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

Exercise 36

Purchases, accounts payable account, and accounts payable subsidiary ledger
Plumb Line Surveyors provides survey work for construction projects. The office staff use office supplies, while surveying crews use field supplies. Purchases on account completed by Plumb Line Surveyors during May are as follows:

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

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

3. Journalize the transactions for May, 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 May 31
b. What is the balance of the accounts payable controlling account at May 31
6. What type of e-commerce application would be used to plan and coordinate transactions with suppliers