Purchase Journal And Accounts Payable Subsidiary Ledger

Purchase Journal and Accounts Payable Subsidiary Ledger Purchases Journal Page Number: 9

Date Dec 3 1

2

3

5 9

Account Credited Johnson Dog Foods

Purchase Order No.

1125

Terms 2/10,n/30

4

12

5

15

6

20

7

26

8

27

9

28

10

30

Office Maximum Green Food Natural Pet Foods Big Dog Toy Suppliers Fredrick’s Animals Suppliers Office Maximum Green Food Natural Pet Foods Johnson Dog Foods

11

31

Bill Reed Cat Foods & Toys

Accounts Payable Cr.

Merchandise Inventory Dr.

1126

2/10,n/30

Other Accounts Dr. Accounts

Post Ref.

Amounts

√ 2,000

Fox’s Motors and Trucks Bill Reed Cat Foods & Toys

Post Ref.

√

20,000

√

1,500

√

400

2,000

1

VehiclesDelivery Truck

1021

20,000

2

1,500

3

Office Supplies

1011

400

4

1127

n/30

√

400

400

5

1128

1/10,n/30

√

1,100

1,100

6

√

300

300

7

√

2,500

1/10,n/30 1129

Equipment Computer

1022

2,500

8

1130

2/10,n/30

√

1,800

1,800

9

1131

2/10,n/30

√

1,200

1,200

10

1132

2/10,n/30

√

2,500 33,700

2,500 10,800

11

12

(2002)

13

12

(1003)

13

General Ledger Accounts Merchandise Inventory 1003 Date 12/31 12/31 12/31

Purchases Sales Returns

Ref PJ 9 SJ 7 GJ 5

Debit 10,800

Credit 6,060

180

Vehicles-Delivery Trucks 1021 Bal. 10,800 4,740 4,920

Date 12/02

Office Supplies 1011 Date 12/12

Purchases

Ref PJ 9

MJC Revised 5/2012

Debit 400

Purchases

Ref PJ 9

Debit 20,000

Credit

Bal. 20,000

Equipment--Computer 1022 Credit

Bal. 400

Date 12/27

Purchases

Ref PJ 9

Debit 2,500

Credit

Bal. 2,500

Page 1

Purchase Journal and Accounts Payable Subsidiary Ledger Accounts Payable 2002 Date 12/31

Purchases

Ref PJ 9

Debit

Credit 33,700

Bal. 33,700

Accounts Payable Subsidiary Ledger Accounts Green Food Natural Pet Foods

Johnson Dog Foods Date 12/01 12/30

2/10,n/30 2/10,n/30

Ref PJ 9 PJ 9

PO 1125 1131

Debit

Credit 2,000 1,200

Bal. 2,000 3,200

Date 12/15 12/28

2/10,n/30

Ref PJ 9

PO 1126 1132

Debit

Credit 1,500 2,500

Bal. 1,500 4,000

Date 12/02

Fredrick’s Animals Supplies Date 12/26

1/10,n/30

Ref PJ 9

PO 1129

Debit

Ref PJ 9 PJ 9

PO 1127 1130

Debit

Credit 400 1,800

Bal. 400 2,200

Fox’s Motor’s and Trucks

Bill Reed Cat Foods & Toys Date 12/09 12/31

n/30 2/10,n/30

Ref PJ 9

PO

Debit

Credit 20,000

Bal. 20,000

Credit 400 2,500

Bal. 400 2,900

Office Maximum

Credit 300

Bal. 300

Credit 1,100

Bal. 1,100

Date 12/12 12/27

Ref PJ 9 PJ 9

PO

Debit

Big Dog Toy Suppliers Date 12/20

1/10,n/30

Ref PJ 9

MJC Revised 5/2012

PO 1128

Debit

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Purchase Journal and Accounts Payable Subsidiary Ledger Systematic Instructions Step 1. Start with the basic descriptions of the financial events and journalize those into the purchase journal. 12/3 Morrison Pet Supply Company purchased dog food from its supplier Johnson Dog Foods in the amount of $2,000 using purchase order 1125. Terms of the sale are 2% discount if the invoice is paid within the first ten days or the net (whole) amount must be paid within 30 days if the company does not take advantage of the discount (Terms: 2/10, n/30). 12/5 Morrison Pet Supply Company purchased a truck for delivery services to its customers from Fox’s Motors and Trucks for the price of $20,000 on account. 12/9 Morrison Pet Supply Company purchased cat food and cat toys from its supplier Bill Reed Cat Foods & Toys in the amount of $1,500 using purchase order 1126. Terms of the sale are 2/10, n/30. 12/12 Morrison Pet Supply Company purchased office supplies on account to be used in the administrative offices from Office Maximum in the amount of $400. Terms of the sale are n/30. 12/15 Morrison Pet Supply Company purchased basic cat and dog food from its supplier Green Food Natural Pet Foods in the amount of $400 using purchase order 1127. Terms of the sale are n/30. 12/20 Morrison Pet Supply Company purchased toys for large dogs from its supplier Big Dog Toy Suppliers in the amount of $1,100 using purchase order 1128. Terms of the sale are 1/10, n/30. 12/26 Morrison Pet Supply Company purchased collars and leashes from its supplier Fredrich’s Animals Suppliers in the amount of $300 using purchase order 1129. Terms of the sale are 1/10, n/30. 12/27 Morrison Pet Supply Company purchased a new computer for the office from its supplier Office Maximum with a cost of $2,500. The computer will be used for the next 5 years and be depreciated using the straight line method of depreciation. At the end of its useful life it is projected to have a salvage value of $500. Morrison Pet Supply Company plans on putting this asset into use at the first of January. 12/28 Morrison Pet Supply Company purchased cat and dog food from its supplier Green Food Natural Pet Foods in the amount of $1,800 using purchase order 1130. Terms of the sale are 2/10, n/30. 12/30 Morrison Pet Supply Company purchased dog food from its supplier Johnson Dog Foods in the amount of $1,200 using purchase order 1131. Terms of the sale are 2/10, n/30. 12/31 Morrison Pet Supply Company purchased cat food and cat toys from its supplier Bill Reed Cat Foods & Toys in the amount of $2,500 using purchase order 1132. Terms of the sale are 2/10, n/30.

MJC Revised 5/2012

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Purchase Journal and Accounts Payable Subsidiary Ledger Step 2. You will journalize all of the purchases of inventory by placing the amounts in the columns of “Accounts Payable Cr. and Merchandise Inventory Dr.” You should record the date in the date column, the purchase order number in the purchase order no. column, and the suppliers name in the account credited column for each individual purchase in the order the purchases are made. After each entry is journalized post the amount in the Accounts Payable Subsidiary Ledger account and place a check mark in the Posting references column of the purchase journal. At the end of the month total the columns for Accounts payable and Merchandise Inventory and then post the totals to the general ledger accounts. Do not post individual line item to the general ledger accounts. Step 3. For the purchase of office supplies and office equipment you will place the amounts in the columns of Accounts payable cr. and debit in the other accounts with the name of the office supply company going into the accounts credited column and the title of the asset account going into the other accounts dr. column accounts. Each one of these purchases will be posted individual to the general ledger account with an account number being used for the posting reference column under the other accounts dr. and a check mark for the posting of the amount to the accounts payable subsidiary ledger account. Post these items to the general ledger at the time of the purchase. Step 4. For the purchase of the truck you will record it in the column for accounts payable cr. column and the other accounts dr. column amounts column. Place the date in the date column, the name of the auto seller in the account credited column and the title of the asset in the other account dr. accounts column. Post this item to the general ledger at the time of the purchase. Step 5. At the end of the financial period (month, biannual, year or fiscal period) total down the columns for “Accounts Payable Cr.” and “Merchandise Inventory Dr.” then post those totals to the general Ledger. Place the account numbers under the double underlines in brackets for those two account columns to denote that those balances were posted to the general ledger.

Note: Posting is the act of copying an amount from the journal to the ledger account. Postings (Ref or F) are account numbers or the abbreviation for the journal and the page number for the journal. Totaling all of the amounts in a journal column is called footing a column. General journal columns are not footed.

MJC Revised 5/2012

Page 4