Question:
Peachtree Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of May.
May 1 Purchased $10,100 of merchandise on credit from Krause, Inc., terms n/30.
8 Sold merchandise costing $900 on credit to G. Seles for $1,500 subject to a $30 sales discount if paid by the end of the month.
14 Purchased $240 of store supplies from Chang Company on credit, terms n/30.
17 Purchased $260 of office supplies on credit from Monder Company, terms n/30.
24 Sold merchandise costing $400 to D. Air for $650 cash.
28 Purchased store supplies from Porters for $90 cash.
29 Paid Krause, Inc., $10,100 cash for the merchandise purchased on May 1.
Prepare headings for a purchases journal like the one in Exhibit 7.9. Journalize the May transactions that should be recorded in the purchases journal.
EXHIBIT 7.9: Purchases Journal with Posting*
Transcribed Image Text:
Analysis Help File Options Reports Edit Malntaln Tasks Window Purchases Journal Page 1 OX Other Accounts Inventory Payable Cr. Individual amounts in the Other Date of Office Date Account Terms PR Supplles Dr. Involce Dr. Accounts Dr. Accounts Dr. column and the Feb. 3 Horning Supply Co. Ace Mfg. Co. Wynet & Co. 275 Accounts Payable Cr. column are posted immediately. 2/2 п30 350 75 5 200 2/5 2/10, n/30 -200 210, пу30 210, п/З0 150 13 2/10 150 20 Smite Co. 2/18 300 300 Ace Mfg. Co. Store Supplies/ITT Co. 25 2/24 210, п/30 100 100 Column totals, except for the 28 2/28 п30 125/ -225 125 T150 T119) 25 100 (124) 75 1,325 (201) 28 Totals 75 Other Accounts Dr. column, are (X) posted at the end of the period. Accounts Payable Ledger Company Name Ace Mfg. Company Genenil Ledger Inventory No. 119 Credit Date PR Debit Balance Date Credit PR Debit Balance Feb. 5 P1 200 200 Feb. 1 bal. 15,700 25 P1 100 300 28 S3 1,500 14,200 28 R2 12,550 1,650 Company Name Horning Supply Company 28 P1 1,150 2,800 PR Debit Credit Date Balance Office Supplles No. 124 Feb. 3 P1 350 350 Date Credit PR Debit Balance Company Name ITT Company Feb. 28 P1 100 100 Date PR Debit Feb. 28 P1 Balance Credit Store Supples No. 125 225, 225 PR Debit Date Credit Balance Feb. 28 P1 Company Name Smite Company 75 75 Balance Date Debit Credit 300 PR Feb. 20 P1 Accounts Payable No. 201 300 Date PR Feb. 28 P1 Credit Debit Balance 1,325 Company Name wynet and Company PR Debit 1,325 Credit Date Balance Feb. 13 P1 150 150 *The purchases Journal in a periodic system replaces "Inventory Dr." with "Purchases Dr."