Gonya Company’s chart of accounts includes the following selected accounts.

101 Cash ............157 Equipment

120 Merchandise Inventory .......201 Accounts Payable

130 Prepaid Insurance .......332 Cash Dividends

On November 1 the accounts payable ledger of Gonya Company showed the following balances:

A. Hess & Co. $4,500, C. Kimberlin $2,350, G. Ruttan $1,000, and Wex Bros. $1,500. The

November transactions involving the payment of cash were as follows.

Nov. 1 Purchased merchandise, check no. 11, $1,140.

3 Purchased store equipment, check no. 12, $1,700.

5 Paid Wex Bros. balance due of $1,500, less 1% discount, check no. 13, $1,485.

11 Purchased merchandise, check no. 14, $2,000.

15 Paid G. Ruttan balance due of $1,000, less 3% discount, check no. 15, $970.

16 Paid cash dividend of $500, check no. 16.

19 Paid C. Kimberlin in full for invoice no. 1245, $1,150 less 2% discount, check no. 17, $1,127.

25 Paid premium due on one-year insurance policy, check no. 18, $3,000. 30 Paid A. Hess & Co. in full for invoice no. 832, $3,500, 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., Merchandise 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.