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On January 7, 2016, Captec Company purchased $4,175 of supplies on account. In C

ID: 2422582 • Letter: O

Question

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. Required:

A. Journalize the January 7, 2016, transaction on page 33 of Captec Company’s two-column journal.

B. Prepare a four-column account for Supplies. Enter a debit balance of $2,200 as of January 1, 2016. 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 $18,430 as of January 1, 2016. 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 January 7, 2016, transaction to the accounts.

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

A. Journalize the January 7, 2016, transaction on page 33 of Captec Company’s two-column journal.

B. Prepare a four-column account for Supplies. Enter a debit balance of $2,200 as of January 1, 2016. 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 $18,430 as of January 1, 2016. Enter “Balance” in the Item column and 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? Yes or No

Explanation / Answer

a)Journal

b)Supplies a/c                                                                      Account No 15

$2,200

Accounts payable                                                         Account no 21

E) yes rules of debit and credit apply to all companies

Date Description REF Debit Credit Jan 7 Supplies 15 $4,175 To Accounts payable 21 $4,175
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