Dunder Miffl in Company’s chart of accounts includes the following selected accounts.
|
101 |
Cash |
|
120 |
Inventory |
|
130 |
Prepaid Insurance |
|
157 |
Equipment |
|
201 |
Accounts Payable |
|
306 |
Owner’s Drawings |
On November 1, the accounts payable ledger of Dunder Miffl in Company showed the following balances: S. Carell $4,000, D. Schrute $2,100, R. Wilson $800, and W. Rainn $1,300. The November transactions involving the payment of cash were as follows.
|
Nov. |
1 |
Purchased merchandise, check no. 11, $950. |
|
3 |
Purchased store equipment, check no. 12, $1,400. |
|
|
5 |
Paid W. Rainn balance due of $1,300, less 1% discount, check no. 13, $1,287. |
|
|
11 |
Purchased merchandise, check no. 14, $1,700. |
|
|
15 |
Paid R. Wilson balance due of $800, less 3% discount, check no. 15, $776. |
|
|
16 |
M. Scott, the owner, withdrew $400 cash for own use, check no. 16. |
|
|
19 |
Paid D. Schrute in full for invoice no. 1245, $2,100 less 2% discount, check no. 17, $2,058. |
|
|
25 |
Paid premium due on one year insurance policy, check no. 18, $2,400. |
|
|
30 |
Paid S. Carell in full for invoice no. 832, $2,900, check no. 19. |
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.
(b) Insert the beginning balances in the Accounts Payable control and subsidiary accounts, and post the November transactions to these accounts.
(c) Prove the agreement of the control account and the subsidiary account balances.