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., $400.
Oct. 5. Purchased office equipment on account from Peach Computers Co., $3,980.
Oct. 9. Purchased office supplies on account from Executive Office Supply Co., $320.
Oct. 13. Purchased field supplies on account from Yamura Co., $1,420.
Oct. 14. Purchased field supplies on account from Omni Co., $2,940.
Oct. 17. Purchased field supplies on account from Yamura Co., $1,890.
Oct. 24. Purchased field supplies on account from Omni Co., $3,880.
Oct. 29. Purchased office supplies on account from Executive Office Supply Co., $310.
Oct. 31. Purchased field supplies on account from Omni Co., $1,800.
Note: Posting references have been provided.
Required:
1. Insert the following balances in the general ledger as of October 1:
14 Field Supplies $5,920
15 Office Supplies 750
18 Office Equipment 12,300
21 Accounts Payable 1,170
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. $390
Meade Co. 780
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, using a purchases journal (p. 30) similar to the one illustrated in this chapter. Prepare the purchases journal with columns for Accounts Payable, Field Supplies, Office Supplies, and Other Accounts. Post to the creditor accounts in the accounts payable subsidiary ledger 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 accounts payable controlling account at October 31?
$
6. What type of e-commerce application would be used to plan and coordinate transactions with suppliers?