Purchases and cash payments journals
Happy Tails Inc. has a September 1, 20Y4, accounts payable balance of 8620. which consists of $320 due Labradore Inc. and $300 due Meow Mart Inc. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of September 20Y4 are as follows:
Sept. 4. | Purchased pet supplies from Best Friend Supplies Inc. on account, $295. |
6. | Issued Check No. 345 to Labradore Inc. in payment of account, $320. |
13. | Purchased pet supplies from Poodle Pals Inc. on account, $790. |
18. | Issued Check No. 346 to Meow Mart Inc. in payment of account, $300. |
19. | Purchased office equipment from Office Helper Inc. on account, $2,510. |
23. | Issued Check No. 347 to Best Friend Supplies Inc. in payment of account from purchase made on September 4. |
27. | Purchased pet supplies from Meow Mart Inc. on account, $450. |
30. | Issued Check No. 348 to Jennings Inc. for cleaning expenses, $80. |
a. Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are similar to those used in the text. Place a check mark (✓) in the Post. Ref. column to indicate when the accounts payable subsidiary ledger should be posted. Happy Tails Inc. uses the following accounts:
Cash | 11 |
Pet Supplies | 14 |
Office Equipment | 18 |
Accounts Payable | 21 |
Cleaning Expense | 54 |
b. Prepare a listing of accounts payable creditor balances on September 30, 20Y4. Verify that the total of the accounts payable creditor balances equals the balance of the accounts payable controlling account on September 30, 20Y4.
c. Why does Happy Tails Inc. use a subsidiary ledger for accounts payable?
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- Catherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200. In the cash disbursements journal, the Accounts Payable column has total debits of $6,800 for November. The Accounts Payable credit column in the purchases journal reveals a total of $10,500 for the current month. Based on this information, what is the ending balance in the Accounts Payable account in the general ledger?arrow_forwardCASH PAYMENTS TRANSACTIONS Kay Zembrowski operates a retail variety store. The books include a general journal and an accounts payable ledger. Selected account balances on May 1 are as follows: The following transactions are related to cash payments for the month of May: May 1Issued Check No. 326 in payment of May rent (Rent Expense), 2,600. 4Issued Check No. 327 to Cortez Distributors in payment of merchandise purchased on account, 4,200, less a 3% discount. Check was written for 4,074. 7Issued Check No. 328 to Indra Velga in partial payment of merchandise purchased on account, 6,200. A cash discount was not allowed. 11Issued Check No. 329 to Toy Corner for merchandise purchased on account, 4,600, less a 1% discount. Check was written for 4,554. 15Issued Check No. 330 to County Power and Light (Utilities Expense), 1,500. 19Issued Check No. 331 to Builders Warehouse for a cash purchase of merchandise, 3,500. 25Issued Check No. 332 to Troutman Outlet for merchandise purchased on account, 4,400, less a 2% discount. Check was written for 4,312. May 30Issued Check No. 333 to Rapid Transit Company for freight charges on merchandise purchased (Freight-In), 800. 31Issued Check No. 334 to City Merchants for a cash purchase of merchandise, 2,350. Required 1. Enter the transactions starting with page 9 of a general journal. 2. Post from the general journal to the general ledger and the accounts payable ledger. Use general ledger account numbers as shown in the chapter.arrow_forwardTransactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows: Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are similar to those illustrated in the text. Place a check mark () in the Post. Ref. column to indicate when the accounts payable subsidiary ledger should be posted. Wisk Away Cleaning Services Inc. uses the following accounts:arrow_forward
- Enter the following transactions in a cash payments journal like the one illustrated in the chapter: Aug. 2 Issued Check No. 193 in payment of August rent (Rent Expense), 2,200. 6 Issued Check No. 194 to Mason Hardware in payment of merchandise purchased on account, 1,700, less 2% discount. The check was written for 1,666. 10 Issued Check No. 195 to Augies Wholesale for cash purchase of merchandise, 2,730.arrow_forwardPurchases and Cash Payments Journals Happy Tails Inc. has a September 1, 20Y4, accounts payable balance of $535, which consists of $340 due Labradore Inc. and $195 due Meow Mart Inc. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of September 20Y4 are as follows: Sept. 4. Purchased pet supplies from Best Friend Supplies Inc. on account, $230. Sept. 6. Issued Check No. 345 to Labradore Inc. in payment of account, $340. Sept. 13. Purchased pet supplies from Poodle Pals Inc. on account, $660. Sept. 18. Issued Check No. 346 to Meow Mart Inc. in payment of account, $195. Sept. 19. Purchased office equipment from Office Helper Inc. on account, $2,245. Sept. 23. Issued Check No. 347 to Best Friend Supplies Inc. in payment of account from purchase made on September 4. Sept. 27. Purchased pet supplies from Meow Mart Inc. on account, $350. Sept. 30. Issued Check No. 348 to Jennings Inc. for cleaning expenses, $50. Happy…arrow_forwardPurchases and Cash Payments Journals Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows: May 1. Issued Check No. 57 to Bio Safe Supplies Inc. in payment of account, $360. 3. Purchased cleaning supplies on account from Brite N' Shine Products Inc., $220. 8. Issued Check No. 58 to purchase equipment from Carson Equipment Sales, $3,680. 12. Purchased cleaning supplies on account from Porter Products Inc., $310. 15. Issued Check No. 59 to Bowman Electrical Service in payment of account, $180. 18. Purchased supplies on account from Bio Safe Supplies Inc., $410. 20. Purchased electrical repair services from Bowman Electrical Service on account, $150. 26. Issued Check No. 60 to Brite N’ Shine Products Inc. in payment of May 3 invoice. 31. Issued Check No. 61 in payment of salaries, $7,050. Wisk Away Cleaning Services Inc. uses the following accounts: Cash 11…arrow_forward
- Purchases and Cash Payments Transactions Emily Frank owns a small retail business called Frank’s Fantasy. The cash account has a balance of $20,900 on July 1. The following transactions occurred during July: July 1 Issued Check No. 414 in payment of July rent, $2,400. 1 Purchased merchandise on account from Tilly's Toys, Invoice No. 311, $3,000, terms 2/10, n/30. 3 Purchased merchandise on account from Scheer & Company, Invoice No. 812, $3,600, terms 1/10, n/30. 5 Returned merchandise purchased from Tilly's Toys, receiving a credit memo on the amount owed, $600. 8 Purchased merchandise on account from Donna's Dolls, Invoice No. 139, $2,940, terms 2/10, n/30. 11 Issued Check No. 415 to Tilly's Toys for merchandise purchased on account, less return of July 5 and less 2% discount. 13 Issued Check No. 416 to Scheer & Company for merchandise purchased on account, less 1% discount. 15 Returned merchandise purchased from Donna's Dolls, receiving a…arrow_forwardHappy Tails Inc. has a September 1, 20Y4, accounts payable balance of $620, which consists of $320 due Labradore Inc. and $300 due Meow Mart Inc. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of September 20Y4 are as follows:Sept. 4. Purchased pet supplies from Best Friend Supplies Inc. on account, $295.6. Issued Check No. 345 to Labradore Inc. in payment of account, $320.13. Purchased pet supplies from Poodle Pals Inc. on account, $790.18. Issued Check No. 346 to Meow Mart Inc. in payment of account, $300.19. Purchased office equipment from Office Helper Inc. on account, $2,510.23. Issued Check No. 347 to Best Friend Supplies Inc. in payment of account from purchase made on September 4.27. Purchased pet supplies from Meow Mart Inc. on account, $450.30. Issued Check No. 348 to Jennings Inc. for cleaning expenses, $80.a. Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are…arrow_forwardJournalizing Cash Payments Lakeview Industries uses a cash payments journal. Prepare a cash payments journal using the same format and account titles as illustrated in the chapter. Record the following payments for merchandise purchased: Sept. 5 Issued Check No. 318 to Clausen Corp. for merchandise purchased August 28, $6,500, terms 2/10, n/30. Payment is made within the discount period. 12 Issued Check No. 319 to McGonigle Co. for merchandise purchased September 2, $8,000, terms 1/10, n/30. A credit memo had previously been received from McGonigle Co. for merchandise returned, $500. Payment is made within the discount period after deduction for the return dated September 8. 19 Issued Check No. 320 to Elite Systems for merchandise purchased August 19, $3,500, terms n/30. 27 Issued Check No. 321 to Glenn Falls for merchandise purchased September 17, $6,500, terms 2/10, n/30. Payment is made within the discount period. If an amount box does not require an entry, leave it…arrow_forward
- PURCHASES AND CASH PAYMENTS TRANSACTIONS Debbie Mueller owns a small retail business called Debbie’s Doll House. The cash account has a balance of $20,000 on July 1. The following transactions occurred during July: July 1 Issued Check No. 314 for July rent, $1,400. 1 Purchased merchandise on account from Topper’s Toys, Invoice No. 211, $2,500, terms 2/10, n/30. 3 Purchased merchandise on account from Jones & Company, Invoice No. 812, $2,800, terms 1/10, n/30. 5 Returned merchandise purchased from Topper’s Toys receiving a credit memo on the amount owed, $400. 8 Purchased merchandise on account from Downtown Merchants, Invoice No. 159, $1,600, terms 2/10, n/30. 11 Issued Check No. 315 to Topper’s Toys for merchandise purchased on account, less return of July 5 and less 2% discount. 13 Issued Check No. 316 to Jones & Company for merchandise purchased on account, less 1% discount. 15 Returned merchandise purchased from Downtown Merchants receiving a credit memo on the…arrow_forwardJournalizing Cash Payments Lakeview Industries uses a cash payments journal. Prepare a cash payments journal using the same format and account titles as illustrated in the chapter. Record the following payments for merchandise purchased: Sept. 5 Issued Check No. 318 to Clausen Corp. for merchandise purchased August 28, $6,500, terms 2/10, n/30. Payment is made within the discount period. 12 Issued Check No. 319 to McGonigle Co. for merchandise purchased September 2, $8,000, terms 1/10, n/30. A credit memo had previously been received from McGonigle Co. for merchandise returned, $500. Payment is made within the discount period after deduction for the return dated September 8 19 Issued Check No. 320 to Elite Systems for merchandise purchased August 19, $3,500, terms n/30. 27 Issued Check No. 321 to Glenn Falls for merchandise purchased September 17, $6,500, terms 2/10, n/30. Payment is made within the discount period. If an amount box does not require an entry, leave it blank or enter…arrow_forwardJournalizing Cash Payments Lakeview Industries uses a cash payments journal. Prepare a cash payments journal using the same format and account titles as illustrated in the chapter. Record the following payments for merchandise purchased: Sept. 5 Issued Check No. 318 to Clausen Corp. for merchandise purchased August 28, $6,100, terms 2/10, n/30. Payment is made within the discount period. 12 Issued Check No. 319 to McGonigle Co. for merchandise purchased September 2, $8,300, terms 1/10, n/30. A credit memo had previously been received from McGonigle Co. for merchandise returned, $200. Payment is made within the discount period after deduction for the return dated September 8. 19 Issued Check No. 320 to Elite Systems for merchandise purchased August 19, $3,700, terms n/30. 27 Issued Check No. 321 to Glenn Falls for merchandise purchased September 17, $6,800, terms 2/10, n/30. Payment is made within the discount period.arrow_forward
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