AB-11SE - Horngren'S Financial And Managerial Accounting

Question

Posting transactions from a cash payments journal to a subsidiary ledger and general ledger

Review your results from Short Exercise SB-10.

 

Requirements

1. Total each column of the cash payments journal.

2. Open the following four-column accounts in the accounts payable subsidiaryledger: Accounts Payable—Kat Co., Bal. \(1,900. Post the transactions to theaccounts payable subsidiary ledger.

3. Open the following selected four-column accounts in the general ledger: Cash(111), Bal. \)5,000; Merchandise Inventory (118), \(2,100; Equipment (150),\)9,900; Accounts Payable (211), $1,900; Utilities Expense (541). Post the total ofeach column to the general ledger. Also, post the Other Accounts column to thegeneral ledger.

4. Balance the total of the vendor ending balances in the accounts payable subsidiaryledger against Accounts Payable in the general ledger. 

Step-by-Step Solution

Answer

Total of Accounts payable:$1,125

Total of Merchandise Inventory:$1,915

Total of Equipment:$8,200

Total of Cash:$1,915

Total of Utilities Expenses:$260

 

Step1: Total of Cash Payment Journal

Cash Payments Journal                                                 Page 8
Date	Ck. No.	Account Debited	Post. Ref.	Other Accounts DR	Accounts Payable DR	Merchandise Inventory CR	Cash CR
2018
Jan 5	430	Equipment		$1,700			$1,700
7	431	Merchandise Inventory		450			450
18	432	Kat Co.			$775	$100	675
28	433	Utilities		260			260
Jan 31		Total		$2,410	$775	$100	$3,085

Step 2: Accounts Payable Subsidiary Ledger

Kat Co.
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Jan 1	Bal.		$1,900		$1,900
18		$775			1,125

Step 3: General Ledgers

Cash                                                                                                              No. 111
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Jan 1	Bal.	$5,000		$5,000
31			$3,085	1,915

 

Merchandise Inventory                                                                               No. 118
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Jan 1	Bal.	$2,100		$2,100
31			$3,085	1,915

 

 

 

Equipment                                                                                                       No. 150
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Jan 1	Bal.	$9,900		$9,900
5		1,700		8,200

 

Accounts Payable                                                                                           No. 211
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Jan 1	Bal.		$1,900		$1,900
31		$775			1,125

 

Utilities Expenses                                                                                           No. 541
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Jan 28		$260		$260

 

Step 4: Balance of Accounts Payable Subsidiary Ledger

Accounts Payable Subsidiary Ledger
Ledger Name	Amount
Kat Co.	$1,125
Total	$1,125