The Garden Supply Center is a retail store that sells garden equipment, furniture, and supplies. Its credit purchases and purchases returns and allowances for December are shown below. The general ledger accounts used to record these transactions are also provided. The balance shown is for the beginning of December 2019.

INSTRUCTIONS
PART I

1. Open the general ledger accounts and enter the balance of Accounts Payable for December 1.

2. Record the transactions in a three-column purchases journal and in a general journal. Use 8 as the page number for the purchases journal and 20 as the page number for the general journal.

3. Post the entries from the general journal to the proper general ledger accounts.

4. Total, prove, and rule the purchases journal as of December 31.

5. Post the column totals from the purchases journal to the proper general ledger accounts.

6. Compute the net delivered cost of the firm€™s purchases for the month of December.

GENERAL LEDGER ACCOUNTS
205 Accounts Payable, $13,490 Cr.
501 Purchases
502 Freight In
503 Purchases Returns and Allowances

INSTRUCTIONS

PART II
1. Set up an accounts payable subsidiary ledger for The Garden Supply Center. Open an account for each of the following creditors and enter the balances as of December 1.

2. Post the individual entries from the purchases journal and the general journal prepared in Part I.

3. Prepare a schedule of accounts payable for December 31.

4. Check the total of the schedule of accounts payable against the balance of the Accounts Payable account in the general ledger. The two amounts should be equal.

Transcribed Image Text:

DATE TRANSACTIONS Purchased lawn mowers for $6,780 plus a freight charge of $356 from Shelby Corporation, Invoice 2110, dated November 26, net due and payable in 45 days. Dec. 1 Purchased outdoor chairs and tables for $5,700 plus a freight charge of $100 from Patio Dudes, Invoice 633, dated December 2; the terms are 1/15, n/60. Purchased grass seed for $1,148 from Summer Lawn Center, Invoice 1127, dated December 4; the terms are 30 days net. Received Credit Memorandum 101 for $300 from Patio Dudes; the amount is an allowance for scratches on some of the chairs and tables originally purchased on Invoice 633, dated December 2. 16 Purchased fertilizer for $1,750 plus a freight charge of $166 from Summer Lawn Center, Invoice 1131, dated December 15; the terms are 30 days net. 19 Purchased garden hoses for $860 plus a freight charge of $86 from DHX Rubber Company, Invoice 8517, dated December 17; the terms are n/60. 21 Received Credit Memorandum 210 for $150 from DHX Rubber Company for damaged hoses that were returned; the goods were purchased on Invoice 8517, dated December 17. 28 Purchased lawn sprinkler systems for $3,900 plus a freight charge of $180 31 from Carson Industries, Invoice 8819, dated December 26; the terms are 2/10, n/30. Creditors Name Terms Balance Carson Industries 2/10, n/30 $2,150 DHX Rubber Company n/60 3,850 Patio Dudes 1/15, n/60 Shelby Corporation n/45 4,842 Summer Lawn Center n/30 2,648