Question

Instructions On September 18, 2019, Afton Company purchased $4,000 of supplies on account. In Afton Company's chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21. Required: A Joumalize the September 18, 2019, transaction on page 87 of Afton Company's two-column joumal. B. Prepare a four-column account for Supplies. Enter a debit balance of $2,100 as of September 1, 2019. Enter "Balance" in the Item column and place a check mark (N) in the Posting Reference column. C. Prepare a four-column account for Accounts Payable. Enter a credit balance of $18,690 as of September 1, 2019. Enter "Balance" in the Item column and place a check mark (N) in the Posting Reference column. D. Post the September 18, 2019, transaction to the accounts. E. Do the rules of debit and credit apply to all companies?

Answer 1

Requirement A:

	JOURNAL	Page       87
Date	Description	Post. Ref.	Debit	Credit
Sept 18,2019	Supplies	15	$4,000
	Accounts payable	21		$4,000
	[To record purchase of supplies on account]

Requirement B:

Account:Supplies					Account No. 15
Date	Item	Post Ref.	Debit	Credit	Balance
					Debit	Credit
2019
Sept.1	Balance				$2,100
Sept.1		87	$4,000		$6,100

Requirement C:

Account:Accounts payable					Account No. 21
Date	Item	Post Ref.	Debit	Credit	Balance
					Debit	Credit
2019
Sept.1	Balance					$18,690
Sept.1		87	$4,000			$22,690

Requirement D:

Supplies
Beg. Bal.	$2,100
Sept.18	$4,000
Accounts payable
		Beg. Bal.	$18,690
		Sept.18	$4,000

Requirement E:

Yes, the rules of Debit and Credit applies to all companies