The purchases journal for Newmark Exterior Cleaners Inc. follows. The accounts payable account has a March 1, 20Y2, balance of $580 for an amount owed to Nicely Co. No payments were made on creditor invoices during March. PURCHASES JOURNAL Page 16 Other Accts. Cleaning Supplies Dr. Post. Payable Cr. Accounts Post. Date Account Credited Ref. Dr. Ref. Amount 20Υ2 Mar. 4 Enviro-Wash Supplies Inc. 690 690 15 Nicely Co. 325 325 Office Equipment 20 Office Mate Inc. 3,860 3,860 26 Enviro-Wash Supplies Inc. 385 385 5,260 31 1,400 3,860 a. Prepare a T account for the accounts payable creditor accounts. b. Post the transactions from the purchases journal to the creditor accounts and determine their ending balances. c. Prepare T accounts for the accounts payable control and cleaning supplies accounts. Post control totals to the two accounts, and determine their ending balances. Cleaning Supplies had a zero balance at the beginning of the month. d. Prepare a schedule of the creditor account balances to verify the equality of the sum of the accounts payable creditor balances and the accounts payable controlling account balance. e. How might a computerized accounting system differ from the use of a purchases journal in recording purchase transactions?
The purchases journal for Newmark Exterior Cleaners Inc. follows. The accounts payable account has a March 1, 20Y2, balance of $580 for an amount owed to Nicely Co. No payments were made on creditor invoices during March. PURCHASES JOURNAL Page 16 Other Accts. Cleaning Supplies Dr. Post. Payable Cr. Accounts Post. Date Account Credited Ref. Dr. Ref. Amount 20Υ2 Mar. 4 Enviro-Wash Supplies Inc. 690 690 15 Nicely Co. 325 325 Office Equipment 20 Office Mate Inc. 3,860 3,860 26 Enviro-Wash Supplies Inc. 385 385 5,260 31 1,400 3,860 a. Prepare a T account for the accounts payable creditor accounts. b. Post the transactions from the purchases journal to the creditor accounts and determine their ending balances. c. Prepare T accounts for the accounts payable control and cleaning supplies accounts. Post control totals to the two accounts, and determine their ending balances. Cleaning Supplies had a zero balance at the beginning of the month. d. Prepare a schedule of the creditor account balances to verify the equality of the sum of the accounts payable creditor balances and the accounts payable controlling account balance. e. How might a computerized accounting system differ from the use of a purchases journal in recording purchase transactions?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The purchases journal for Newmark Exterior Cleaners Inc. follows. The accounts payable
account has a March 1, 20Y2, balance of $580 for an amount owed to Nicely Co. No
payments were made on creditor invoices during March.
PURCHASES JOURNAL
Page 16
Other
Accts.
Cleaning
Supplies
Dr.
Post.
Payable
Cr.
Accounts
Post.
Date
Account Credited
Ref.
Dr.
Ref. Amount
20Υ2
Mar. 4 Enviro-Wash Supplies Inc.
690
690
15 Nicely Co.
325
325
Office Equipment
20 Office Mate Inc.
3,860
3,860
26 Enviro-Wash Supplies Inc.
385
385
5,260
31
1,400
3,860
a. Prepare a T account for the accounts payable creditor accounts.
b. Post the transactions from the purchases journal to the creditor accounts and determine
their ending balances.
c. Prepare T accounts for the accounts payable control and cleaning supplies accounts.
Post control totals to the two accounts, and determine their ending balances. Cleaning
Supplies had a zero balance at the beginning of the month.
d. Prepare a schedule of the creditor account balances to verify the equality of the sum
of the accounts payable creditor balances and the accounts payable controlling account
balance.
e. How might a computerized accounting system differ from the use of a purchases
journal in recording purchase transactions?
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