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Purchase Journal and Accounts Payable Subsidiary Ledger Purchases Journal

Page Number: 9 Account Credited Johnson Dog Foods Foxs Motors and Trucks Bill Reed Cat Foods & Toys Office Maximum Green Food Natural Pet Foods Big Dog Toy Suppliers Fredricks Animals Suppliers Office Maximum Green Food Natural Pet Foods Johnson Dog Foods Bill Reed Cat Foods & Toys 1126 2/10,n/30
Purchase Order No.
Post Ref.

Date Dec 3
1

1125

Terms 2/10,n/30

Accounts Payable Cr. 2,000

Merchandise Inventory Dr. 2,000

Other Accounts Dr. Accounts


Post Ref.

Amounts
1

VehiclesDelivery Truck 1,500 Office Supplies


1011

5 9 12

20,000 1,500 400

1021

20,000

400

15 20

1127 1128

n/30 1/10,n/30 1/10,n/30

400 1,100

400 1,100

26 27

1129

300 2,500

300 Equipment Computer


1022

2,500

28 30 31

1130 1131 1132

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

1,800 1,200 2,500 33,700 (2002)

1,800 1,200 2,500 10,800 (1003)

10

10

11 12 13

11 12 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 10,800 180 Credit 6,060 Bal. 10,800 4,740 4,920 Date 12/02

Vehicles-Delivery Trucks 1021


Purchases Ref PJ 9 Debit 20,000 Credit Bal. 20,000

Office Supplies 1011


Date 12/12 Purchases Ref PJ 9 Debit 400 Credit Bal. 400 Date 12/27

Equipment--Computer 1022
Purchases Ref PJ 9 Debit 2,500 Credit Bal. 2,500

MJC Revised 5/2012

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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 Johnson Dog Foods


Date 12/01 12/30 Ref PJ 9 PJ 9 PO 1125 1131 Debit Credit 2,000 1,200 Bal. 2,000 3,200 Date 12/15 12/28

Green Food Natural Pet Foods


Ref PJ 9 PJ 9 PO 1127 1130 Debit Credit 400 1,800 Bal. 400 2,200

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

n/30 2/10,n/30

Bill Reed Cat Foods & Toys


Date 12/09 12/31 Ref PJ 9 PO 1126 1132 Debit Credit 1,500 2,500 Bal. 1,500 4,000 Date 12/02

Foxs Motors and Trucks


Ref PJ 9 PO Debit Credit 20,000 Bal. 20,000

2/10,n/30

Fredricks Animals Supplies


Date 12/26 Ref PJ 9 PO 1129 Debit Credit 300 Bal. 300 Date 12/12 12/27

Office Maximum
Ref PJ 9 PJ 9 PO Debit Credit 400 2,500 Bal. 400 2,900

1/10,n/30

Big Dog Toy Suppliers


Date 12/20 Ref PJ 9 PO 1128 Debit Credit 1,100 Bal. 1,100

1/10,n/30

MJC Revised 5/2012

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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 Foxs 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 Fredrichs 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

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