The Old English Garden Shop is a retail store that sells garden equipment, furniture, and supplies Its credit purchases and purchases returns and allowances for July are listed below The general ledger accounts used to record these transactions are also provided The balance shown is for the beginning of July 20X1 GENERAL LEDGER ACCOUNTS 205 Accounts payable, $35,790 Cr 501 Purchases 502 Freight In 503 Purchases returns and allowances DATE TRANSACTIONS July 1 Purchased lawn mowers for $9,120 plus a freight charge of $240 from Charleston Corporation, Invoice 1011, dated June 26, net due and payable in 60 days 5 Purchased outdoor chairs and tables for $4,280 plus a freight charge of $543 from Cedarbrook Garden Center, Invoice 639, dated July 2, net due and payable in 45 days 9 Purchased grass seed for $1,210 from Lawn and Gardens Supply, Invoice 8164, dated July 5 the terms are 30 days net 16 Received Credit Memorandum 110 for $510 from Cedarbrook Garden Center the amount is an allowance for scratches on some of the chairs and tables originally purchased on Invoice 639, dated July 2 19 Purchased fertilizer for $1,110 plus a freight charge of $247 from Lawn and Gardens Supply, Invoice 9050, dated July 15 the terms are 30 days net 21 Purchased hoses from Dunn Rubber Company for $3,590 plus a freight charge of $215, Invoice 1785, dated July 17 terms are 1 15, n 60 28 Received Credit Memorandum 223 for $340 from Dunn Rubber Company for damaged hoses that were returned the goods were purchased on Invoice 1785, dated July 17 31 Purchased lawn sprinkler systems for $10,220 plus a freight charge of $269 from Warren Industrial Products, Invoice 8985, dated July 26 the terms are 2 10, n 30 Required Set up an accounts payable subsidiary ledger for The Old English Garden Shop Open an account for each of the creditors listed below and enter the balances as of July 1 Post the individual entries from the purchases journal and the general journal prepared in Part I Prepare a schedule of accounts payable for July 31, 20X1 Check the total of the schedule of accounts payable against the balance of the Accounts Payable account in the general ledger The two amounts should be equal

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The Old English Garden Shop is a retail store that sells garden equipment, furniture, and supplies. Its credit purchases and purchases returns and allowances for

The Old English Garden Shop is a retail store that sells garden equipment, furniture, and supplies. Its credit purchases and purchases returns and allowances for July are listed below. The general ledger accounts used to record

these transactions are also provided. The balance shown is for the beginning of July 20X1.

GENERAL LEDGER ACCOUNTS
205	Accounts payable, $35,790 Cr.
501	Purchases
502	Freight In
503	Purchases returns and allowances

DATE	TRANSACTIONS
July	1	Purchased lawn mowers for $9,120 plus a freight charge of $240 from Charleston Corporation, Invoice 1011, dated June 26, net due and payable in 60 days.
	5	Purchased outdoor chairs and tables for $4,280 plus a freight charge of $543 from Cedarbrook Garden Center, Invoice 639, dated July 2, net due and payable in 45 days.
	9	Purchased grass seed for $1,210 from Lawn and Gardens Supply, Invoice 8164, dated July 5; the terms are 30 days net.
	16	Received Credit Memorandum 110 for $510 from Cedarbrook Garden Center; the amount is an allowance for scratches on some of the chairs and tables originally purchased on Invoice 639, dated July 2.
	19	Purchased fertilizer for $1,110 plus a freight charge of $247 from Lawn and Gardens Supply, Invoice 9050, dated July 15; the terms are 30 days net.
	21	Purchased hoses from Dunn Rubber Company for $3,590 plus a freight charge of $215, Invoice 1785, dated July 17; terms are 1/15, n/60.
	28	Received Credit Memorandum 223 for $340 from Dunn Rubber Company for damaged hoses that were returned; the goods were purchased on Invoice 1785, dated July 17.
	31	Purchased lawn sprinkler systems for $10,220 plus a freight charge of $269 from Warren Industrial Products, Invoice 8985, dated July 26; the terms are 2/10, n/30.

Required:

Set up an accounts payable subsidiary ledger for The Old English Garden Shop. Open an account for each of the creditors listed below and enter the balances as of July 1.
Post the individual entries from the purchases journal and the general journal prepared in Part I.
Prepare a schedule of accounts payable for July 31, 20X1.
Check the total of the schedule of accounts payable against the balance of the Accounts Payable account in the general ledger. The two amounts should be equal.

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Step: 1

To set up an accounts payable subsidiary ledger for The Old English Garden Shop well create an account for each of the creditors and enter the balances as of July 1 Heres the subsidiary ledger Accounts Payable Subsidiary Ledger 1 Charleston Corporation Balance as of July 1 9360 9120 for lawn mowers 240 freight charge 2 Cedarbrook Garden Center Balance as of July 1 4823 4280 for outdoor chairs and tables 543 freight charge Credit Memo 110 510 allowance for scratches 3 Lawn and Gardens Supply Balance as of July 1 1210 grass seed 4 Dunn Rubber Company Balance as of July 1 3805 3590 for hoses 215 freight charge Credit Memo 223 340 returned damaged hoses 5 Warren Industrial Products Balance as of July 1 10489 10220 for lawn sprinkler systems 269 freight charge Now lets post the individual entries from the purchases journal and the general journal Purchases Journal July 1 Lawn mowers Accounts Payable Charleston Corporation 9120 Freight In 240 Purchases 501 9360 July 5 Outdoor chairs and tables Accounts Payable Cedarbrook Garden Center 4280 Freight In 543 Purchases 501 4823 July 9 Grass seed Accounts Payable Lawn and Gardens Supply 1210 Purchases 501 1210 July 19 Fertilizer Accounts Payable Lawn and Gardens Supply 1110 Freight In 247 Purchases 501 1357 July 21 Hoses Accounts Payable Dunn Rubber Company 3590 Freight In 215 Purchases 501 3805 July 31 Lawn sprinkler systems Accounts Payable Warren Industrial Products 10220 Freight In 269 Purchases 501 10489 General Journal July 16 Credit Memo from Cedarbrook Garden Center Accounts Payable Cedarbrook Garden Center 510 Purchases Returns and Allowances 503 510 July 28 Credit Memo from Dunn Rubber Company Accounts Payable Dunn Rubber Company 340 Purchases Returns and Allowances 503 340 Based on the above information we can now prepare the schedule of accounts payable for July 31 20X1 Schedule of Accounts Payable Creditor Balance Charleston Corporation 9360 Cedarbrook Garden Center 4313 4823 510 Lawn and Gardens Supply 2317 1210 1110 510 Dunn Rubber Company 3465 3805 340 Warren Industrial Products 10489 Total 30944 Finally we need to check the total of the schedule of accounts payable against the balance ... blur-text-image