May 1. Purchased field supplies on account from Wendell Co., $3,240.
3. Purchased office supplies on account from Lassiter Co., $340.
8. Purchased field supplies on account from Tri Cities Supplies, $4,500.
12. Purchased field supplies on account from Wendell Co., $3,670.
15. Purchased office supplies on account from J-Mart Co., $500.
19. Purchased office equipment on account from Accu-Vision Supply Co., $8,150.
23. Purchased field supplies on account from Tri Cities Supplies, $2,450.
26. Purchased office supplies on account from J-Mart Co., $265.
30. Purchased field supplies on account from Tri Cities Supplies, $3,040.
Instructions
1. Insert the following balances in the general ledger as of May 1:
14 Field Supplies $ 6,200
15 Office Supplies 1,490
18 Office Equipment 19,400
21 Accounts Payable 5,145
2. Insert the following balances in the accounts payable subsidiary ledger as of May 1:
Accu-Vision Supply Co. $3,900
J-Mart Co. 730
Lassiter Co. 515
Tri Cities Supplies —
Wendell Co. —
3. Journalize the transactions for May, 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 May 31?
b. What is the balance of the accounts payable controlling account at May 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
May 1 Balance √ 6,200
31 P30 16,900 23,100
Account: Office Supplies Account No. 15
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
May 1 Balance √ 1,490
31 P30 1,105 2,595
Account: Office Equipment Account No. 18
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
May 1 Balance √ 19,400
19 P30 8,150 27,550
Account: Accounts Payable Account No. 21
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
May 1 Balance √ 5,145
31 P30 26,155
2. and 4.
Name:
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Accu-Vision Supply Co.
Date Item
Post.
Ref. Debit Credit Balance
2014
May 1 Balance √ 3,900
19 P30 8,150 12,050
Name: J-Mart Co.
Date Item
Post.
Ref. Debit Credit Balance
2014
May 1 Balance √ 730
15 P30 500 1,230
26 P30 265 1,495
Name: Lassiter Co.
Date Item
Post.
Ref. Debit Credit Balance
2014
May 1 Balance √ 515
3 P30 340 855
Name: Tri Cities Supplies
Date Item
Post.
Ref. Debit Credit Balance
2014
May 8 P30 4,500 4,500
23 P30 2,450 6,950
30 P30 3,040 9,990
Name: Wendell Co.
Date Item
Post.
Ref. Debit Credit Balance
2014
May 1 P30 3,240 3,240
12 P30 3,670 6,910
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
May 1 Wendell Co. √ 3,240 3,240
3 Lassiter Co. √ 340 340
8 Tri Cities Supplies √ 4,500 4,500
12 Wendell Co. √ 3,670 3,670
15 J-Mart Co. √ 500 500
19 Accu-Vision Supply Co. √ 8,150 Office Equipment 18 8,150
23 Tri Cities Supplies √ 2,450 2,450
26 J-Mart Co. √ 265 265
30 Tri Cities Supplies √ 3,040 3,040
31 26,155 16,900 1,105 8,150
(21) (14) (15) (√)
5. a. $31,300 ($12,050 + $1,495 + $855 + $9,990 + $6,910)
b. $31,300
6. Supply chain management e-commerce applications are used to plan and coordinate transactions with suppliers.