Sweetwater Water Testing Service was established on

June 16 2014 #8828

Sweetwater Water Testing Service was established on June 16, 2014. Sweetwater uses field
equipment and field supplies (chemicals and other supplies) to analyze water for unsafe
contaminants in streams, lakes, and ponds. Transactions related to purchases and cash
payments during the remainder of June are as follows:June 16. Issued Check No. 1 in payment
of rent for the remainder of June, $2,900.16. Purchased field supplies on account from Hydro
Supply Co., $4,920.16. Purchased field equipment on account from Pure Aqua Equipment Co.,
$19,500.17. Purchased office supplies on account from Best Office Supply Co., $465.19. Issued
Check No. 2 in payment of field supplies, $3,080, and office supplies, $350.Post the journals to
the accounts payable subsidiary ledger.23. Purchased office supplies on account from Best
Office Supply Co., $620.23. Issued Check No. 3 to purchase land, $120,000.24. Issued Check
No. 4 to Hydro Supply Co. in payment of June 16 invoice, $4,920.26. Issued Check No. 5 to
Pure Aqua Equipment Co. in payment of June 16 invoice, $19,500.Post the journals to the
accounts payable subsidiary ledger.30. Acquired land in exchange for field equipment having a
cost of $10,000.30. Purchased field supplies on account from Hydro Supply Co., $7,300.30.
Issued Check No. 6 to Best Office Supply Co. in payment of June 17 invoice, $465.30.
Purchased the following from Pure Aqua Equipment Co. on account: field supplies,$1,200, and
field equipment, $4,400.30. Issued Check No. 7 in payment of salaries, $26,800.Post the
journals to the accounts payable subsidiary ledger.Instructions1. Journalize the transactions for
June. Use a purchases journal and a cash payments journal, similar to those illustrated in this
chapter, and a two-column general journal.Use debit columns for Field Supplies, Office
Supplies, and Other Accounts in the purchases journal. Refer to the following partial chart of
accounts:11 Cash 14 Field Supplies 215 Office Supplies 17 Field Equipment 19 Land1
Accounts Payable61 Salary Expense71 Rent ExpenseAt the points indicated in the narrative of
transactions, post to the following accounts in the accounts payable subsidiary ledger:Best
Office Supply Co.Hydro Supply Co. Pure Aqua Equipment Co.2. Post the individual entries
(Other Accounts columns of the purchases journal and the cash payments journal and both
columns of the general journal) to the appropriate general ledger accounts.3. Total each of the
columns of the purchases journal and the cash payments journal, and post the appropriate
totals to the general ledger. (Because the problem does not include transactions related to cash
receipts, the cash account in the ledger will have a credit balance.)4. Prepare a schedule of the
accounts payable creditor balances.5. Why might Sweetwater consider using a subsidiary
ledger for the field equipment?View Solution:
Sweetwater Water Testing Service was established on June 16 2014

ANSWER
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june-16-2014/

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