This problem is a continuation of Problem 8.1A. INSTRUCTIONS 1. Set up an accounts payable subsidiary ledger

Question:

This problem is a continuation of Problem 8.1A.

INSTRUCTIONS

1. Set up an accounts payable subsidiary ledger for Digital World. Open an account for each of the creditors listed below and enter the balances as of June 1, 2016. Arrange the accounts payable ledger in alphabetical order.

2. Post the individual entries from the purchases journal and the general journal prepared in Problem 8.1A.

3. Prepare a schedule of accounts payable for June 30.

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.

.................................Creditors

Name........................... Terms............ Balance

Photo Supplies.................. n/45............ $10,580

Hi-Qual Case.................... n/45............... 1,300

Pro Photo Equipment.......... n/60

Nano Glass............... 1/10, n/60................ 2,524

Holtz Spectrum........... 2/10, n/30

Analyze:

What amount is owed to Nano Glass on June 30?

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...