why might texas tea consider using a subsidiary ledger for the field equipment 551388 | Homework Solutions

PR 5-4B Purchases and cash payments journals; accounts payable and general ledgers

Texas Tea Exploration Co. was established on July 15, 2012, to provide oil-drilling services. Texas Tea uses field equipment (rigs and pipe) and field supplies (drill bits and lubricants) in its operations. Transactions related to purchases and cash payments during the remainder of July are as follows:

Don't use plagiarized sources. Get Your Custom Essay on
why might texas tea consider using a subsidiary ledger for the field equipment 551388 | Homework Solutions
This is a Snippet Preview Access a Complete Custom Written Paper Done by Our Expert Writers
Order Essay

July 16.

Issued Check No. 1 in payment of rent for the remainder of July, $6,000.

16.

Purchased fi eld equipment on account from Petro Services Inc., $26,400.

17.

Purchased fi eld supplies on account from Culver Supply Co., $8,750.

18.

Issued Check No. 2 in payment of fi eld supplies, $3,150, and office supplies, $500.

20.

Purchased office supplies on account from A-One Office Supply Co., $1,200.

Post the journals to the accounts payable subsidiary ledger.

24.

Issued Check No. 3 to Petro Services Inc., in payment of July 16 invoice.

26.

Issued Check No. 4 to Culver Supply Co. in payment of July 17 invoice.

28.

Issued Check No. 5 to purchase land, $190,000.

28.

Purchased office supplies on account from A-One Office Supply Co., $2,970.

Post the journals to the accounts payable subsidiary ledger.

30.

Purchased the following from Petro Services Inc. on account: fi eld supplies, $22,980 and office equipment, $4,200.

30.

Issued Check No. 6 to A-One Office Supply Co. in payment of July 20 invoice.

30.

Purchased fi eld supplies on account from Culver Supply Co., $10,200.

31.

Issued Check No. 7 in payment of salaries, $29,000.

31.

Rented building for one year in exchange for fi eld equipment having a cost of $14,000.

Post the journals to the accounts payable subsidiary ledger.

Instructions

1. Journalize the transactions for July. Use a purchases journal and a cash payments journal, similar to those illustrated in this chapter, and a two-column general journal. Set debit columns for Field Supplies, Office Supplies, and Other Accounts in the purchases journal. Refer to the following partial chart of accounts:

11

Cash

18

Office Equipment

14

Field Supplies

19

Land

15

Office Supplies

21

Accounts Payable

16

Prepaid Rent

61

Salary Expense

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

A-One Office Supply Co.

Culver Supply Co.

Petro Services Inc.

2. Post the individual entries (Other Accounts columns of the purchases journal and the cash payments journal; 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. Sum the balances of the accounts payable subsidiary ledger.

5. Why might Texas Tea consider using a subsidiary ledger for the field equipment?

My Academic Papers | Homework Papers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.