Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger

English Garden Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by English Garden Landscaping during January 2016 are as follows:

Jan. 2.		Purchased office supplies on account from Meade Co., $5,590.
5.		Purchased office equipment on account from Peach Computers Co., $8,030.
9.		Purchased office supplies on account from Executive Office Supply Co., $580.
13.		Purchased field supplies on account from Yamura Co., $6,360.
14.		Purchased field supplies on account from Naples Co., $840.
17.		Purchased field supplies on account from Yamura Co., $15,130.
24.		Purchased field supplies on account from Naples Co., $4,260.
29.		Purchased office supplies on account from Executive Office Supply Co., $380.
31.		Purchased field supplies on account from Naples Co., $5,580.

Note: Posting references have been provided.

Required:

1. Insert the following balances in the general ledger as of January 1:

14	Field Supplies	$11380
15	Office Supplies	2610
18	Office Equipment	38370
21	Accounts Payable	9760

After completing the recording of transactions in part 3, post the purchases journal to the accounts in the general ledger. If an amount box does not require an entry, leave it blank.

GENERAL LEDGER
					Balance
Date	Item	Post. Ref.	Debit	Credit	Dr	Cr
Account: Field Supplies #14
2016
Jan. 1	Balance
Jan. 31		P30
Account: Office Supplies #15
2016
Jan. 1	Balance
		P30
Account: Office Equipment #18
2016
Jan. 1	Balance
Jan. 5		P30
Account: Accounts Payable #21
2016
Jan. 1	Balance
		P30

2. Insert the following balances in the accounts payable subsidiary ledger as of January 1:

Executive Office Supply Co.	$3220
Meade Co.	6540
Naples Co.	-
Peach Computers Co.	-
Yamura Co.	-

After completing the recording of transactions in part 3, post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry. If an amount box does not require an entry, leave it blank.

ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Date	Item	Post. Ref.	Debit	Credit	Balance
Account: Executive Office Supply Co.
2016
Jan. 1	Balance
		P30
		P30
Account: Meade Co.
2016
Jan. 1	Balance
		P30
Account: Naples Co.
2016
		P30
		P30
		P30
Account: Peach Computers Co.
2016
		P30
Account: Yamura Co.
2016
		P30
		P30

3. Journalize the transactions for January (in chronological order), using the purchases journal below (p. 30) similar to the one illustrated in this chapter. Post to the creditor accounts in the accounts payable subsidiary ledger (in part 2) immediately after each entry.

4. Post the purchases journal to the accounts in the general ledger (in part 1). If an amount box does not require an entry, leave it blank.

If no other account is needed in the "Other Accounts Dr." column select "No entry required".

PURCHASES JOURNAL									PAGE 30
Date	Account Credited	Post. Ref.	Accounts Payable Cr.	Field Supplies Dr.	Office Supplies Dr.	Other Accounts Dr.	Post. Ref.	Amount
2016
Jan. 2
Jan. 5
Jan. 9
Jan. 13
Jan. 14
Jan. 17
Jan. 24
Jan. 29
Jan. 31
Jan. 31

5a. What is the sum of the creditor balances in the subsidiary ledger at January 31? $

5b. What is the balance of the account payable controlling account at January 31? $

6. What type of e-commerce application would be used to plan and coordinate transactions with suppliers?