The purchases journal for Newmark Exterior Cleaners Inc. follows. The accounts payable account has a March 1, 20Y2,

The purchases journal for Newmark Exterior Cleaners Inc. follows. The accounts payable account has a March 1, 20Y2, balance of $580 for an amount owed to Nicely Co. No payments were made on creditor invoices during March.

PURCHASES JOURNALPage 16 Date Account Credited Post. Ref. Accts. Payable Cr. Cleaning Supplies Dr. Other Accounts Dr. Post. Ref. Amount 20Y2 Mar.   4 Enviro-Wash Supplies Inc. 690 690

15 Nicely Co.325 325 20 Office Mate Inc. 3,860 Office Equipment 3,860 26 Enviro-Wash Supplies Inc. 385 385 315,260 1,4003,860

a. Prepare a T account for the accounts payable creditor accounts.

b. Post the transactions from the purchases journal to the creditor accounts and determine their ending balances.

c. Prepare T accounts for the accounts payable control and cleaning supplies accounts. 

Post control totals to the two accounts, and determine their ending balances. Cleaning Supplies had a zero balance at the beginning of the month.

d. Prepare a schedule of the creditor account balances to verify the equality of the sum of the accounts payable creditor balances and the accounts payable controlling account balance.

e. How might a computerized accounting system differ from the use of a purchases journal in recording purchase transactions?

Answer:

a. and b.

 Mar. 4 690  Mar. 1 Bal. 580

26 38515 325

31 Bal. 1,07531 Bal. 905

Mar. 20 3,860

c.

 Mar. 1 Bal. 580 Mar. 31 1,400

31 5,260 31 Bal. 1,400

31 Bal. 5,840

d.

Enviro-Wash Supplies Inc.

Nicely Co. 

Office Mate Inc.

Total accounts payable

The total in the schedule above agrees with the T account balance for the 

accounts payable control account in (c).

e. A computerized system would likely use an electronic form specially designed 

for recording purchase transactions. The transaction details would be input 

into the form fields and submitted. Once submitted, the transaction would be 

saved and automatically posted as a debit to an appropriate asset account and 

a credit to the individual creditor accounts payable account. No control totals 

would be posted to a controlling account.