Reinke Company chart if accounts includes the following selected accounts: 101 C
ID: 2483016 • Letter: R
Question
Reinke Company chart if accounts includes the following selected accounts:
101 Cash
120 Inventories
130 Prepaid Insurance
157 Equipment
201 Accounts Payable
306 Owners Drawings
505 Cost of Goods Sold
On October 1, the accounts payable ledger of Reineke Company showed the following balances: Uggla Company $2,700, Orr Co. $2,500, Rosenthal Co. $1,800, and Clevenger Company $3,700. The October transactions involving the payment of cash were as follows.
Oct. 1 Purchased merchandise, check no. 63, $300.
3 Purchased equipment, check no. 64, $800.
5 Paid Uggla Company balance due of $2,700, less 2% discount, check no. 65, $2,646.
10 Purchased merchandise, check no. 66, $2,550.
15 Paid Rosenthal Co. balance due of $1,800, check no. 67.
16 C. Reineke, the owner, pays his personal insurance premium of $400, check no. 68.
19 Paid Orr Co. in full for invoice no. 610, $2,000 less 2% cash discount, check no. 69, $1,960.
29 Paid Clevenger Company in full for invoice no. 264, $2,500, check no. 70.
Instructions
(a) Journalize the transactions above in a four-column cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Inventory Cr., and Cash Cr. Foot and cross-foot the journal.
Explanation / Answer
Date Account Other Accounts Dr. Accounts Payable Dr. Inventory Cr. Cash Cr. Oct. 1 Inventories 300 300 Oct-03 Equipment 800 800 Oct-05 2700 54 2646 Oct-10 Inventory 2550 2550 Oct-15 1800 1800 Oct-16 Owners Drawings 400 400 Oct-19 2000 40 1960 Oct-29 2500 2500