Lester Company Uses Special Journals to Record Transactions

question 115

Essay

Lester Company uses special journals to record transactions. All of the companies listed below supply inventory to Lester except Harry Co. that supplies equipment. Use the purchases journal given below to answer the following questions:
a. Foot and crossfoot the journal for accuracy.
b. Identify the error and indicate how to correct the error.
c. When Lester compares the general ledger Accounts Payable account to the Accounts Payable ledger, it notices that the general ledger control account is $10,000 more that the schedule of Accounts Payable. What is the most likely cause and how should it be corrected?

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Definitions:

Fewer Resources

The state of having limited assets, funds, or materials to work with or utilize in a project, business, or operation.

Philanthropic Goodwill

The positive reputation and relationships a business builds through charitable actions, donations, or involvement in community services.

Internal Environment

The conditions, entities, events, and factors within an organization that influence its activities and choices, including its culture, employees, and management.

Green Marketing

Marketing efforts designed to promote products by emphasizing their environmental benefits or the environmental consciousness of the brand.