On August 7, 2010, Mainsail Co. purchased $2,190 of supplies on account. In Mainsail Co.’s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21.
a. Journalize the August 7, 2010, transaction on page 19 of Mainsail Co.’s two-column journal. Include an explanation of the entry.
b. Prepare a four-column account for Supplies. Enter a debit balance of $1,050 as of August 1, 2010. Place a check mark (✔) in the Posting Reference column.
c. Prepare a four-column account for Accounts Payable. Enter a credit balance of $15,600 as of August 1, 2010. Place a check mark (✔) in the Posting Reference column.
d. Post the August 7, 2010, transaction to the accounts.