On July 27, 2008, Colorcast Co. purchased $1,875 of supplies on account. In Colorcast Co.'s chart of

Question:

On July 27, 2008, Colorcast Co. purchased $1,875 of supplies on account. In Colorcast Co.'s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21.

a. Journalize the July 27, 2008, transaction on page 38 of Colorcast Co.'s two-column journal.

Include an explanation of the entry.

b. Prepare a four-column account for Supplies. Enter a debit balance of $735 as of July 1, 2008. Place a check mark (() in the Posting Reference column.

c. Prepare a four-column account for Accounts Payable. Enter a credit balance of $11,380 as of July 1, 2008. Place a check mark (() in the Posting Reference column.

d. Post the July 27, 2008, transaction to the accounts.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...