Response to the following problem:
Lowery's Pet Depot records purchase transactions in the general journal. The company is located in Cleveland, Ohio. In addition to a general ledger, Lowery's Pet Depot also uses an accounts payable ledger. Transactions for October related to the purchase of merchandise are as follows:
Oct. 3 Bought 12 Automatic Fish Feeders from Barrera Company, $959.88, invoice no. 5493, dated October 2; terms net 30 days; FOB shipping point, freight prepaid and added to the invoice, $79.45 (total $1,039.33).
4 Bought two 18 x 18 Terrarium Stands from Hickman Company, $259.98, invoice no. 2JYX, dated October 2; terms 2/10, n/30; FOB destination.
7 Bought four Chinchilla Bath Houses from Baldwin, Inc., $67.96, invoice no. 4183, dated October 6; terms 1/10, n/30; FOB destination.
10 Received credit memo no. 123 from Baldwin, Inc., for merchandise returned, $13.94.
Oct. 14 Bought 20 Zoo Slider Hoods from Douglas, Inc., $2,599.80, invoice no. X431, dated October 12; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, $140.50 (total $2,740.30).
15 Bought four Hanging Bird Baths from Krause, Inc., $71.96, invoice no. A499, dated October 11; terms net 60 days; FOB destination.
24 Bought eight Automatic Cat Litter Boxes from Villa Manufacturing, $2,399.92, invoice no. 4429, dated October 21; terms net 30 days; FOB destination.
27 Received credit memo no. 452 from Villa Manufacturing for merchandise returned, $346.78.
Required:
1. Open the following accounts in the accounts payable ledger and record the October 1 balances, if any, as given: Baldwin, Inc., $46.57; Barrera Company, $743.15; Douglas, Inc., $615.20; Hickman Company; Krause, Inc., $23.45; Villa Manufacturing, $725.64. For the accounts having balances, write Balance in the Item column and place a check mark in the Post. Ref. column.
2. Record the October 1 balances in the general ledger as given: Accounts Payable 212 controlling account, $2,154.01; Purchases 511, $2,485.12; Purchases Returns and Allowances 512, $287.52; Freight In 514, $48.57. Write Balance in the Item column and place a check mark in the Post. Ref. column.
3. Record the transactions in the general journal .
4. Post to the general ledger and the accounts payable ledger.
5. Prepare a schedule of accounts payable, and compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable.