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Chapter 1: AB-11SE (page 35)

Posting transactions from a cash payments journal to a subsidiary ledger and general ledger

Review your results from Short Exercise SB-10.

Requirements

1. Total each column of the cash payments journal.

2. Open the following four-column accounts in the accounts payable subsidiaryledger: Accounts Payable—Kat Co., Bal. \(1,900. Post the transactions to theaccounts payable subsidiary ledger.

3. Open the following selected four-column accounts in the general ledger: Cash(111), Bal. \)5,000; Merchandise Inventory (118), \(2,100; Equipment (150),\)9,900; Accounts Payable (211), $1,900; Utilities Expense (541). Post the total ofeach column to the general ledger. Also, post the Other Accounts column to thegeneral ledger.

4. Balance the total of the vendor ending balances in the accounts payable subsidiaryledger against Accounts Payable in the general ledger.

Short Answer

Expert verified

Total of Accounts payable:$1,125

Total of Merchandise Inventory:$1,915

Total of Equipment:$8,200

Total of Cash:$1,915

Total of Utilities Expenses:$260

Step by step solution

01

Total of Cash Payment Journal

Cash Payments Journal Page 8

Date

Ck. No.

Account Debited

Post. Ref.

Other Accounts DR

Accounts Payable DR

Merchandise Inventory CR

Cash CR

2018

Jan 5

430

Equipment

$1,700

$1,700

7

431

Merchandise Inventory

450

450

18

432

Kat Co.

$775

$100

675

28

433

Utilities

260

260

Jan 31

Total

$2,410

$775

$100

$3,085

02

Accounts Payable Subsidiary Ledger

Kat Co.

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Jan 1

Bal.

$1,900

$1,900

18

$775

1,125

03

General Ledgers

Cash No. 111

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Jan 1

Bal.

$5,000

$5,000

31

$3,085

1,915

Merchandise Inventory No. 118

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Jan 1

Bal.

$2,100

$2,100

31

$3,085

1,915

Equipment No. 150

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Jan 1

Bal.

$9,900

$9,900

5

1,700

8,200

Accounts Payable No. 211

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Jan 1

Bal.

$1,900

$1,900

31

$775

1,125

Utilities Expenses No. 541

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Jan 28

$260

$260

04

Balance of Accounts Payable Subsidiary Ledger

Accounts Payable Subsidiary Ledger

Ledger Name

Amount

Kat Co.

$1,125

Total

$1,125

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