Sterling Forest Landscaping designs and installs landscaping. The landscape desi
ID: 2539301 • Letter: S
Question
Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October 2016 are as follows:
Oct. 2. Purchased office supplies on account from Meade Co., $400.
5. Purchased office equipment on account from Peach Computers Co., $3,980.
9. Purchased office supplies on account from Executive Office Supply Co., $320.
13. Purchased field supplies on account from Yamura Co., $1,420.
14. Purchased field supplies on account from Omni Co., $2,940.
17. Purchased field supplies on account from Yamura Co., $1,890.
24. Purchased field supplies on account from Omni Co., $3,880.
29. Purchased office supplies on account from Executive Office Supply Co., $310.
31. Purchased field supplies on account from Omni Co., $1,800.
Instructions
1. Insert the following balances in the general ledger as of October 1:
14 Field Supplies.................$ 5,920
15 Office Supplies...................75018 Office Equipment............12,300
21 Accounts Payable..............1,170
2. Insert the following balances in the accounts payable subsidiary ledger as of October 1:
Executive Office Supply Co......................$390
Meade Co.............................................780
Omni Co...............................................-
Peach Computers Co.................................-
Yamura Co............................................-
3. Journalize the transactions for October, using a purchases journal (p. 30) similar to the one illustrated in this chapter. Prepare the purchases journal with columns for Accounts Payable, Field Supplies, Office Supplies, and Other Accounts. Post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry.
4. Post the purchases journal to the accounts in the general ledger.
5. a. What is the sum of the creditor balances in the subsidiary ledger at October 31?
b. What is the balance of the accounts payable controlling account at October 31?
6. What type of e-commerce application would be used to plan and coordinate transactions with suppliers?
Explanation / Answer
Sterling Forest Landscaping General Ledger 1) Account: Field Supplies #14 Balance Date Item Post.Ref Debit Credit Debit Credit 1-Oct $ 5,920.00 13-Oct $ 1,420.00 $ 7,340.00 14-Oct $ 2,940.00 $ 10,280.00 17-Oct $ 1,890.00 $ 12,170.00 24-Oct $ 3,880.00 $ 16,050.00 31-Oct $ 1,800.00 $ 17,850.00 Account: Office Supplies #15 Balance Date Item Post.Ref Debit Credit Debit Credit 1-Oct $ 750.00 2-Oct $ 400.00 $ 1,150.00 9-Oct $ 320.00 $ 1,470.00 29-Oct $ 310.00 $ 1,780.00 Account: Office Equipment #18 Balance Date Item Post.Ref Debit Credit Debit Credit 1-Oct $ 12,300.00 5-Oct $ 3,980.00 $ 16,280.00 Account: accounts Payable #21 Balance Date Item Post.Ref Debit Credit Debit Credit 1-Oct $ - $ 1,170.00 2-Oct $ 400.00 $ 1,570.00 5-Oct $ 3,980.00 $ 5,550.00 9-Oct $ 320.00 $ 5,870.00 13-Oct $ 1,420.00 $ 7,290.00 14-Oct $ 2,940.00 $ 10,230.00 17-Oct $ 1,890.00 $ 12,120.00 24-Oct $ 3,880.00 $ 16,000.00 29-Oct $ 310.00 $ 16,310.00 31-Oct $ 1,800.00 $ 18,110.00 2) Accounts Payable Subsidiary Ledger Executive Office Supply Company Date Item Post Ref Debit Credit Balance 1-Oct Balance $ 390.00 9-Oct P30 $ 320.00 $ 710.00 29-Oct P30 $ 310.00 $ 1,020.00 Meade Co. Date Item Post Ref Debit Credit Balance 1-Oct Balance $ 780.00 2-Oct P30 $ 400.00 $ 1,180.00 Omni Co. Date Item Post Ref Debit Credit Balance 14-Oct $ 2,940.00 $ 2,940.00 24-Oct $ 3,880.00 $ 6,820.00 31-Oct $ 1,800.00 $ 8,620.00 Peach Computer Company Date Item Post Ref Debit Credit Balance 5-Oct $ 3,980.00 $ 3,980.00 Yamura Co. Date Item Post Ref Debit Credit Balance 13-Oct $ 1,420.00 $ 1,420.00 17-Oct $ 1,890.00 $ 3,310.00 3 and 4) Purchases Journal Date Amount Credited Post Ref. Accounts Payable (Cr) Field supplies (Dr) Office supplies (Dr) Other Accounts (Dr) Post Ref. Amount 2-Oct Meade Co. $ 400.00 $ 400.00 5-Oct Peach Computer co. $ 3,980.00 $ 3,980.00 9-Oct Executive Office Suply Co. $ 320.00 $ 320.00 13-Oct Yamura Co. $ 1,420.00 $ 1,420.00 14-Oct Omni Co. $ 2,940.00 $ 2,940.00 17-Oct Yamura Co. $ 1,890.00 $ 1,890.00 24-Oct Omni Co. $ 3,880.00 $ 3,880.00 29-Oct Executive Office Suply Co. $ 310.00 $ 310.00 31-Oct Omni Co. $ 1,800.00 $ 16,940.00 $ 10,130.00 $ 1,030.00 $ 3,980.00 Balance in Accounts Payable Subisidiary Ledger on 31st October 5a) Executive Office Supply Co. $ 1,020.00 Meade Co. $ 1,180.00 Peach Comuter Co. $ 3,980.00 Omni Co. $ 8,620.00 Yamura Co. $ 3,310.00 5b) Balance in Accounts Payable $ 18,110.00
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