Purchases and Cash Payments Journals; Accounts Payable Subsidiary and General Ledgers Aquafresh Water Testing Service was established on April 16. Aquafresh uses field equipment and field supplies (chemicals and other supplies) to analyze water for unsafe contaminants in streams, lakes, and ponds. Transactions related to purchases and cash payments during the remainder of April are as follows: April 16, Issued Check No. 1 in payment of rent for the remainder of April, $3,500. April 16. Purchased field supplies on account from Hydro Supply Co., $5,340, April 16. Purchased field equipment on account from Pure Equipment Co., $21,450. April 17. Purchased office supplies on account from Best Office Supply Co., $510. April 19. Issued Check No. 2 in payment of field supplies, $3,340, and office supplies, $400. Post the Journals to the accounts payable subsidiary ledger a April 23. Purchased office supplies on account from Best Office Supply Co., $660. April 23. Issued Check No. 3 to purchase land, $140,000. April 24. Issued Check No. 4 to Hydro Supply Co. in payment of April 16 invoice, $5,340. April 26. 'Issued Check No. 5 to Pure Equipment Co. in payment of April 16 invoice, $21,450. Post the journals to the accounts payable subsidiary ledger. April 30. Acquired land in exchange for field equipment having a cost of $12,000. April 30. Purchased field supplies on account from Hydro Supply Co., $7,650. April 30. Issued Check No. 6 to Best Office Supply Co. in payment of April 17 invoice, $510. April 30. Purchased the following from Pure Equipment Co. on account: field supplies, $1,340, and field equipment, $4,700. April 30, issued Check No. 7 in payment of salaries, $29,400. Post the journals to the accounts payable subsidiary ledger Required: 1. Journalize the transactions (in chronological order as presented in the data) for April. Use a purchases journal and a cash payments journal, and a two-column general journal. Use debit columns for Field Supplies, Office Supplies, and Other Accounts in the purchases journal. Refer to the following partial chart of accounts: 11 Cash 19 Land 21 71 14 Field Supplies Accounts Payable 15 Office Supplies 61 Salary Expense 17 Field Equipment Rent Expense At the points indicated in the narrative of transactions, post to the following accounts in chronological order in the accounts payable subsidiary ledger: Best Office Supply Co. Hydro Supply Co. Pure Equipment Co. TA hose boxes in which no entry is required, leave the box blank. If no other account is needed in the "other Accounts Dr. column select "No Entry ired" PAGE 1 Post PURCHASES JOURNAL Accounts Field Supplies Office Supplies Payable Cr. De Dr. Other Accounts Post. Rel. Amount Date Account Credited Rel De CASH PAYNENTS JOURNAL Other Accounts Accounts Date Cash Cr. ck No. Account Debited Post Ref. Dr Payable Dr. Total JOURNAL PAGE 1 Date Description Post. Ref. Debit Credit 2. Post the individual entries in chronological order (Other Accounts columns of the purchases journal and the cash payments journal and both columns of the general journal) to the appropriate general ledger accounts. Post to the subsidiary ledger in chronological order. When posting to the general ledger, post in chronological order. However, if there is more than one entry on the same date, post transactions from the purchases journal first, then the cash payments Journal before posting from the general journal. 3. Total each of the columns of the purchases journal and the cash payments journal, and post the appropriate totals to the general ledger. ACCOUNTS PAYABLE SUBSIDIARY LEDGER Credit Balance Debit Date Item Post. Ref. Account: Best Office Supply Co. Account: Hydro Supply Co. III Account: Pure Equipment Co. GENERAL LEDGER Balance Date Item Post. Ref. Debit Credit Dr. Cr. Account: Cash #11 Account: Field Supplies #14 II Account: Office Supplies #15 Account: Field Equipment #17 IN Account: Land #19 II Account: Accounts Payable #21 Account: Salary Expense #61 Account: Rent Expense #71 4. Prepare a schedule of the accounts payable creditor balances. AQUAFRESH WATER TESTING SERVICE Accounts Payable Creditor Balances April 30 Best Office Supply Co. Hydro Supply Co. Pure Equipment Co. Total accounts payable 5. All are reasons why AquaFresh might consider using a subsidiary ledger for the field equipment EXCEPT
