Buzz Newsstand had the following purchases and cash payment transactions for July. The balance in the accounts payable subsidiary ledger and general ledger accounts are opened in the working papers. 

Instructions 

In your working papers:

1. Record the purchases and cash payment transactions on page 12 of the purchases journal and page 12 of the cash payments journal.

2. Post to the creditors’ accounts in the accounts payable subsidiary ledger daily.

3. Post from the General Debit and Credit columns of the journals on the date the transaction occurred.

4. Foot, prove, total, and rule both journals.

5. Post the column totals of the purchases journal to the general ledger accounts named in the column headings.

6. Post the column totals of the cash payments journal to the general ledger accounts named in the column headings.

7. Prepare a schedule of accounts payable.

8. Prepare a cash proof at the end of the month. The beginning Cash in Bank balance was $9,000. Cash receipts were $10,500. The check stub balance on July 31 is $10,178. 

Transcribed Image Text:

Date Transactions July 1 Issued Check 2455 for $1,552 to ADC Publishing in payment on account of $1,600 invoice less a 3% discount. 2 Purchased $400 in merchandise on account from Pine Forest Publications, Invoice PFP144, terms 2/10, n/30. 2 Paid Candlelight Software $1,358 in payment of $1,400 account less a 3% discount, Check 2456. 4 Issued Check 2457 to Nomad Computer Sales for $350 to apply on account. 5 Purchased $2,000 in store equipment on account from CorpTech Office Supply, Invoice CT67. 7 Issued Check 2458 for $125 to Wolfe Trucking for transportation charges. 9 Purchased $900 in merchandise on account from American Trend Publishers, Invoice ATP98. 12 Purchased $300 in supplies on account from CorpTech Office Supply, Invoice CT72. 14 Issued Check 2459 to Delta Press for $750 to apply on account. 15 Received insurance premium statement from SeaTac Insurance Co. for $1,600. Issued Check 2460. 16 Check 2461 was issued for $882 to American Trend Publishers in payment of $900 account less a 2% discount.