PRACTICE EXERCISE 12

Using the completed Purchase Journal in Practice Exercise 11, post the transactions and prepare a trial balance:

Set up the following General Ledger accounts with account numbers as indicated: Insurance Prepaid, 111; Office Equipment, 123; Office Furniture, 124; Vehicle, 135; Accounts Payable Control, 201; HST-ITC, 250; Purchases, 501; Advertising Expense, 512; Office Supplies Expense, 515; and Warehouse Supplies Expense, 518.

Set up the following accounts payable accounts with account numbers as indicated: A/P Brandon Co., 220; A/P Green Tree Printers, 221; A/P Harris Trucks, 222; A/P Nielsen Ltd., 223; A/P Northland Co., 224; A/P Panda Suppliers, 225; A/P Ringer Furniture Co., 226; A/P Yeung Insurance Co., 227.

Post the transactions in the order recommended for purchase journals. Be sure to use the Memo column in the suppliers' ledger accounts to keep track of invoice numbers and terms.

Prepare a trial balance with a schedule of accounts payable.