Assume that Suppan Company in Problem 7-5B uses the periodic inventory system. Required 1. Open the following

Question:

Assume that Suppan Company in Problem 7-5B uses the periodic inventory system.

Required

1. Open the following general ledger accounts: Cash; Accounts Receivable; Inventory (November 1 beg. bal. is $40,000); Office Supplies; Store Supplies; Office Equipment; Accounts Payable; Long-Term Notes Payable; J. Suppan, Capital (Nov. 1 beg. bal. is $40,000); Sales; Sales Discounts; Purchases; Purchases Returns and Allowances; Purchases Discounts; and Sales Salaries Expense. Open the following accounts receivable subsidiary ledger accounts: Carlos Mane, Tony Timmons, and Sid Ragan.

Open the following accounts payable subsidiary ledger accounts: Globe Company, ATM Industries, Blix Supply, and Xu Company.

2. Enter the transactions from Problem 7-5B in a sales journal like that in Exhibit 7A.1, a purchases journal like that in Exhibit 7A.3, a cash receipts journal like that in Exhibit 7A.2, a cash disbursements journal like that in Exhibit 7A.4, or a general journal. Number journal pages as page 2.

3. Prepare a trial balance of the general ledger and prove the accuracy of the subsidiary ledgers by preparing schedules of both accounts receivable and accounts payable.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...