contestada

The following purchase transactions occurred during March for Celebration Catering Service:

Mar. 11. Purchased party supplies for $610, on account from Party Hearty Supplies Inc.
Mar. 14. Purchased party supplies for $312, on account from Fun 4 All Supplies Inc.
Mar. 27. Purchased office furniture for $2,480, on account from Office Space Inc.

Record these transactions in the following purchases journal.

DATE Account Credited Post. Ref. Accounts Payable Cr. Party Supplies Dr. Other Accounts Dr. Post. Ref. Amount
Mar. 11
Mar. 14
Mar. 27

Respuesta :

ladeitan

Answer:

Mar. 11

Debit Party supplies $610

Credit Accounts payable $610

(To record purchase of party supplies on account from Party Hearty)

Mar. 14

Debit Party supplies $312

Credit Accounts payable $312

(To record purchase of party supplies on account from Fun 4 All)

Mar. 27

Debit Office furniture $2,480

Credit Accounts payable $2,480

(To record purchase of office furniture)

Explanation:

A purchase made on accounts means a credit purchase. To the buyer, it is recognized as accounts payable while to the supplier, it is recognized as accounts receivable.

On both Mar. 11 and 14, the party supplies were made on credit. Therefore, there is need to credit the accounts payable account.

Meanwhile, on Mar. 27, an asset (office furniture) was purchased on account also. The above applies.

Otras preguntas