please look at the pictures to see what format the website want it. On October 3
ID: 2331379 • Letter: P
Question
please look at the pictures to see what format the website want it.
On October 3, 2018, Regal Company purchased $4,125 of supplies on account. In Regal’s chart of accounts, the supplies account is No. 15, and the Accounts Payable account is No. 21.
Required:
A. Journalize and insert the posting references for the October 3, 2018, transaction on page 91 of Regal Company’s two-column journal.
B. Prepare a four-column account for Supplies. Enter a debit balance of $2,300 as of October 1, 2018. Enter “Balance” in the Item column and place a check mark () in the Posting Reference column.
C. Prepare a four-column account for Accounts Payable. Enter a credit balance of $18,010 as of October 1, 2018. Place a check mark () in the Posting Reference column. Enter “Balance” in the Item column and place a check mark () in the Posting Reference column.
D. Post the October 3, 2018, transaction to the accounts. Insert the appropriate posting references in both the journal and the ledger as each item is posted.
E. Do the rules of debit and credit apply to all companies?
Chart of Accounts
CHART OF ACCOUNTS
Regal Company
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Land
14 Prepaid Rent
15 Supplies
16 Equipment
17 Automobiles
LIABILITIES
21 Accounts Payable
22 Unearned Rent
23 Notes Payable
24 Salaries Payable
EQUITY
31 Common Stock
32 Retained Earnings
33
Dividends
A. Journalize and insert the posting references for the October 3, 2018, transaction on page 91 of Regal Company’s two-column journal.
B. Prepare a four-column account for Supplies. Enter a debit balance of $2,300 as of October 1, 2018. Enter “Balance” in the Item column and place a check mark () in the Posting Reference column.
C. Prepare a four-column account for Accounts Payable. Enter a credit balance of $18,010 as of October 1, 2018. Place a check mark () in the Posting Reference column. Enter “Balance” in the Item column and place a check mark () in the Posting Reference column.
D. Post the October 3, 2018, transaction to the accounts. Insert the appropriate posting references in both the journal and the ledger as each item is posted.
REVENUE
41 Fees Earned
42 Sales Commission
EXPENSES
51 Advertising Expense
52 Automobile Expense
53 Insurance Expense
54 Rent Expense
55 Wages Expense
56 Supplies Expense
57 Utilities Expense
58 Miscellaneous Expense
B. Prepare a four-column account for Supplies. Enter a debit balance of $2,300 as of October 1, 2018. Enter “Balance” in the Item column and place a check mark () in the Posting Reference column.
C. Prepare a four-column account for Accounts Payable. Enter a credit balance of $18,010 as of October 1, 2018. Place a check mark () in the Posting Reference column. Enter “Balance” in the Item column and place a check mark () in the Posting Reference column.
D. Post the October 3, 2018, transaction to the accounts. Insert the appropriate posting references in both the journal and the ledger as each item is posted.
Explanation / Answer
E) Yes, the rule of debit and credit will prevail to each and every industry because every transaction of any industry have two parts - one has to follow the debit rules and the other has to follow the credit rules.
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A) JOURNAL AND ACCOUNTING EQUATION: Journal Accounting Equation date description post ref. debit credit Assets Liabilities Equity Oct 3 2018 Supplies 15 4125 4125 Accounts Payable 21 4125 4125 (being supplies purchased on credit) B, C & D) Ledger Account : Supplies Account No. 15 Date Item Post Ref. Debit Credit Balance Debit Credit 1 Oct 1 2018 Opening Balance 2300 2300 2 Oct 3 2018 Accounts Payable 21 4125 6425 Account : Accounts Payable Account No. 21 Date Item Post Ref. Debit Credit Balance Debit Credit 1 Oct 1 2018 Opening Balance 18010 18010 2 Oct 3 2018 Supplies 4125 22135Related Questions
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