Kenneth Watson Optical Dispensary completed the following transactions during the latter part of March:

Mar. 15 Purchased office supplies on account, $2,600.

28 Paid $1,300 on account.

Requirements

1. Journalize the transactions of Kenneth Watson Optical Dispensary. Include an explanation with each journal entry.

2. Open the following accounts (use T-account format): Cash (Beginning Balance of $23,000), Office Supplies, and Accounts Payable. Post the journal entries from Requirement 1 to the accounts, and compute the balance in each account.