Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 56

Purchases and cash payments journals; accounts payable subsidiary and general ledgers
AquaFresh Water Testing Service was established on April 16. AquaFresh 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 April are as follows:

Post the journals to the accounts payable subsidiary ledger.

Post the journals to the accounts payable subsidiary ledger.
Instructions
1. Journalize the transactions for April. 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:

At the points indicated in the narrative of transactions, post to the following accounts in the accounts payable subsidiary ledger:

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 AquaFresh consider using a subsidiary ledger for the field equipment