Question

Roland Foster Optical Dispensary completed the following transactions during the latter part of March: Mar. 15 28 Purchased office supplies on account, $3,400. Paid $1,800 on account. Requirements 1. Journalize the transactions of Roland Foster Optical Dispensary. Include an explanation with each journal entry. 2. Open the following accounts (use T-account format): Cash (Beginning Balance of $21,000), Office Supplies, and Accounts Pavable. Post the journal entries from Requirement to the accounts, and compute the balance in each account

Answer 1

- Journal Entries 0 Date Accounts Refno. Dr. Cr. 1. Maruch 15 9400 3400 Office Supplies a/c Dr. To Accounts Payable ( office supplies are purchased on credit by the Roland Fosted) March 2s 1800 180o Accounts Payable al Dr. To Cash al (Payment is being made to the vendon for the purchase) T-accounts Cash Cr. Balance bit $21000 Accounts Payable Balance cld $1800 $ 19200 $21000 $21000 Cr. Office Supplies Accounts Payable $3400 Balance cld Buod $3400 $ 3400 Accounts Payable Cash & soo Office Balance eld $1600 in Supplies $3400