On October 3, 2018, Regal Company purchased $4,125 of supplies on account. In Regals chart of accounts, the supplies account is No. 15, and the Accounts Payable account is No. 21.

Required:

A.

Journalize and insert the posting references for the October 3, 2018, transaction on page 91 of Regal Companys two-column journal.

B.

Prepare a four-column account for Supplies. Enter a debit balance of $2,050 as of October 1, 2018. 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 $18,440 as of October 1, 2018. 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 October 3, 2018, transaction to the accounts. Insert the appropriate posting references in both the journal and the ledger as each item is posted.

E.

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

CHART OF ACCOUNTS

Regal CompanyGeneral Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Land
14	Prepaid Rent
15	Supplies
16	Equipment
17	Automobiles

	LIABILITIES
21	Accounts Payable
22	Unearned Rent
23	Notes Payable
24	Salaries Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned
42	Sales Commission

	EXPENSES
51	Advertising Expense
52	Automobile Expense
53	Insurance Expense
54	Rent Expense
55	Wages Expense
56	Supplies Expense
57	Utilities Expense
58	Miscellaneous Expense

B. Prepare a four-column account for Supplies. Enter a debit balance of $2,050 as of October 1, 2018. 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 $18,440 as of October 1, 2018. 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 October 3, 2018, transaction to the accounts. Insert the appropriate posting references in both the journal and the ledger as each item is posted.