Answer:
Reineke Company
Journal Entries:
Oct. 1 Debit 120 Inventory $310
Credit 101 Cash $310
To record the purchase of merchandise via check no. 63
Oct. 3 Debit 157 Equipment, $840
Credit 101 Cash $840
To record the purchase of equipment via check no. 64
Oct. 5 Debit 201 Accounts payable (Uggla Company) $2,500
Credit Cash $2,450
Credit Cash Discounts $50
To record payment on account, less 2% discount, check no. 65
Oct. 10 Debit 120 Inventory $2,270
Credit 101 Cash $2,270
To record the purchase of inventory via check no. 66.
Oct. 15 Debit 201 Accounts payable (Rosenthal Co.) $1,770
Credit 101 Cash $1,770
To record the payment on account by check no. 67.
Oct. 16 Debit 306 Owner's Drawings $450
Credit 101 Cash $450
To record C. Sheridan's payment for his personal insurance premium of $450, check no. 68.
Oct. 19 Debit 201 Accounts payable (Orr Co.) $2,200
Credit 101 Cash $2,156
Credit Cash Discounts $44
To record full payment for invoice no. 610, less 2% cash discount, using check no. 69.
Oct. 29 Debit 201 Accounts payable (Clevenger Company) $2,580
Credit 101 Cash $2,580
To record full payment for invoice no. 264, by check no. 70.
Explanation:
a) Data and Calculations:
Chart of Accounts:
101 Cash
120 Inventory
130 Prepaid insurance
157 Equipment
201 Account payable
306 Owner's drawings
505 Cost of Goods sold
Accounts Payable balances:
Uggla Company $2,500
Orr Co. $2,510
Rosenthal Co. $1,770
Clevenger Company $3,750
Transactions Analysis:
Oct. 1 120 Inventory $310 101 Cash $310 check no. 63
Oct. 3 157 Equipment, $840 101 Cash $840 check no. 64
Oct. 5 201 Accounts payable (Uggla Company) $2,500 101 Cash $2,450 Cash Discounts $50, less 2% discount, check no. 65
Oct. 10 120 Inventory $2,270 101 Cash $2,270 check no. 66, $2,270.
Oct. 15 201 Accounts payable (Rosenthal Co.) $1,770 101 Cash $1,770, check no. 67.
Oct. 16 306 Owner's Drawings $450 101 Cash $450 for his personal insurance premium of $450, check no. 68.
Oct. 19 201 Accounts payable (Orr Co.) $2,200 101 Cash $2,156 Cash Discounts $44 for invoice no. 610, $2,200 less 2% cash discount, check no. 69, $2,156.00.
Oct. 29 201 Accounts payable (Clevenger Company) $2,580 101 Cash $2,580 for invoice no. 264, $2,580, check no. 70.
