AB-9SE - Horngren'S Financial And Managerial Accounting

Question

Posting transactions from a purchases journal to a subsidiary ledger and general ledger

Review your results from Short Exercise SB-8.

 

Requirements

1. Total each column of the purchases journal.

2. Open the following four-column accounts in the accounts payable subsidiaryledger: Accounts Payable—Bird Co.; Accounts Payable—Mayer Co.; AccountsPayable—Silly Co. Post the transactions to the accounts payable subsidiaryledger.

3. Open the following selected four-column accounts in the general ledger:Merchandise Inventory (115); Office Supplies (116); Furniture (151); AccountsPayable (211). Post the total of each column to the general ledger. Also, post theOther Accounts column to the general 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:$3,700

Total of Merchandise Inventory:$2,200

Total of Office Supplies:$600

Total of Furniture:$900

Step1: Total of Purchase Journal

Purchase Journal                                                        Page 6
	Other Accounts DR
Date	Vendor Account Credited	Terms	Post. Ref.	Accounts Payable CR	Merchandise Inventory DR	Office Supplies DR	Account Title	Post. Ref.	Amount
Oct 1	Mayer Co.	4/10, n/30		$2,200	$2,200
11	Bird Co.	n/EOM		$600		$600
24	Silly Co.	3/10, n/60		$900			Furniture		$900
Oct 31	Total			$3,700	$2,200	$600			$900

Step 2: Accounts Payable Subsidiary Ledger

Mayer Co.
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Oct 1			$2,200		$2,200

 

Bird Co.
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Oct 11			$600		$600

 

Silly Co.
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Oct 24			$900		$900

 

 

Step 3: General Ledgers

Merchandise Inventory                                                                                 No.  115
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Oct 31		$2,200		$2,200

 

Office Supplies                                                                                              No.  116
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Oct 31		$600		$600

 

Furniture                                                                                                         No.  151
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Oct 24		$900		$900

 

Accounts Payable                                                                                          No.  211
	Balance
Date	Post. Ref.	Debit	Credit	Debit	Credit
Oct 31			$3,700		$3,700

 

 

 

Step 4: Balance of Accounts Payable Subsidiary Ledger

Accounts Payable Subsidiary Ledger
Ledger Name	Amount
Mayer Co.	$2,200
Bird Co.	600
Silly Co.	900
Total	$3,700