Problem 17-8 Recording and Posting Purchases and Cash Payments CHALLENGE soURCE
ID: 2555789 • Letter: P
Question
Problem 17-8 Recording and Posting Purchases and Cash Payments CHALLENGE soURCE DOCUME PROBLEM ROBLEM Buzz Newsstand had the following purchases and cash payment transactions for July. The balance in the accounts payable subsidiary ledger and general ledger accounts are opened in the working papers. Instructions In your working papers: 1. Record the purchases and cash payment transactions on page 12 of the 2. Post to the creditors' accounts in the accounts payable subsidiary ledger 3. Post from the General Debit and Credit columns of the journals on the 4. Foot, prove, total, and rule both journals. purchases journal and page 12 of the cash payments journal. daily. date the transaction occurred. Post the column totals of the purchases journal to the general ledger accounts named in the column headings. 6. Post the column totals of the cash payments journal to the general leager accounts named in the column headings. 7. Prepare a schedule of accounts payable.Explanation / Answer
Cash Disbursement Journal Journal Date Ck No. Payee Account Cash Cr Inventory Purchase Other Accounts Debited Cr Discount Accounts Dr Payable Cr Dr July.1 2455 ADC Publishing ADC Publishing 1552 48 1600 July.2 2456 Candle Light Candle Light 1358 42 1400 July.4 2457 Nomad comp. Nomad comp. 350 350 July.7 2458 Wlfoe Trucking Freight in 125 125 July.14 2459 Delta Press Delta Press 750 750 July.15 2460 Sea Tec Insurance 1600 1600 July.16 2461 American Trend American Trend 882 18 900 July.22 2462 Pine Forest Pine Forest 100 100 July.23 2463 Corp Tech Corp Tech 2000 2000 July.28 2464 Nomad comp. Nomad comp. 450 450 9167 0 108 1725 7550 PURCHASE JOURNAL Date Account Date of Terms Accounts Inventory Office Other Invoice Payable Cr Dr Supplies Dr Accounts Dr July.2 Pine Forest July.2 2/10, n/30 400 400 July.5 Corp.Tech. July.5 2000 2000 July.9 American Trend July.9 900 900 July.12 Corp.Tech. July.12 300 300 July.18 Candle Light July.18 n/30 500 500 July.20 Nomad Computers July.20 2/10, n/30 200 200 July.25 ADC July.25 600 600 4900 2600 300 2000 Cash Balance Date Ref Debit Credit Debit Credit Beg.Bal. 9000 July.1 1552 7448 July.2 1358 6090 July.5 350 5740 July.7 125 5615 July.14 750 4865 July.15 1600 3265 July.16 882 2383 July.22 100 2283 July.23 2000 283 July.28 450 -167 July.30 25 -192 July.30 10500 130 10178 Purchases Balance Date Ref Debit Credit Debit Credit Beg.Bal. 25000 July.2 400 25400 July.9 900 26300 July.18 500 26800 July.20 200 27000 July.25 600 27600 Stores Equipment Balance Date Ref Debit Credit Debit Credit Beg.Bal. 6000 July.5 2000 8000 Office Supplies Balance Date Ref Debit Credit Debit Credit Beg.Bal. 150 July.12 300 450 Freight in Balance Date Ref Debit Credit Debit Credit Beg.Bal. 800 July.7 125 925 Prepaid Insurance Balance Date Ref Debit Credit Debit Credit July.15 1600 1600 Misc.Expense Balance Date Ref Debit Credit Debit Credit Beg.Bal. 200 July.30 25 225 Bankcard Fee Balance Date Ref Debit Credit Debit Credit Beg.Bal. 1100 July.30 130 1230 Accounts Payable Balance Date Ref Debit Credit Debit Credit Beg.Bal. 5700 July.31 7550 4900 3050 ADC Publishing Date Post Ref Debit Credit Balance Beg.Bal. 1600 1600 July.1 1600 0 July.25 600 600 600 American Trend Publishers Date Post Ref Debit Credit Balance Beg.Bal. 0 july.9 900 900 July.14 900 0 0 0 Candle Light Software Date Post Ref Debit Credit Balance Beg.Bal. 1400 1400 July.2 1400 0 July.18 500 500 500 500 Corptech Office Supply Date Post Ref Debit Credit Balance Beg.Bal. 0 July.5 2000 2000 July.12 300 2300 July.23 2000 300 Delta Press Date Post Ref Debit Credit Balance Beg.Bal. 1500 July.14 750 750 750 750 Nomad Computer Sales Date Post Ref Debit Credit Balance Beg.Bal. 1200 July.4 350 850 July.20 200 1050 July.25 450 600 Pine Forest Publications Date Post Ref Debit Credit Balance Beg.Bal. 0 July.2 400 400 July.22 100 300 300