Question

On February 11, 20Y9, Quick Fix Company purchased $2,250 of supplies on account. In Quick Fix’s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21.
Required:
a. Journalize and insert the posting reference for the February 11, 20Y9, transaction.
b. Prepare a four-column account for Supplies.
c. Prepare a four-column account for Accounts Payable.

Answer 1

Answer:

a. February 15, 20y9, supplies purchased on account

Dr 15-Supplies 2,250

    Cr 21-Accounts payable 2,250

b.

Supplies                                                                               Account N. 15

Date         Particulars        Journal     Debit      Credit        Balance

                                          ref.                                             Debit      Credit

2/11           purchase           1               2,250                       2,250

c.

Accounts payable                                                               Account N. 21

Date         Particulars        Journal     Debit      Credit        Balance

                                          ref.                                             Debit      Credit

2/11           supplies             1                              2,250                       2,250