Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 41

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?