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Chapter 1: AB-9SE (page 34)

Posting transactions from a purchases journal to a subsidiary ledger and general ledger

Review your results from Short Exercise SB-8.

Requirements

1. Total each column of the purchases journal.

2. Open the following four-column accounts in the accounts payable subsidiaryledger: Accounts Payable—Bird Co.; Accounts Payable—Mayer Co.; AccountsPayable—Silly Co. Post the transactions to the accounts payable subsidiaryledger.

3. Open the following selected four-column accounts in the general ledger:Merchandise Inventory (115); Office Supplies (116); Furniture (151); AccountsPayable (211). Post the total of each column to the general ledger. Also, post theOther Accounts column to the general 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:$3,700

Total of Merchandise Inventory:$2,200

Total of Office Supplies:$600

Total of Furniture:$900

Step by step solution

01

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

Oct 1

Mayer Co.

4/10, n/30

$2,200

$2,200

11

Bird Co.

n/EOM

$600

$600

24

Silly Co.

3/10, n/60

$900

Furniture

$900

Oct 31

Total

$3,700

$2,200

$600

$900

02

Accounts Payable Subsidiary Ledger

Mayer Co.

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Oct 1

$2,200

$2,200

Bird Co.

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Oct 11

$600

$600

Silly Co.

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Oct 24

$900

$900

03

General Ledgers

Merchandise Inventory No. 115

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Oct 31

$2,200

$2,200

Office Supplies No. 116

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Oct 31

$600

$600

Furniture No. 151

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Oct 24

$900

$900

Accounts Payable No. 211

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

Oct 31

$3,700

$3,700

04

Balance of Accounts Payable Subsidiary Ledger

Accounts Payable Subsidiary Ledger

Ledger Name

Amount

Mayer Co.

$2,200

Bird Co.

600

Silly Co.

900

Total

$3,700

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Most popular questions from this chapter

Annette Pachelo recently opened her own law office on March 1, which she operates as a corporation. The name of the new entity is Annette Pachelo, Attorney. Pachelo experienced the following events during the organizing phase of the new business and its first month of operation, March 2018. Some of the events were personal and did not affect the law practice. Others were business transactions and should be accounted for by the business. Mar. 1 Sold personal investment in Amazon stock, which she had owned for several years, receiving \(35,000 cash. 2 Deposited the \)35,000 cash from the sale of the Amazon stock in her personal bank account. 3 Deposited \(73,000 cash in a new business bank account titled Annette Pachelo, Attorney. The business issued common stock to Pachelo. 5 Paid \)700 cash for ink cartridges for the printer. 7 Purchased computer for the law office, agreeing to pay the account, \(5,000, within three months. 9 Received \)2,800 cash from customers for services rendered. 15 Received bill from The Lawyer for magazine subscription, \(400. (Use Miscellaneous Expense account.) 23 Finished court hearings on behalf of a client and submitted a bill for legal services, \)10,000, on account. 28 Paid bill from The Lawyer. 30 Paid utilities, \(1,200. 31 Received \)3,300 cash from clients billed on March 23. 31 Cash dividends of $5,500 were paid to stockholders. Requirements 2. Prepare the following financial statements: b. Statement of retained earnings.

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a. customer

b. company manager

c. Internal Revenue Service

d. lender

e. investor

f. controller

g. cost accountant

h. SEC
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