You are on page 1of 9

Complete the Following Tasks

Record the following transactions in the purchases journal or cash disbursements journal
1.
l
l
l

If the company purchases a fixed asset, it needs to be added to the fixed assets subsidiary ledger
Make sure to update the accounts payable subledger if applicable.
Terms for credit purchases are shown in the accounts payable subsidiary ledger.
November 3 - Received vendor invoice No. 33371 from Accurateturtle Ltd. for goods ordered October 16
and received October 22. The amount of the invoice was $41,500.00.
November 13 - Issued check No. 2025 to Accurateturtle Ltd. for payment in full of invoice No. 33371.
Consider the credit terms before making the payment.
November 17 - Received vendor invoice (No. 633) from Board of Water and Light for utilities during the
month of October. Immediately issued a check (No. 2026) in the amount of $2,634.82 (Use Account No.
41000).
November 18 - Issued check (No. 2027) to ABF Freight for the freight bill from the Accurateturtle Ltd.
shipment received October 22. The amount of the bill was $5,138.29.
November 19 - Issued check No. 2028 to Lamar Advertising Co. for adverting on interstate billboards. The
check was issued in the amount of $3,150.00.
November 21 - Received the office furniture (a desk and a credenza) ordered on purchase order No. 844
and vendors invoice No. 2275 from eOffice.com. The office furniture was received in new and undamaged
condition and taken directly to the office. The estimated useful life is 7 years with no salvage value. The cost
of the desk and credenza is $2,109.82.
November 30 - Issued check No. 2029 to eOffice.com for payment in full of invoice No. 2275. Consider the
credit terms before making the payment.

3. Use the SUM function in Excel to foot the totals for each column in the purchases journal and cash disbursement

journal. Cross-foot the totals to verify that debits equal credits. If debits equal credit, put your initials beside the
totals.

4. Post the column totals and the individual transactions in "Other" column to the appropriate general ledger account and
update each general ledger account balance. Place a posting reference check mark [X] under each column total in the
journals and by each of the individual transactions in the "Other" column to show that the numbers have been posted.

5. Foot the balance in the accounts payable subsidiary ledger and compare the total to the balance in the accounts
payable general ledger account. If the numbers match, put your initials in the general ledger control account to
indicate that you have made the comparison.

6. Book the depreciation expense for the office furniture as of December 31 in the fixed assets subsidiary ledger, the
general journal and the general ledger. Use the half-year convention.

PURCHASES JOURNAL

Date
Nov
Nov.

Vendor
3
21

Accurateturtle Ltd.
eOffice.com
Monthly Totals

Vendor
Invoice
No.
33371
2275
CL

Debit
Purchases
G/L 30500
41,500.00

NOVEMBER

Acc#
10800

41,500.00
X

Other G/L
Amount
2,109.82
2,109.82

Post
X

Subs. A/C#
152
153

Credit
A/P - G/L 20100
Amount
41,500.00
2,109.82
43,609.82
X

Post
X
X

Purch. Ret.
G/L 30600

CASH DISBURSEMENTS JOURNAL

Date
Nov. 13
Nov. 17
Nov. 18
Nov. 19
Nov. 30

Check
No.
2025
2026
2027
2028
2029

CREDIT
Cash
G/L 10100
40,670.00
2,634.82
5,138.29
3,150.00
2,109.82

Description
AccurateTurtle Ltd.
Water Bill- Vendor Invoice #633
ABF Freight
Lamar Advertising Company
eOffice.com
Monthly Totals

CL

53,702.93
X

NOVEMBER
DEBIT

Purch. Disc.
G/L 30700
830.00

A/P - G/L 20100


Subs. A/C #
Amt.
152
41,500.00

Post
X

Freight-in
G/L 30800

Other G/L
A/C #
Amt.

Post

41000

2,634.82

40200

3,150.00

5,138.29
153
830.00
X

2,109.82
43,609.82
X

X
5,138.29
X

5,784.82

GENERAL JOURNAL
November, 2009
DATE
Dec. 31

ACCT.
NO.
40400
10900

EXPLANATION
Depreciation Expense
Accumulated Depreciation
Record Depreciation Expense

POST
X
X

DEBIT
150.70

CREDIT
150.70

GENERAL LEDGER
10100 - CASH
Oct.
Oct.
Oct.
Oct.
Oct.
Nov.

Journal
1 Balance Forward
31
31
31 Net Wages and Salary
31 Bank Service Charge
30

CR
CD
PR
G
CD

10800 - FIXED ASSETS


Oct.
1 Balance Forward
Dec.
31

Journal

10900 - ACCUMULATED DEPN.


Oct.
1 Balance Forward
Dec
31

Journal

20100 - ACCOUNTS PAYABLE


Oct.
1 Balance Forward
Oct.
31
Oct.
31
Nov.
30
Nov.
30

Journal

30500 - PURCHASES
Oct.
1 Balance Forward
Oct.
31
Nov.
30

Journal

Debit

P
P

98,304.36
10,498.83
25.00
53,702.93

Debit

Credit

2,109.82
Debit

Credit
150.70

Debit

Credit
85,920.80

82,372.83
43,609.82
43,609.82

Debit

Credit

81,285.00
41,500.00

Solution - AlternativeTransaction Set #1 - Transactions


Journal
Debit

30700 - PURCHASES DISC. TAKEN


List A
Oct.
1 Balance Forward
Oct.
31
Nov.
30

CD
CD

Credit
1,625.70
830.00

30800 - FREIGHT-IN
Oct.
1 Balance Forward
Oct.
31
Nov.
30

Journal

40200 - ADVERTISING EXPENSE


Oct.
1 Balance Forward
Oct.
31
Nov.
30

Journal

40400 - DEPRECIATION EXPENSE


Dec.
31

Journal
G

Debit
150.70

Credit

41000 - OTHER OPERATING EXPENSE


Oct.
1 Balance Forward
Oct.
31
Oct.
31
Oct.
31
Nov.
30

Journal

Debit

Credit

CD
CD

CD
CD

G
P
CD
CD

Debit
Balance
86,845.00

110,395.64

P
CD
P
CD

Credit

Debit

Credit

2,985.60
5,138.29
Debit

Credit

4,525.00
3,150.00

25.00
3,650.00
1,985.21
2,634.82

88,412.45
34,709.52
Debit
Balance
234,875.00
236,984.82
Credit
Balance
81,559.50
81,710.20
Credit
Balance
1,087.83
87,008.63
4,635.80
48,245.62
4,635.80
Debit
Balance
969,835.00
1,051,120.00
1,092,620.00
Credit
Balance
13,388.00
15,013.70
15,843.70
Debit
Balance
18,038.35
21,023.95
26,162.24
Debit
Balance
13,030.00
17,555.00
20,705.00
Debit
Balance
150.70
Debit
Balance
17,880.14
17,905.14
21,555.14
23,540.35
26,175.17

Ctrl
Init
WLB
WLB
CL

ACCOUNTS PAYABLE SUBSIDIARY LEDGER


152 ACCURATETURTLE LTD.
821 Pretty View Lane
Garberville, CA 95542
TERMS: 2/10, Net 30
DATE
Oct.
1
Oct.
5
Oct.
14
Nov.
3
Nov.
13

FREIGHT : Collect

Description
Balance Forward
Vendor Invoice # 32407
Check # 1112
Vendor Invoice #33371
Check #2025

Debit

Credit
81,285.00

81,285.00
41,500.00
41,500.00

Balance
0.00
81,285.00
0.00
41,500.00
0.00
0.00

153 eOffice.com
1096 Cross Street
Saginaw, MI 48607
TERMS: Due within 10 days of receipt of invoice
DATE
Oct.
Oct.
Oct.
Oct.
Nov.
Nov.

1
7
19
30
21
30

Description
Balance Forward
Check # 1111
Vendor invoice # 2112
Check #1124
Vendor Invoice #2275
Check #2029

FREIGHT: No Charge

Debit

Credit

1,087.83
985.80
985.80
2,109.82
2,109.82

Balance
1,087.83
0.00
985.80
0.00
2,109.82
0.00
0.00

161 INSIDEPORT LTD.

997 Joseph Street


Sharon, WI 53585
TERMS: Net 30 days
DATE
Oct.
1
Oct.
3

Description
Balance Forward
Vendor Invoice # 9884

Debit

Credit
4,635.80

Balance
0.00
4,635.80
4,635.80

TOTAL

4,635.80

FIXED ASSET SUBSIDIARY LEDGER


Item
Purch.From
Est Life
Date
Nov.
Nov.

Desk and Credenza


eOffice.com
7 years

21
30

Asset Record
Debit
Credit
2,109.82

Depreciation Method
Where Located
Est. Salvage Value
Balance
2,109.82

Half Year Convention


Office
$0.00

Depreciation Record
Debit
Credit
150.70

Balance

Asset
NBV
2,109.82
1,959.12