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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

Williams Corporation had the following purchases for May:

May 3    Bought ten lawn rakes from Owens Company, invoice no. J34Y9, $250.25; terms net 15 days; dated May 1; FOB shipping point, freight prepaid and added to the invoice, $15 (total $265.25).

11    Bought one weed trimmer from Lionel’s Lawn & Landscaping, invoice no. R7740, $219.72; terms 2/10, n/30; dated May 9; FOB shipping point, freight prepaid and added to the invoice, $35 (total $254.72).

15    Bought five bags of fertilizer from Wright’s Farm Supplies, invoice no. 478, $210.97; terms net 30 days; dated May 13; FOB destination.

25    Bought one lawn mower from Gutierrez Corporation, invoice no. 2458, $425.39; terms net 30 days; dated May 22; FOB destination.

Assume that Williams Corporation had beginning balances on May 1 of $3,492.29 (Accounts Payable 212), $4,239.49 (Purchases 511), and $234.89 (Freight In 514). Record the purchases of merchandise on account in the purchases journal (page 13) and then post to the general ledger.

To determine

Prepare journal entry to record the given transaction in purchase journal and post them to the general ledger.

Explanation

Sales journal:

Sales journal is one form of special journal book, which records all the sales transactions that are sold to customers on credit. In a single column sales journal, debit aspect of accounts receivable and credit aspect of inventory are recorded, and then posted to individual subsidiary customer account.

Prepare journal entry to record the given transaction in purchase journal.

(Figure 1)

Post the transactions to the general ledger.

                                   Accounts Payable                   Account  No: 212
Date Item Post ref. Debit Credit Balance
Debit Credit
May 1 Balance ✓           3,492.29
  31       1,156.33   4,648.62

Table (1)

                                   Purchase                                 Account  No: 511
Date Item Post ref...

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