West Texas Exploration Co. was established on October 15 to provide oil-drilling services. West Texas uses field equipment (rigs and pipe) and field supplies (drill bits and lubricants) in its operations. Transactions related to purchases and cash payments during the remainder of October are as follows: Oct. 16. Issued Check No. 1 in payment of rent for the remainder of October, $7,000. 16. Purchased field equipment on account from Petro Services Inc., $32,600. 17. Purchased field supplies on account from Midland Supply Co., $9,780. 18. Issued Check No. 2 in payment of field supplies, $4,570, and office supplies, $650. 20. Purchased office supplies on account from A-One Office Supply Co., $1,320. Post the journals to the accounts payable subsidiary ledger. 24. Issued Check No. 3 to Petro Services Inc., in payment of October 16 invoice. 26. Issued Check No. 4 to Midland Supply Co. in payment of October 17 invoice. 28. Issued Check No. 5 to purchase land, $240,000. 28. Purchased office supplies on account from A-One Office Supply Co., $3,670. Post the journals to the accounts payable subsidiary ledger. 30. Purchased the following from Petro Services Inc. on account: field supplies, $25,300 and office equipment, $5,500. 30. Issued Check No. 6 to A-One Office Supply Co. in payment of October 20 invoice. 30. Purchased field supplies on account from Midland Supply Co., $12,450. 31. Issued Check No. 7 in payment of salaries, $32,000. 31. Rented building for one year in exchange for field equipment having a cost of $15,000

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 4PB

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West Texas Exploration Co. was established on October 15 to provide oil-drilling services. West Texas uses field equipment (rigs and pipe) and field supplies (drill bits and lubricants) in its operations. Transactions related to purchases and cash payments during the remainder of October are as follows:

Oct. 16.		Issued Check No. 1 in payment of rent for the remainder of October, $7,000.
16.		Purchased field equipment on account from Petro Services Inc., $32,600.
17.		Purchased field supplies on account from Midland Supply Co., $9,780.
18.		Issued Check No. 2 in payment of field supplies, $4,570, and office supplies, $650.
20.		Purchased office supplies on account from A-One Office Supply Co., $1,320.
		Post the journals to the accounts payable subsidiary ledger.
24.		Issued Check No. 3 to Petro Services Inc., in payment of October 16 invoice.
26.		Issued Check No. 4 to Midland Supply Co. in payment of October 17 invoice.
28.		Issued Check No. 5 to purchase land, $240,000.
28.		Purchased office supplies on account from A-One Office Supply Co., $3,670.
		Post the journals to the accounts payable subsidiary ledger.
30.		Purchased the following from Petro Services Inc. on account: field supplies, $25,300 and office equipment, $5,500.
30.		Issued Check No. 6 to A-One Office Supply Co. in payment of October 20 invoice.
30.		Purchased field supplies on account from Midland Supply Co., $12,450.
31.		Issued Check No. 7 in payment of salaries, $32,000.
31.		Rented building for one year in exchange for field equipment having a cost of $15,000.

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