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How journalize to a purchase journal and post to Accounts Payable subsidiary ledger.
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Purchase Journal and Accounts Payable Subsidiary Ledger
MJC Revised 5/2012 Page 1
Purchases Journal Page Number: 9
Date
Account
Credited
Purchase
Order
No. Terms Post
Ref.
Accounts
Payable
Cr.
Merchandise
Inventory
Dr.
Other Accounts Dr.
Accounts Post
Ref. Amounts
1
Dec 3 Johnson Dog
Foods
1125 2/10,n/30 √
2,000 2,000
1
2 5
Fox’s Motors
and Trucks √ 20,000
Vehicles-
Delivery
Truck 1021 20,000 2
3 9
Bill Reed Cat
Foods & Toys 1126 2/10,n/30 √ 1,500 1,500 3
4 12
Office
Maximum √ 400
Office
Supplies 1011 400 4
5 15
Green Food
Natural Pet
Foods 1127 n/30 √ 400 400 5
6 20
Big Dog Toy
Suppliers 1128 1/10,n/30 √ 1,100 1,100 6
7 26
Fredrick’s
Animals
Suppliers 1129
1/10,n/30
√ 300 300 7
8 27
Office
Maximum √ 2,500
Equipment
Computer 1022 2,500 8
9 28
Green Food
Natural Pet
Foods 1130 2/10,n/30 √ 1,800 1,800 9
10 30
Johnson Dog
Foods 1131 2/10,n/30 √ 1,200 1,200 10
11 31
Bill Reed Cat
Foods & Toys 1132 2/10,n/30 √ 2,500 2,500 11
12 33,700 10,800 12
13 (2002) (1003) 13
General Ledger Accounts
Office Supplies
1011 Date Ref Debit Credit Bal.
12/12 Purchases PJ 9 400 400
Vehicles-Delivery Trucks
1021 Date Ref Debit Credit Bal.
12/02 Purchases PJ 9 20,000 20,000
Equipment--Computer
1022 Date Ref Debit Credit Bal.
12/27 Purchases PJ 9 2,500 2,500
Merchandise Inventory
1003 Date Ref Debit Credit Bal.
12/31 Purchases PJ 9 10,800 10,800
12/31 Sales SJ 7 6,060 4,740
12/31 Returns GJ 5 180 4,920
Purchase Journal and Accounts Payable Subsidiary Ledger
MJC Revised 5/2012 Page 2
Accounts Payable
2002 Date Ref Debit Credit Bal.
12/31 Purchases PJ 9 33,700 33,700
Accounts Payable Subsidiary Ledger Accounts
Johnson Dog Foods
Date Ref PO Debit Credit Bal.
12/01 2/10,n/30 PJ 9 1125 2,000 2,000
12/30 2/10,n/30 PJ 9 1131 1,200 3,200
Bill Reed Cat Foods & Toys
Date Ref PO Debit Credit Bal.
12/09 2/10,n/30 PJ 9 1126 1,500 1,500
12/31 1132 2,500 4,000
Fredrick’s Animals Supplies
Date Ref PO Debit Credit Bal.
12/26 1/10,n/30 PJ 9 1129 300 300
Big Dog Toy Suppliers
Date Ref PO Debit Credit Bal.
12/20 1/10,n/30 PJ 9 1128 1,100 1,100
Green Food Natural Pet Foods
Date Ref PO Debit Credit Bal.
12/15 n/30 PJ 9 1127 400 400
12/28 2/10,n/30 PJ 9 1130 1,800 2,200
Fox’s Motor’s and Trucks
Date Ref PO Debit Credit Bal.
12/02 PJ 9 20,000 20,000
Office Maximum
Date Ref PO Debit Credit Bal.
12/12 PJ 9 400 400
12/27 PJ 9 2,500 2,900
Purchase Journal and Accounts Payable Subsidiary Ledger
MJC Revised 5/2012 Page 3
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.
Purchase Journal and Accounts Payable Subsidiary Ledger
MJC Revised 5/2012 Page 4
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.
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