Chapter 13, Problem 5P

Our narrative and DFDs are created assuming that accounts payable result from the purchase of inventory using a perpetual inventory system. However, inventory is not the only item that a company might purchase. For each of the following situations, show the journal entry (in debit/credit journal entry format with no dollar amounts) that would result when the accounts payable was created. Make and state any assumptions you think are necessary.

Situations:

1. 1. Merchandise is purchased, and a periodic inventory process is used.
2. 2. Merchandise is purchased, and a perpetual inventory process is used.
3. 3. Office supplies are purchased.
4. 4. Plant assets are purchased.
5. 5. Legal services are purchased.