Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 32

Purchases, accounts payable subsidiary account, and accounts payable ledger
Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October are as follows:

Instructions
1. Insert the following balances in the general ledger as of October 1:

2. Insert the following balances in the accounts payable subsidiary ledger as of October 1:

3. Journalize the transactions for October, using a purchases journal (p. 30) similar to the one illustrated in this chapter. Prepare the purchases journal with columns for Accounts Payable, Field Supplies, Office Supplies, and Other Accounts. Post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry.
4. Post the purchases journal to the accounts in the general ledger.
5. a. What is the sum of the creditor balances in the subsidiary ledger at October 31
b. What is the balance of the accounts payable controlling account at October 31
6. What type of e-commerce application would be used to plan and coordinate transactions withsuppliers