Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 7-2A (Part Level Submission) Reineke Company's chart of accounts includes the following selected accounts. 101 Cash 201 Accounts Payable 120 Inventory 306 Owner's Drawings
Problem 7-2A (Part Level Submission) Reineke Company's chart of accounts includes the following selected accounts. 101 Cash 201 Accounts Payable 120 Inventory 306 Owner's Drawings 130 Prepaid Insurance 505 Cost of Goods Sold 157 Equipment On October 1, the accounts payable ledger of Reineke Company showed the following balances: Uggla Company $2,900, Orr Co. $2,700, Rosenthal Co. $1,700, and Clevenger Company $3,900. The October transactions involving the payment of cash were as follows. Oct. 1 Purchased merchandise, check no. 63, $340. 3 Purchased equipment, check no. 64, $900. 5 Paid Uggla Company balance due of $2,900, less 2% discount, check no. 65, $2,842. 10 Purchased merchandise, check no. 66, $2,600. 15 Paid Rosenthal Co. balance due of $1,700, check no. 67. 16 C. Reineke, the owner, pays his personal insurance premium of $350, check no. 68. 19 Paid Orr Co. in full for invoice no. 610, $2,150 less 2% cash discount, check no. 69, $2,107. 29 Paid Clevenger Company in full for invoice no. 264, $2,300, check no. 70. 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 cross-foot the journal. (Record entries in the order displayed in the problem statement. Round answers to 0 decimal places, e.g. 5,275.) Cash Payments Journal CP1 Date Ck. No. Account Debited Ref. Other Accounts Dr. Accounts Payable Dr. Inventory Cr. Cash Cr. Oct. 1 63 Inventory 120 340 340 Oct. 3 64 Equipment 157 900 900 M Oct. 5 65 Uggla Company 2900 58 2842 Oct. 10 66 Inventory 120 2600 2600 Oct. 15 4 67 Rosenthal Co. + 1700 1700 Oct. 16 + 68 Owner's Drawing 306 350 350 Oct. 19 69 Orr Co. . 2150 43 2107 X X Oct. 29 70 Clevenger Company 4190 2300 101 2300 X 9050 131391 (X) (201) (120) (101)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started