Question

John Bryant Optical Dispensary completed the following transactions during the latter part of​ March:Mar. 15 Purchased office supplies on account, $4,200 28 Paid $1,800 on account. Requirements. Mar. 28 Accounts Payable 1,000 Cash 1,800 Paid cash on account. The following T-accounts have been opened for you: Cash Accounts PayableBal $21,000Office SuppliesRequirements
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 Payable. Post the journal entries from Requirement 1 to the accounts, and compute the balance in each account.

Answer 1

Answer:

1.                             Journal Entry

Date            Account and Explanation              Debit       Credit

March 15     Office supplies                               $4,200

                          Accounts Payable                                     $4,200

                    (To record purchase of office supplies on account)

March 28      Account Payable                          $1,800

                            Cash                                                           $1,800

2.                                Cash

Debit          Amount        Credit          Amount

Balance      $21,000        $1,800        March 28

Balance      $19,200

                              Office Supplies

Debit             Amount        Credit          Amount

March 15         $4,200            -                      -

Balance          $4,200

                               Account Payable

Debit          Amount        Credit          Amount

March 28      $1,800        March 15      $4,200

                                         Balance       $2,400