Problem

Qwik Photo Club is a retail store that sells cameras and photography supplies. The firm’s...

Qwik Photo Club is a retail store that sells cameras and photography supplies. The firm’s credit purchases and purchases returns and allowances transactions for June 2013 appear on page 256, along with the general ledger accounts used to record these transactions. The balance shown in Accounts Payable is for the beginning of June.

INSTRUCTIONS

1. Open the general ledger accounts and enter the balance of Accounts Payable for June 1, 2013.
2. Record the transactions in a three-column purchases journal and in a general journal. Use 14 as the page number for the purchases journal and 38 as the page number for the general journal.
3. Post entries from the general journal to the general ledger accounts.
4. Total and rule the purchases journal as of June 30.
5. Post the column totals from the purchases journal to the proper general ledger accounts.
6. Compute the net purchases of the firm for the month of June.

GENERAL LEDGER ACCOUNTS

205	Accounts Payable, $13,904 Cr.
501	Purchases
502	Freight In
503	Purchases Returns and Allowances

DATE	TRANSACTIONS
June 1	Purchased instant cameras for $1,950 plus a freight charge of $180 from Pro Photo Equipment, Invoice 4241, dated May 27; the terms are 60 days net.
8	Purchased film for $1,384 from Photo Supplies, Invoice 1102, dated June 3, net payable in 45 days.
12	Purchased lenses for $906 from Nano Glass, Invoice 7282, dated June 9; the terms are 1/10, n/60.
18	Received Credit Memorandum 110 for $350 from Pro Photo Equipment for defective cameras that were returned; they were originally purchased on Invoice 4241, dated May 27.
20	Purchased color film for $1,100 plus freight of $65 from Photo Supplies, Invoice 1148, dated June 15, net payable in 45 days.
23	Purchased camera cases for $1,946 from Hi-Qual Case, Invoice 3108, dated June 18, net due and payable in 45 days.
28	Purchased lens filters for $2,370 plus freight of $110 from Holtz Spectrum, Invoice 5027, dated June 24; the terms are 2/10, n/30.
30	Received Credit Memorandum 1108 for $260 from Hi-Qual Case; the amount is an allowance for damaged but usable goods purchased on Invoice 3108, dated June 18.

(Note: Save your working papers for use in Problem 8.2A.)

Analyze: What total purchases were posted to the Purchases general ledger account for June?

Problem 8.2A

This problem is a continuation of Problem 8.1A.

INSTRUCTIONS

1. Set up an accounts payable subsidiary ledger for Qwik Photo Club. Open an account for each of the creditors listed below and enter the balances as of June 1, 2013. Arrange the accounts payable ledger in alphabetical order.
2. Post the individual entries from the purchases journal and the general journal prepared in Problem 8.1A.
3. Prepare a schedule of accounts payable for June 30.
4. Check the total of the schedule of accounts payable against the balance of the Accounts Payable account in the general ledger. The two amounts should be equal.