Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 31

Journalizing and posting
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