Farber€™s Fabric Co. of Yellow knife uses a purchases journal (page21) and a general journal (page 32) to record the following transactions (continued from July).

The fabric store has decided to keep a purchases journal. The account balances as of August 1, 2012, are as follows:

Required
a. Journalize the transactions.
b. Post and record as appropriate.
c. Prepare a schedule of accounts payable.

Transcribed Image Text:

2012 August Purchased fabric for resale from European Import Fabrics Co., invoice No. 653, dated August 2, terms net 15 days, $1,362 Purchased merchandise on account from Eddyn Co., invoice No. 250, dated August 7, terms 2/10, n/60, $920 Purchased merchandise on account from Forward Co. invoice No. 1124, dated August 7, terms 1/10, n/60, $1,626. Purchased store supplies on account from Lavoy Co., invoice No. 712, dated August 10, $2,680 Issued debit memo No. 8 to Eddyn Co. for merchandise returned, $160, from invoice No. 250 Purchased office equipment on account from Reliant Co. invoice No. 873, dated August 14, $2,610 Purchased additional store supplies on account from Lavoy Co., invoice No. 816, dated August 24, terms 2/10, n/30, $725 Purchased fabric for resale from European Import Fabrics Co., invoice No. 713, dated August 27, terms net 15 days, $2,740 3 7 10 13 14 17 24 28 Accounts Payable Ledger ame Eddyn Co European Import Forward Co Lavoy Co Reliant Co Balance $800 3,100 1,500 500 2,650 Partial General Ledger Account Store Supplies Office Equipment Accounts Payable Purchases Purchases Returns and Allowances Number 130 180 220 500 510 Balance 8,550 86,340 1,374