Accounts Payable	77.50
24-Jun	To Accounts Payable	418
30-Jun	To Accounts Payable	100
TOTAL		4,029			4,029

Sub ledger - Accounts payable

Alamogordo Co
Date	Particulars	Debit	Date	Particulars	Credit
30-Jun	To closing balance	5,483	1-Jun	By Opening balance	4,355
			10-Jun	By purchases	1,050
			10-Jun	Freight in	77.50
TOTAL		5,483			5,483
Allard Co
Date	Particulars	Debit	Date	Particulars	Credit
30-Jun	To closing balance	18,123	1-Jun	By Opening balance	2,510
			1-Jun	By purchases	7,790
			1-Jun	Freight in	425
			24-Jun	By purchases	6,980
			24-Jun	Freight in	418
TOTAL		18,123			18,123
Buena Vista Co
Date	Particulars	Debit	Date	Particulars	Credit
30-Jun	To closing balance	2,863	1-Jun	By Opening balance	875
			8-Jun	By purchases	1,900
			8-Jun	Freight in	88
TOTAL		2,863			2,863
Carisbad Co
Date	Particulars	Debit	Date	Particulars	Credit
30-Jun	To closing balance	7,618	1-Jun	By Opening balance	2,590
			18-Jun	By store equipment	5,028
TOTAL		7,618			7,618
Technical Products Co
Date	Particulars	Debit	Date	Particulars	Credit
30-Jun	To closing balance	19,635	1-Jun	By Opening balance	5,625
			5-Jun	By purchases	8,800
			5-Jun	Freight in	510
			30-Jun	By purchases	4,600
			30-Jun	Freight in	100
TOTAL		19,635			19,635
Thomson Suppliers
Date	Particulars	Debit	Date	Particulars	Credit
30-Jun	To closing balance	5,712	10-Jun	By Office equipment	5,712
TOTAL		5,712			5,712

Schedule of accounts payable

Vendor name	Closing balance (Cr.)
Alamogordo Co	5,483
Allard Co	18,123
Buena Vista Co	2,863
Carisbad Co	7,618
Technical Products Co	19,635
Thomson Suppliers	5,712
TOTAL	59,434