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

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.

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?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...