Question

On September 18, 2019, Afton Company purchased $2,475 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.	Journalize the September 18, 2019, transaction on page 87 of Afton Company’s two-column journal.
B.	Prepare a four-column account for Supplies. Enter a debit balance of $840 as of September 1, 2019. 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 $10,900 as of September 1, 2019.. 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 September 18, 2019, transaction to the accounts.
E.	Do the rules of debit and credit apply to all companies?

CHART OF ACCOUNTS

Afton Company

General 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	Cammy Jardine, Capital
32	Cammy Jardine, Drawing

	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

A. Journalize the September 18, 2019, transaction on page 87 of Afton Company’s two-column journal.

How does grading work?

PAGE 87

JOURNAL

ACCOUNTING EQUATION

Score: 27/27

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	?	?	?	?		?
2		?	?		?		?

B. Prepare a four-column account for Supplies. Enter a debit balance of $840 as of September 1, 2019. 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 $10,900 as of September 1, 2019. Enter “Balance” in the Item column and place a check mark (?) in the Posting Reference column.

D. Post the September 18, 2019, transaction to the accounts.

Question not attempted.

LEDGER

Score: 0/44

Account: Supplies15Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Account: Accounts Payable21Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Answer 1