On February 11, 20Y9, Quick Fix Company purchased $2,250 of supplies on account. In Quick Fixs chart
Question:
On February 11, 20Y9, Quick Fix Company purchased $2,250 of supplies on account. In Quick Fix’s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21.
a. Journalize the February 11, 20Y9, transaction on page 73 of Quick Fix Company’s two-column journal. Include an explanation of the entry.
b. Prepare a four-column account for Supplies. Enter a debit balance of $400 as of February 1, 20Y9. Place a check mark (✓) in the Posting Reference column.
c. Prepare a four-column account for Accounts Payable. Enter a credit balance of $18,300 as of February 1, 20Y9. Place a check mark (✓) in the Posting Reference column.
d. Post the February 11, 20Y9, transaction to the accounts.
e. Do the rules of debit and credit apply to all companies?
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...
Step by Step Answer:
a JOURNAL Page 73 Date Description Post Ref Debit Credit 20Y9 Feb 11 Supplies 15 2250 Accounts Payable 21 2250 Purchased supplies on account b c d Account Supplies Account No 15 Date Item Post Ref Debit Credit Balance Debit Credit 20Y9 Feb 1 Balance 400 11 73 2250 2650 Account ...View the full answer
Corporate Financial Accounting
ISBN: 9781337398169
15th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
