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Chapter Opener: Thinking Critically
ACCOUNTING FOR PURCHASES AND ACCOUNTS PAYABLE
CHAPTER 8
Students may discuss one or more of the following merchandise selection tools: consumer surveys,
16. a. Net amount of the invoice is due 30 days after the date of the invoice. b. If the invoice is paid
within 10 days of its date, a 2 percent discount may be taken; otherwise, the total amount is due in
Discussion Questions (continued)
EXERCISE 8.1
EXERCISE 8.2
Cr.
Dr. Cr.
Dr.
EXERCISE 8.4
PAGE
POST.
REF.
1 2013 1
2 Feb. 9 422000 2
8 8
9 9
10 10
EXERCISE 8.5
PAGE
POST.
REF.
1 2013 1
2 Mar. 17 112500 2
GENERAL JOURNAL
DATE DESCRIPTION DEBIT CREDIT
CREDIT
GENERAL JOURNAL
Accounts Payable/J&B Appliance Corporation
Accounts Payable/Four Star Appliance Mart
DATE DESCRIPTION DEBIT
EXERCISE 8.6
Purchases $52,995
EXERCISE 8.7
a. The total of the schedule of accounts payable will not equal the balance of the
EXERCISE 8.8
PROBLEM 8.1A
PAGE
PURCHASED FROM
INVOICE
NUMBER
INVOICE
DATE TERMS
POST.
REF.
2013
June 1 Pro Photo Equipment 4241 5/27 n/60 ✔213000 195000 18000
8 Photo Supplies 1102 6/3 n/45 ✔138400 138400
PURCHASES JOURNAL 14
DATE
ACCOUNTS
PAYABLE
CREDIT
PURCHASES
DEBIT
FREIGHT IN
DEBIT
PROBLEM 8.1A (continued)
PAGE
POST.
REF.
1 2013 1
205
✔35000
3 Purchases Returns and Allowances 503 3 5 0 00 3
14 14
15 15
16 16
17 17
2 June 18
Accounts Payable/Pro Photo Equipment 2
GENERAL JOURNAL 38
DATE DESCRIPTION DEBIT CREDIT
PROBLEM 8.1A
(
continued
)
ACCOUNT Accounts Payable ACCOUNT NO.
2013
June 1 Balance ✔1390400
ACCOUN
T
Purchase
s
ACCOUNT NO.
ACCOUNT Freight In ACCOUNT NO.
ACCOUNT Purchases Returns and Allowances ACCOUNT NO.
2013
CREDIT
503
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
CREDIT
502
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT
CREDIT
501
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT
GENERAL LEDGER
205
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT
PROBLEM 8.1A (continued)
Purchases $9,656
PROBLEM 8.2A
NAME Hi-Qual Case TERMS
2013
NAME Holtz Spectrum TERMS
2013
NAME Nano Glass TERMS
2013
NAME Photo Supplies TERMS
2013
NAME Pro Photo Equipment TERMS
2013
CREDIT BALANCEDATE DESCRIPTION
POST.
REF. DEBIT
n/60
n/45
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
1/10, n/60
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
2/10, n/30
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
n/45
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
PROBLEM 8.2A (continued)
288600
Total 2330500
Analyze: The balance owed to Nano Glass on June 30 is $3,130.
Qwik Photo Club
Schedule of Accounts Payable
June 30, 2013
Hi-Qual Case
PROBLEM 8.3A
PAGE
PURCHASED FROM
INVOICE
NUMBER
INVOICE
DATE TERMS
POST.
REF.
2013
July 1 Brown Corporation 1011 6/26 n/60 ✔945900 921000 24900
5 Brooks Garden Furniture Co. 639 7/2 n/45 ✔492200 437000 55200
PURCHASES JOURNAL 8
DATE
ACCOUNTS
PAYABLE
CREDIT
PURCHASES
DEBIT
FREIGHT IN
DEBIT
PROBLEM 8.3A (continued)
PAGE
POST.
REF.
1 2013 1
205
✔60000
6made on Invoice 639, July 2 6
7 7
205
✔43000
14 14
15 15
8
2 July 16
828
Accounts Payable/Cameron Rubber Company
Accounts Payable/Brooks Garden Furniture Company 2
GENERAL JOURNAL 20
DATE DESCRIPTION DEBIT CREDIT
PROBLEM 8.3A (continued)
ACCOUNT Accounts Payable ACCOUNT NO.
ACCOUNT Purchases ACCOUNT NO.
ACCOUNT Freight In ACCOUNT NO.
2013
ACCOUNT Purchases Returns and Allowances ACCOUNT NO.
CREDIT
503
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
CREDIT
502
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT
CREDIT
501
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT
GENERAL LEDGER
205
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT
PROBLEM 8.3A (continued)
Purchases $30,160
Freight In 1,559
PROBLEM 8.3A (continued)
NAME Brooks Garden Furniture Company TERMS
NAME Brown Corporation TERMS
2013
NAME Cameron Rubber Company TERMS
2013
NAME Lawn & Gardens Supply TERMS
2013
BALANCE
DATE DESCRIPTION
POST.
REF. DEBIT BALANCE
n/30
DATE DESCRIPTION
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
n/60
n/45
DATE BALANCE
POST.
REF. DEBIT CREDIT
CREDIT
POST.
REF. DEBIT BALANCEDATE
1/15, n/60
DESCRIPTION
POST.
REF. DEBIT CREDIT
CREDITDESCRIPTION
PROBLEM 8.3A (continued)
NAME Wilson Industrial Products TERMS
1544200
2757900
2/10, n/30
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
The English Garden Shop
Schedule of Accounts Payable
July 31, 2013
Brooks Garden Furniture Company
Brown Corporation
PROBLEM 8.4A
PAGE
PURCHASED FROM
INVOICE
NUMBER
INVOICE
DATE TERMS
POST.
REF.
2013
Sept. 3 Dalton Office Furniture Co. 4213 8/29 n/30 ✔813200 792000 2 1 200
PURCHASES JOURNAL 5
DATE
ACCOUNTS
PAYABLE
CREDIT
PURCHASES
DEBIT
FREIGHT IN
DEBIT
PROBLEM 8.4A (continued)
PAGE
POST.
REF.
1 2013 1
205
✔60000
3 Purchases Returns and Allowances 503 6 0 0 00 3
4 Received Credit Memo 511 for allowance for 4
15 15
2
GENERAL JOURNAL 14
DATE DESCRIPTION DEBIT CREDIT
2 Sept. 10
Accounts Payable/Dalton Office Furniture Co.
PROBLEM 8.4A (continued)
ACCOUNT Accounts Payable ACCOUNT NO.
2013
ACCOUNT Purchases ACCOUNT NO.
2013
ACCOUNT Freight In ACCOUNT NO.
ACCOUNT Purchases Returns and Allowances ACCOUNT NO.
CREDIT
503
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
CREDIT
502
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT
CREDIT
501
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT
GENERAL LEDGER
205
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT
