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

Exercise 24

Posting a purchases journal
The purchases journal for Newmark Exterior Cleaners Inc. follows. The accounts payable account has a March 1, 2016, balance of $580 for an amount owed to Nicely Co. There were no payments made on creditor invoices during March.

a. Prepare a T account for the accounts payable creditor accounts.
b. Post the transactions from the purchases journal to the creditor accounts, and determine their ending balances.
c. Prepare T accounts for the accounts payable control and cleaning supplies accounts. Post control totals to the two accounts, and determine their ending balances. Cleaning Supplies had a zero balance at the beginning of the month.
d. Prepare a schedule of the creditor account balances to verify the equality of the sum of the accounts payable creditor balances and the accounts payable controlling account balance.
e. How might a computerized accounting system differ from the use of a purchases journal in recording purchase transactions