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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Patterson Appliance uses a three-column purchases journal. The company is located in Fresno, California. In addition to a general ledger, Patterson Appliance also uses an accounts payable ledger. Transactions for January related to the purchase of merchandise are as follows:

Jan. 2 Bought eighty 12-inch, 3-speed Brighton Oscillating Fans from Snyder and Jordan, $1,890, invoice no. 268J, dated January 2; terms net 60 days; FOB Fresno.

4 Bought ten 35-pint-capacity Crystal Humidifiers from Simpson Company, $2,300, invoice no. 39426, dated January 2; terms 2/10, n/30; FOB Durango, freight prepaid and added to the invoice, $90 (total $2,390).

7 Bought ten 16-inch Axel Window Fans from Tran, Inc., $360, invoice no. 452AD, dated January 6; terms 1/10, n/30; FOB Fresno.

10 Bought twenty-four 4-blade Tiempo Ceiling Fans, Model 2760, from Ukele Company, $3,550, invoice no. D7742, dated January 7; terms 2/10, n/30; FOB Sacramento, freight prepaid and added to the invoice, $84 (total $3,634).

14 Bought four Charger Electric Hedge Trimmers from Fernandez Products Company, $186, invoice no. 2542, dated January 13; terms net 30 days; FOB Fresno.

22 Bought 40 Lindon Electric Bug Killers from Snyder and Jordan, $2,265, invoice no. 392J, dated January 22; terms net 60 days; FOB Fresno.

28 Bought ten Charger Electric Blowers from Fernandez Products Company, $830, invoice no. 2691, dated January 27; terms net 30 days; FOB Fresno.

30 Bought ten Kole Powered Attic Ventilators from Porter Company, $446, invoice no. 664CC, dated January 27; terms 2/10, n/30; FOB Seattle, freight prepaid and added to the invoice, $48 (total $494).

Required

  1. 1. If using Working Papers, open the following accounts in the accounts payable ledger and record the January 1 balances, if any, as given: Fernandez Products Company; Porter Company, $163.17; Simpson Company, $167.19; Snyder and Jordan; Tran, Inc., $228.70; Ukele Company. For the accounts having balances, write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow or CLGL.
  2. 2. If using Working Papers, record the balance of $559.06 in the Accounts Payable 212 controlling account as of January 1. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow or CLGL.
  3. 3. Record the transactions in the purchases journal. If using Working Papers, begin on page 81.
  4. 4. Post to the accounts payable ledger daily. Skip this step if using CLGL.
  5. 5. Post to the general ledger at the end of the month. Skip this step if using CLGL.
  6. 6. Prepare a schedule of accounts payable and compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable.

1.

To determine

Post the opening balance in Accounts payable ledger and record the January 01 balances.

Explanation

Accounts payables: Accounts payables are short-term legal agreements which are required to be paid within one year. So, they are classified as current liabilities on balance sheet.

Post the opening balance in Accounts payable ledger and record the January 01 balances:

Accounts payable ledger
Name : Company FP
DateItemPost Ref.DebitCreditBalance
       

Table (1)

Accounts payable ledger
Name : Company P
DateItemPost Ref.DebitCreditBalance
20--     
January01Balance  $163.17

Table (2)

Accounts payable ledger
Name : Company S
DateItemPost Ref.DebitCreditBalance
20--     
January1Balance  $167...

2.

To determine

Post the opening balance in Accounts payable 212 controlling account as of January 01.

3.

To determine

Record the transactions in purchases journal.

4.

To determine

Post the transactions to accounts payable ledger.

5.

To determine

Post the amounts from general journal at the end of the month.

6.

To determine

Prepare a schedule of Accounts payable.

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