AquaFresh Water Testing Service was established on April 16, 2016. AquaFresh uses field equipment and field supplies (chemicals and other supplies) to analyze water for unsafe contaminants in streams, lakes, and ponds. Transactions related to purchases and cash payments during the remainder of April are as follows:

April 16. Issued Check No. 1 in payment of rent for the remainder of April, $3,500.

16. Purchased field supplies on account from Hydro Supply Co., $5,340.

16. Purchased field equipment on account from Pure Equipment Co., $21,450.

17. Purchased office supplies on account from Best Office Supply Co., $510.

19. Issued Check No. 2 in payment of field supplies, $3,340, and office supplies, $400.

Post the journals to the accounts payable subsidiary ledger.

23. Purchased office supplies on account from Best Office Supply Co., $660.

23. Issued Check No. 3 to purchase land, $140,000.

24. Issued Check No. 4 to Hydro Supply Co. in payment of April 16 invoice, $5,340.

26. Issued Check No. 5 to Pure Equipment Co. in payment of April 16 invoice, $21,450.

Post the journals to the accounts payable subsidiary ledger.

30. Acquired land in exchange for field equipment having a cost of $12,000.

30. Purchased field supplies on account from Hydro Supply Co., $7,650.

30. Issued Check No. 6 to Best Office Supply Co. in payment of April 17 invoice, $510.

30. Purchased the following from Pure Equipment Co. on account: field supplies,

$1,340, and field equipment, $4,700.

30. Issued Check No. 7 in payment of salaries, $29,400.

Post the journals to the accounts payable subsidiary ledger.

Instructions

1. Journalize the transactions for April. Use a purchases journal and a cash payments journal, similar to those illustrated in this chapter, and a two-column general journal.

Use debit columns for Field Supplies, Office Supplies, and Other Accounts in the purchases journal. Refer to the following partial chart of accounts:

11 Cash.................................................................................19 Land

14 Field Supplies ........................................................21 Accounts Payable

15 Office Supplies..........................................................61 Salary Expense

17 Field Equipment..........................................................71 Rent Expense

At the points indicated in the narrative of transactions, post to the following accounts I the accounts payable subsidiary ledger:

Best Office Supply Co.

Hydro Supply Co.

Pure Equipment Co.

2. Post the individual entries (Other Accounts columns of the purchases journal and the cash payments journal and both columns of the general journal) to the appropriate general ledger accounts.
3. Total each of the columns of the purchases journal and the cash payments journal, and post the appropriate totals to the general ledger. (Because the problem does not include transactions related to cash receipts, the cash account in the ledger will have
a credit balance.)
4. Prepare a schedule of the accounts payable creditor balances.
5. Why might AquaFresh consider using a subsidiary ledger for the field equipment?