Concept explainers
(a)
Purchase journal
Purchase journal refers to the journal that is used to record all purchases on account. In the purchase journal, all purchase transactions are recorded only when the business purchased the goods on account. For example, the business purchased cleaning supplies on account.
Cash payments journal
Cash payments journal refers to the journal that is used to record the all transaction which is involve the cash payments. For example, the business paid cash to employees (salary paid to employees).
Accounts payable control account and subsidiary ledger
Accounts payable account and subsidiary ledger is the ledger which is used to
Subsidiary ledger
Subsidiary ledger refers to the ledger that provides the detailed information of the account already recorded in the general ledger such as
To prepare: A single column revenue journal and a cash receipts journal of H Tails Incorporation.
(b)
To prepare: The accounts payable creditors balance, and verify that the total agrees with the ending balance of accounts payable control account.
(c)
To discuss: The uses of subsidiary ledger for accounts payable.

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