Assignment
Reineke Company's chart of accounts includes the following selected accounts.
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101
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Cash
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201
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Accounts Payable
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120
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Inventory
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306
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Owner's Drawings
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130
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Prepaid Insurance
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505
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Cost of Goods Sold
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157
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Equipment
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|
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On October 1, the accounts payable ledger of Reineke Company showed the following balances: Uggla Company $4,000, Orr Co. $3,800, Rosenthal Co. $2,200, and Clevenger Company $5,000. The October transactions involving the payment of cash were as follows.
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Oct. 1
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Purchased merchandise, check no. 63, $400.
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3
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Purchased equipment, check no. 64, $820.
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5
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Paid Uggla Company balance due of $4,000, less 2% discount, check no. 65, $3,920.
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10
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Purchased merchandise, check no. 66, $2,350.
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15
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Paid Rosenthal Co. balance due of $2,200, check no. 67.
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16
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C. Reineke, the owner, pays his personal insurance premium of $500, check no. 68.
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19
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Paid Orr Co. in full for invoice no. 610, $2,100 less 2% cash discount, check no. 69, $2,058.
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29
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Paid Clevenger Company in full for invoice no. 264, $2,700, check no. 70.
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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. (Record entries in the order displayed in the problem statement. Round answers to 0 decimal places, e.g. 5,275.)