Forever Spring 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 Forever Spring Landscaping during May 2008 are as follows:

May 2. Purchased office supplies on account from Lawson Co., $360.

5. Purchased office equipment on account from Peach Computers Co., $5,150.

9. Purchased office supplies on account from Executive Office Supply Co., $305.

13. Purchased field supplies on account from Yee Co., $1,360.

14. Purchased field supplies on account from Nelson Co., $2,940.

17. Purchased field supplies on account from Yee Co., $1,345.

24. Purchased field supplies on account from Nelson Co., $3,810.

29. Purchased office supplies on account from Executive Office Supply Co., $225.

31. Purchased field supplies on account from Nelson Co., $1,005.

Instructions

1. Insert the following balances in the general ledger as of May 1:

14 Field Supplies ..........$ 6,310

15 Office Supplies .......... 830

18 Office Equipment .......... 14,300

21 Accounts Payable .......... 1,105

2. Insert the following balances in the accounts payable subsidiary ledger as of May 1:

Executive Office Supply......$365

Lawson Co....... 740

Nelson Co......... —

Peach Computers Co.... —

Yee Co.......... —

3. Journalize the transactions for May, using a purchases journal 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 balances in the subsidiary ledger at May 31?

b. What is the balance of the controlling account at May 31?