Demonstration Problems

Business Products Market is a retail business that sells office equipment, furniture, and business supplies. Its credit purchases and purchases returns and allowances for September 20X4 follow. The general ledger accounts used to record these transactions are given below.

Instructions:

1. Open the general ledger accounts and enter the balance of Accounts Payable for September 1, 20X4.
2. Using the list of creditors that follows open the accounts in the accounts payable subsidiary ledger and enter the account balances for September 1, 20X4
3. Record the transactions in a purchases journal, page 9, and a general journal, page 27.
4. Post individual entries from the purchases journal to the accounts payable subsidiary ledger, and then post from the general journal to the general ledger and the accounts payable subsidiary ledger.
5. Total, prove, and rule the purchases journal as of September 30, 20X4
6. Post the column totals from the purchases journal to the appropriate general ledger accounts.

Prepare a schedule of accounts payable for September 30, 20X4.

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Transactions:
September

3	Purchased desks for $ 2290 plus GST from the Heriz Furniture Company. Invoice 1342 Dated August 29, Terms of 30 days.
8	Purchased computers for $ 2825 plus GST from Barnes Office Supply, Invoice 7192 dated September 3, net due and payable in 60 days.
10	Received Credit Memo 165 for $ 150 plus GST from the Heriz Furniture Company as an allowance for slightly damaged but usable desks purchased on Invoice 1342 of August 29
15	Purchased file cabinets for $ 680 plus GST from Charles Corporation, Invoice 6088 dated September 10, terms of 30 days.
20	Purchased electronic desk calculators for $ 550 from Barnes Office Supply plus GST, Invoice 7256 dated September 15, net due and payable in 60 days.
23	Purchased laser printer paper for $ 1572 plus GST from Ontario Paper Products on Invoice 84619 dated September 18, terms of 1/10, n/30.
28	Received Credit Memo 692 for $ 110 plus GST from Barnes Office Supply for defective calculators that were returned. The calculators were originally purchased on Invoice 7256 of September 15.
29	Purchased office chairs for $ 975 plus GST from Miller Furniture Company, Invoice 966 dated September 25, terms of 2/10, n/30.

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Demo Worksheets (97.0K)

After trying to solve the problems on your own, use the link below to download the solutions.

Demo Worksheet Solutions (100.0K)