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Chapter 1: AB-19E (page 39)

Recording transactions—purchases journal

___________________________________________________________________

Apr. 2 Purchased merchandise inventory on credit terms of 3/10, n/60 from

Vanderbilt Co., \(2,400.

5 Issued check no. 820 to purchase equipment for cash, \)3,600.

11 Purchased merchandise inventory for cash, \(750, issuing check no. 821.

12 Issued check no. 822 to pay Vanderbilt Co. net amount owed from

Apr. 2.

19 Purchased office supplies on account from Downing Supplies, \)500.

Termswere n/EOM.

24 Purchased merchandise inventory on credit terms of net 30 from

Wilmington Sales, \(1,900.

28 Issued check no. 823 to pay for insurance coverage, debiting Prepaid

Insurance for \)1,000.

29 Issued check no. 824 to pay rent for the month, $1,250.

____________________________________________________________________

Requirements

1. Prepare headings for a purchases journal. Journalize the transactions that should berecorded in the purchases journal. The company uses the perpetual inventory system.

2. Total each column of the purchases journal.

Short Answer

Expert verified

Total Accounts Payable (Cr.):$4,800

Total Merchandise Inventory (Dr.):$4,300

Total Office Supplies (Dr.):$500

Step by step solution

01

Purchase Journal

Purchase Journal Page 6

Other Accounts DR

Date

Vendor Account Credited

Terms

Post. Ref.

Accounts Payable CR

Merchandise Inventory DR

Office Supplies DR

Account Title

Post. Ref.

Amount

Apr 2

Vanderbilt Co.

3/10, n/60

$2,400

$2,400

19

Downing Supplies

n/EOM

500

$500

24

Wilmington

n/30

1,900

1,900

02

Total of Purchase Journal

Purchase Journal Page 6

Other Accounts DR

Date

Vendor Account Credited

Terms

Post. Ref.

Accounts Payable CR

Merchandise Inventory DR

Office Supplies DR

Account Title

Post. Ref.

Amount

Apr 2

Vanderbilt Co.

3/10, n/60

$2,400

$2,400

19

Downing Supplies

n/EOM

500

$500

24

Wilmington

n/30

1,900

1,900

Apr 30

Total

$4,800

$4,300

$500

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