Question

Posting purchases and cash payment transactions.

INSTRUCTIONS
1. Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balances as of August 1, 2016.
2. Post the entries in Problem 8.4B to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger.
In Problem 8.4B
DATE TRANSACTIONS
2016
Aug. 1 Issued Check 101 to purchase merchandise, $2,500.
2 Purchased merchandise for $2,200 from Brown Dental Corporation, Invoice 866, terms 1/10, n/30.
5 Purchased merchandise for $3,900, plus a freight charge of $100 from Dental Concepts, Invoice 2111, terms 2/10, n/30.
10 Paid amount due to Brown Dental Corporation for purchase of August 2, less discount, Check 102.
10 Received Credit Memorandum 272 from Dental Concepts for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 2111, dated August 5.
11 Purchased merchandise for $1,700 from Brown Dental Corporation, Invoice 898, terms 1/10, n/30.
14 Paid amount due to Dental Concepts for Invoice 2111 of April 5, less the return of August 10 and less the cash discount, Check 103.
15 Purchased merchandise with a list price of $4,000 and trade discounts of 20 percent and 10 percent from Surgical Supplies, Invoice 1902, terms n/30.
20 Issued Check 104 to purchase merchandise, $1,900.
24 Returned merchandise purchased on August 20 as defective, receiving a cash refund of $175.
30 Purchased merchandise for $2,125, plus a freight charge of $75 from Dental Concepts, Invoice 2285, terms 2/10, n/30.
3. Prepare a schedule of accounts payable at August 31, 2016.
GENERAL LEDGER ACCOUNTS
101 Cash, $39,700 Dr. 502 Purchases Returns and Allowances
201 Accounts Payable 503 Purchases Discounts
501 Purchases 504 Freight In
ACCOUNTS PAYABLE LEDGER ACCOUNTS
Brown Dental Corporation
Dental Concepts
Surgical Supplies
Analyze: What amount did Dental Supplies, Inc., owe to its supplier, Dental Concepts, on August 31?



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  • CreatedAugust 08, 2014
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