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?