Ward Company Uses a Single-Column Purchases Journal, a Cash Payments

question 31

Essay

Ward Company uses a single-column purchases journal, a cash payments journal, and a general journal to record transactions with its suppliers and others. Record the following transactions in the appropriate journals.
Transactions
Oct. 5 Purchased merchandise on account for $10,000 from Groton Company. Terms: 2/10, n/30; FOB shipping point.
Oct. 6 Paid $7,200 to Federated Insurance Company for a two-year fire insurance policy.
Oct. 8 Purchased store supplies on account for $700 from Flynn Supply Company. Terms: 2/10, n/30.
Oct. 11 Purchased merchandise on account for $14,000 from Buehler Corporation. Terms: 2/10, n/30; FOB shipping point.
Oct. 13 Issued a debit memorandum for $5,000 to Buehler Corporation for merchandise purchased on October 11 and returned because of damage.
Oct. 15 Paid Groton Company for merchandise purchased on October 5, less discount.
Oct. 16 Purchased merchandise for $8,000 cash from Clifford Company.
Oct. 21 Paid Buehler Corporation for merchandise purchased on October 11, less merchandise returned on October 13, less discount.
Oct. 25 Purchased merchandise on account for $22,000 from Dooley Company. Terms: 2/10, n/30; FOB shipping point.
Oct. 31 Purchased office equipment for $30,000 cash from Paten Office Supply Company.
WARD COMPANY
Purchases Journal
P1
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Inventory. Dr.
Date Account Credited Ref. Accounts Payable Cr.
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WARD COMPANY
General Journal
G1
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Date Explanation Ref. Debit Credit
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WARD COMPANY
Cash Payments Journal
CP1
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Other Accounts
Account Accounts Payable Inventory Cash
Date Debited Ref. Dr. Dr. Cr. Cr.
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