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Purchases and cash payments journals Happy Tails Inc. has a June 1, 2016 accounts payable balance of $600, which consists of $360 due Labradore Inc. and $240 due Meow Mart Inc. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of June 2016 are as follows: June 4. Purchased pet supplies from Best Friend Supplies Inc. on account, $255. 6. Issued Check No. 345 to Labradore Inc. in payment of account, $360. 13. Purchased pet supplies from Poodle Pals Inc., $710. 18. Issued Check No. 346 to Meow Mart Inc. in payment of account, $240. 19. Purchased office equipment from Office Helper Inc. on account, $2,670. 23. Issued Check No. 347 to Best Friend Supplies Inc. in payment of account from purchase made on June 4. 27. Purchased pet supplies from Meow Mart Inc. on account, $400. 30. Issued Check No. 348 to Jennings Inc. for cleaning expenses, $65. a. Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are similar to those used in the text. Place a check mark (✓) in the Post. Ref. column to indicate when the accounts payable subsidiary ledger should be posted. Happy Tails Inc. uses the following accounts: Cash 11 Pet Supplies 14 Office Equipment 18 Accounts Payable 21 Cleaning Expense 54 b. Prepare a listing of accounts payable creditor balances on June 30, 2016. Verify that the total of the accounts payable creditor balances equals the balance of the accounts payable controlling account on June 30, 2016. c. Why does Happy Tails Inc. use a subsidiary ledger for accounts payable?

BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615
BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615

Solutions

Chapter
Section
Chapter 5, Problem 5.18EX
Textbook Problem

Purchases and cash payments journals

Happy Tails Inc. has a June 1, 2016 accounts payable balance of $600, which consists of $360 due Labradore Inc. and $240 due Meow Mart Inc. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of June 2016 are as follows:

June 4. Purchased pet supplies from Best Friend Supplies Inc. on account, $255.

6. Issued Check No. 345 to Labradore Inc. in payment of account, $360.

13. Purchased pet supplies from Poodle Pals Inc., $710.

18. Issued Check No. 346 to Meow Mart Inc. in payment of account, $240.

19. Purchased office equipment from Office Helper Inc. on account, $2,670.

23. Issued Check No. 347 to Best Friend Supplies Inc. in payment of account from purchase made on June 4.

27. Purchased pet supplies from Meow Mart Inc. on account, $400.

30. Issued Check No. 348 to Jennings Inc. for cleaning expenses, $65.

a. Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are similar to those used in the text. Place a check mark (✓) in the Post. Ref. column to indicate when the accounts payable subsidiary ledger should be posted. Happy Tails Inc. uses the following accounts:

Cash 11
Pet Supplies 14
Office Equipment 18
Accounts Payable 21
Cleaning Expense 54

b. Prepare a listing of accounts payable creditor balances on June 30, 2016. Verify that the total of the accounts payable creditor balances equals the balance of the accounts payable controlling account on June 30, 2016.

c. Why does Happy Tails Inc. use a subsidiary ledger for accounts payable?

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Chapter 5 Solutions

Accounting (Text Only)
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Ch. 5 - Revenue journal The following revenue transactions...Ch. 5 - Revenue journal The following revenue transactions...Ch. 5 - Accounts receivable subsidiary ledger The debits...Ch. 5 - Accounts receivable subsidiary ledger The debits...Ch. 5 - Purchases journal The following purchase...Ch. 5 - Purchases journal The following purchase...Ch. 5 - Accounts payable subsidiary ledger The debits and...Ch. 5 - Accounts payable subsidiary ledger The debits and...Ch. 5 - Segment analysis McHale Company does business in...Ch. 5 - Segment analysis Back Country Life, Inc., does...Ch. 5 - Identify postings from revenue journal Using the...Ch. 5 - Accounts receivable ledger Based on the data...Ch. 5 - Identify journals Assuming the use of a two-column...Ch. 5 - Identify journals Assuming the use of a two-column...Ch. 5 - Identify transactions in accounts receivable...Ch. 5 - Prepare journal entries in a revenue journal...Ch. 5 - Posting a revenue journal The revenue journal for...Ch. 5 - Accounts receivable subsidiary ledger The revenue...Ch. 5 - Revenue and cash receipts journals Transactions...Ch. 5 - Revenue and cash receipts journals Lasting Summer...Ch. 5 - Identify postings from purchases journal Using the...Ch. 5 - Identify postings from cash payments journal Using...Ch. 5 - Identify transactions in accounts payable...Ch. 5 - Prepare journal entries in a purchases journal...Ch. 5 - Posting a purchases journal The purchases journal...Ch. 5 - Accounts payable subsidiary ledger The cash...Ch. 5 - Purchases and cash payments journals Transactions...Ch. 5 - Purchases and cash payments journals Happy Tails...Ch. 5 - Error in accounts payable subsidiary ledger After...Ch. 5 - Identify postings from special journals Pinnacle...Ch. 5 - Cash receipts journal The following cash receipts...Ch. 5 - Computerized accounting systems Most computerized...Ch. 5 - Computerized accounting systems and e-commerce...Ch. 5 - E-commerce For each of the following companies,...Ch. 5 - Segment revenue horizontal analysis Starbucks...Ch. 5 - Segment revenue vertical analysis News Corporation...Ch. 5 - Segment revenue horizontal and vertical analyses...Ch. 5 - Revenue journal; accounts receivable subsidiary...Ch. 5 - Revenue and cash receipts journals; accounts...Ch. 5 - Purchases, accounts payable subsidiary account,...Ch. 5 - Purchases and cash payments journals; accounts...Ch. 5 - All journals and general ledger; trial balance The...Ch. 5 - Problems: Series B Revenue journal; accounts...Ch. 5 - Revenue and cash receipts journals; accounts...Ch. 5 - Purchases, accounts payable account, and accounts...Ch. 5 - Purchases and cash payments journals; accounts...Ch. 5 - All journals and general ledger; trial balance The...Ch. 5 - Ethics in Action Netbooks Inc. provides accounting...Ch. 5 - Manual vs. computerized accounting systems The...Ch. 5 - Accounts receivable and accounts payable A...Ch. 5 - Design of accounting systems For the past few...Ch. 5 - Communication Internet-based accounting software...

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