Question

West Bicycle Shop uses a three- column purchases journal. The company is located in Topeka, Kansas. In addition to a general ledger, the company also uses an accounts payable ledger. Transactions for January related to the purchase of merchandise are as follows:
Jan. 4 Bought fifty 10- speed bicycles from Nielsen Company, $ 4,775, invoice no. 26145, dated January 3; terms net 60 days; FOB Topeka.
7 Bought tires from Barton Tire Company, $ 792, invoice no. 9763, dated January 5; terms 2/ 10, n/ 30; FOB Topeka.
8 Bought bicycle lights and reflectors from Gross Products Company, $ 384, invoice no. 17317, dated January 6; terms net 30 days; FOB Topeka.
11 Bought hand brakes from Bray, Inc., $ 470, invoice no. 291GE, dated January 9; terms 1/ 10, n/ 30; FOB Kansas City, freight prepaid and added to the invoice, $ 36 ( total $ 506).
19 Bought handle grips from Gross Products Company, $ 96.50, invoice no. 17520, dated January 17; terms net 30 days; FOB Topeka.
24 Bought thirty 5- speed bicycles from Nielsen Company, $ 1,487, invoice no. 26942, dated January 23; terms net 60 days; FOB Topeka. 2
9 Bought knapsacks from Davila Manufacturing Company, $ 304.80, invoice no. 762AC, dated January 26; terms 2/ 10, n/ 30; FOB Topeka.
31 Bought locks from Lamb Safety Net, $ 415.47, invoice no. 27712, dated January 26; terms 2/ 10, n/ 30; FOB Dodge City, freight prepaid and added to the invoice, $ 22 ( total $ 437.47).

Required
1. Open the following accounts in the accounts payable ledger and record the January 1 balances, if any, as given: Barton Tire Company, $ 156; Bray, Inc.; Davila Manufacturing Company, $ 82.88; Gross Products Company; Lamb Safety Net, $ 184.20; Nielsen Company. For the accounts having balances, write Balance in the Item column and place a check mark in the Post. Ref. column.
2. Record the balance of $ 423.08 in the Accounts Payable 212 controlling account as of January 1. Write Balance in the Item column and place a check mark in the Post. Ref. column.
3. Record the transactions in the purchases journal beginning with page 81.
4. Post to the accounts payable ledger daily.
5. Post to the general ledger at the end of the month. 6. Prepare a schedule of accounts payable, and compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable.



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  • CreatedOctober 21, 2014
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