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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, $1,890, invoice no. 268J, dated January 2; terms net 60 days; FOB Fresno.
4 Bought ten 35-pint-capacity Crystal Humidifiers from Simpson Company, $2,300, invoice no. 39426, dated January 2; terms 2/10, n/30; FOB Durango, freight prepaid and added to the invoice, $90 (total $2,390).
7 Bought ten 16-inch Axel Window Fans from Tran, Inc., $360, 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, $3,550, invoice no. D7742, dated January 7; terms 2/10, n/30; FOB Sacramento, freight prepaid and added to the invoice, $84 (total $3,634).
14 Bought four Charger Electric Hedge Trimmers from Fernandez Products Company, $186, invoice no. 2542, dated January 13; terms net 30 days; FOB Fresno.
22 Bought 40 Lindon Electric Bug Killers from Snyder and Jordan, $2,265, invoice no. 392J, dated January 22; terms net 60 days; FOB Fresno.
28 Bought ten Charger Electric Blowers from Fernandez Products Company, $830, invoice no. 2691, dated January 27; terms net 30 days; FOB Fresno.
30 Bought ten Kole Powered Attic Ventilators from Porter Company, $446, invoice no. 664CC, dated January 27; terms 2/10, n/30; FOB Seattle, freight prepaid and added to the invoice, $48 (total $494).
Required
- 1. If using Working Papers, open the following accounts in the accounts payable ledger and record the January 1 balances, if any, as given: Fernandez Products Company; Porter Company, $163.17; Simpson Company, $167.19; Snyder and Jordan; Tran, Inc., $228.70; Ukele Company. For the accounts having balances, write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow or CLGL.
- 2. If using Working Papers, record the balance of $559.06 in the Accounts Payable 212 controlling account as of January 1. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow or CLGL.
- 3. Record the transactions in the purchases journal. If using Working Papers, begin on page 81.
- 4. Post to the accounts payable ledger daily. Skip this step if using CLGL.
- 5. Post to the general ledger at the end of the month. Skip this step if using CLGL.
- 6. Prepare a schedule of accounts payable and compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable.
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