Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 31 views

    West Texas Exploration Co Was Established On October 15 2016

    Uploaded by

    Muhammad Shahid
    West Texas Exploration Co. was established on October 15, 2016 to provide oil-drilling services. Throughout October, the company made various purchases and payments. This included purchasing field and office supplies on account, issuing checks for rent and supplies, and purchasing land and field equipment. The document provides transactions that need to be recorded and posted to the appropriate accounts in the general ledger and accounts payable subsidiary ledger.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    West Texas Exploration Co Was Established On October 15 2016

    Uploaded by

    Muhammad Shahid
    31 views2 pages
    West Texas Exploration Co. was established on October 15, 2016 to provide oil-drilling services. Throughout October, the company made various purchases and payments. This included purchasing field and office supplies on account, issuing checks for rent and supplies, and purchasing land and field equipment. The document provides transactions that need to be recorded and posted to the appropriate accounts in the general ledger and accounts payable subsidiary ledger.

    Original Description:

    Uploading for research purpose

    Original Title

    West Texas Exploration Co Was Established on October 15 2016

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    West Texas Exploration Co. was established on October 15, 2016 to provide oil-drilling services. Throughout October, the company made various purchases and payments. This included purchasing field and office supplies on account, issuing checks for rent and supplies, and purchasing land and field equipment. The document provides transactions that need to be recorded and posted to the appropriate accounts in the general ledger and accounts payable subsidiary ledger.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    31 views2 pages

    West Texas Exploration Co Was Established On October 15 2016

    Uploaded by

    Muhammad Shahid
    West Texas Exploration Co. was established on October 15, 2016 to provide oil-drilling services. Throughout October, the company made various purchases and payments. This included purchasing field and office supplies on account, issuing checks for rent and supplies, and purchasing land and field equipment. The document provides transactions that need to be recorded and posted to the appropriate accounts in the general ledger and accounts payable subsidiary ledger.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    West Texas Exploration Co was established on October 15

    2016 #6903
    West Texas Exploration Co. was established on October 15, 2016, to provide oil-drilling
    services. West Texas 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 October are as follows:Oct. 16. Issued Check No. 1 in payment of rent for the
    remainder of October, $7,000.16. Purchased field equipment on account from Petro Services
    Inc., $32,600.17. Purchased field supplies on account from Midland Supply Co., $9,780.18.
    Issued Check No. 2 in payment of field supplies, $4,570, and office supplies, $650.20.
    Purchased office supplies on account from A-One Office Supply Co., $1,320.Post the journals
    to the accounts payable subsidiary ledger.24. Issued Check No. 3 to Petro Services Inc., in
    payment of October 16 invoice.Oct. 26. Issued Check No. 4 to Midland Supply Co. in payment
    of October 17 invoice.28. Issued Check No. 5 to purchase land, $240,000.28. Purchased office
    supplies on account from A-One Office Supply Co., $3,670.Post the journals to the accounts
    payable subsidiary ledger.30. Purchased the following from Petro Services Inc. on account: field
    supplies, $25,300 and office equipment, $5,500.30. Issued Check No. 6 to A-One Office Supply
    Co. in payment of October 20 invoice.30. Purchased field supplies on account from Midland
    Supply Co., $12,450.31. Issued Check No. 7 in payment of salaries, $32,000.31. Rented
    building for one year in exchange for field equipment having a cost of $15,000.Post the journals
    to the accounts payable subsidiary ledger.Oct. 26. Issued Check No. 4 to Midland Supply Co. in
    payment of October 17 invoice.28. Issued Check No. 5 to purchase land, $240,000.28.
    Purchased office supplies on account from A-One Office Supply Co., $3,670.Post the journals
    to the accounts payable subsidiary ledger.30. Purchased the following from Petro Services Inc.
    on account: field supplies, $25,300 and office equipment, $5,500.30. Issued Check No. 6 to A-
    One Office Supply Co. in payment of October 20 invoice.30. Purchased field supplies on
    account from Midland Supply Co., $12,450.31. Issued Check No. 7 in payment of salaries,
    $32,000.31. Rented building for one year in exchange for field equipment having a cost of
    $15,000.Post the journals to the accounts payable subsidiary ledger.Instructions1. Journalize
    the transactions for October. 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 ................................... Cash14 ................................... Field
    Supplies15................................... Office Supplies16................................... Prepaid
    Rent17................................... Field Equipment18 .................................. Office
    Equipment19................................... Land21................................... Accounts Payable61
    ...................................Salary Expense71 ...................................Rent ExpenseAt the points
    indicated in the narrative of transactions, post to the following subsidiary accounts in the
    accounts payable ledger:A-One Office Supply Co.Midland 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 creditor balances.5. Why might West Texas consider using a
    subsidiary ledger for the field equipment?View Solution:
    1/2
    West Texas Exploration Co was established on October 15 2016

    ANSWER
    http://paperinstant.com/downloads/west-texas-exploration-co-was-established-on-
    october-15-2016/

    2/2
    Powered by TCPDF (www.tcpdf.org)

    You might also like