English Garden Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while

Question:

English Garden 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 English Garden Landscaping during January 2012 are as follows:

Jan. 2. Purchased office supplies on account from Meade Co., $350.

5. Purchased office equipment on account from Peach Computers Co., $3,150.

9. Purchased office supplies on account from Executive Office Supply Co., $290.

13. Purchased field supplies on account from Yamura Co., $1,140.

14. Purchased field supplies on account from Naples Co., $2,680.

17. Purchased field supplies on account from Yamura Co., $1,050.

24. Purchased field supplies on account from Naples Co., $3,240.

29. Purchased office supplies on account from Executive Office Supply Co., $260.

31. Purchased field supplies on account from Naples Co., $1,000.

Instructions

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

14 Field Supplies ………………… $ 5,920

15 Office Supplies ……………….. 750

18 Office Equipment …………….. 12,300

21 Accounts Payable …………….. 1,035

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

Executive Office Supply Co. …………….. $340

Meade Co. ………………………………… 695

Naples Co. ………………………………… —

Peach Computers Co. ……………………... —

Yamura Co. ……………………………….. —

3. Journalize the transactions for January, 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 balances in the subsidiary ledger at January 31?

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

6. What type of e-commerce application would be used to plan and coordinate suppliers?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...