Protection Services Inc. had the following transactions during the month of June:

Protection Services Inc. had the following transactions during the month of June:

June 4. Purchased office supplies from Office Universe Inc. on account, $490.
9. Purchased office equipment on account from Tek Village Inc., $2,790.
16. Purchased office supplies from Office Universe Inc. on account, $140.
21. Purchased office supplies from Paper-to-Go Inc. on account, $225.
27. Paid invoice on June 4 purchase from Office Universe Inc.

a. Record the June purchase transactions for Protection Services Inc. in the purchases journal format shown at the top of the next page.




Purchases Journal
Date Account Credited
Post.
Ref.
Accts.
Payable
Cr.
Office
Supplies
Dr.
Other
Accounts
Dr.
Post.
Ref. Amount


b. What is the total amount posted to the accounts payable and office supplies accounts from the purchases journal for June?

c. What is the June 30 balance of the Office Universe Inc. creditor account assuming a zero balance on June 1?


Answer:

a.
PURCHASES JOURNAL
Date Account Credited
Post.
Ref.
Accounts
Payable
Cr.
Office
Supplies
Dr.
Other
Accounts
Dr.
Post.
Ref. Amount
June 4 Office Universe Inc. 490 490
9 Tek Village, Inc. 2,790 Office Equipment 2,790
16 Office Universe Inc. 140 140
21 Paper-to-Go Inc. 225 225
30 Total 3,645 855 2,790
b. $3,645 Credit to Accounts Payable [from purchases journal column total in (a)].
$855 Debit to Office Supplies [from purchases journal column total in (a)].
c. $140 ($0 + $490 + $140 – $490)