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. 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

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

PAGE 87

JOURNAL

ACCOUNTING EQUATION

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

	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.

LEDGER

Account: Supplies15Account No.

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

LEDGER

Account: Supplies15Account No.

Account: Accounts Payable21Account No.

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

E. Do the rules of debit and credit apply to all companies?

Yes

No

Answer 1