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Purchases, accounts payable subsidiary account, and accounts payable ledger Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October 2016 are as follows: 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: 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 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?

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 5.3APR
Textbook Problem

Purchases, accounts payable subsidiary account, and accounts payable ledger

Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October 2016 are as follows:

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:

Chapter 5, Problem 5.3APR, Purchases, accounts payable subsidiary account, and accounts payable ledger Sterling Forest

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 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?

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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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