EX 2-8 journalizing and posting

On January 7, 2016, Captec Company purchased $4,175 of supplies on account. In Captec Company’s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21.

a. Journalize the January 7, 2016, transaction on page 33 of Captec Company’s two-column journal. Include an explanation of the entry.

b. Prepare a four-column account for Supplies. Enter a debit balance of $2,200 as of January 1, 2016. Place a check mark () in the Posting Reference column.

c. Prepare a four-column account for Accounts Payable. Enter a credit balance of $18,430 as of January 1, 2016. Place a check mark () in the Posting Reference column.

d. Post the January 7, 2016, transaction to the accounts.

e. Do the rules of debit and credit apply to all companies?

Answer:

a. 

JOURNAL Page 33 

Date 

Description 

Post. 

Ref. 

2016 

Jan. 7 Supplies 15 4,175 

Accounts Payable 21 4,175 

Purchased supplies on account. 

b., c., d. 

Account: Supplies Account No. 15 

Account: 

Accounts Payable 

  

Date 

Item 

Post. 

Ref. 

Debit 

Credit 

2016 

Jan. 1 Balance ü 18,430 

7 33 4,175 22,605 

e. Yes, the rules of debit and credit apply to all companies.