Reineke Company's chart of accounts includes the following selected accounts.
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 | 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% discount, check no. 69, $1,960. |
| 29 | Paid Clevenger Company in full for invoice no. 264, $2,500, check no. 70. |
Instructions
- 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.
- Insert the beginning balances in the Accounts Payable control and subsidiary accounts, and post the October transactions to these accounts.
- Prove the agreement of the control account and subsidiary account balances.
Solution
a.
Reineke Company
b.
Reineke Company
General Ledger
General Ledger
c.
Proof of Agreement
