Oct. 2. Purchased office supplies on account from Meade Co., $400.
5. Purchased office equipment on account from Peach Computers Co., $3,980.
9. Purchased office supplies on account from Executive Office Supply Co., $320.
13. Purchased field supplies on account from Yamura Co., $1,420.
14. Purchased field supplies on account from Omni Co., $2,940.
17. Purchased field supplies on account from Yamura Co., $1,890.
24. Purchased field supplies on account from Omni Co., $3,880.
29. Purchased office supplies on account from Executive Office Supply Co., $310.
31. Purchased field supplies on account from Omni Co., $1,800.
Instructions
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
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. —
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.
5.
a. What is the sum of the creditor balances in the subsidiary ledger at October 31?
b. 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?
Answer:
1. and 4.
Account: Field Supplies
GENERAL LEDGER
Account No. 14
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Oct. 1 Balance √ 5,920
31 P30 11,930 17,850
Account: Office Supplies Account No. 15
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Oct. 1 Balance √ 750
31 P30 1,030 1,780
Account: Office Equipment Account No. 18
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Oct. 1 Balance √ 12,300
5 P30 3,980 16,280
Account: Accounts Payable Account No. 21
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
Oct. 1 Balance √ 1,170
31 P30 16,940 18,110
2. and 3.
Name:
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Executive Office Supply Co.
Date Item
Post.
Ref. Debit Credit Balance
2014
Oct. 1 Balance √ 390
9 P30 320 710
29 P30 310 1,020
Name: Meade Co.
Date Item
Post.
Ref. Debit Credit Balance
2014
Oct. 1 Balance √ 780
2 P30 400 1,180
Name: Omni Co.
Date Item
Post.
Ref. Debit Credit Balance
2014
Oct. 14 P30 2,940 2,940
24 P30 3,880 6,820
31 P30 1,800 8,620
Name: Peach Computers Co.
Date Item
Post.
Ref. Debit Credit Balance
2014
Oct. 5 P30 3,980 3,980
Name: Yamura Co.
Date Item
Post.
Ref. Debit Credit Balance
2014
Oct. 13 P30 1,420 1,420
17 P30 1,890 3,310
3. and 4.
PURCHASES JOURNAL Page 30
Date Account Credited
Post.
Ref.
Accounts
Payable
Cr.
Field
Supplies
Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
Post.
Ref. Amount
2014
Oct. 2 Meade Co. √ 400 400
5 Peach Computers Co. √ 3,980 Office Equipment 18 3,980
9 Executive Office Supply Co. √ 320 320
13 Yamura Co. √ 1,420 1,420
14 Omni Co. √ 2,940 2,940
17 Yamura Co. √ 1,890 1,890
24 Omni Co. √ 3,880 3,880
29 Executive Office Supply Co. √ 310 310
31 Omni Co. √ 1,800 1,800
31 16,940 11,930 1,030 3,980
(21) (14) (15) (√)
5. a. $18,110 ($1,020 + $1,180 + $8,620 + $3,980 + $3,310)
b. $18,110
6. Supply chain management e-commerce applications are used to plan and coordinate transactions with suppliers.