Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October are as follows:
Oct.
2. Purchased office supplies on account from Meade Co., $400.
5. Purchased office equipment on account from Peach Computers Co., $3,980.
9. Purchased office supplies on account from Executive Office Supply Co., $320.
13. Purchased field supplies on account from Yamura Co., $1,420.
14. Purchased field supplies on account from Omni Co., $2,940.
17. Purchased field supplies on account from Yamura Co., $1,890.
24. Purchased field supplies on account from Omni Co., $3,880.
29. Purchased office supplies on account from Executive Office Supply Co., $310.
31. Purchased field supplies on account from Omni Co., $1,800.
Instructions
1. Insert the following balances in the general ledger as of October 1:
14 Field Supplies $ 5,920
15 Office Supplies 750
18 Office Equipment 12,300
21 Accounts Payable 1,170
2. Insert the following balances in the accounts payable subsidiary ledger as of October 1:
Executive Office Supply Co. $390
Meade Co. 780
Omni Co. —
Peach Computers Co. —
Yamura Co. —
3. Journalize the transactions for October, using a purchases journal (p. 30) similar to the one illustrated in this chapter. Prepare the purchases journal with columns for Accounts Payable, Field Supplies, Office Supplies, and Other Accounts. Post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry.
4. Post the purchases journal to the accounts in the general ledger.
5.
a. What is the sum of the creditor balances in the subsidiary ledger at October 31?
b. What is the balance of the accounts payable controlling account at October 31?
6. What type of e-commerce application would be used to plan and coordinate transactions with suppliers?
Answer:
1. and 4.
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
Oct. 1 Balance 5,920
31 P30 11,930 17,850
Account No. 15
Post.
Item Ref. Debit Credit Debit Credit
Oct. 1 Balance 750
31 P30 1,030 1,780
Account No. 18
Post.
Item Ref. Debit Credit Debit Credit
Oct. 1 Balance 12,300
5 P30 3,980 16,280
Account No. 21
Post.
Item Ref. Debit Credit Debit Credit
Oct. 1 Balance 1,170
31 P30 16,940 18,110
2. and 3.
Post.
Item Ref. Debit Credit Balance
Oct. 1 Balance 390
9 P30 320 710
29 P30 310 1,020
Post.
Item Ref. Debit Credit Balance
Oct. 1 Balance 780
2 P30 400 1,180
Post.
Item Ref. Debit Credit Balance
Oct. 14 P30 2,940 2,940
24 P30 3,880 6,820
31 P30 1,800 8,620
Post.
Item Ref. Debit Credit Balance
Oct. 5 P30 3,980 3,980
Post.
Item Ref. Debit Credit Balance
Oct. 13 P30 1,420 1,420
1 7 P30 1,890 3,310
3. and 4.
Page 30
Oct. 29 400 400
59 3,980 Office Equipment 18 3,980
99 320 320
139 1,420 1,420
149 2,940 2,940
179 1,890 1,890
249 3,880 3,880
299 310 310
319 1,800 1,800
3116,940 11,930 1,0303,980
(21) (14) (15)(9)
5. a. $18,110 ($1,020 + $1,180 + $8,620 + $3,980 + $3,310)
b. $18,110
6. Supply chain management e-commerce applications would be used to plan and coordinate transactions with suppliers.
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