Chapter 2, Problem 8E

Journalizing and posting

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.

a. Journalize the February 11, 20Y9, transaction on page 73 of Quick Fix Company’s two-column journal. Include an explanation of the entry.

b. Prepare a four-column account for Supplies. Enter a debit balance of $400 as of February 1, 20Y9. Place a check mark (✓) in the Posting Reference column.

c. Prepare a four-column account for Accounts Payable. Enter a credit balance of $18,300 as of February 1, 20Y9. Place a check mark (✓) in the Posting Reference column.

d. Post the February 11, 20Y9, transaction to the accounts.

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