Transactions related to purchases and cash payments completed by Brite

Transactions related to purchases and cash payments completed by Brite Way Cleaning Services Inc. during the month of May 2016 are as follows:

May 1. Issued Check No. 57 to Liquid Klean Supplies Inc. in payment of account, $395.

3. Purchased cleaning supplies on account from Sani-Fresh Products Inc., $220.

8. Issued Check No. 58 to purchase equipment from Carson Equipment Sales, $3,150.

May 12. Purchased cleaning supplies on account from Porter Products Inc., $400.

15. Issued Check No. 59 to Bowman Electrical Service in payment of account, $165.

18. Purchased supplies on account from Liquid Klean Supplies Inc., $275.

20. Purchased electrical repair services from Bowman Electrical Service on account, $150.

26. Issued Check No. 60 to Sani-Fresh Products Inc. in payment of May 3 invoice.

31. Issued Check No. 61 in payment of salaries, $6,500.

Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are similar to those illustrated in the text. Place a check mark (¸) in the Post. Ref. column to indicate when the accounts payable subsidiary ledger should be posted. Brite Way Cleaning Services Inc. uses the following accounts:

Cash.................................. 11

Cleaning Supplies...................14

Equipment ...........................18

Accounts Payable.................. 21

Salary Expense..................... 51

Electrical Service Expense.........53

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...

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