a. Journalize the September 18, 2019, transaction on page 87 of Afton Company’s two column journal. Include an explanation of the entry

On September 18, 2019, Afton Company purchased $2,475 of supplies on account. In Afton Company’s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21.

a. Journalize the September 18, 2019, transaction on page 87 of Afton Company’s two column journal. Include an explanation of the entry.

b. Prepare a four-column account for Supplies. Enter a debit balance of $840 as of

September 1, 2019. Place a check mark in the Posting Reference column.

c. Prepare a four-column account for Accounts Payable. Enter a credit balance of $10,900 as of September 1, 2019. Place a check mark in the Posting Reference column.

d. Post the September 18, 2019, transaction to the accounts.

SOLUTION

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Date	Date	Item	Post. Ref.	Debit	Credit	Balance	Balance
Date	Date	Item	Post. Ref.	Debit	Credit	Debit	Credit
2019
Sept.	1	Balance				840
	18		87	2,475		3,315
Account: Accounts Payable						Account No.	21

Date	Date	Item	Post. Ref.	Debit	Credit	Balance	Balance
Date	Date	Item	Post. Ref.	Debit	Credit	Debit	Credit
2019
Sept.	1	Balance					10,900
	18		87		2,475		13,375

Date	Date	Description	Post. Ref.	Debit	Credit
2019
Sept.	18	Supplies	15	2,475
		Accounts Payable	21		2,475
		Purchased supplies on account.