Question: Some of the ledger accounts for the Sanderson Hardware Company

Some of the ledger accounts for the Sanderson Hardware Company are numbered and listed below. For each of the October 2011 transactions numbered 1 through 12 below, indicate by account number which accounts should be debited and which should be credited. The company uses the perpetual inventory system. Assume that appropriate adjusting entries were made at the end of September.
1. Accounts payable
2. Equipment
3. Inventory
4. Accounts receivable
5. Cash
6. Supplies
7. Supplies expense
8. Prepaid rent
9. Sales revenue
10. Retained earnings
11. Note payable
12. Common stock
13. Unearned revenue
14. Rent expense
15. Wages payable
16. Cost of goods sold
17. Wage expense
18. Interest expense

1. Paid a cash dividend.
2. Paid rent for the next three months.
3. Sold goods to customers on account.
4. Purchased inventory on account.
5. Purchased supplies for cash.
6. Paid employees wages for September.
7. Issued common stock in exchange for cash.
8. Collected cash from customers for goods sold in 3.
9. Borrowed cash from a bank and signed a note.
10. At the end of October, recorded the amount of supplies that had been used during the month.
11. Received cash for advance payment from customer.
12. Accrued employee wages for October.

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  • CreatedJune 24, 2013
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