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28 Sep 2019
On October 3, 2018, Regal Company purchased $4,125 of supplieson account. In Regalâs chart of accounts, the supplies account isNo. 15, and the Accounts Payable account is No. 21.
Required: A. Journalize and insert theposting references for the October 3, 2018, transaction on page 91of Regal Companyâs two-column journal. B. Prepare a four-column accountfor Supplies. Enter a debit balance of $2,050 as of October 1,2018. Enter âBalanceâ in the Item column and place a check mark (â)in the Posting Reference column. C. Prepare a four-column accountfor Accounts Payable. Enter a credit balance of $18,440 as ofOctober 1, 2018. Place a check mark (â) in the Posting Referencecolumn. Enter âBalanceâ in the Item column and place a check mark(â) in the Posting Reference column. D. Post the October 3, 2018,transaction to the accounts. Insert the appropriate postingreferences in both the journal and the ledger as each item isposted. E. Do the rules of debit and credit apply to allcompanies?
CHART OF ACCOUNTS
Regal CompanyGeneral 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 Common Stock 32 Retained Earnings 33 Dividends
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
B.Prepare a four-columnaccount for Supplies. Enter a debit balance of $2,050 as of October 1, 2018. Enter âBalanceâin the Item column and place a check mark (â) in the PostingReference column. C.Prepare a four-columnaccount for Accounts Payable. Enter a credit balance of $18,440 as of October 1, 2018. Place a checkmark (â) in the Posting Reference column. Enter âBalanceâ in theItem column and place a check mark (â) in the Posting Referencecolumn. D.Postthe October 3, 2018, transaction to the accounts. Insert theappropriate posting references in both the journal and the ledgeras each item is posted.
On October 3, 2018, Regal Company purchased $4,125 of supplieson account. In Regalâs chart of accounts, the supplies account isNo. 15, and the Accounts Payable account is No. 21.
| Required: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A. | Journalize and insert theposting references for the October 3, 2018, transaction on page 91of Regal Companyâs two-column journal. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| B. | Prepare a four-column accountfor Supplies. Enter a debit balance of $2,050 as of October 1,2018. Enter âBalanceâ in the Item column and place a check mark (â)in the Posting Reference column. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| C. | Prepare a four-column accountfor Accounts Payable. Enter a credit balance of $18,440 as ofOctober 1, 2018. Place a check mark (â) in the Posting Referencecolumn. Enter âBalanceâ in the Item column and place a check mark(â) in the Posting Reference column. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| D. | Post the October 3, 2018,transaction to the accounts. Insert the appropriate postingreferences in both the journal and the ledger as each item isposted. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| E. | Do the rules of debit and credit apply to allcompanies? CHART OF ACCOUNTS Regal CompanyGeneral Ledger
|
Casey DurganLv2
28 Sep 2019
Related questions
Elite RealtyGeneral Ledger
| ASSETS | |
| 11 | Cash |
| 12 | Accounts Receivable |
| 13 | Prepaid Insurance |
| 14 | Office Supplies |
| 16 | Land |
| LIABILITIES | |
| 21 | Accounts Payable |
| 22 | Unearned Rent |
| 23 | Notes Payable |
| EQUITY | |
| 31 | Common Stock |
| 32 | Retained Earnings |
| 33 | Dividends |
| REVENUE | |
| 41 | Fees Earned |
| EXPENSES | |
| 51 | Salary and Commission Expense |
| 52 | Rent Expense |
| 53 | Advertising Expense |
| 54 | Automobile Expense |
| 59 | Miscellaneous Expense |
Elite Realty acts as an agent in buying, selling, renting, andmanaging real estate. The unadjusted trial balance on March 31,2018, follows:
Elite Realty
UNADJUSTED TRIAL BALANCE
March 31, 2018
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
1 | Cash | 26,700.00 | |
2 | Accounts Receivable | 59,300.00 | |
3 | Prepaid Insurance | 3,100.00 | |
4 | Office Supplies | 2,100.00 | |
5 | Accounts Payable | 12,700.00 | |
6 | Common Stock | 10,000.00 | |
7 | Retained Earnings | 36,100.00 | |
8 | Dividends | 2,300.00 | |
9 | Fees Earned | 234,500.00 | |
10 | Salary and Commission Expense | 145,000.00 | |
11 | Rent Expense | 29,000.00 | |
12 | Advertising Expense | 16,700.00 | |
13 | Automobile Expense | 5,100.00 | |
14 | Miscellaneous Expense | 4,000.00 | |
15 | Totals | 293,300.00 | 293,300.00 |
The following business transactions were completed by EliteRealty during April 2018. Enter the transactions through the 23rdon Page 18 of the two-column journal:
| Apr. | 1 | Paid rent on office for month,$4,500. |
| 2 | Purchased office supplies onaccount, $2,200. | |
| 5 | Paid insurance premiums,$5,100. | |
| 10 | Received cash from clients onaccount, $53,000. | |
| 15 | Purchased land for a futurebuilding site for $230,500, paying $22,000 in cash and giving anote payable for the remainder. | |
| 17 | Paid creditors on account,$6,100 | |
| 20 | Returned a portion of theoffice supplies purchased on April 2, receiving full credit fortheir cost, $330. | |
| 23 | Paid advertising expense,$4,500. |
Enter the following transactions on Page 19 of the two-columnjournal:
| Apr. | 27 | Discovered an error incomputing a commission; received cash from the salesperson for theoverpayment, $3,000. |
| 28 | Paid automobile expense(including rental charges for an automobile), $1,700. | |
| 29 | Paid miscellaneous expenses,$1,800. | |
| 30 | Recorded revenue earned andbilled to clients during the month, $54,000. | |
| 30 | Paid salaries and commissionsfor the month, $11,900. | |
| 30 | Paid dividends, $4,000. | |
| 30 | Rented land purchased on April15 to local merchants association for use as a parking lot in Mayand June, during a street rebuilding program; received advancepayment of $10,200. |
| Required: | |
|---|---|
| 1. | Record the April 1, 2018,balance of each account in the appropriate balance column of afour-column account, type Balance in the item section, and select acheck mark in the Posting Reference column. |
| 2. | Journalize the transactionsfor April in a two-column journal beginning on Page 18. Refer tothe Chart of Accounts for exact wording of account titles. Insertthe appropriate posting references in both the journal and theledger as each item is posted. |
| 3. | Post to the ledger, extendingthe account balance to the appropriate balance column after eachposting. Post in chronological order. For transactions occurring onthe same day, post in the order presented in the instructions.Insert the appropriate posting references in both the journal andthe ledger as each item is posted. |
| 4. | Prepare an unadjusted trialbalance of the ledger as of April 30, 2018. |
| 5. | Assume that the April 30transaction for salaries and commissions should have been $19,100.(a) Why did the unadjusted trial balance in (4) balance? (b)Journalize the correcting entry on April 30. Use page 20. (Note:You will not be required to post this entry to the ledger at thistime.) (c) Is this error a transposition or slide? |
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