Patterson Appliance uses a three-column purchases journal. The company is located in Fresno, California. In addition to a general ledger, Patterson Appliance also uses an accounts payable ledger. Transactions for January related to the purchase of merchandise are as follows: Jan. 2 Bought eighty 12-inch, 3-speed Brighton Oscillating Fans from Snyder and Jordan, $1,989.30, invoice no. 268J, dated January 2; terms net 60 days; FOB Fresno. 4 Bought ten 35-pint-capacity Crystal Humidifiers from Simpson Company, $2,403.10, invoice no. 39426, dated January 2; terms 2/10, n/30; FOB Durango, freight prepaid and added to the invoice, $96.40 (total $2,499.50). 7 Bought ten 16-inch Axel Window Fans from Tran, Inc., $388.10, invoice no. 452AD, dated January 6; terms 1/10, n/30; FOB Fresno. 10 Bought twenty-four 4-blade Tiempo Ceiling Fans, Model 2760, from Ukele Company, $3,637.50, invoice no. D7742, dated January 7; terms 2/10, n/30; FOB Sacramento, freight prepaid and added to the invoice, $81.90 (total $3,719.40). 14 Bought four Charger Electric Hedge Trimmers from Fernandez Products Company, $200.50, invoice no. 2542, dated January 13; terms net 30 days; FOB Fresno. 22 Bought 40 Lindon Electric Bug Killers from Snyder and Jordan, $2,284.80, invoice no. 392J, dated January 22; terms net 60 days; FOB Fresno. 28 Bought ten Charger Electric Blowers from Fernandez Products Company, $867.30, invoice no. 2691, dated January 27; terms net 30 days; FOB Fresno. 30 Bought ten Kole Powered Attic Ventilators from Porter Company, $429.40, invoice no. 664CC, dated January 27; terms 2/10, n/30; FOB Seattle, freight prepaid and added to the invoice, $47.60 (total $477.00). Required: 1. Record the transactions in the purchases journal on page 81. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. PURCHASES JOURNAL PAGE 81 DATE SUPPLIER'S NAME INV. NO. INV. DATE TERMS POST. REF. ACCOUNTS PAYABLE CREDIT FREIGHT IN DEBIT PURCHASES DEBIT 20-- Jan. 2 Snyder and Jordan 268J 1/2 net 60 ✓ 4 Simpson Company 39426 1/2 2/10, n/30 ✓ 7 Tran, Inc. 452AD 1/6 1/10, n/30 ✓ 10 Ukele Company D7742 1/7 2/10, n/30 ✓ 14 Fernandez Products Company 2542 1/13 net 30 ✓ 22 Snyder and Jordan 392J 1/22 net 60 ✓ 28 Fernandez Products Company 2691 1/27 net 30 ✓ 30 Porter Company 664CC 1/27 2/10, n/30 ✓ 31 Totals (212) (514) (511) 2. Post the purchases journal amount as a total at the end of the month to the Accounts Payable 212 account. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. GENERAL LEDGER ACCOUNT Accounts Payable ACCOUNT NO. 212 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 20-- Jan. 1 Balance ✓ 567.94 31 P81 Post the purchases journal amount as a total at the end of the month to the Purchases 511 account. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. GENERAL LEDGER ACCOUNT Purchases ACCOUNT NO. 511 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 20-- Jan. 31 P81 Post the purchases journal amount as a total at the end of the month to the Freight In 514 account. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. GENERAL LEDGER ACCOUNT Freight In ACCOUNT NO. 514 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 20-- Jan. 31 P81 3. Post the transactions to the accounts payable ledger daily for Fernandez Products Company. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Post the transactions to the accounts payable ledger daily for Porter Company. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. NAME Porter Company ADDRESS DATE ITEM POST. REF. DEBIT CREDIT BALANCE 20-- Jan. 1 Balance ✓ 158.07 30 P81 Post the transactions to the accounts payable ledger daily for Simpson Company. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. NAME Simpson Company ADDRESS DATE ITEM POST. REF. DEBIT CREDIT BALANCE 20-- Jan. 1 Balance ✓ 172.43 4 P81 Post the transactions to the accounts payable ledger daily for Snyder and Jordan. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Post the transactions to the accounts payable ledger daily for Tran, Inc. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. NAME Tran, Inc. ADDRESS DATE ITEM POST. REF. DEBIT CREDIT BALANCE 20-- Jan. 1 Balance ✓ 237.44 7 P81 Post the transactions to the accounts payable ledger daily for Ukele Company. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Patterson Appliance uses a three-column purchases journal. The company is located in Fresno, California. In addition to a general ledger, Patterson Appliance also uses an accounts payable ledger. Transactions for January related to the purchase of merchandise are as follows:
| Jan. | 2 | Bought eighty 12-inch, 3-speed Brighton Oscillating Fans from Snyder and |
| Jordan, $1,989.30, invoice no. 268J, dated January 2; terms net 60 days; FOB | ||
| Fresno. | ||
| 4 | Bought ten 35-pint-capacity Crystal Humidifiers from Simpson Company, | |
| $2,403.10, invoice no. 39426, dated January 2; terms 2/10, n/30; FOB Durango, | ||
| freight prepaid and added to the invoice, $96.40 (total $2,499.50). | ||
| 7 | Bought ten 16-inch Axel Window Fans from Tran, Inc., $388.10, invoice no. | |
| 452AD, dated January 6; terms 1/10, n/30; FOB Fresno. | ||
| 10 | Bought twenty-four 4-blade Tiempo Ceiling Fans, Model 2760, from Ukele | |
| Company, $3,637.50, invoice no. D7742, dated January 7; terms 2/10, n/30; | ||
| FOB Sacramento, freight prepaid and added to the invoice, $81.90 (total | ||
| $3,719.40). | ||
| 14 | Bought four Charger Electric Hedge Trimmers from Fernandez Products | |
| Company, $200.50, invoice no. 2542, dated January 13; terms net 30 days; | ||
| FOB Fresno. | ||
| 22 | Bought 40 Lindon Electric Bug Killers from Snyder and Jordan, $2,284.80, | |
| invoice no. 392J, dated January 22; terms net 60 days; FOB Fresno. | ||
| 28 | Bought ten Charger Electric Blowers from Fernandez Products | |
| Company, $867.30, invoice no. 2691, dated January 27; terms net 30 days; | ||
| FOB Fresno. | ||
| 30 | Bought ten Kole Powered Attic Ventilators from Porter Company, $429.40, | |
| invoice no. 664CC, dated January 27; terms 2/10, n/30; FOB Seattle, freight | ||
| prepaid and added to the invoice, $47.60 (total $477.00). |
Required:
1. Record the transactions in the purchases journal on page 81. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
| PURCHASES JOURNAL | PAGE | 81 | |||||||
DATE |
SUPPLIER'S NAME |
INV. NO. |
INV. DATE |
TERMS |
POST. REF. |
ACCOUNTS PAYABLE CREDIT |
FREIGHT IN DEBIT |
PURCHASES DEBIT |
|
| 20-- | |||||||||
| Jan. | 2 | Snyder and Jordan | 268J | 1/2 | net 60 | ✓ | |||
| 4 | Simpson Company | 39426 | 1/2 | 2/10, n/30 | ✓ | ||||
| 7 | Tran, Inc. | 452AD | 1/6 | 1/10, n/30 | ✓ | ||||
| 10 | Ukele Company | D7742 | 1/7 | 2/10, n/30 | ✓ | ||||
| 14 | Fernandez Products Company | 2542 | 1/13 | net 30 | ✓ | ||||
| 22 | Snyder and Jordan | 392J | 1/22 | net 60 | ✓ | ||||
| 28 | Fernandez Products Company | 2691 | 1/27 | net 30 | ✓ | ||||
| 30 | Porter Company | 664CC | 1/27 | 2/10, n/30 | ✓ | ||||
| 31 | Totals | ||||||||
| (212) | (514) | (511) |
2. Post the purchases journal amount as a total at the end of the month to the Accounts Payable 212 account. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
| GENERAL LEDGER | |||||||||
| ACCOUNT | Accounts Payable | ACCOUNT NO. | 212 | ||||||
DATE |
ITEM |
POST. REF. |
DEBIT |
CREDIT |
BALANCE | ||||
| DEBIT | CREDIT | ||||||||
| 20-- | |||||||||
| Jan. | 1 | Balance | ✓ | 567.94 | |||||
| 31 | P81 | ||||||||
Post the purchases journal amount as a total at the end of the month to the Purchases 511 account. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
| GENERAL LEDGER | |||||||||
| ACCOUNT | Purchases | ACCOUNT NO. | 511 | ||||||
DATE |
ITEM |
POST. REF. |
DEBIT |
CREDIT |
BALANCE | ||||
| DEBIT | CREDIT | ||||||||
| 20-- | |||||||||
| Jan. | 31 | P81 | |||||||
Post the purchases journal amount as a total at the end of the month to the Freight In 514 account. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
| GENERAL LEDGER | |||||||||
| ACCOUNT | Freight In | ACCOUNT NO. | 514 | ||||||
DATE |
ITEM |
POST. REF. |
DEBIT |
CREDIT |
BALANCE | ||||
| DEBIT | CREDIT | ||||||||
| 20-- | |||||||||
| Jan. | 31 | P81 | |||||||
3.
Post the transactions to the accounts payable ledger daily for Porter Company. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
| NAME | Porter Company | |||||||
| ADDRESS | ||||||||
DATE |
ITEM |
POST. REF. |
DEBIT |
CREDIT |
BALANCE |
|||
| 20-- | ||||||||
| Jan. | 1 | Balance | ✓ | 158.07 | ||||
| 30 | P81 | |||||||
Post the transactions to the accounts payable ledger daily for Simpson Company. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
| NAME | Simpson Company | |||||||
| ADDRESS | ||||||||
DATE |
ITEM |
POST. REF. |
DEBIT |
CREDIT |
BALANCE |
|||
| 20-- | ||||||||
| Jan. | 1 | Balance | ✓ | 172.43 | ||||
| 4 | P81 | |||||||
Post the transactions to the accounts payable ledger daily for Snyder and Jordan. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
Post the transactions to the accounts payable ledger daily for Tran, Inc. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
| NAME | Tran, Inc. | |||||||
| ADDRESS | ||||||||
DATE |
ITEM |
POST. REF. |
DEBIT |
CREDIT |
BALANCE |
|||
| 20-- | ||||||||
| Jan. | 1 | Balance | ✓ | 237.44 | ||||
| 7 | P81 | |||||||
Post the transactions to the accounts payable ledger daily for Ukele Company. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
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