Schellhammer Company’s chart of accounts includes the following selected accounts.
130 Prepaid Insurance
201 Accounts Payable
306 Owner’s Drawings
On November 1, the accounts payable ledger of Schellhammer Company showed the following balances: S. Gentry $4,000, D. Montero $2,100, R. Trumbo $800 and W. Olivo $1,800. The November transactions involving the payment of cash were as follows.
Nov. 1 Purchased merchandise, check no. 11, $950.
3 Purchased store equipment, check no. 12, $1,400.
5 Paid W. Olivo balance due of $1,800, less 1% discount, check no. 13, $1,782.
11 Purchased merchandise, check no. 14, $1,700.
15 Paid R. Trumbo balance due of $800, less 3% discount, check no. 15, $776.
16 M. Richey, the owner, withdrew $400 cash for own use, check no. 16.
19 Paid D. Montero in full for invoice no. 1245, $2,100 less 2% discount, check no. 17, $2,058.
25 Paid premium due on one-year insurance policy, check no. 18, $2,400.
30 Paid S. Gentry in full for invoice no. 832, $2,700, check no. 19.
(a) 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.
(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.