Complete the Following Tasks

1. Record the following Nov. 2015 transactions in the purchases journal or cash disbursements journal
l If the company purchases a fixed asset, it needs to be added to the fixed assets subsidiary ledger
l Make sure to update the accounts payable subledger if applicable.
l Invoice payment terms for each vendor that extends credit to our company is provided in the vendor's
record inthe accounts payable subsidiary ledger.
November 1 - Received vendor invoice No. 33371 dated Nov. 1 from Accurateturtle Ltd. for goods ordered
October 16 and received October 22. Performed 3-way match of invoice, purchase order and receiving
report which revealed that the invoice information was correct. The amount of the invoice was $41,500.00.
November 8 - Received Debit Memo No. DM889 dated Nov. 5 from Accurateturtle Ltd for ovestocked goods
ordered on Oct. 16, received on October 22 and returned to Accurateturtle on October 30. The amount of
the debit memo was $5,150.00.
November 9 - Issued check No. 2025 to Accurateturtle Ltd. for payment in full of invoice No. 33371. Be
sure to consider the invoice balance due and vendor credit terms before making the payment.
November 17 - Received vendor invoice No. 633 in the amount of $2,634.82 from Board of Water
and Light for utilities through Nov. 15. The invoice terms were "due upon receipt."
Issued check No. 2026 in payment of the invoice (utility expenses are recorded in Account No. 61000).
November 18 - Received invoice from ABF Freight for $5,138.29 for freight charges related to the
Accurateturtle Ltd. shipment received October 22. Invoice terms were "due upon receipt". Issued check
No. 2027 in full payment of the ABF invoice.
NO November 19 - Received invoice dated Nov. 15 for $3,150.00 from Lamar Advertising for billboard
ENTRY advertising. and sent invoice for approval to marketing manager.
November 20 - Received approved Lamar Advertising invoice from marketing manager.

November 21 - Received the office furniture (a desk and a credenza) ordered on purchase order No. 844
and vendor’s 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. 2028 to eOffice.com for payment in full of invoice No. 2275. Consider the
credit terms before making the payment.
2. Use the SUM function in Excel to foot (add up) the totals for each column in the purchases journal and cash
disbursement journal. Cross-foot (add across the columns) the totals to verify that debits equal credits. If debits
equal credit, put your initials beside the totals line.

3. Post the column totals and the individual transactions in the "Other" columns of the specialized journals 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. Place a journal reference in each general ledger account
posting. Note that this reference creates the "backwards" audit trail.

4. 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.
 PURCHASES JOURNAL NOVEMBER 2015

Vendor Debit Credit

Invoice Purchases Other G/L A/P - G/L 20100 Purch. Ret.
Date Vendor No. G/L 50500 Acc# Amount Post Subs. A/C Amount Post G/L 50700
Nov 1 Accurateturtle Ltd. 33371 41,500.00 152 41,500.00 x
Nov 21 eOffice 2275 10800 2,109.82 x 153 2,109.82 x
Nov 15 Lamar Advertising 143 60200 3,150.00 x 158 3,150.00 x
Nov 5 Accurateturtle Ltd. DM889 (5,150.00) x 5,150.00

Monthly Totals MTB 41,500.00 5,259.82 41,609.82 5,150.00 MTB

x x x x
 CASH DISBURSEMENTS JOURNAL NOVEMBER 2015
CREDIT DEBIT
Check Cash Purch. Disc. A/P - G/L 20100 Freight-in Other G/L
Date No. Description G/L 10100 G/L 50600 Subs. A/C # Amt. Post G/L 50800 A/C # Amt. Post
17-Nov 2026 Board of Water and Light 2,634.82 61000 2,634.82 x
18-Nov 2027 ABF Freight 5,138.29 5,138.29
9-Nov 2025 Accurateturtle LTD 35,623.00 727.00 152 36,350.00 x
30-Nov 2028 eOffice.com 2,109.82 153 2,109.82 x

Monthly Totals 45,505.93 727.00 38,459.82 5,138.29 2,634.82 MTB

x x x x x
 GENERAL LEDGER (PARTIAL LISTING OF ACCOUNTS)
Debit
10100 - CASH Journal Debit Credit Balance
Oct. 1 Balance Forward 86,845.00
Oct. 31 CR 110,395.64
Oct. 31 CD 98,304.36
Oct. 31 Net Wages and Salary PR 10,498.83
Oct. 31 Bank Service Charge G 25.00 88,412.45
Nov 30 CD 45,505.93 42,906.52

Debit
10800 - FIXED ASSETS Journal Debit Credit Balance
Oct. 1 Balance Forward 234,875.00
Nov 30 P 2,109.82 236,984.82

Credit
10900 - ACCUMULATED DEPN. Journal Debit Credit Balance
Oct. 1 Balance Forward 84,051.14

Credit Ctrl
20100 - ACCOUNTS PAYABLE Journal Debit Credit Balance Init
Oct. 1 Balance Forward 1,087.83 WLB
Oct. 31 P 85,920.80
Oct. 31 CD 82,372.83 4,635.80 WLB
Nov 30 P 41,609.82
Nov 30 CD 38,459.82 7,785.80 MTB

Debit
50500 - PURCHASES Journal Debit Credit Balance
Oct. 1 Balance Forward 969,835.00
Oct. 31 P 81,285.00 1,051,120.00
Nov 30 P 41,500.00 1,092,620.00

Solution - AlternativeTransaction Set #1 - Credit

50600 - PURCHASES DISC. TAKEN
Transactions List A Journal Debit Credit Balance
Oct. 1 Balance Forward 13,388.00
Oct. 31 CD 1,625.70 15,013.70
Nov 30 CD 727.00 15,740.70

Credit
50700 - PURCHASES RETURNS AND ALLOWANCES Journal Debit Credit Balance
Oct. 1 Balance Forward 14,050.33
Oct. 31 P 2,985.60 17,035.93
Nov 30 P 5,150.00 22,185.93
Debit
50800 - FREIGHT-IN Journal Debit Credit Balance
Oct. 1 Balance Forward 18,038.35
Oct. 31 CD 2,985.60 21,023.95
Nov 30 CD 5,138.29 26,162.24

Debit
60200 - ADVERTISING EXPENSE Journal Debit Credit Balance
Oct. 1 Balance Forward 13,030.00
Oct. 31 CD 4,525.00 17,555.00
Nov 30 P 3,150.00 20,705.00

61000 - OTHER OPERATING EXPENSE Journal Debit Credit Balance

Oct. 1 Balance Forward 17,880.14
Oct. 31 G 25.00 17,905.14
Oct. 31 P 3,650.00 21,555.14
Oct. 31 CD 1,985.21 23,540.35
Nov 30 CD 2,634.82 26,175.17
 ACCOUNTS PAYABLE SUBSIDIARY LEDGER
152 ACCURATETURTLE LTD.
821 Pretty View Lane
Garberville, CA 95542

TERMS: 2/10, Net 30 FREIGHT : Collect

DATE Description Debit CreditBalance

Oct. 1 Balance Forward 0.00
Oct. 5 Vendor Invoice # 32407 81,285.00 81,285.00
Oct. 14 Check # 1112 81,285.00 0.00
Nov 1 Vendor Invoice # 33371 41,500.00 41,500.00
Nov 5 DM889 5,150.00 36,350.00
Nov 9 Check # 2025 36,350.00 0.00

153 eOffice.com
1096 Cross Street
Saginaw, MI 48607

TERMS: Due within 10 days of receipt of invoice FREIGHT: No Charge

DATE Description Debit Credit Balance

Oct. 1 Balance Forward 1,087.83
Oct. 7 Check # 1111 1,087.83 0.00
Oct. 19 Vendor invoice # 2112 985.80 985.80
Oct. 30 Check #1124 985.80 0.00
Nov 21 Invoive #2275 2,109.82 2,109.82
Nov 30 Check #2028 2,109.82 0.00

158 LAMAR ADVERTISING

123 Bicycle Way
Saginaw, MI 48607

TERMS: Net 30 days

DATE Description Debit Credit Balance

Oct. 1 Balance Forward 0.00
Nov 15 Invoice #143 3,150.00 3,150.00
161 INSIDEPORT LTD.
997 Joseph Street
Sharon, WI 53585

TERMS: Net 30 days

DATE Description Debit Credit Balance

Oct. 1 Balance Forward 0.00
Oct. 3 Vendor Invoice # 9884 4,635.80 4,635.80

7,785.80
 FIXED ASSET SUBSIDIARY LEDGER
Item Desk and credenza Depreciation Method Straight-line
Purch.From eOffice Where Located Office
Est Life years 7 Est. Salvage Value $ 0

Asset Record Depreciation Record Asset

Date Debit Credit Balance Debit Credit Balance NBV
Nov 21 2,109.82 2,109.82 2,109.82

Item Warehouse Building Depreciation Method Straight-line

Purch.From D. Newsome Where Located 125 Hudson St.
Est Life 25 years Est. Salvage Value $ 27,500.00

Asset Record Depreciation Record Asset

Date Debit Credit Balance Debit Credit Balance NBV
2-May 2006 175,000.00 175,000.00 0.00 175,000.00
31-Dec 2007 175,000.00 2,950.00 2,950.00 172,050.00
31-Dec 2008 175,000.00 5,900.00 8,850.00 166,150.00
31-Dec 2009 175,000.00 5,900.00 14,750.00 160,250.00
31-Dec 2010 175,000.00 5,900.00 20,650.00 154,350.00
31-Dec 2011 175,000.00 5,900.00 26,550.00 148,450.00
31-Dec 2012 175,000.00 5,900.00 32,450.00 142,550.00
1-Jan 2013 175,000.00 5,900.00 38,350.00 136,650.00
2-Jan 2014 175,000.00 5,900.00 44,250.00 130,750.00

Item Delivery Truck Depreciation Method Straight-line

Purch.From National Machinery Where Located Factory floor
Est Life 11 years Est. Salvage Value $ 1,500.00

Asset Record Depreciation Record Asset

Date Debit Credit Balance Debit Credit Balance NBV
2-May 2006 59,875.00 59,875.00 0.00 59,875.00
31-Dec 2007 59,875.00 2,653.41 2,653.41 57,221.59
31-Dec 2008 59,875.00 5,306.82 7,960.23 51,914.77
31-Dec 2009 59,875.00 5,306.82 13,267.05 46,607.95
31-Dec 2010 59,875.00 5,306.82 18,573.86 41,301.14
31-Dec 2011 59,875.00 5,306.82 23,880.68 35,994.32
31-Dec 2012 59,875.00 5,306.82 29,187.50 30,687.50
31-Dec 2013 59,875.00 5,306.82 34,494.32 25,380.68
31-Dec 2014 59,875.00 5,306.82 39,801.14 20,073.86