Grypp Companys chart of accounts includes the following selected accounts. 101 ..........Cash 120 ..........Inventory 130 ..........Prepaid Insurance

Question:

Grypp Company’s chart of accounts includes the following selected accounts.

101 ..........Cash

120 ..........Inventory

130 ..........Prepaid Insurance

157 ..........Equipment

201 ..........Accounts Payable

332 ..........Cash Dividends

On November 1, the accounts payable ledger of Grypp Company showed the following balances: C. Holt & Co. $4,500, O. Kroll $2,350, K. Radaj $1,000, and Weber Bros. $1,500.

The November transactions involving the payment of cash were as follows.

Nov. 1 Purchased merchandise, check no. 11, $1,190.

3 Purchased store equipment, check no. 12, $1,700.

5 Paid Weber Bros. balance due of $1,500, less 2% discount, check no. 13, $1,470.

11 Purchased merchandise, check no. 14, $2,000.

15 Paid K. Radaj balance due of $1,000, less 3% discount, check no. 15, $970.

16 Paid cash dividend of $500, check no. 16.

19 Paid O. Kroll in full for invoice no. 1245, $1,200 less 1% discount, check no. 17, $1,188.

25 Paid premium due on one-year insurance policy, check no. 18, $3,000.

30 Paid C. Holt & Co. in full for invoice no. 832, $3,500, check no. 19.

Instructions

(a) Journalize the transactions above in a four-column cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Inventory Cr., and Cash Cr. Foot and crossfoot the journal.

(b) Insert the beginning balances in the Accounts Payable control and subsidiary accounts, and post the November transactions to these accounts.

Accounts Payable
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