Question

Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows:

May 1. Issued Check No. 57 to Bio Safe Supplies Inc. in payment of account, $345.
May 3. Purchased cleaning supplies on account from Brite N’ Shine Products Inc., $200.
May 8. Issued Check No. 58 to purchase equipment from Carson Equipment Sales, $2,860.
May 12. Purchased cleaning supplies on account from Porter Products Inc., $360.
May 15. Issued Check No. 59 to Bowman Electrical Service in payment of account, $145.
May 18. Purchased supplies on account from Bio Safe Supplies Inc., $240.
May 20. Purchased electrical repair services from Bowman Electrical Service on account, $110.
May 26. Issued Check No. 60 to Brite N’ Shine Products Inc. in payment of May 3 invoice.
May 31. Issued Check No. 61 in payment of salaries, $5,600.
Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are similar to those illustrated in the text. Place a check mark (✓) in the Post. Ref. column to indicate when the accounts payable subsidiary ledger should be posted. Wisk Away Cleaning Services Inc. uses the following accounts:
Cash 11
Cleaning Supplies 14
Equipment 18
Accounts Payable 21
Salary Expense 51
Electrical Service Expense 53

Answer 1

Wisk Away Cleaning Services Inc.

a) Purchases Journal

Date Description Debit Credit

May 3 Cleaning Supplies 14 $200

Accounts Payable (Brite N’ Shine Products Inc.) 2`1 $200

To record the purchase of cleaning supplies on account.

May 18 Cleaning Supplies 14 $240

Accounts Payable (Bio Safe Supplies Inc.) 21 $240

To record the purchase of cleaning supplies on account.

May 20 Electrical Service Expense 53 $110

Accounts Payable (Bowman Electrical Service) 21 $110

To record the purchase of electrical repair service on account.

b) Cash Payments Journal

Date Description Debit Credit

May 1 Accounts Payable (Safe Supplies Inc.) 21 $345

Cash Account 11 $345

To record the issue of Check No. 57 in payment.

May 15 Accounts Payable (Bowman Electrical Service) 21 $145

Cash 11 $145

To record the issue of Check No. 59 in payment.

May 26 Accounts Payable (Brite N' Shine Products Inc.) 21 $200

Cash 11 $200

To record the issue of Check No. 60 in payment.

May 31 Salaries Expense 51 $5,600

Cash 11 $5,600

To record the issue of Check No. 61 in payment of salaries.

Step-by-step explanation:

Journals are prepared to record transactions. There are many types of journal. They are classified according to the type of transactions. There are purchases journal, sales journal, general journal, cash journal, etc.