PE 5-4A Accounts payable subsidiary ledger

The debits and credits from two transactions are presented in the following supplier’s (creditor’s) account:


NAME Martin Computer Services Inc.
ADDRESS 2199 Technology Place
Date Item
Post.
Ref. Debit Credit Balance
Dec. 1 Balance 9,400
11 Invoice 75 P8 2,340 11,740
19 Invoice 43 CP46 5,540 6,200



Describe each transaction and the source of each posting.


Answer:
Dec. 11. Made purchases of $2,340 on account from Martin Computer Services Inc. (Invoice No. 75). Amount posted from page 8 of the purchases journal.

19. Paid $5,540 to Martin Computer Services Inc. on account (Invoice No. 43).
Amount posted from page 46 of the cash payments journal.