Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger

Sterling Forest 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 Sterling Forest Landscaping during

October are as follows:

Oct. 2. Purchased office supplies on account from Meade Co., $400.

Oct. 5. Purchased office equipment on account from Peach Computers

Co., $3,980.

Oct. 9. Purchased office supplies on account from Executive Office

Supply Co., $320.

Oct. 13. Purchased field supplies on account from Yamura Co., $1,420.

Oct. 14. Purchased field supplies on account from Omni Co., $2,940.

Oct. 17. Purchased field supplies on account from Yamura Co., $1,890.

Oct. 24. Purchased field supplies on account from Omni Co., $3,880.

Oct. 29. Purchased office supplies on account from Executive Office

Supply Co., $310.

Oct. 31. Purchased field supplies on account from Omni Co., $1,800.

Note: Posting references have been provided.

Required:

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

14 Field Supplies $5,920

15 Office Supplies 750

18 Office Equipment 12,300

21 Accounts Payable 1,170

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

Oct. 1 Balance

Oct. 29 P30

Account: Office Supplies #15

Oct. 1 Balance

Oct. 31 P30

Account: Office Equipment #18

Oct. 1 Balance

Oct. 5 P30

Account: Accounts Payable #21

Oct. 1 Balance

Oct. 31 P30

2. Insert the following balances in the accounts payable subsidiary

ledger as of October 1:

Executive Office Supply Co. $390

Meade Co. 780

Omni 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.

Oct. 1 Balance

Oct. 5 P30

Oct. 26 P30

Account: Meade Co.

Oct. 1 Balance

Oct. 6 P30

Account: Omni Co.

Oct. 14 P30

Oct. 21 P30

Oct. 25 P30

Account: Peach Computers Co.

Oct. 6 P30

Account: Yamura Co.

Oct. 13 P30

Oct. 17 P30

3. Journalize the transactions for October, using a purchases journal

(p. 30) similar to the one illustrated in this chapter. Prepare the

purchases journal with columns for Accounts Payable, Field Supplies,

Office Supplies, and Other Accounts. Post to the creditor accounts in

the accounts payable subsidiary ledger 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

Oct. 2 Executive Office Supply Co.

Oct. 5 Meade Co.

Oct. 9 Omni Co.

Oct. 13 Peach Computers Co.

Oct. 14 Peach Computers Co.

Oct. 17 Peach Computers Co.

Oct. 24

Oct. 29

Oct. 31

Oct. 31

Oct. 31 ()

5a. What is the sum of the creditor balances in the subsidiary ledger

at October 31?

$

5b. What is the balance of the accounts payable controlling account

at October 31?

$

6. What type of e-commerce application would be used to plan and

coordinate transactions with suppliers?