Question

a. During February, $79,560 was paid to creditors on account, and purchases on account were $101,840. Assuming that the February 28 balance of Accounts Payable was $34,210, determine the account balance on February 1. -56,490

Answer 1

Accounts payable, balance on February 28 Add: Payments made on account during February Sum of debit side entries in accounts payable account Less: Credit entry in accounts payable account for purchases Accounts payable, balance on February 1 $34,210 $79,560 [It would have decreased accounts payable balance and so added back] $113,770 $101,840 [It would have increased accounts payable balance and so deducted] $11,930 Cross Check: Accounts payable, balance on February 1 Add: Purchases on account during February Total amount payable on account Less: Payments made on account during February Accounts payable, balance on February 28 $11,930 [As calculated] $101,840 $113,770 $79,560 $34,210 --> Matched with given figure in the question