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. 17Oct. 27Oct. 29Oct. 30Oct. 31		P30
Account: Office Supplies #15
Oct. 1	Balance
Oct. 17Oct. 27Oct. 29Oct. 30Oct. 31		P30
Account: Office Equipment #18
Oct. 1	Balance
Oct. 5Oct. 9Oct. 10Oct. 11Oct. 17		P30
Account: Accounts Payable #21
Oct. 1	Balance
Oct. 17Oct. 27Oct. 29Oct. 30Oct. 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. 2Oct. 5Oct. 6Oct. 9Oct. 13		P30
Oct. 13Oct. 21Oct. 25Oct. 26Oct. 29		P30
Account: Meade Co.
Oct. 1	Balance
Oct. 2Oct. 5Oct. 6Oct. 9Oct. 13		P30
Account: Omni Co.
Oct. 11Oct. 13Oct. 14Oct. 16Oct. 19		P30
Oct. 13Oct. 21Oct. 24Oct. 26Oct. 29		P30
Oct. 13Oct. 21Oct. 25Oct. 26Oct. 31		P30
Account: Peach Computers Co.
Oct. 1Oct. 5Oct. 6Oct. 9Oct. 13		P30
Account: Yamura Co.
Oct. 11Oct. 13Oct. 16Oct. 17Oct. 19		P30
Oct. 11Oct. 17Oct. 18Oct. 29Oct. 31		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	Meade Co.Omni Co.Peach Computers Co.Yamura Co.No Entry Required					Meade Co.Omni Co.Office equipmentPeach Computers Co.No Entry Required
Oct. 5	Meade Co.Omni Co.Peach Computers Co.Yamura Co.No Entry Required					Omni Co.Office equipmentPeach Computers Co.Yamura Co.No Entry Required
Oct. 9	Executive Office Supply Co.Omni Co.Peach Computers Co.Yamura Co.No Entry Required					Executive Office Supply Co.Office equipmentPeach Computers Co.Yamura Co.No Entry Required
Oct. 13	Meade Co.Omni Co.Peach Computers Co.Yamura Co.No Entry Required					Executive Office Supply Co.Office equipmentPeach Computers Co.Yamura Co.No Entry Required
Oct. 14	Executive Office Supply Co.Omni Co.Peach Computers Co.Yamura Co.No Entry Required					Executive Office Supply Co.Meade Co.Omni Co.Office equipmentNo Entry Required
Oct. 17	Meade Co.Omni Co.Peach Computers Co.Yamura Co.No Entry Required					Executive Office Supply Co.Office equipmentPeach Computers Co.Yamura Co.No Entry Required
Oct. 24	Meade Co.Omni Co.Peach Computers Co.Yamura Co.No Entry Required					Executive Office Supply Co.Office equipmentPeach Computers Co.Yamura Co.No Entry Required
Oct. 29	Executive Office Supply Co.Meade Co.Omni Co.Yamura Co.No Entry Required					Omni Co.Office equipmentPeach Computers Co.Yamura Co.No Entry Required
Oct. 31	Meade Co.Omni Co.Peach Computers Co.Yamura Co.No Entry Required					Executive Office Supply Co.Office equipmentPeach Computers Co.Yamura Co.No Entry Required
Oct. 31
								()

5a. What is the sum of the creditor balances in the subsidiary ledger at October 31? $fill in the blank 141

5b. What is the balance of the accounts payable controlling account at October 31? $fill in the blank 142

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