14th Edition

ISBN: 9781305653535

Author: Carl Warren, James M. Reeve, Jonathan Duchac

Publisher: Cengage Learning

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Textbook Question

Chapter 2, Problem 2.8EX

Journalizing and posting

On October 3, 2018, Regal Company purchased $3,600 of supplies on account. In Regal’s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21.

A. Journalize the October 3, 2018, transaction on page 91 of Regal Company’s two-column journal. Include an explanation of the entry.
B. Prepare a four-column account for Supplies. Enter a debit balance of $770 as of October 1, 2018. Place a check mark (✓) in the Posting Reference column.
C. Prepare a four-column account for Accounts Payable. Enter a credit balance of $26,200 as of October 1, 2018. Place a check mark (✓) in the Posting Reference column.
D. Post the October 3, 2018, transaction to the accounts.
E. Do the rules of debit and credit apply to all companies?

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Chapter 2, Problem 2.7EX

Chapter 2, Problem 2.9EX

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Chapter 2 Solutions

Corporate Financial Accounting

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Solution Summary: The author explains that Journal is the book of original entry and consists of the day-to-day financial transactions in a chronological order.

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