Purchases Journal Page 16
Date Account Credited
Post.
Ref.
Accts.
Payable
Cr.
Cleaning
Supplies
Dr.
Other
Accounts
Dr.
Post.
Ref. Amount
2014
Jan. 4 Enviro-Wash Supplies Inc. 570 570
15 Little Co. 290 290
19 Office Mate Inc. 3,050 Office Equipment 3,050
26 Enviro-Wash Supplies Inc. 350 350
31 4,260 1,210 3,050
a. Prepare a T account for the accounts payable creditor accounts.
b. Post the transactions from the purchases journal to the creditor accounts, and determine their ending balances.
c. Prepare T accounts for the accounts payable control and cleaning supplies accounts. Post control totals to the two accounts, and determine their ending balances. Cleaning Supplies had a zero balance at the beginning of the month.
d. Prepare a schedule of the creditor account balances to verify the equality of the sum of the accounts payable creditor balances and the accounts payable controlling account balance.
e. How might a computerized accounting system differ from the use of a purchases journal in recording purchase transactions?
Answer:
a. and b.
Enviro-Wash Supplies Inc. Little Co.
Jan. 4 570 Jan. 1 Bal. 410
26 350 15 290
Bal. 920 Bal. 700
Office Mate Inc.
Jan. 19 3,050
Bal. 3,050
c.
Accounts Payable Cleaning Supplies
Jan. 1 Bal. 410 Jan. 31 1,210
31 4,260 Bal. 1,210
Bal. 4,670
d.
WALLACE WINDOW CLEANERS INC.
Accounts Payable Creditor Balances
January 31, 2014
Enviro-Wash Supplies Inc. $ 920
Little Co. 700
Office Mate Inc. 3,050
Total supplier account balances $4,670
The total in the schedule above agrees with the T account balance for the
accounts payable control account in (c).
e. A computerized system would likely use an electronic form specially designed
for recording purchase transactions. The transaction details would be input
into the form fields and submitted. Once submitted, the transaction would be
saved and automatically posted as a debit to an appropriate asset account and
a credit to the individual creditor accounts payable account. There would be
no control totals posted to a controlling account.